By Staples                                             S.B. No. 652
         77R3448 SGA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the payment of retirement benefits to certain members
 1-3     of the Employees Retirement System of Texas who return to state
 1-4     employment.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 812.201(c), Government Code, is amended to
 1-7     read as follows:
 1-8           (c)  A person who is retired from the elected class of
 1-9     membership and who again holds a position included in that class
1-10     may elect to become a member again by filing notice with the
1-11     retirement system.  Except as provided by Section 812.203(c)
1-12     [812.203(e)], when benefit payments are resumed, the retirement
1-13     system shall recompute the annuity selected at the time of the
1-14     person's original retirement to include the additional service
1-15     established during membership under this subsection.
1-16           SECTION 2. Section 812.202(b), Government Code, is amended to
1-17     read as follows:
1-18           (b)  The payment of benefits to a retiree for service
1-19     credited in the employee class of membership is not affected by the
1-20     retiree's taking[, for nine months or less within any fiscal year,]
1-21     a position included in the employee class.
1-22           SECTION 3. Section 812.203, Government Code, is amended to
1-23     read as follows:
1-24           Sec. 812.203.  BENEFITS AFFECTED. (a)  [The retirement system
 2-1     shall suspend annuity payments to a retiree for service that was
 2-2     credited to the retiree in the employee class if the retiree holds
 2-3     a position included in the employee class for more than nine months
 2-4     in any one fiscal year:]
 2-5                 [(1)  until the retiree no longer holds a position
 2-6     included in the employee class; or]
 2-7                 [(2)  until the next fiscal year, whichever comes
 2-8     first.]
 2-9           [(b)  The board of trustees by rule shall determine what
2-10     constitutes a month for purposes of this section.]
2-11           [(c)]  Time during which retirement benefit payments are
2-12     suspended as provided by this section does not reduce the number of
2-13     months payments are to be made under an optional benefit plan
2-14     providing for a specific amount of benefits for a guaranteed number
2-15     of months after retirement.
2-16           (b) [(d)]  If a retiree takes the oath for a position
2-17     included in the elected class of membership, the retirement system
2-18     shall suspend annuity payments to the person for service that was
2-19     credited in that class, until the person no longer holds that
2-20     position.
2-21           (c) [(e)]  If a member who originally retired with service
2-22     credited at the time of that retirement only in the elected class
2-23     of membership again retires, the person at the time of subsequent
2-24     retirement may select an annuity based on service in the elected
2-25     class as if the person were retiring for the first time.  If the
2-26     person selects an annuity under Section 814.108(c)(3) or (c)(4),
2-27     the retirement system shall reduce the number of months of
 3-1     guaranteed payment by the number of months for which an annuity was
 3-2     paid under the person's original retirement.
 3-3           SECTION 4. Section 304.009(c), Government Code, is amended to
 3-4     read as follows:
 3-5           (c)  An emergency interim successor's performance of the
 3-6     powers and duties of an unavailable legislator does not affect the
 3-7     successor's entitlement to other compensation or benefits to which
 3-8     the successor might otherwise be entitled.  Section 812.203(b)
 3-9     [812.203(d)] does not apply to an individual serving as an
3-10     emergency interim successor under this chapter.
3-11           SECTION 5. This Act applies only to retirement benefit
3-12     payments to retirees in employee class employment that are made on
3-13     or after the effective date of this Act.
3-14           SECTION 6. This Act takes effect September 1, 2001.