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A BILL TO BE ENTITLED
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AN ACT
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relating to an option to participate in the Teacher Retirement |
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System of Texas by a member of the optional retirement program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 822, Government Code, is |
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amended by adding Section 822.0025 to read as follows: |
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Sec. 822.0025. OPTIONAL MEMBERSHIP. (a) Subject to |
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Subsection (d), a person actively participating in the optional |
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retirement program under Chapter 830 may make a one-time election |
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to cease active participation in the program and become a member of |
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the retirement system if the person is otherwise eligible to |
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participate in the retirement system at the time of the election. |
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The person must make the election on a date and in the manner |
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prescribed by the retirement system. A person who makes an election |
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under this section is entitled to receive service credit in the |
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retirement system for each year of service as a participant in the |
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optional retirement program. |
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(b) The retirement system shall prescribe the form and |
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details of an election under this section. The election must be |
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filed with the retirement system and the institution of higher |
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education that employs the person. |
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(c) The retirement system may adopt rules for the |
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implementation of the election, including rules to prevent the |
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receipt of credit under the retirement system and the optional |
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retirement program for the same service. |
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(d) This section may take effect only on receipt by the |
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retirement system of a favorable private letter ruling from the |
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Internal Revenue Service regarding the federal tax consequences of |
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the one-time election provided by this section, including the |
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effect of the election on: |
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(1) the qualified status of the retirement system |
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pension trust; |
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(2) the contribution limits applicable to |
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participants in the optional retirement program and participants in |
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the retirement system; and |
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(3) the employer pick-up of contributions to the |
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retirement system. |
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(e) If the retirement system does not receive the favorable |
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private letter ruling described by Subsection (d), this section has |
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no effect. |
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SECTION 2. If by December 31, 2010, the Teacher Retirement |
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System of Texas has not received a favorable private letter ruling |
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under Section 822.0025, Government Code, as added by this Act, the |
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Teacher Retirement System shall notify the standing committees of |
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the legislature with primary jurisdiction over public retirement |
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systems and public education that Section 822.0025, Government |
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Code, should be repealed. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |