84R13512 SGA-F

By: Huffman S.B. No. 1941

A BILL TO BE ENTITLED

AN ACT

relating to service credit and benefits under and funding requirements for the Employees Retirement System of Texas.

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

SECTION 1. Section 813.101, Government Code, is amended to read as follows:

Sec. 813.101. DETERMINATION OF REQUIRED DEPOSITS. The retirement system shall determine in each case the amount of money to be deposited by a member claiming credit for membership or military service previously canceled or not previously established, or for any other service purchase. The system may not provide benefits based on the claimed service until the determined amount has been fully paid.

SECTION 2. Subchapter A, Chapter 814, Government Code, is amended by adding Section 814.0101 to read as follows:

Sec. 814.0101. EFFECT OF MEMBERSHIP TERMINATION ON BENEFICIARY DESIGNATION. The designation of a beneficiary under this chapter is invalidated when a person terminates membership in the retirement system by withdrawing the person's accumulated contributions. A person who later resumes membership after termination must designate a beneficiary after the resumption of membership for the designation to be effective.

SECTION 3. Section 814.401(c), Government Code, is amended to read as follows:

(c) A benefit is payable under this section only if the member at the time of death was:

(1) actively employed by the state;

(2) receiving workers' compensation benefits for an injury sustained while employed by the state; or

(3) on authorized sick leave, excluding leave without pay or leave of absence.

SECTION 4. Section 815.403(b), Government Code, is amended to read as follows:

(b) Before December 15 [November 2] of each even-numbered year, the retirement system shall certify to the Legislative Budget Board and to the budget division of the governor's office for review:

(1) an estimate of the amount necessary to pay the state's contribution under Subsections (a)(1), (a)(2), (a)(3), and (a)(5) for the following biennium; [and]

(2) as a separate item, an estimate of the amount required to administer the law enforcement and custodial officer supplemental retirement fund for the following biennium; and

(3) as required by Section 67, Article XVI, Texas Constitution, for financing benefits on actuarially sound principles, the amount, based on the most recent actuarial valuation, necessary to pay the normal cost and amortize any unfunded liability required by the period established under Section 811.006.

SECTION 5. This Act takes effect September 1, 2015.