By:  Staples                                                      S.B. No. 1649


A BILL TO BE ENTITLED

AN ACT

relating to resumption of service by certain retirees under the 
Employees Retirement System of Texas and the Teacher Retirement 
System of Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 812, Government Code, is 
amended by adding Section 812.205 to read as follows:
	Sec. 812.205.  CONTRIBUTIONS AFTER RESUMPTION OF STATE 
SERVICE.  (a)  Notwithstanding Section 812.201(a), a retiree who 
takes a position in the employee class of membership on or after 
September 1, 2005 and who is receiving the payment of benefits for 
service credited in the employee class of membership in accordance 
with Section 812.202:
		(1)  makes contributions to the system in the same 
amount and manner as if the retiree were a member of the employee 
class; and
		(2)  does not receive service credit for the service.                  
	(b)  Notwithstanding Subchapter B, a retiree subject to this 
section may not withdraw the contributions made in accordance with 
Subdivision (a)(1).  The retiree and the beneficiaries of the 
retiree are not entitled to any benefit from those contributions.
	SECTION 2.  Section 824.602, Government Code, is amended by 
adding Subsection (a-1) to read as follows:
	(a-1)  Subject to Section 825.506, the retirement system may 
not, under Section 824.601, withhold monthly benefit payment if the 
retiree is employed as a classroom teacher in a Texas public 
education institution on or after September 1, 2005.
	SECTION 3.  Section 824.603, Government Code is amended to 
read as follows:  
	Sec. 825.603.  EXCLUSION FROM CREDIT; CONTRIBUTIONS.  
(A)  Employment of a retiree described by Section 824.602(a) does 
not entitle a retiree to additional service credit, and the retiree 
so employed is not required to make contributions to they system 
from compensation for that employment.
	(b)  Employment of a retiree described by Section 
824.602(a-1) who is not otherwise described by Subsection (a) of 
that section does not entitle a retiree to additional service 
credit.  The retiree makes contributions to the system from 
compensation for that employment as if the retiree were a member of 
the system.  Notwithstanding Section 822.005, a retiree subject to 
this section may not withdraw the contributions made in accordance 
with this subsection.  The retiree and the beneficiaries of the 
retiree are not entitled to any benefit from those contributions.
	SECTION 4.  This Act takes effect September 1, 2005.