SRC-VRA H.B. 3208 78(R)    BILL ANALYSIS


Senate Research CenterH.B. 3208
78R1252 SMJ-DBy: Heflin (Averitt)
Finance
5/20/2003
Engrossed

DIGEST AND PURPOSE 

Many state employees continue to work for the state after they are
eligible for retirement.  H.B. 3208 provides for a one-time lump sum
payment to an individual who retires between August 31, 2003, and August
31, 2005, in the first month the person is eligible for retirement. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the board of trustees of the
Employees Retirement System of Texas and to the comptroller in SECTION 1
(Section 814.1051, Government Code) of this bill. 

SECTION BY SECTION ANALYSIS
 
SECTION 1.  Amends Subchapter B, Chapter 814, Government Code, by adding
Section 814.1051, as follows: 

Sec. 814.1051.  LUMP-SUM PAYMENT IN ADDITION TO ANNUITY FOR CERTAIN
RETIREES.  (a)  Provides that a member of the Employees Retirement system
of Texas (ERS) who is eligible to retire and receive a service retirement
annuity on or after August 31, 2003, and before September 1, 2005, is also
eligible to receive a onetime lump-sum payment as provided by this
section. 

(b)  Requires a member who is eligible to retire on August 31, 2003, to
retire on that date in order to receive a lump-sum payment under this
section. Requires a member who becomes eligible to retire after August 31,
2003, and before September 1, 2005, to retire in the month in which the
member first becomes eligible. 

(c)  Provides that the lump-sum payment under this section is an amount
equal to 25 percent of the member's total regular salary for the 12-month
period preceding the month in which the member retires.  Requires the lump
sum to be paid as a single payment at the time the first monthly annuity
payment is paid to the retiree, unless the comptroller by rule specifies
another date for payment. 

(d)  Requires ERS to report to the comptroller at least once each month
the number of retiring members who are eligible to receive a lump-sum
payment under this section. 

(e)  Provides that this section does not apply to a member who retires
under Subchapter C for a disability. 

(f)  Authorizes the ERS board of trustees and the comptroller to adopt
rules to implement this section. 

  (g)  Provides that this section expires January 1, 2006.

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