BILL ANALYSIS
Senate Research Center C.S.S.B. 1298
Committee Report (Substituted)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Under current judicial retirement plans, the service retirement annuity of a member who elects to make contributions after 20 years of service or after reaching the Rule of 70 with twelve years on an appellate court, is based on 60 percent of the state salary received by the member plus two percent for each subsequent year of service, not to exceed 80 percent of the state salary. The average service time of a Texas judge is eight years. Providing additional compensation in the form of retirement benefits for extended service could encourage experienced judges to remain on the bench for longer periods.
C.S.S.B. 1298 increases the accrual rate for extra years of service from two percent to 2.3 percent. Members could earn up to 90 percent of the state salary, rather than a maximum of 80 percent. The bill provides that these changes only apply to a member of the Judicial Retirement System of Texas Plan One or Plan Two.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 834.102(c), Government Code, to increase from two percent to 2.3 percent the amount of the multiplier in determining the retirement annuity for certain judicial officers and to increase from 80 percent to 90 percent of the applicable salary the maximum amount of a retirement annuity for such officers.
SECTION 2. Amends Section 839.102(d) and (f), Government Code, to make conforming changes.
SECTION 3. Provides that the changes in law made by this Act apply only to a member of the Judicial Retirement System of Texas Plan One or the Judicial Retirement System of Texas Plan Two who retires on or after the effective date of this Act. Makes application of this Act prospective.
SECTION 4. Effective date: September 1, 2007.