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A BILL TO BE ENTITLED
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AN ACT
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relating to the resumption of employment by certain retirees within |
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the Texas Municipal Retirement System. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 852.108, Government Code, is amended by |
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amending Subsections (a), (c), (e), (f), (h), (i), and (j) and |
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adding Subsections (b-1), (k), (l), (m), and (n) to read as follows: |
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(a) In this section and Sections 852.1085 and 852.109, a |
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person's reemploying municipality is the municipality for which the |
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person most recently performed [was performing] creditable service |
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before [at the time of] the person's retirement with respect to the |
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person's particular individual account under this subtitle. |
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(b-1) Unless subject to Subsection (c), the retirement |
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annuity of a person subject to this section is not suspended. |
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(c) If a person becomes an employee of the person's |
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reemploying municipality at any time during the 12 consecutive |
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months after the effective date of the person's last retirement |
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from the reemploying municipality, the [The] retirement system |
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shall discontinue and suspend the full amount of the monthly |
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payments of the [each] service retirement annuity that is allowed |
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because of the person's previous retirement from [service with] the |
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reemploying municipality beginning with the month the retirement |
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system determines that the person has again become an employee of |
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the reemploying municipality. After the suspension and except as |
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provided by Subsection (j), the retirement system may not make |
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payments of the annuity for any month during which the person |
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remains an employee of the reemploying municipality. The |
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suspension of a benefit under this section does not suspend payment |
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of a benefit to an alternate payee under a qualified domestic |
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relations order. |
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(e) After termination of employment with the reemploying |
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municipality and after filing of an application for resumption of |
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retirement with the board of trustees, a person described by |
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Subsection (c) [(b)] is entitled to receive future payments of the |
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suspended annuity, as provided by Subsection (f), and to the |
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additional benefits as provided by Subsections (g), (h), (i), and |
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(j). |
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(f) Monthly payments of an [a suspended] annuity suspended |
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under Subsection (c) shall resume beginning with [be resumed in] |
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the month following the month in which employment is terminated |
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with the reemploying municipality, without change in the amount |
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except for any increase allowed under Section 854.203 or the |
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duration of or another condition pertaining to the suspended |
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benefit. Except as provided by Subsection (j), payment of the |
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resumed benefit may not be made for any month during which the |
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payment was suspended under this section. |
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(h) The additional service retirement benefit allowable to |
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a person to whom this section applies is, at the option of that |
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person, either: |
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(1) a refund of accumulated contributions made since |
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reemployment plus any accrued interest on the accumulated |
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contributions allowed by the retirement system; or |
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(2) a benefit consisting of: |
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(A) a basic annuity actuarially determined from |
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the sum of the member's contributions [deposits] made and |
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accumulated since the date the person last became a member, |
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together with interest accumulated on that amount since the person |
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last became a member and an amount from the benefit accumulation |
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fund equal to the amount of the member's contributions credited to |
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the member's individual account since the person last became a |
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member together with interest accrued on that amount since the |
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person last became a member; or |
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(B) a greater amount authorized by the |
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municipality under Section 855.501. |
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(i) The additional benefit described by Subsection (h)(2) |
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[(h)] is payable as a standard service retirement benefit or, at the |
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election of the member, any optional benefit authorized under this |
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subtitle that is the actuarial equivalent of the standard |
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retirement benefit. The first benefit payment date under this |
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subsection is the later of the end of the month following the last |
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month of employment or the end of the month following the month in |
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which the person files an application for payment. The first |
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payment may not be made if the person has resumed employment with |
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the reemploying municipality in a position that would make the |
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person an employee at any time during the 12 consecutive months |
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after the effective date of the person's last retirement from the |
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reemploying municipality. |
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(j) Subject to Subsection (m), a [A] person who resumed |
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employment with the person's reemploying municipality before |
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September 1, 2021, [to whom this section applies] shall receive a |
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lump-sum payment in an amount equal to the sum of the service |
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retirement annuity payments the person would have received had the |
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person's annuity payments not been discontinued and suspended under |
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this section as it existed on the date the person resumed employment |
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with the reemploying municipality, if the person: |
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(1) initially retired based on a bona fide termination |
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of employment; and |
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(2) resumed employment with the person's reemploying |
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municipality at least eight years after the effective date of the |
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person's retirement. |
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(k) If the annuity payments of a person who resumed |
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employment with the person's reemploying municipality before |
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September 1, 2021, were discontinued and suspended under this |
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section as it existed on the date the person resumed employment with |
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the reemploying municipality, on filing of a written application |
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with the retirement system, the retirement system shall, subject to |
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Subsection (l), resume making the annuity payments to the person, |
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provided: |
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(1) the person's retirement that preceded the |
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resumption of employment was based on a bona fide termination of |
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employment; |
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(2) the person did not become an employee of the |
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person's reemploying municipality at any time during the 12 |
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consecutive months after the effective date of the person's |
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retirement described by Subdivision (1); and |
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(3) the person has not terminated employment with the |
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reemploying municipality. |
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(l) Monthly payments of an annuity suspended under |
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Subsection (k) shall resume beginning with the month following the |
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month in which the written application is approved by the |
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retirement system without change in the amount except for any |
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increase allowed under Section 854.203 or the duration of or |
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another condition pertaining to the suspended benefit. Except as |
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provided by Subsection (j), payment of the resumed benefit may not |
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be made for any month during which the payment was suspended under |
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this section as it existed on the date the person resumed employment |
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with the reemploying municipality. |
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(m) At the time a person files a written application to |
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resume benefits under Subsection (k), the retirement system shall |
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pay the person any lump-sum payment owed to the person under |
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Subsection (j). |
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(n) The board of trustees may adopt rules to implement this |
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section. |
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SECTION 2. Sections 852.109(a), (e), and (f), Government |
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Code, are amended to read as follows: |
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(a) If a person becomes an employee of a municipality after |
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the effective date of the person's [beginning to receive a] |
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retirement from a participating municipality [benefit], and the |
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municipality is not the person's reemploying municipality, the |
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person again becomes a member of the retirement system, and the |
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person's retirement annuity is not suspended. |
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(e) The additional benefit described by Subsection (d)(2) |
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[(d)] is payable as a standard service retirement benefit or, at the |
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election of the member, any optional benefit authorized under this |
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subtitle that is the actuarial equivalent of the standard |
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retirement benefit. The first benefit payment date under this |
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subsection is the later of the end of the month following the last |
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month of employment or the end of the month following the month in |
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which the person files an application for payment. The first |
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payment may not be made if the person has resumed employment that |
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would result in suspension of a benefit. |
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(f) If a person became an employee of a municipality other |
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than the person's reemploying municipality after the effective date |
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of the person's [beginning to receive a] retirement from a |
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participating municipality [benefit], and the person's service |
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retirement annuity was suspended under Section 852.108 as it |
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existed at the time of reemployment, the person may, on written |
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application to the retirement system, resume receiving the |
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suspended annuity. |
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SECTION 3. This Act takes effect September 1, 2021. |