BILL ANALYSIS

H.B. 3377

By: Hughes

Pensions

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The Employees Retirement System of Texas administers two retirement plans for judges. Judicial Retirement System of Texas Plan Two is a retirement plan for state judges and justices who took office after August 31, 1985. There is concern that the Judicial Retirement System of Texas Plan Two does not allow for a retired judge who resumes elected or appointed judicial service to rejoin and contribute to the plan. H.B. 3377 seeks to address this concern.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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

H.B. 3377 amends the Government Code to authorize a retiree in the Judicial Retirement System of Texas Plan Two who resumes service as a judicial officer other than by appointment or assignment to elect to rejoin and receive service credit in the retirement system for resuming service as a judicial officer if, before taking the oath of office, the retiree has been separated from judicial service for at least 12 full consecutive months. The bill requires the retiree to provide notice of the election to the retirement system in a manner prescribed by the retirement system. The bill requires the retirement system, for a retiree who makes such an election, on the resumption of annuity payments that have been suspended based on the retiree resuming service as a judicial officer, to recompute the service retirement annuity of the retiree to include the retiree's additional service credit. The bill authorizes the retiree, on retirement from the retiree's subsequent service, to elect a service retirement annuity as if the retiree were retiring for the first time. The bill requires the retirement system, if a retiree elects certain optional service retirement annuities with a fixed number of payments on retirement from the retiree's subsequent service, to reduce the number of months of payments by the number of months for which the annuity was paid before the retiree resumed service.

EFFECTIVE DATE

September 1, 2015.