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.