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H.B. No. 2169
AN ACT
relating to the payment of retirement benefits to retirees who are
employed by certain public educational institutions and to the
participation of the commissioner of education in certain state
retirement systems.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 822, Government Code, is
amended by adding Section 822.0015 to read as follows:
Sec. 822.0015. OPTIONAL MEMBERSHIP FOR CERTAIN OFFICIALS.
(a) In lieu of participating in the Employees Retirement System of
Texas, the commissioner of education may elect to participate in
the retirement system in the same manner and under the same
conditions as a member who is an employee of the public school
system.
(b) An election by the commissioner of education to
participate in the retirement system must be on a form prescribed by
the retirement system for that purpose.
(c) Notwithstanding Section 821.001, if the commissioner of
education elects to participate in the retirement system, the State
Board of Education is the employer of the commissioner for purposes
of this subtitle.
SECTION 2. Section 824.601, Government Code, is amended to
read as follows:
Sec. 824.601. LOSS OF MONTHLY BENEFITS. (a) In this
section, "third-party entity" means an entity retained by a Texas
public educational institution to provide personnel to the
institution that perform duties or provide services that employees
of the institution would otherwise perform or provide.
(b) Except as provided by Section 824.602, a retiree is not
entitled to service or disability retirement benefit payments, as
applicable, for any month in which the retiree is employed in any
position by a Texas public educational institution.
(c) A Texas public educational institution, for the purposes
of this subchapter, is any entity included in the definition of
"employer" or "public school" in Section 821.001 or any entity in
whose employment the retiree has earned credit as a member of the
retirement system.
(d) A retiree who is an employee of a third-party entity is
considered to be employed by a Texas public educational institution
for purposes of this subchapter unless the retiree does not perform
duties or provide services on behalf of or for the benefit of the
institution.
(e) Loss of benefits under this section does not extend any
period of guaranteed benefits elected pursuant to Section 824.204.
(f) The system may adopt rules necessary for administering
this subchapter.
SECTION 3. (a) Notwithstanding Section 830.106, Government
Code, a commissioner of education who is a participant in the
optional retirement program under Chapter 830, Government Code, on
the effective date of this Act may make a one-time election to cease
active participation in the program and become a member of the
Teacher Retirement System of Texas under Section 822.0015,
Government Code, as added by this Act, on or after that date.
(b) A commissioner of education who makes the one-time
election under Subsection (a) of this section is not eligible to
again participate in the optional retirement program under Chapter
830, Government Code, after making the election.
SECTION 4. The change in law made by Section 824.601,
Government Code, as amended by this Act, applies only to the payment
of retirement benefits to a retiree who is first employed by a
third-party entity on or after May 24, 2003. The payment of
retirement benefits to a retiree who was first employed by a
third-party entity before May 24, 2003, is governed by the law in
effect before the effective date of this Act, and the former law is
continued in effect for that purpose.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2169 was passed by the House on April
24, 2003, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 2169 on May 26, 2003, by the following
vote: Yeas 138, Nays 1, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2169 was passed by the Senate, with
amendments, on May 24, 2003, by the following vote: Yeas 28, Nays
1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor