79R7459 HLT-D

By:  McReynolds                                                   H.B. No. 2368


A BILL TO BE ENTITLED
AN ACT
relating to the establishment of service credit within the Employees Retirement System of Texas for service as a federal peace officer. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 811.001, Government Code, is amended by adding Subdivision (8-a) and amending Subdivision (16) to read as follows: (8-a) "Federal peace officer" means any employee or agent of the United States government who has the authority to carry firearms and make warrantless arrests and whose duties involve enforcement of the criminal laws of the United States. (16) "Service credit" means the amount of membership service, [and] military service, and federal peace officer service ascribed to a person's account in the retirement system for which all required contributions have been made to, and are being held by, the retirement system. SECTION 2. Section 813.001, Government Code, is amended to read as follows: Sec. 813.001. TYPES OF CREDITABLE SERVICE. The types of service creditable in the retirement system are membership service, military service, federal peace officer service, and equivalent membership service. SECTION 3. Section 813.101, Government Code, is amended to read as follows: Sec. 813.101. DETERMINATION OF REQUIRED DEPOSITS. The retirement system shall determine in each case the amount of money to be deposited by a member claiming credit for membership service, [or] military service, or federal peace officer service previously canceled or not previously established. The system may not provide benefits based on the claimed service until the determined amount has been fully paid. SECTION 4. Section 813.106, Government Code, is amended to read as follows: Sec. 813.106. SERVICE NOT PREVIOUSLY ESTABLISHED. The state shall make contributions for service not previously established that is established under Section 813.104 in the amount provided by Section 813.202(c) for membership service or the amount provided by Section 813.302(d) for military service or federal peace officer service, as applicable. The state contributions will be made at the time the service credit is granted. SECTION 5. The heading to Subchapter D, Chapter 813, Government Code, is amended to read as follows:
SUBCHAPTER D. ESTABLISHMENT OF MILITARY SERVICE AND FEDERAL PEACE OFFICER SERVICE
SECTION 6. The heading to Section 813.301, Government Code, is amended to read as follows: Sec. 813.301. CREDITABLE MILITARY SERVICE OR FEDERAL PEACE OFFICER SERVICE. SECTION 7. Section 813.301, Government Code, is amended by adding Subsection (a-1) and amending Subsection (b) to read as follows: (a-1) Federal peace officer service creditable in the retirement system is active federal employment as a federal peace officer. (b) A member may establish one month of service credit for each month or fraction of a month of duty, but not more than 60 months of service credit in the retirement system for military service or for federal peace officer service. SECTION 8. The heading to Section 813.302, Government Code, is amended to read as follows: Sec. 813.302. MILITARY SERVICE OR FEDERAL PEACE OFFICER SERVICE NOT PREVIOUSLY ESTABLISHED. SECTION 9. Section 813.302, Government Code, is amended by amending Subsection (a) and adding Subsection (b-1) to read as follows: (a) An eligible member may establish service credit in the retirement system for military service or federal peace officer service performed that is creditable as provided by Section 813.301. (b-1) A member eligible to establish federal peace officer service credit is one who: (1) does not receive and is not eligible to receive federal retirement payments based on 20 years or more of active federal peace officer duty or its equivalent; and (2) has credit in the retirement system for membership service performed after the date the member ended employment as a federal peace officer. SECTION 10. Section 813.303, Government Code, is amended to read as follows: Sec. 813.303. SERVICE CREDITED TO MEMBERSHIP CLASS. (a) Except as provided by Subsection (b) or Section 813.304(d), military service or federal peace officer service is creditable in a class of membership that includes a position held by the member who performed the service after the date of release from active military duty or employment as a federal peace officer. (b) Military service or federal peace officer service performed by a person who was a contributing member immediately before the date the member began military duty or employment as a federal peace officer may be credited, at the option of the member, in the class of membership that includes the position held by the member immediately before the date the member began the military duty or federal peace officer employment. SECTION 11. Section 813.304, Government Code, is amended to read as follows: Sec. 813.304. USE OF MILITARY SERVICE CREDIT OR FEDERAL PEACE OFFICER SERVICE CREDIT. (a) The retirement system shall use military service credit and federal peace officer service credit in computing occupational disability retirement benefits and death benefits and in determining eligibility to select an optional death benefit plan. (b) The retirement system shall use military service credit and federal peace officer service credit in computing service retirement or nonoccupational disability retirement benefits of a member of the employee class only if the member has, without military service credit and federal peace officer service credit, at least five years of service credit in that class. (c) The retirement system shall use military service credit and federal peace officer service credit in computing service retirement or nonoccupational disability retirement benefits of a member of the elected class: (1) only if the member has, without military service credit and federal peace officer service credit, at least six years of service credit in that class, if the military service credit or federal peace officer service credit was established before January 1, 1978; or (2) only if the member has enough service credit, exclusive of the military service credit and federal peace officer service credit, to be eligible for service retirement benefits at age 60, if the military service credit or federal peace officer service credit was established on or after January 1, 1978. (d) The board of trustees by rule may permit a person who retires with at least 10 years of service credit, excluding military service credit or federal peace officer service credit, to receive service retirement benefits as an elected officer for the percentage of the person's military service credit or federal peace officer service credit, but not more than 100 percent, that is derived by dividing the number of months served as an elected officer by 96 months. SECTION 12. Section 813.401, Government Code, is amended to read as follows: Sec. 813.401. SERVICE CREDITABLE IN ELECTED CLASS. Service creditable in the elected class of membership is: (1) membership service in an office included in that class; (2) military service or federal peace officer service established as provided by Subchapter D; and (3) equivalent membership service specifically made creditable in that class. SECTION 13. Section 813.501, Government Code, is amended to read as follows: Sec. 813.501. SERVICE CREDITABLE IN EMPLOYEE CLASS. Service creditable in the employee class of membership is: (1) membership service in a position included in that class; (2) military service or federal peace officer service established as provided by Subchapter D; (3) service creditable in or transferred from the elected class as provided by Section 813.503; and (4) administrative board service established as provided by Section 813.502. SECTION 14. Section 813.503(a), Government Code, is amended to read as follows: (a) A member may establish in, or have transferred to, the employee class all service credited in the elected class, if the contributions made to establish the service in the elected class equal or exceed contributions required of a member of the employee class for the same amount of service during the same time and at the same rate of compensation. A member or retiree who has, or had at the time of retirement, at least eight years of service credit in the elected class of membership, exclusive of military service or federal peace officer service, may transfer service credit between classes before or after retirement. SECTION 15. Section 814.1042(a), Government Code, is amended to read as follows: (a) For the sole purpose of determining eligibility to receive a service retirement annuity under Section 814.104(a)(2), the retirement system shall consider not more than 60 months, or portions of months, of service performed for a Texas governmental employer by a member who has at least five years of service credit, excluding military service or federal peace officer service, in the employee class as if it were service for which credit is established in the retirement system. SECTION 16. Section 814.202(a), Government Code, is amended to read as follows: (a) A member is eligible to retire for a nonoccupational disability if the member has at least: (1) 8 years of membership service credit in the elected class of membership; (2) 6 years of membership service credit in the elected class plus 2 years of military service credit or federal peace officer service credit established before January 1, 1978; or (3) 10 years of membership service credit in the employee class of membership. SECTION 17. Section 815.311(a), Government Code, is amended to read as follows: (a) The retirement system shall deposit in a member's individual account in the employees saving account the following amounts: (1) the amount of contributions to the retirement system that is deducted from the member's compensation; (2) the portion of a deposit required to reinstate service credit previously canceled that represents only the amount withdrawn; (3) the portion of a deposit required to establish service credit not previously established that represents only the required contribution; and (4) the portion of a deposit required to establish military service credit or federal peace officer service credit that represents only the member's contribution for that credit. SECTION 18. Section 815.312(b), Government Code, is amended to read as follows: (b) The retirement system also shall deposit in the state accumulation account the interest portion of the following deposits made by members: (1) deposits required to reinstate service previously canceled; (2) deposits required to establish service credit not previously established; and (3) deposits required to establish military service credit or federal peace officer service credit. SECTION 19. This Act takes effect September 1, 2005.