HBA-TBM H.B. 1428 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1428 By: Longoria Pensions & Investments 3/23/2001 Introduced BACKGROUND AND PURPOSE Currently, statewide retirement systems that offer proportionate retirement have different rules and regulations as to who is eligible to buy back service credit. Because the rules lack uniformity, some member employees may have mistakenly terminated membership in a retirement system and lost prior established service credit. House Bill 1428 specifies a uniform policy regarding purchasing prior service credit and sets forth provisions for the reestablishment of service credit previously canceled. 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. ANALYSIS House Bill 1428 amends the Government Code to authorize an eligible member of a retirement system participating in the proportionate retirement program (program) to reestablish service credit, including prior service credit if applicable, previously canceled in another retirement system participating in the program. A person eligible to reestablish service credit is one who terminated service covered by and withdrew contributions from a retirement system in the program and began service in and currently holds a position covered by another retirement system in the program. A person may apply to reestablish service credit by filing an application with the retirement system in which the service was originally credited. The bill requires the system in which the service was originally credited to grant the service credit when the system receives from the applicant a contribution in the amount required to reestablish service credit including any applicable interest and membership fees, and a certification that the applicant currently holds a position included in the membership of the certifying system. If service credit is reestablished 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. The bill prohibits service credit from being reestablished for service performed for a subdivision or municipality not participating in the program. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.