HB 413 would amend Sections 813 and 814 of the Texas Government Code to prohibit a member serving in the elected class from being able to retire and receive an annuity based on service credit transferred to the employee class from the elected class until the member no longer holds an elected position. The proposal still allows the members to receive an annuity based solely on service credit earned in the employee class.

According to an actuarial analysis performed by the Employees Retirement System (ERS) actuary, data from the August 31, 2012, actuarial valuation shows that there are currently only a small number of elected-class members with prior employee-class service. Of those members, only a few would be immediately eligible to receive employee-class annuities if allowed to transfer service to employee class from elected class. The actuary concludes that the changes made under this bill could lead only to a decrease in the cost of the System but would not have a material actuarial impact on ERS.