HBA-TBM H.B. 2851 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2851 By: Hupp Pensions & Investments 3/26/2001 Introduced BACKGROUND AND PURPOSE Under current law, a member of the Texas County and District Retirement System (TCDRS) is eligible to receive service credit for previous military service if the member is not receiving a federal pension for 20 years or more of service. This credit may allow a member to retire up to five years early. The line is drawn at 20 years of military service because this is the traditional time at which a member of the armed services is eligible to retire and receive a pension. However, in recent years members of the armed forces who served for 19 years receive a pension and credit in the retirement system, but members of the military who served 20 years or more receive a pension but not credit in TCDRS. House Bill 2851 authorizes a subdivision participating in TCDRS to establish service credit for military retirees who served 20 years or more. 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 2851 amends the Government Code to provide that the governing body of a subdivision participating in the Texas County and District Retirement System that has authorized the establishment of credit for military service may by further order authorize current service credit to be established for military service by a member who receives or is eligible to receive federal retirement payments based on 20 years or more of active federal military duty or its equivalent. The bill sets forth provisions by which the credit may be established. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.