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.