79R8013 SGA-D

By:  Kolkhorst                                                    H.B. No. 1579


A BILL TO BE ENTITLED
AN ACT
relating to eligibility for benefits of and reports concerning certain retired members of the Teacher Retirement System of Texas; imposing a penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 824.602(a), Government Code, is amended to read as follows: (a) Subject to Section 825.506, the retirement system may not, under Section 824.601, withhold a monthly benefit payment if the retiree is employed in a Texas public educational institution as a classroom teacher who is certified under Subchapter B, Chapter 21, Education Code, to teach the subjects assigned, is working in an acute shortage area, as determined by the board of trustees of a school district as provided by Subsection (m), and is employed: (1) as a substitute only with pay not more than the daily rate of substitute pay established by the employer and, if the retiree is a disability retiree, the employment has not exceeded a total of 90 days in the school year; (2) in a position, other than as a substitute, on no more than a one-half time basis for the month; (3) in one or more positions on as much as a full-time basis, if the work occurs in not more than six months of a school year that begins after the retiree's effective date of retirement; (4) in a position, other than as a substitute, on no more than a one-half time basis for no more than 90 days in the school year, if the retiree is a disability retiree; or (5) on [in a position as a classroom teacher on as much as] a full-time basis, if the retiree has retired under Section 824.202(a)[, is certified under Subchapter B, Chapter 21, Education Code, to teach the subjects assigned, is teaching in an acute shortage area as determined by the board of trustees of a school district as provided by Subsection (m),] and has been separated from service with all public schools for at least 12 months[; [(6) in a position as a principal, including as an assistant principal, on as much as a full-time basis, if the retiree has retired under Section 824.202(a) without reduction for retirement at an early age, is certified under Subchapter B, Chapter 21, Education Code, to serve as a principal, and has been separated from service with all public schools for at least 12 months; or [(7) as a bus driver for a school district on as much as a full-time basis, if the retiree has retired under Section 824.202(a)]. SECTION 2. Subchapter G, Chapter 824, Government Code, is amended by adding Section 824.6022 to read as follows: Sec. 824.6022. REQUIRED REPORTS; OFFENSE. (a) An employer shall file a monthly certified statement of employment of a retiree in the form and manner required by the retirement system. (b) A person commits an offense if the person is an administrator of an employer, is responsible for filing a statement under Subsection (a), and knowingly fails to file the statement as required. SECTION 3. Section 825.308, Government Code, is amended to read as follows: Sec. 825.308. STATE CONTRIBUTION ACCOUNT. The retirement system shall deposit in the state contribution account: (1) all state contributions to the retirement system required by Section 825.404; (2) amounts from the interest account as provided by Section 825.313(b)(2); (3) retirement annuities waived or forfeited in accordance with Section 824.601 or 824.004; (4) fees collected under Section 825.403(h); (5) fees and interest for reinstatement of service credit or establishment of membership service credit as provided by Section 823.501; (6) the portion of a deposit required by Section 823.302 to establish military service credit that represents a fee; [and] (7) the portion of a deposit required by Section 823.401(e) to establish out-of-state service credit that represents a fee; and (8) employer contributions required under Section 825.4092. SECTION 4. Subchapter E, Chapter 825, Government Code, is amended by adding Section 825.4092 to read as follows: Sec. 825.4092. EMPLOYER CONTRIBUTIONS FOR EMPLOYED RETIREES. (a) This section applies to an employer who employs a retiree. (b) During each payroll period in which a retiree is employed, the employer shall contribute to the retirement system for each retiree an amount based on the retiree's salary equal to the sum of: (1) the current contribution amount that would be contributed by the retiree if the retiree were an active, contributing member; and (2) the state's current contribution amount authorized by the General Appropriations Act. (c) The employer may not deduct any part of the amount required to be paid under Subsection (b) from the compensation of the employed retiree. (d) Each payroll period, for each retiree who is enrolled in the Texas Public School Employees Group Benefits Program under Chapter 1575, Insurance Code, the employer shall contribute to the trust fund established under that chapter any difference between the contribution amount the retiree is required to pay for the retiree and any enrolled dependents to participate in the group program and the full cost of the retiree's and enrolled dependents' participation in the group program, as determined by the retirement system. If the retiree is employed by more than one employer during a month, the amount of the required contribution shall be prorated among the employers. (e) Contributions under this section are subject to the requirements of Section 825.408. SECTION 5. Section 1575.204, Insurance Code, is amended to read as follows: Sec. 1575.204. PUBLIC SCHOOL CONTRIBUTION. (a) Each state fiscal year, each public school shall contribute to the fund the amount prescribed by the General Appropriations Act, which may not be less than 0.25 percent or greater than 0.75 percent of the salary of each active employee of the public school. The public school shall make the contributions on a monthly basis and as otherwise prescribed by the trustee. (b) Each state fiscal year, each public school that employs a retiree who is enrolled in the group program shall contribute to the fund the difference, if any, between the contribution amount that the retiree is required to pay for the retiree and any enrolled dependents to participate in the group program and the full cost of the retiree's and enrolled dependents' participation in the group program, as determined by the trustee. SECTION 6. (a) Section 824.602, Government Code, as amended by this Act, applies only to a person who retires from the Teacher Retirement System of Texas on or after the effective date of this Act. A person who retires from the Teacher Retirement System of Texas before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose. (b) The changes in law made by this Act to the laws that affect employer contributions apply to any retiree of the Teacher Retirement System of Texas employed by an employer as defined by Section 821.001, Government Code, during any month after the effective date of this Act. SECTION 7. This Act takes effect September 1, 2005.