H.B. 2359 78(R)    BILL ANALYSIS


H.B. 2359
By: Ritter
Pensions & Investments
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

The Employees Retirement System of Texas (ERS) administers a retirement
system providing service, disability, and death benefits for state
employees and public officers; two retirement systems providing service,
disability, and death benefits for district and appellate judges; an
insurance program-- providing primarily health insurance, but with
ancillary benefits-- for state officers and employees, including employees
of most institutions of higher education; a program providing death
benefits for the survivors of public service personnel; and programs
providing deferred compensation benefits under federal programs
authorizing deferred tax treatment of amounts invested in the programs.
The purposes of HB 2359 are to clarify existing law as amended by the 77th
Legislature, to make minor changes in the laws administered by ERS to make
the benefits provided by ERS more uniform and consistent among programs
and systems, and to make housekeeping changes that make the programs and
systems less administratively burdensome. 


RULEMAKING AUTHORITY
 
It is the opinion of the committee that this bill does not expressly grant
any additional rulemaking authority to any state officer, department,
agency or institution. 


ANALYSIS

SECTION 1:  Amends Section 615.023, Government Code, to codify the intent
expressed in two bills passed by the 77th Legislature, Regular Session,
2001. 

SECTION 2:  Amends Section 812.003(a), Government Code, to delete the
disqualification from ERS membership of temporary employees who are at
least 65 years old when employed. 

SECTION 3:  Amends Section 812.203, Government Code, to clarify without
substantive change the effect of a suspension of annuity payments for
certain retirees who resume public service. 

SECTION 4:   Amends the heading to Section 813.104, Government Code, to
read: ALTERNATIVE PAYMENTS AND METHODS TO ESTABLISH OR REESTABLISH SERVICE
CREDIT. 

SECTION 5:  Amends Section 813.104, Government Code, to allow ERS to
provide for agreements to purchase or reestablish service credit to be
filed electronically. 

SECTION 6:  Amends Subchapter A, Chapter 814, Government Code, by adding
Section 814.010 to allow ERS to accept beneficiary designations
electronically. 

SECTION 7:  Amends Section 814.104(b), Government Code, to delete from an
early retirement eligibility provision certain employees of the Railroad
Commission of Texas. 

SECTION 8:  Amends Section 814.108(f), Government Code, to make a
non-substantive change that is consistent with current legislative
drafting standards. 


 SECTION 9:  Amends Section 814.203, Government Code, to delete the
obsolete requirement that the ERS medical board, after finding a member
disabled, further determine that the member "should be retired." 

SECTION 10:  Amends Section 814.603, Government Code, to clarify the
authority of the ERS board to make one-time supplemental payments ("13th
checks") in a manner consistent with the economic circumstances of the
times. 

SECTION 11:  Amends Section 815.008(c), Government Code, to make a
non-substantive change that is consistent with current legislative
drafting standards. 

SECTION 12:  Amends Section 815.201, Government Code, to make a
non-substantive change that is consistent with current legislative
drafting standards. 

SECTION 13:  Amends Section 815.202(c), Government Code, to correct a
technical error in existing law between the meanings of "citizenship" and
"residency." 

SECTION 14:  Amends Section 815.207(b), Government Code, to make a
non-substantive change that is consistent with current legislative
drafting standards. 

SECTION 15:  Amends Section 838.103(b), Government Code, to allow
non-contributing members of the Judicial Retirement System of Texas Plan
Two to purchase military service credit in the same manner as contributing
members. 

SECTION 16:  Amends Section 838.106(a), Government Code, to allow
non-contributing members of the Judicial Retirement System of Texas Plan
Two to purchase credit for a calendar year in which they served a part in
the same manner as contributing members. 
SECTION 17:  Amends Section 1551.102(d), Insurance Code, to require that
participation in the uniform group insurance program by a disability
retiree be limited to those persons who have retired for disability,
rather than persons who are independently designated by ERS as disabled. 

SECTION 18:  Provides that the change in law made in Section 17 does not
apply to a person already participating in the uniform group insurance
program. 

SECTION 19:  Repeals the following Government Code provisions:

(1)  Section 805.002(e), prohibiting reestablishment under the ERS-Teacher
Retirement System of Texas transfer law of credit canceled by a membership
termination after August 31, 1993; 
(2)  Section 812.004, which prohibits ERS membership for temporary
employees over 65 years of age; 
(3)  Section 813.504(b), which allows non-ERS members to reestablish
service credit under certain circumstances; 
 (4)  Section 814.1041, which is obsolete and cannot by law be used any
more; and 
(5)  Section 815.502, which provides a cumbersome procedure for trying to
notify persons of  unclaimed benefits, to which they remain entitled
without the procedure. 

Repeals Section 3(b), Chapter 22, (Article 6228a-5,VTCS), which requires
ERS to review and comment on certain state-agency sponsored deferred
compensation programs. 

SECTION 20:  Effective date.


EFFECTIVE DATE

Provides an effective date for the bill of September 1, 2003.