78R8447 SMJ-D


By:  Telford, Ritter, et al.                                      H.B. No. 2169



A BILL TO BE ENTITLED

AN ACT

relating to the payment of retirement benefits to retirees who are 
employed by certain public educational institutions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  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 2.  Section 824.601, Government Code, as amended by 
this Act, applies beginning with the 2003-2004 school year.
	SECTION 3.  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.