SRC-LBB S.B. 897 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 897
78R1252 SMJ-DBy: Averitt
State Affairs
4/6/2003
As Filed


DIGEST AND PURPOSE 

Many state employees continue to work for the state after they are
eligible for retirement.  As proposed, S.B. 897 provides for a one-time
lump sum payment to individuals who retire between August 31, 2003, and
August 31, 3005, in the first month they are eligible for retirement. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the board of trustees of the
Employees Retirement System of Texas and 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 the 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.