HBA-ATS H.B. 920 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 920
By: Naishtat
Pensions and Investments
2/22/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, only members of the United States' armed forces honorably
discharged from active federal duty are eligible to establish their
military service as service creditable under the Employees Retirement
System of Texas.  Those who have served either in the Texas National Guard
or in the United States' armed forces reserves are unable to establish
their service in those organizations as creditable service.  Under H.B.
920, such service comprises military service creditable in the retirement
system.  This bill also provides that veterans of the United States' armed
forces, United States' armed forces reserves, and the Texas National Guard
are authorized to establish five years of service credit in the retirement
system, although at different rates.  In addition, this bill deletes the
provision that a member has to be ineligible to receive federal retirement
payments to be eligible to establish military service credit in 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 Section 813.301, Government Code, to include service as
a member of the Texas National Guard (Guard) and service in the United
States' armed forces reserves (armed forces reserves) among the types of
military service creditable in the Employees Retirement System of Texas
(retirement system).  Although the bill deletes the provision allowing a
member to establish one month of service credit in the retirement system
for each month or fraction of a month of military duty, it establishes new
rates of creditable service for members of the United States' armed forces
(armed forces), the armed forces reserves, and the Guard.  For active
federal duty as an armed forces member, the rate is one month of service
credit for each month or fraction of a month of that service.  For service
as a Guard member and service in the armed forces reserves, the rate is one
month of service credit for each 12 months or fractions of months of that
service. 

SECTION 2.  Amends Section 813.302(b), Government Code, by deleting one
restriction used to define who is a member eligible to establish military
service credit.  A member no longer has to be ineligible to receive federal
retirement payments to be eligible to establish military service credit.
Makes a nonsubstantive change.  Redesignates existing Subdivision (3) to
Subdivision (2). 

SECTION 3.  Amends Section 813.505(b), Government Code, to make a
conforming change. 

SECTION 4.  Emergency clause.
            Effective date: upon passage.