By Staples S.B. No. 1062 77R7644 GJH-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to credit in the Teacher Retirement System of Texas for 1-3 service for certain private schools. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter E, Chapter 823, Government Code, is 1-6 amended by adding Section 823.405 to read as follows: 1-7 Sec. 823.405. SERVICE FOR PRIVATE SCHOOL. (a) In this 1-8 section, "accredited private school" means a school that: 1-9 (1) offers a course of instruction for students in one 1-10 or more grades from kindergarten through grade 12; 1-11 (2) is not operated by a governmental entity; and 1-12 (3) is accredited by a generally recognized 1-13 accrediting organization. 1-14 (b) An eligible member may establish equivalent membership 1-15 service credit for employment with an accredited private school. 1-16 (c) A member is eligible to establish credit under this 1-17 section if the member has at least 10 years of service credit in 1-18 the retirement system for actual service in public schools, at 1-19 least one year of which is for service performed after the service 1-20 for which credit is sought under this section. 1-21 (d) A member may establish credit under this section by 1-22 depositing with the retirement system for each year of service 1-23 claimed a contribution computed at the rate of 12 percent of the 1-24 full-time rate of the member's annual compensation, determined as 2-1 provided by Section 822.201, during the first year of service for 2-2 which the member received membership credit in the retirement 2-3 system that is after the service for which credit is sought. 2-4 (e) In addition to the contribution required by Subsection 2-5 (d), a member claiming credit under this section must pay a fee of 2-6 eight percent, compounded annually, of the required contribution 2-7 from the date of first eligibility to the date of deposit. A 2-8 deposit for at least one year of credit, including the fee, must be 2-9 made with an initial application for credit, and all payments for 2-10 service claimed under this section must be made before retirement. 2-11 (f) The amount of service credit a member may establish 2-12 under this section may not exceed five years. 2-13 (g) After a member makes the deposits required by this 2-14 section, the retirement system shall grant the member one year of 2-15 equivalent membership service credit for each year of service 2-16 approved. The retirement system may not use service credit granted 2-17 under this section in computing a member's annual average 2-18 compensation. 2-19 (h) In determining the amount of a contribution under 2-20 Subsection (d) required of a member who did not work full time or 2-21 worked fewer days or months than full-time employees in similar 2-22 positions, the retirement system shall compute an annual rate of 2-23 compensation from the member's reported compensation. 2-24 SECTION 2. Section 823.004(a), Government Code, is amended to 2-25 read as follows: 2-26 (a) All credit for military service, out-of-state service, 2-27 developmental leave, service previously waived, work experience in 3-1 a career or technological field, service for a private school, and 3-2 service transferred to the retirement system under Chapter 805 3-3 shall be computed on a September 1 through August 31 school year. 3-4 Payments for service described by this section must be completed 3-5 not later than the later of the member's retirement date or the 3-6 last day of the month in which the member submits a retirement 3-7 application. 3-8 SECTION 3. Section 825.307(a), Government Code, is amended to 3-9 read as follows: 3-10 (a) The retirement system shall deposit in a member's 3-11 individual account in the member savings account: 3-12 (1) the amount of contributions to the retirement 3-13 system that is deducted from the member's compensation; 3-14 (2) the portion of a deposit made on or after 3-15 resumption of membership that represents the amount of retirement 3-16 benefits received; 3-17 (3) the portion of a deposit to reinstate service 3-18 credit previously canceled that represents the amount withdrawn or 3-19 refunded; 3-20 (4) the portion of a deposit to establish membership 3-21 service credit previously waived that is required by Section 3-22 823.202(b)(1); 3-23 (5) the portion of a deposit to establish membership 3-24 service credit for service performed after retirement that is 3-25 required by Section 823.502(c)(3); 3-26 (6) the portion of a deposit to establish military 3-27 service credit required by Section 823.302(c); 4-1 (7) the portion of a deposit to establish equivalent 4-2 membership service credit required by Section 823.401(d), 4-3 823.402(e)(1) or (e)(2), 823.404(c), or 823.3021(f)(1) or Sections 4-4 823.405(d) and (e); and 4-5 (8) interest earned on money in the account as 4-6 provided by Subsections (b) and (c) and Section 825.313(c). 4-7 SECTION 4. Section 825.410(a), Government Code, is amended to 4-8 read as follows: 4-9 (a) Payments to establish special service credit as 4-10 authorized in Sections 805.002, 823.302, 823.304, 823.401, 823.501, 4-11 823.405, and 825.403 may be made in a lump sum by a monthly payroll 4-12 deduction in an amount not less than one-twelfth of the 4-13 contribution required to establish at least one year of service 4-14 credit, or in equal monthly installments over a period not to 4-15 exceed the lesser of the number of years of credit to be purchased 4-16 or 60 months. Installment and payroll deduction payments are due 4-17 on the first day of each calendar month in the payment period. If 4-18 an installment or payroll deduction payment is not made in full 4-19 within 60 days after the due date, the retirement system may refund 4-20 all installment or payroll deduction payments less fees paid on the 4-21 lump sum due when installment or payroll deduction payments began. 4-22 Partial payment of an installment or payroll deduction payment may 4-23 be treated as nonpayment. A check returned for insufficient funds 4-24 or a closed account shall be treated as nonpayment. When two or 4-25 more consecutive monthly payments have a returned check, a refund 4-26 may be made. If the retirement system refunds payments pursuant to 4-27 this subsection, the member is not permitted to use the installment 5-1 method of payment or the payroll deduction method, as applicable, 5-2 for the same service for three years after the date of the refund. 5-3 A member who requests and receives a refund of installment or 5-4 payroll deduction payments also is not permitted to use the same 5-5 method of payment for the same service for three years after the 5-6 date of the refund. 5-7 SECTION 5. This Act takes effect September 1, 2001.