BILL ANALYSIS

C.S.H.B. 2120

By: Miller, Doug

Pensions, Investments & Financial Services

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Interested parties assert that the number of retiree members on the board of trustees of the Teacher Retirement System of Texas (TRS) should be increased because TRS is experiencing an increase in the number of retirees in its membership, many of whom are actively working on issues affecting the system. In support of that assertion, C.S.H.B. 2120 proposes to change the composition of the TRS board of trustees to provide an additional opportunity for the appointment of a retiree member.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2120 amends the Government Code to change the composition of the Teacher Retirement System of Texas (TRS) board of trustees by requiring the governor to appoint one member of the board from a slate of three persons who have been nominated by certain groups collectively in accordance with procedures set out in provisions of law, rather than from a slate of three members of TRS who are currently employed by an institution of higher education and have been nominated in accordance with those procedures. The bill adds to those nominating groups, in addition to members of TRS whose most recent credited service was performed for an institution of higher education, members of TRS whose most recent credited service was performed for a public school district and persons who have retired and are receiving benefits from TRS.

C.S.H.B. 2120 authorizes a person to be nominated for such an appointment to the board if the person is a member of TRS who is currently employed by an institution of higher education or by a public school district or a person who is a former member of TRS who has retired and is receiving benefits from TRS. The bill makes nonsubstantive changes.

EFFECTIVE DATE

September 1, 2011.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 2120 contains provisions not included in the original changing the composition of the Teacher Retirement System of Texas (TRS) board of trustees by requiring the governor to appoint one member of the board from a slate of three persons who have been nominated by certain groups collectively in accordance with procedures set out in provisions of law and by including among those nominating groups members of TRS whose most recent credited service was performed for a public school district and persons who have retired and are receiving benefits from TRS. The substitute contains a provision not included in the original authorizing a person to be nominated for such an appointment if the person is a member of TRS who is currently employed by an institution of higher education or by a public school district or is a former member of TRS who has retired and is receiving benefits from TRS.

C.S.H.B. 2120 omits a provision included in the original requiring the governor to appoint an additional board member to the TRS board of trustees from a slate of three former TRS members who have retired and are receiving TRS benefits and who have been nominated by retirees receiving TRS benefits. The substitute omits a provision included in the original establishing that the two members appointed from this category hold office for staggered terms.

C.S.H.B. 2120 omits provisions included in the original making conforming changes.

C.S.H.B. 2120 omits a provision included in the original repealing Section 825.002(e), Government Code, relating to the appointment to the TRS board of trustees of a member who is currently employed by an institution of higher education and is nominated for appointment by TRS members whose most recent credited service was for an institution of higher education.