BILL ANALYSIS

 

 

 

S.B. 1737

By: Huffman

Pensions, Investments & Financial Services

Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

The bill sponsor has informed the committee that certified law enforcement and custodial officers who work at certain Texas state agencies contribute to both a regular ERS retirement account and the Law Enforcement and Custodial Officer (LECO) Supplemental Retirement Fund. S.B. 1737 seeks to reduce turnover in, and increase the recruitment capabilities of, the Texas Juvenile Justice Department, the Comptroller of Public Accounts, and the Office of the Attorney General by providing for the inclusion of certain custodial and law enforcement officers at these agencies in the LECO Supplemental Retirement Fund.

 

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 rulemaking authority is expressly granted to the board of trustees of the Employees Retirement System of Texas in SECTION 5 of this bill.

 

ANALYSIS

 

S.B. 1737 amends the Government Code to require the Texas Juvenile Justice Department (TJJD) to adopt standards for determining eligibility for service credit under the Employees Retirement System of Texas (ERS) as a custodial officer employed by TJJD based on the need to encourage early retirement of persons whose duties are hazardous. To be creditable as custodial officer service under TJJD, service must be performed as follows:

·       as a caseworker or a juvenile correctional officer, as that term is defined by reference to applicable Human Resources Code provisions; or

·       in a position, other than a caseworker or a juvenile correctional officer, the primary duties of which include the custodial supervision of or other close, regularly planned contact with youth in the custody of TJJD.

Accordingly, the bill includes TJJD among the entities that are required, as applicable, to determine a person's eligibility to receive credit as a custodial officer under ERS.

 

S.B. 1737 includes in the definition of "custodial officer," for purposes of statutory provisions relating to ERS, a member of ERS who is employed by TJJD in a position in which the member's service is creditable as a custodial officer. The bill also revises the definition of "law enforcement officer" as follows:

·       changes from a member of ERS who has been commissioned as a law enforcement officer by certain entities and is recognized as a commissioned law enforcement officer by the Texas Commission on Law Enforcement (TCOLE) to a member of ERS who has been commissioned as a peace officer by certain entities and is licensed as a commissioned peace officer by TCOLE; and

·       includes the comptroller of public accounts and the attorney general among the applicable entities whose commission of a member as a peace officer is included in the term.

 

S.B. 1737, with respect to the eligibility requirements for a member to retire and receive a service retirement annuity under ERS, revises the years of service requirement from having at least 10 years of service credit as a commissioned peace officer engaged in criminal law enforcement activities of the Department of Public Safety, the Texas Alcoholic Beverage Commission (TABC), the Parks and Wildlife Department, the office of inspector general at TJJD, or as a custodial officer, to having the same number of years of service credit as a law enforcement officer or custodial officer. The bill changes which entities must certify to ERS, not later than the 12th day of the month following the month in which a person begins or ceases employment as a law enforcement officer or custodial officer, the name of the employee and such other information as ERS determines is necessary for the crediting of service and financing of benefits, from certain specified agencies to the governmental entity that employs or ceased employing the law enforcement officer or custodial officer.

 

S.B. 1737, subject to the bill's provisions, applies to a member of ERS who is employed by TJJD, the comptroller, or the attorney general as a law enforcement officer or custodial officer, as applicable, on or after the bill's effective date, regardless of whether the member was hired before, on, or after the bill's effective date. The bill authorizes such a member of ERS who is also subject to statutory provisions relating to an ERS cash balance benefit plan, to establish service credit as a law enforcement officer or custodial officer with TJJD, the comptroller, or the attorney general, as applicable, only for service performed on or after the bill's effective date.

 

S.B. 1737 establishes that service credit earned by a member of ERS not subject to the cash balance benefit before the effective date of the bill is considered service credit established as a law enforcement officer or custodial officer, as applicable, for purposes of determining the benefits payable from the law enforcement and custodial officer supplemental retirement fund, if the member was employed on December 1, 2024, by TJJD, the comptroller, or the attorney general as a law enforcement officer or custodial officer, as applicable.

 

S.B. 1737 requires the ERS board of trustees, in consultation with TJJD, the comptroller, and the attorney general, to adopt rules necessary to implement the bill's provisions as soon as practicable after the bill's effective date. The bill requires TJJD, the comptroller, and the attorney general to do the following:

·       certify to ERS, as soon as practicable after the bill's effective date and in the form and manner prescribed by the ERS board of trustees, the following information:

o   the name of each member who is employed by TJJD, the comptroller, or the attorney general as a law enforcement officer or custodial officer on the bill's effective date;

o   if the member is subject to the bill's provisions relating to service credit established for purposes of determining the benefits payable from the law enforcement and custodial officer supplemental retirement fund, the amount of service credit established by the member as a law enforcement officer or custodial officer before the bill's effective date; and

o   any other information ERS determines is necessary to credit law enforcement officer or custodial officer service in accordance with the bill's provisions; and

·       beginning with the first pay period that occurs after the bill's effective date and with respect to each member employed by TJJD, the comptroller, or the attorney general as a law enforcement officer or custodial officer, begin making deductions and collecting member contributions for the law enforcement and custodial officer supplemental retirement fund as prescribed under state law.

 

S.B. 1737 establishes that ERS is required to implement the bill's provision relating to service credit established as a law enforcement officer or custodial officer, as applicable, for purposes of determining the benefits payable from the law enforcement and custodial officer supplemental retirement fund, only if the ERS board of trustees finds that the legislature appropriated money to ERS in an amount sufficient to implement that provision without increasing the unfunded actuarial liabilities of ERS. The amount appropriated by the legislature must be in addition to any amounts the state is required to contribute to ERS under applicable state law. If the board finds that the legislature did not appropriate money in an amount sufficient to implement that provision relating to determining the benefits payable from the law enforcement and custodial officer supplemental retirement fund without increasing the unfunded actuarial liabilities of ERS, ERS may not implement the bill's provisions. The bill requires the board, not later than October 1, 2025, to make and publish in the Texas Register its finding and a statement regarding whether, as a result of its finding, ERS is or is not implementing the bill's provisions.

 

EFFECTIVE DATE

 

September 1, 2025.