ACTUARIAL EFFECTS
The bill would suspend (or reduce as decided by a court) annuity payments to an employee of the Texas Juvenile Justice Department while a member of the Employees Retirement System of Texas (ERS) or a member of the Teacher Retirement System (TRS), who has or had regular and direct contact with students, who is convicted of a felony or a class A or class B misdemeanor related to the defendant's employment.

The bill would require the retirement systems to reimburse for any portion of the annuity payments withheld during a period of suspension or restore the full eligibility if a person is subsequently found to be not guilty of the offense.

ERS and TRS have stated that the changes proposed by the bill would have no impact on the systems. Additionally, the value of the benefits paid by ERS or TRS could only decrease under this bill.  The PRB believes the bill could potentially impact ERS and TRS; however, it would not have a material impact on the retirement systems. 

SYNOPSIS OF PROVISIONS
The bill would suspend (or reduce as decided by a court) annuity payments to an employee of the Texas Juvenile Justice Department or a member of the Teacher Retirement System, who has or had regular and direct contact with students, who is convicted of a felony or a class A or class B misdemeanor related to the defendant's employment.

The bill would allow payments to be restored if the conviction is overturned on appeal or the member meets requirements for innocence under Section 103.001(a) (2) of the Civil Practice and Remedies Code. A retiree whose full annuity payments are resumed would be entitled to reimbursement of the annuity payment withheld during the period of suspension or an active member would be entitled to the restoration of all service credits accrued before the conviction.

If a member's payments are not fully resumed, the member would be eligible to accrue service credit toward a retirement annuity if the member successfully completed a period of community supervision or is completely discharged from a term of confinement. Service credits may only be earned before the conviction of the offense or after completion of community supervision.

The bill would only apply to an offense committed on or after the effective date of rules adopted by ERS and TRS that define which employee positions include regular, direct contact with students.

The bill would take effect September 1, 2017.