78R7378 SMJ-F

By:  Nixon                                                        H.B. No. 2549



A BILL TO BE ENTITLED

AN ACT

relating to contributions by and benefits for certain members and 
retirees under the Judicial Retirement System of Texas Plan One and 
the Judicial Retirement System of Texas Plan Two.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 834.102, Government Code, is amended by 
adding Subsections (c) and (e) to read as follows:
	(c)  The service retirement annuity of a member qualifying 
for retirement under Section 834.101(a) is the applicable state 
salary under Subsection (a), multiplied by a percentage amount that 
is the sum of 50 percent plus the product of two percent multiplied 
by the number of years of subsequent service credit the member 
accrues under Section 835.1015(a).
	(e)  After including any increase under Subsection (b), the 
service retirement annuity under Subsection (c) may not be an 
amount that is greater than 80 percent of the applicable salary 
under Subsection (a).
	SECTION 2.  Section 835.101(c), Government Code, is amended 
to read as follows:
	(c)  Except as provided by Section 835.1015, a [A] member who 
accrues 20 years of service credit in the retirement system ceases 
making contributions under this section.
	SECTION 3.  Subchapter B, Chapter 835, Government Code, is 
amended by adding Section 835.1015 to read as follows:
	Sec. 835.1015.  CONTRIBUTIONS AFTER 20 YEARS OF SERVICE 
CREDIT.  (a)  A member who accrues 20 years of service credit in the 
retirement system may elect to make contributions for each 
subsequent year of service credit that the member accrues by filing 
an application with the retirement system.
	(b)  A member who elects to make contributions under 
Subsection (a) shall make the contributions in the amount and  
manner provided by Sections 835.101(a) and (b).
	(c)  A member may not make contributions under this section 
for more than 10 years of subsequent service credit that the member 
accrues.
	SECTION 4.  Section 839.102, Government Code, is amended by 
amending Subsection (a) and adding Subsections (d) and (e) to read 
as follows:
	(a)  Except as provided by Subsections (b), [and] (c), and 
(d), the standard service retirement annuity is an amount equal to 
50 percent of the state salary being paid at the time the member 
retires to a judge of a court of the same classification as the last 
court to which the retiring member was elected or appointed.
	(d)  The service retirement annuity of a member qualifying 
for retirement under Section 839.101(a) is the applicable state 
salary under Subsection (a), multiplied by a percentage amount that 
is the sum of 50 percent plus the product of two percent multiplied 
by the number of years of subsequent service credit the member 
accrues under Section 840.1025(a).
	(e)  After including any increase under Subsection (b), the 
service retirement annuity under Subsection (c) may not be an 
amount that is greater than 80 percent of the applicable salary 
under Subsection (a).
	SECTION 5.  Section 840.102(g), Government Code, is amended 
to read as follows:
	(g)  Except as provided by Section 840.1025, a [A] member who 
accrues 20 years of service credit in the retirement system ceases 
making contributions under this section but is considered a 
contributing member for all other purposes under this subtitle.
	SECTION 6.  Subchapter B, Chapter 840, Government Code, is 
amended by adding Section 840.1025 to read as follows:
	Sec. 840.1025.  CONTRIBUTIONS AFTER 20 YEARS OF SERVICE 
CREDIT.  (a)  A member who accrues 20 years of service credit in the 
retirement system may elect to make contributions for each 
subsequent year of service credit that the member accrues by filing 
an application with the retirement system.
	(b)  A member who elects to make contributions under 
Subsection (a) shall contribute two percent of the member's state 
compensation for each payroll period in the manner provided by 
Sections 840.102(b)-(f).  Section 840.105 does not apply to a 
contribution under this section.
	(c)  A member may not make contributions under this section 
for more than 10 years of subsequent service credit that the member 
accrues.
	SECTION 7.  This Act takes effect September 1, 2003.