HBA-SEB H.B. 1734 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1734 By: Junell Pensions and Investments 3/21/1999 Introduced BACKGROUND AND PURPOSE Currently, district attorneys and criminal district attorneys are eligible for participation in the elected class of the Employees Retirement System of Texas (ERS). In the contribution system, a state-paid prosecutor or judge contributes six percent of the member's salary into a retirement account. The two professionals earn the same salary, but after 20 years of service credit a prosecutor becomes entitled to a pension equal to 45 percent of a district judge's salary while a judge becomes entitled to 60 percent. H.B. 1734 increases the standard service multiplier for a district or criminal district attorney or county attorney performing the duties of a district attorney to 2.25 percent for under 12 years of service to a maximum of 3 percent for 20 years or more. This bill prohibits the amount from exceeding 100 percent of a judges state paid salary. 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 B, Chapter 814, Government Code, by adding Section 814.1031, as follows: Sec. 814.1031. SERVICE RETIREMENT BENEFITS FOR SERVICE AS DISTRICT OR CRIMINAL DISTRICT ATTORNEY OR COUNTY ATTORNEY PERFORMING DISTRICT ATTORNEY DUTIES. (a) Provides that the standard service retirement annuity for service performed as a district or criminal district attorney or a county attorney performing the duties of a district attorney is an amount equal to the number of years of service credit in that position, multiplied by a percentage of the state salary being paid a district judge, notwithstanding Section 814.103 (Service Retirement Benefits for Elected Class Service) and except as provided by Subsection (b). Sets forth a schedule of the percentage of a district judge's state salary to be used in the computation. The percentage varies in relation to the person's number of years of service. (b) Prohibits a standard service retirement annuity under this section from exceeding at any time 100 percent of the state salary being paid a district judge. SECTION 2. Amends Section 812.002(a), Government Code, to include in the membership of the elected class of the Employees Retirement System of Texas (ERS) a county attorney performing the duties of a district attorney. SECTION 3. Amends Section 814.108(a), Government Code, to make a conforming change. SECTION 4. Requires ERS to recompute each annuity that is being paid on August 31, 1999, and that is based on the service of a district or criminal district attorney or a county attorney performing the duties of a district attorney as if Section 814.1031, Government Code, as added by this Act, had been in effect on the date of retirement or death for which the annuity is payable. Provides that an annuity as recomputed under this section becomes payable on the first payment that becomes due on or after the effective date of this Act. SECTION 5. Provides that the change in law made by this Act to Section 812.002(a), Government Code, is intended to clarify the law in effect and being administered immediately before the effective date of this Act. SECTION 6. Effective date: September 1, 1999. SECTION 7. Emergency clause.