78R5812 SMJ-D

By:  Thompson                                                     H.B. No. 1664



A BILL TO BE ENTITLED

AN ACT

relating to credit in the Teacher Retirement System of Texas for 
service performed as a United States Peace Corps volunteer.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.   Subchapter E, Chapter 823, Government Code, is 
amended by adding Section 823.406 to read as follows:
	Sec. 823.406.  PEACE CORPS SERVICE. (a)  An eligible member 
may establish equivalent membership service credit for service 
performed as a United States Peace Corps volunteer.
	(b)  A member eligible to establish service credit under this 
section is one who is an employee, has at least five years of 
service credit in the retirement system for service in public 
schools, and performed at least two years of service as a United 
States Peace Corps volunteer.
	(c)  A member may establish credit under this section by 
filing an application with the retirement system, submitting proof 
of eligibility satisfactory to the system, and depositing with the 
system for each year of service claimed an amount equal to:
		(1)  the member's contributions to the retirement 
system during the most recent full year of membership service that 
preceded the peace corps service, if the peace corps service was 
performed while the person was a member of the retirement system; or
		(2)  the member's contributions to the retirement 
system during the first full year of membership service, if the 
peace corps service was performed before the person became a member 
of the retirement system.
	(d)  In addition to the contribution required by Subsection 
(c), a member claiming credit for service under this section must 
pay a fee of eight percent, compounded annually, of the required 
contribution from the date of first eligibility to the date of 
deposit.
	(e)  After a member makes the deposits required by this 
section, the retirement system shall grant the member one year of 
credit for each year of peace corps service approved, except that a 
member may not establish more than five years of service credit 
under this section.
	SECTION 2.  Section 825.307(a), Government Code, is amended 
to read as follows:
	(a)  The retirement system shall deposit in a member's 
individual account in the member savings account:
		(1)  the amount of contributions to the retirement 
system that is deducted from the member's compensation;
		(2)  the portion of a deposit made on or after 
resumption of membership that represents the amount of retirement 
benefits received;
		(3)  the portion of a deposit to reinstate service 
credit previously canceled that represents the amount withdrawn or 
refunded;
		(4)  the portion of a deposit to establish military 
service credit required by Section 823.302(c);
		(5)  the portion of a deposit to establish equivalent 
membership service credit required by Subchapter E, Chapter 823
[Section 823.401(d), 823.402(e)(1) or (e)(2), 823.404(c), 823.405, 
or 823.3021(f)(1)]; and
		(6)  interest earned on money in the account as 
provided by Subsections (b) and (c) and Section 825.313(c).
	SECTION 3.  Section 825.308, Government Code, is amended to 
read as follows: 
	Sec. 825.308.  STATE CONTRIBUTION ACCOUNT.  The retirement 
system shall deposit in the state contribution account:
		(1)  all state contributions to the retirement system 
required by Section 825.404;
		(2)  amounts from the interest account as provided by 
Section 825.313(b)(2);
		(3)  retirement annuities waived or forfeited in 
accordance with Section 824.601 or 824.004;
		(4)  fees collected under Section 825.403(h);                                 
		(5)  fees and interest for reinstatement of service 
credit or establishment of membership service credit as provided by 
Section 823.501;
		(6)  the portion of a deposit required by Section 
823.302 to establish military service credit that represents a fee; 
and
		(7)  the portion of a deposit that represents a fee
required by Section 823.401(e) or 823.406(d) to establish 
equivalent membership [out-of-state] service credit [that 
represents a fee].
	SECTION 4.  This Act takes effect September 1, 2003.