By:  Kuempel (Senate Sponsor - Armbrister)                        H.B. No. 2918
	(In the Senate - Received from the House May 2, 2005; 
May 3, 2005, read first time and referred to Committee on State 
Affairs; May 19, 2005, reported favorably by the following vote:  
Yeas 7, Nays 0; May 19, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to resumption of employment within the Texas Municipal 
Retirement System by a person who has filed an application for 
retirement.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The heading to Section 852.108, Government Code, 
is amended to read as follows:
	Sec. 852.108.  RESUMPTION OF SERVICE; REINSTATEMENT IN 
SYSTEM [WITH SAME EMPLOYER BY RETIREE].
	SECTION 2.  Sections 852.108(a) and (b), Government Code, 
are amended to read as follows:
	(a)  In this section and Section 852.109, a person's 
reemploying municipality is the municipality for which the person 
most recently performed [was performing] creditable service before
[at the time of] the person's retirement under this subtitle.
	(b)  A person who has retired with a service retirement 
benefit under this subtitle and who [later] becomes an employee of 
the person's reemploying municipality within one calendar month 
after the effective date of the person's retirement is considered 
to have not retired.  The retirement system shall reinstate the 
person's membership in the system [also becomes a member of the 
system on the date of employment, but credits and benefits 
allowable to the person under this subtitle are limited as provided 
by this section].
	SECTION 3.  The heading to Section 852.109, Government Code, 
is amended to read as follows:
	Sec. 852.109.  RESUMPTION OF SERVICE; BENEFITS NOT AFFECTED
[WITH DIFFERENT EMPLOYER BY RETIREE].
	SECTION 4.  Sections 852.109(a) and (e), Government Code, 
are amended to read as follows:
	(a)  If a person becomes an employee of a municipality after 
the effective date of the person's retirement [beginning to receive 
a retirement benefit,] and the municipality is not the person's 
reemploying municipality, or if the person becomes an employee of 
the person's reemploying municipality after at least one calendar 
month has passed since the effective date of the person's 
retirement, the person again becomes a member of the retirement 
system, and the person's retirement annuity is not suspended.
	(e)  The additional benefit described by Subsection (d) is 
payable as a standard service retirement benefit or, at the 
election of the member, any optional benefit authorized under this 
subtitle that is the actuarial equivalent of the standard 
retirement benefit.  The first benefit payment date under this 
subsection is the later of the end of the month following the last 
month of employment or the end of the month following the month in 
which the person files an application for payment.  [The first 
payment may not be made if the person has resumed employment that 
would result in suspension of a benefit.]
	SECTION 5.  Beginning with the effective date of this Act, 
the Texas Municipal Retirement System shall resume payments of each 
annuity suspended under former Section 852.108(c), Government 
Code, repealed by this Act, for a retiree employed by a reemploying 
municipality, as that term is defined by Section 852.108(a), 
Government Code, as amended by this Act.
	SECTION 6.  The following provisions of the Government Code 
are repealed:    
		(1)  Sections 852.108(c)-(i); and                                             
		(2)  Section 852.109(f).                                                      
	SECTION 7.  This Act takes effect January 1, 2006.                             



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