HBA-SEB C.S.H.B. 3755 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3755
By: Clark
Pensions and Investments
5/11/1999
Committee Report (Substituted)

BACKGROUND AND PURPOSE 

Currently, the Judicial Retirement System of Texas Plan One (which is
applicable to a judge whose service commenced on or before August 31, 1985)
automatically adjusts the standard service retirement annuity of its
members in order to compensate for cost-of-living adjustments made to
judicial salaries.  At present, no cost-of-living adjustment exists for
members of the Judicial Retirement System of Texas Plan Two (which is
applicable to a judge whose service commenced on or after September 1,
1985).  C.S.H.B. 3755 provides that the standard service retirement annuity
for a member of the Judicial Retirement System of Texas Plan Two is
adjusted from time to time due to periodic changes in the state salary
being paid a judge of a court of the same classification as the last court
of the retiree. 

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 Sections 839.102(a) and (c), Government Code, as follows:

(a)  Establishes that the standard service retirement annuity for a member
of the Judicial Retirement System of Texas Plan Two is an amount equal to
50 percent of the state salary, as adjusted from time to time, rather than
at the time the member retires, being paid to a judge of the court of the
same classification as the retiree, except for an increase in applicable
state salary for certain members. 

(c)  Makes a conforming change.

SECTION 2.  (a)  Effective date: September 1, 2001, if the comptroller
determines that implementation of the change in law made by this Act would
not necessitate additional state contributions for the Judicial Retirement
System of Texas Plan Two.  Authorizes the comptroller to make the
determination earlier than September 1, 1999, in which case the effective
date of this Act is the date of the earlier determination.  Requires the
comptroller to file notice of such a determination with the secretary of
state for publication in the Texas Register.   
            
(b)  Makes application of this Act prospective. 

SECTION 3.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in SECTION 2 to add text that provides
that the effectiveness of this Act depends upon a determination by the
comptroller that implementation of the change in law made by this Act would
not necessitate additional state contributions for the Judicial Retirement
System of Texas Plan Two.  The substitute adds a statement that authorizes
the comptroller to make the determination earlier than September 1, 2001,
in which case the effective date of this Act is the date of the earlier
determination.  The original would have provided an effective date of
September 1, 1999.  The substitute requires the comptroller to file notice
of such a determination with the secretary of state for publication in the
Texas Register.