BILL ANALYSIS

H.B. 3254

By: Burns

Pensions, Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current law provides for the purchase of service credit in the employee class of the Employees Retirement System of Texas (ERS) for service performed during a 90-day waiting period after beginning employment or holding office. However, it is unclear if a member is allowed to purchase such service credit if a member falls into that 90-day waiting period more than once. H.B. 3254 seeks to clarify that such ERS members are able to purchase service credit for each month of any 90-day waiting period in which the member performed service.

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. 3254 amends the Government Code to authorize a member of the Employees Retirement System of Texas (ERS) who became a member before September 1, 2015, to establish service credit in the employee class for each month of any 90-day waiting period in which the member performed service, regardless of whether the member made a contribution during the 90-day waiting period for which the member establishes service credit. The bill requires ERS to consider the date of hiring for such a member who purchases service credit in the employee class for a month that occurred before the member's most recent date of hiring to be the first day of the month of the earliest month for which service credit is purchased. The bill requires ERS to compute the amount of the deposit required for establishing the service credit in a manner that does not result in an actuarial loss to ERS.

EFFECTIVE DATE

September 1, 2023.