SB 729, Hse 2nd Rdg, Amnd #1

(1) On page 5, line 12, strike "person to receive" and substitute "beneficiary to receive".

(2) On page 5, line 15, strike "persons" and substitute "beneficiaries".

(3) On page 5, line 18, strike "which" and substitute "that".

(4) On page 5, line 21, strike "person" and substitute "beneficiary".

(5) On page 5, line 24, strike "person" and substitute "beneficiary".

(6) On page 6, line 8, strike "person" and substitute "beneficiary".

(7) On page 6, line 27, strike "Subsections" and substitute "Subsection".

(8) On page 7, line 18, between "annuity" and "if", insert "only".

(9) Strike page 7, line 21 through page 8, line 3, and substitute the following:

(2) the retiree files with the retirement system a request to change the annuity and, in connection with a divorce between the retiree and the beneficiary designated by the retiree under Section 820.0535(b), the beneficiary has executed a written, notarized instrument that:

(A) releases the system from any claim to the annuity by the beneficiary; and

(B) transfers all of the beneficiary's interest in the annuity to the retiree.

(10) Add the following appropriately numbered SECTIONS to the bill and renumber the SECTIONS of the bill accordingly:

SECTION ____. Chapter 820, Government Code, is amended by adding Subchapter A-2 to read as follows:

SUBCHAPTER A-2. REESTABLISHING PREVIOUSLY CANCELED SERVICE CREDIT

Sec. 820.031. REESTABLISHING PREVIOUSLY CANCELED SERVICE CREDIT WITHOUT PURCHASE. (a) A cash balance group member who has withdrawn contributions and canceled service credit in a class of membership may reestablish the canceled service credit in the retirement system for the purposes described by Subsection (c) by submitting a request to the system in a form and manner prescribed by the system.

(b) The retirement system shall grant the canceled service credit of a member who submits a request as provided by Subsection (a) after the system verifies that the member is a cash balance group member.

(c) Service credit established under this section may be used only to determine whether the cash balance group member is eligible to retire and receive a cash balance annuity under this chapter. The service credit does not affect eligibility for any other purpose, including for purposes of determining eligibility to participate in the group benefits program established under Chapter 1551, Insurance Code.

Sec. 820.032. PURCHASE OF PREVIOUSLY CANCELED SERVICE CREDIT. (a) A cash balance group member who has withdrawn contributions and canceled service credit in a class of membership may purchase the canceled service credit in the retirement system for the purposes described by Subsection (c) by:

(1) submitting a request to the system in a form and manner prescribed by the system; and

(2) depositing with the retirement system in a lump sum the total amount of money withdrawn from a membership class not later than the first day of the 24th month after the month in which the person is reemployed or again holds office.

(b) On receipt of the cash balance group member's deposit, the retirement system shall credit the member's individual account in the employees saving account with that amount and apply annual and gain sharing interest beginning the first day of the month following the date of the deposit, as provided by Sections 820.102 and 820.103.

(1) to determine whether the cash balance group member is eligible to retire and receive a cash balance annuity; and

(2) for purposes of determining eligibility to participate in the group benefits program established under Chapter 1551, Insurance Code.

(d) The retirement system may charge a reasonable administrative fee to purchase service credit under this section.

SECTION ____. Notwithstanding Section 820.032, Government Code, as added by this Act, a person who is a cash balance group member on the effective date of this Act may purchase canceled service credit under that section not later than the first day of the 24th month after the month in which this Act takes effect.