BILL ANALYSIS

 

 

Senate Research Center                                                                                              C.S.H.B. 3609

                                                                                                                                 By: Talton (Ellis)

                                                                                                                                    Administration

                                                                                                                                            5/18/2007

                                                                                                        Committee Report (Substituted)

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Currently, when a state employee comes back to work after having retired, the employee’s new hours do not count toward their retirement benefits and the employee is prohibited from re-enrolling in the retirement program.

 

C.S.H.B. 3609 authorizes an individual who retired from the employee class with 14 or more years of service credit and who was rehired by a house of the legislature, but not with a member’s office, to rejoin the employee class of the retirement system, contingent upon the person paying employee contributions.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1.  Amends Section 812.201, Government Code, by amending Subsection (a) and adding Subsection (d), as follows:

 

(a)  Makes a conforming change.

 

(d)  Entitles a person who retired from the employee class of membership in the Employees Retirement System of Texas (ERS) with more than 14 years of service credit and who, after retirement, resumed employment with a house of the legislature, not as an employee of an individual member, on request to the retirement system, to resume membership in that class and receive service credit for the period served in that position after retirement.  Requires the person to pay employee contributions without interest for the period of service after retirement to receive the credit.  Authorizes the contributions to be deducted from the person's annuity as recalculated under this subsection.  Provides that this subsection does not apply to a person whose post-retirement service extends after January 1, 2007.

 

SECTION 2.  Authorizes a member of ERS who is an appointed or elected officer of the 80th Senate of the State of Texas, as determined by the Senate Journal, who has at least 20 years of service credit in the retirement system, to transfer the person's service credit to the elected class.  Authorizes a person who makes a transfer under this provision to continue to transfer the credit between classes before or after retirement.

 

SECTION 3.  Effective date: upon passage or September 1, 2007.