By:  Eiland                                                       H.B. No. 2945



A BILL TO BE ENTITLED

AN ACT

relating to the predicted retirement of and participation in the 
optional retirement program by certain employees of institutions of 
higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 830, Government Code, is 
amended by adding Section 830.1015 to read as follows:
	Sec. 830.1015.  EXPANDED ELIGIBILITY TO PARTICIPATE FOR 
CERTAIN EMPLOYEES. (a) An institution of higher education that 
participates in the optional retirement program may submit a list 
to the Texas Higher Education Coordinating Board of employment 
positions at the institution that:
		(1)  do not otherwise meet established eligibility for 
participation in the optional retirement program; and
		(2)  the institution proposes to include for 
eligibility for participation in the program.
	(b)  A list submitted under Subsection (a) must be based on 
the competitive labor market requirements of the institution of 
higher education.
	(c)  The Texas Higher Education Coordinating Board may 
approve for participation in the optional retirement program one or 
more of the employment positions at an institution of higher 
education included on a list submitted under Subsection (a). A 
person holding an employment position on a list submitted under 
this section is eligible to participate in the optional retirement 
program, in accordance with this section, only if the Texas Higher 
Education Coordinating Board approves in writing that position for 
participation.
	(d)  The Texas Higher Education Coordinating Board by rule 
shall periodically require the institution of higher education to 
reapply for continued approval of each employment position at that 
institution that is approved for participation in the optional 
retirement program under this section.
	(e)  If the Texas Higher Education Coordinating Board 
terminates the eligibility of an employment position for 
participation in the optional retirement program under Subsection 
(d), an employee hired into the position before the date of the 
termination and participating in the program on that date remains 
in the program, subject to the rules of the retirement system. An 
employee hired into that position after the date of the termination 
shall participate in the retirement system if the employee is 
otherwise eligible.
	(f)  Notwithstanding Subchapter C, the state contribution 
for an employee in an employment position that participates in the 
optional retirement program under this section is equal to the 
contribution made for a participant in the retirement system.
	(g)  The total employer contribution for an employee in an 
employment position at an institution of higher education that 
participates in the optional retirement program under this section 
is the same as the amount contributed for other employees of the 
institution participating in the program.  The institution shall 
contribute an amount equal to the difference between the amount 
contributed under Subsection (f) and the total employer 
contribution required under this subsection. If the institution 
contributes at different rates for different participants, the 
total employer contribution required under this subsection is based 
on the contribution applicable to a new participant at the time 
contributions under the program begin for that participant.
	SECTION 2.  Subchapter H, Chapter 51, Education Code, is 
amended by adding Section 51.4021 to read as follows:
	Sec. 51.4021.  STUDY AND REPORT OF PREDICTED FACULTY 
RETIREMENT.  (a)  In this section, "general academic teaching 
institution," "governing board," and "university system" have the 
meanings assigned by Section 61.003.
	(b)  To address the predicted retirement of a growing portion 
of university faculty in the coming years as a result of aging and 
the potential problems associated with that retirement, each 
general academic teaching institution shall conduct a study 
relating to faculty member retirements that may occur through the 
end of the 2025 academic year, including projections of the number 
and proportion of faculty members expected to retire during that 
period, the first academic year in which increasing retirements are 
expected to result in faculty shortages, and methods that the 
institution could reasonably implement to address those retirement 
issues through recruitment of new faculty members or other means.  
The governing board of an institution may appoint a committee to 
conduct the study.  A university system may carry out the 
requirements prescribed by this subsection for the system's 
component institutions or may direct one or more component 
institutions to conduct the study for the system.
	(c)  Each general academic teaching institution or 
university system, as applicable, shall prepare a report based on 
the study required by Subsection (b).  The institution or system 
shall submit the report to the Texas Higher Education Coordinating 
Board not later than September 1, 2006.
	(d)  This section expires January 1, 2007.                              
	SECTION 3.  This Act takes effect September 1, 2005.