78R10000 SMJ-F


By:  Ritter                                                       H.B. No. 2916



A BILL TO BE ENTITLED

AN ACT

relating to establishing equivalent membership service in the 
Judicial Retirement System Plan Two.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 838, Government Code, is 
amended by adding Section 838.108 to read as follows:
	Sec. 838.108.  CREDIT PURCHASE OPTION.  (a)  An eligible 
member may establish not more than 60 months of equivalent 
membership service credit.
	(b)  A member is eligible to establish service credit under 
this section if the member has at least 120 months of actual 
membership service of the type of service that the member seeks to 
establish.
	(c)  A member may establish service credit under this section 
by depositing with the retirement system, for each month of service 
credit, the actuarial present value, at the time of deposit, of the 
additional standard retirement annuity benefits that would be 
attributable to the purchase of the service credit under this 
section, based on rates and tables recommended by the retirement 
system's actuary and adopted by the board of trustees.
	(d)  After a member makes the deposits required by this 
section, the retirement system shall grant the member one month of 
equivalent membership service credit for each month of credit 
approved.
	(e)  The retirement system shall deposit the amount of the 
actuarial present value of the service credit purchased in the 
member's individual account in the retirement system.
	(f)  The board of trustees may adopt rules to administer this 
section, including rules that impose restrictions on the 
application of this section as necessary to cost-effectively 
administer this section.
	SECTION 2.  This Act takes effect September 1, 2003.