HBA-SEB S.B. 256 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 256
By: Barrientos
Pensions and Investments
5/19/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, the seven statewide retirement systems which offer proportionate
retirement have different rules and regulations as to who is eligible to
reestablish service credit.  Because these rules and regulations lack
uniformity, some member employees have mistakenly terminated membership in
a retirement system.  S.B. 256 authorizes an eligible member of a
retirement system participating in a proportionate retirement program to
reestablish service credit previously canceled in another retirement system
participating in such a program.  

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 (Proportionate Retirement Program) applies to reestablish service
credit previously canceled in another retirement system to which this
chapter applies, including prior service credit if applicable.  Provides
that Subsections (d) and (e) are exceptions to this section. 

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

(c)  Authorizes a person to reestablish service credit 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 specific contribution and a certification that the applicant currently
holds a position included in the membership of the certifying system. 

(d)  Provides that if service is reestablished under this section in the
Texas County and District Retirement System (TCDRS) 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)  Prohibits 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 from being reestablished under
this section. 

SECTION 2.  Amends Sections 803.103(a) and (b), Government Code, to provide
that participation in the proportionate retirement program by a subdivision
participating in TCDRS or a municipality participating in the Texas
Municipal Retirement System does not include participation with regard to
reestablishment of service credit under Section 803.203 unless the
subdivision or municipality has  elected to be covered by that section.
Authorizes a subdivision or municipality to elect to be covered by that
section. 

SECTION 3.Emergency clause.
  Effective date: upon passage.