82R10219 KFF-D

By: Isaac H.B. No. 3084

A BILL TO BE ENTITLED

AN ACT

relating to the retirement benefits for certain members and annuitants of the employee class of the Employees Retirement System of Texas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 813.201(b), Government Code, is amended to read as follows:

(b) A member may not accrue or establish service credit in the employee class of membership when the total amount of service credit, multiplied by the percentage in effect for computing annuities under Section 814.103, 814.105, 814.106, or 814.107 would exceed the number 100. When the maximum amount of service credit is accrued or established by a member in the employee or elected class, member and state contributions cease, although the member retains membership subject to Section 812.005.

SECTION 2. Subchapter B, Chapter 814, Government Code, is amended by adding Section 814.106 to read as follows:

Sec. 814.106. SERVICE RETIREMENT BENEFITS FOR CERTAIN MEMBERS TRANSFERRING SERVICE CREDIT TO EMPLOYEE CLASS FROM ELECTED CLASS. (a) This section only applies to a member who establishes or transfers service credit from the elected class to the employee class under Section 813.503.

(b) Notwithstanding Section 814.105 or any other law, the standard service retirement annuity for a member subject to this section is an amount computed as the member's average monthly compensation for service performed as a member of the retirement system multiplied by 2.3 percent for each year of service credit in the system.

(c) For purposes of Subsection (b), with respect to the service credit established or transferred from the elected class, a member is assumed to have received the state salary, excluding longevity pay payable under Section 659.0445 and as adjusted from time to time, being paid a district judge.

(d) The standard service retirement annuity for service credited in the employee class may not be less than $150 a month nor more than 100 percent of the average monthly compensation computed under Subsection (b).

SECTION 3. Section 814.108(a), Government Code, is amended to read as follows:

(a) Instead of the standard service retirement annuity payable under Section 814.103, [or] 814.105, or 814.106, the standard combined service retirement annuity payable under Section 814.107, or an annuity actuarially reduced because of age under Section 814.107, a retiring member may elect to receive an optional service retirement annuity under this section.

SECTION 4. (a) The change in law made by this Act applies only to a member of the Employees Retirement System of Texas who retires on or after the effective date of this Act.

(b) A member of the Employees Retirement System of Texas who retires before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.