HBA-ALS H.B. 1204 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1204 By: Turner, Bob Pensions and Investments 2/24/1999 Introduced BACKGROUND AND PURPOSE Currently, a public school employee who is a member of the Teacher Retirement System of Texas (member) is allowed to establish service credit in the Teacher Retirement System of Texas (retirement system) for military and out-of-state public school employee service but is unable to receive credit for service in the United States Peace Corps (peace corps). H.B. 1204 allows members to receive credit with the retirement system for service in the peace corps if the member has at least five years of service credit in the retirement system for public school service and has performed at least two years of service as a peace corps volunteer. This bill allows a member to establish credit by filing an application with the retirement system, submitting proof of eligibility to the retirement system, depositing with the retirement system a specified amount for each year of service claimed, and paying a specified fee to the retirement system. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter E, Chapter 823, Government Code, by adding 823.404, as follows: Sec. 823.404. PEACE CORPS SERVICE. (a) Authorizes an eligible member of the Teacher Retirement System of Texas to establish equivalent membership service credit for service as a United States Peace Corps (peace corps) volunteer. (b) Provides that a member is eligible to establish credit under this section if the member is an employee, has at least five years of service credit in the retirement system for public school service, and has at least two years of service as a peace corps volunteer. (c) Authorizes a member to establish credit under this section by filing an application with the retirement system, submitting satisfactory proof of eligibility, and depositing with the system for each year of service claimed an amount that is equal to the member's contributions to the retirement system during: (1) the most recent full year of membership service preceding the peace corps service if the peace corps service was performed while the person was a member of the retirement system, or (2) the first full year of membership service if the peace corps service was performed before the person became a member of the retirement system. (d) Provides that a member claiming credit for service under this section must pay a fee of eight percent of the required contribution, compounded annually, from the first date of eligibility to the deposit date, in addition to the contribution required under Subsection (c). (e) Requires the retirement system, after a member makes the required deposits, to grant the member one year of credit for each year of peace corps service approved. Prohibits a member from establishing more than five years of service credit under this section. SECTION 2. Amends Section 825.307(a), Government Code, to make conforming and nonsubstantive changes. SECTION 3. Amends Section 825.308, Government Code, to make conforming changes. SECTION 4.Effective date: September 1, 1999. SECTION 5.Emergency clause.