By: Ritter H.B. No. 2916
A BILL TO BE ENTITLED
AN ACT
relating to the purchase of creditable service time by members of
Judicial Retirement System, Plan Two.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter E, 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 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 the
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 employees saving account.
(f) The board of trustees may adopt rules to administer this
section, including rules that impose restrictions on the
application of this section necessary to cost-effectively
administer this section.
SECTION 2. This Act takes effect September 1, 2003.