HBA-GUM H.B. 3536 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3536
By: Longoria
Pensions & Investments
4/12/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, the seven statewide retirement systems, which offer
proportionate retirement, have different and varying rules and regulations
as to who is eligible to buy back service credit. Because these rules and
regulations lack uniformity, some member employees have mistakenly
terminated membership in a retirement system.  H.B. 3635 provides
uniformity in policy of eligibility for members of each of the retirement
systems to which Chapter 803, Government Code (Proportionate Retirement
Program), applies.  This bill also authorizes a member to reestablish
service credit, previously canceled in another retirement system to which
Chapter 803 applies and provides that the regulations do not apply to
service credit to which Section 805.002(e) (relating to the reinstatement
of service credit canceled by a termination of membership that occurred
after August 31, 1993) applies. 

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 C, Chapter 803, Government Code, by adding
Section 803.203, as follows: 

Sec.  803.203.  REESTABLISHMENT OF SERVICE CREDIT FOR PREVIOUS EMPLOYMENT.
(a)  Authorizes an eligible member of a retirement system to which this
chapter (Credit Transfer Between Employees Retirement) applies to
reestablish service credit, including prior service credit if applicable,
previously canceled in another retirement system to which this chapter
applies.  Provides that Subsections (d) and (e) are exceptions to this
section. 

(b)  Establishes the conditions for which a person becomes eligible to
reestablish service credit under this section. 

(c)  Provides that a person becomes authorized to reestablish service
credit under this section by filing an application with the retirement
system in which the service was originally credited.  Requires the system
to grant the service credit upon receipt of a specified contribution
generally required to reestablish service credit in the retirement system
and a certification that the applicant currently holds a position included
in the membership of the certifying system. 

(d)  Provides that if the service is reestablished under this section in
the Texas County and District Retirement System, or the Texas Municipal
Retirement System, the service is creditable pro rata to the account of
each subdivision or municipality for which the service was performed.
Prohibits reestablishment of service credit under this section for service
performed for a subdivision or municipality not participating in the
proportionate retirement program. 

(e)  Provides that this section does not apply to service credit to which
Section 805.002(e)  (relating to the reinstatement of service credit
canceled by a termination of membership that occurred after August 31,
1993) applies. 

SECTION 2.Emergency clause.
  Effective date: upon passage.