SRC-AMY H.B. 264 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 264
78R10096 SMJ-DBy: Brown, Fred (Hinojosa)
Education
5/15/2003
Engrossed


DIGEST AND PURPOSE 

Currently, an eligible employee hired by an institution of higher
education after 1995 that chooses the optional retirement program receives
an employer contribution appropriated by the state equal to 6 percent of
the employee's salary, which is matched by an employee payroll deduction
equal to 6.65 percent.  An employee hired on or before August 31, 1995
receives a higher amount, equal to as much as 8.5 percent of the
employee's salary.  The institution is prohibited from contributing the
higher amount for an employee hired after August 31, 1995. H.B. 264
authorizes the governing board of an institution of higher education to
make a contribution to the optional retirement program each fiscal year up
to 8.5 percent, with the exact amount varying according to an employee's
hiring date. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter C, Chapter 830, Government Code, by adding
Section 830.2015, as follows: 

Sec. 830.2015.  SUPPLEMENTAL CONTRIBUTIONS FROM INSTITUTIONS OF HIGHER
EDUCATION.  (a)  Authorizes the governing board of an institution of
higher education to make a contribution to the optional retirement program
each fiscal year, as provided by this section.  Authorizes the governing
board to use any source of funds for the contribution. 

(b) Authorizes a contribution under this section to be any amount that is
equal to or less than the difference between the amount the state is
required to contribute under Section 830.201 (Contributions) to the
benefit of each participant employed by the institution of higher
education and the amount the state appropriates for that purpose. 

(c) Authorizes the governing board of an institution of higher education
to contribute an amount under this section to the benefit of a participant
employed by an institution of higher education on or before August 31,
1995, that is different from the amount the governing board contributes to
the benefit of a participant employed by an institution of higher
education after that date. 

SECTION 2.  Effective date:  upon passage or September 1, 2003.