BILL ANALYSIS

Senate Research Center	H.B. 2434
89R5565 JCG-D	By: Plesa; Vasut (Hinojosa, Adam)
	Finance
	5/15/2025
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Employees Retirement System of Texas (ERS) allows its members to purchase service credit for the 90-day waiting period that occurs after beginning employment or holding office. However, the current law lacks clarity on whether members who experience multiple 90-day waiting periods during their careers are eligible to purchase service credit for each of those periods. This ambiguity in the law has created confusion for ERS members seeking to account for their full service time. Furthermore, there is no clear guidance for how service credit should be treated when a member's most recent date of hiring is different from the start of the service period for which they wish to purchase credit.

In addition, without specific rules to address this situation, members may not be able to purchase service credit for all the months they have worked, potentially disadvantaging those who have experienced multiple waiting periods during their careers.

H.B. 2434 amends current law relating to the purchase of service credit by certain members of the Employees Retirement System of Texas.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 813.514, Government Code, by amending Subsection (a-1) and adding Subsections (f) and (g), as follows:

(a-1) Authorizes a member of the Employees Retirement System of Texas (ERS) to establish service credit 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.

(f) Requires ERS, notwithstanding any other provision of Subtitle F (Provisions Applicable to Employee Class), if a member purchases service credit under Section 813.514 (Credit Purchase Option for Certain Service) for a month that occurred before the member's most recent date of hiring, to consider for purposes of this subtitle the member's date of hiring to be the first day of the month of the earliest month for which service credit is purchased under this section.

(g) Requires ERS to compute the amount of the deposit required by this section in a manner that does not result in an actuarial loss to ERS.

SECTION 2. Effective date: September 1, 2025.