By Marchant                                     H.B. No. 1376

      75R2044 GCH-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to credit and benefits for legislative members of the

 1-3     Employees Retirement System of Texas.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter A, Chapter 812, Government Code, is

 1-6     amended by amending Section 812.001 and adding Section 812.0021 to

 1-7     read as follows:

 1-8           Sec. 812.001.  MEMBERSHIP CLASSES.  The three [two] classes

 1-9     of membership in the retirement system are the elected class, the

1-10     elected class plan two, and the employee class.

1-11           Sec. 812.0021.  MEMBERSHIP IN ELECTED CLASS PLAN TWO.  (a)

1-12     Notwithstanding Section 812.002, a person who would otherwise

1-13     become a member of the elected class is eligible only to become a

1-14     member of the elected class plan two if the person after December

1-15     31, 1998, takes the oath of office as a member of the legislature

1-16     and is not currently and has not previously been a member of the

1-17     elected class.

1-18           (b)  Membership in the elected class plan two also includes a

1-19     member of the legislature who is a member of the elected class and

1-20     who files an election with the retirement system to transfer

1-21     membership and service credit from the elected class to the elected

1-22     class plan two.

1-23           (c)  A provision of this subtitle that applies to members of

1-24     the elected class or to all members of the retirement system

 2-1     applies to a member of the elected class plan two unless a contrary

 2-2     provision applicable to the elected class plan two is provided by

 2-3     this subtitle.

 2-4           SECTION 2.  Section 812.203(d), Government Code, is amended

 2-5     to read as follows:

 2-6           (d)  If a retiree takes the oath for a position included in

 2-7     the elected class or the elected class plan two [of membership],

 2-8     the retirement system shall suspend annuity payments to the person

 2-9     for service that was credited in either [that] class, until the

2-10     person no longer holds that position.

2-11           SECTION 3.  Section 812.204(b), Government Code, is amended

2-12     to read as follows:

2-13           (b)  Before a retiree from the elected class or the elected

2-14     class plan two [of membership] takes the oath of office for a

2-15     position included in either [that] class, the retiree shall notify

2-16     the retirement system in writing of the taking of a position and

2-17     the projected dates of service.

2-18           SECTION 4.  Chapter 813, Government Code, is amended by

2-19     adding Subchapter G to read as follows:

2-20       SUBCHAPTER G.  PROVISIONS APPLICABLE TO ELECTED CLASS PLAN TWO

2-21           Sec. 813.601.  MAXIMUM SERVICE CREDIT FOR MEMBERSHIP SERVICE.

2-22     A member of the elected class plan two may not establish more than

2-23     144 months of service credit in the retirement system for

2-24     membership service performed in an office included in that class,

2-25     including service performed as a member of the elected class.  A

2-26     member who has the maximum service credit described by this section

2-27     is not required to continue making contributions while in office,

 3-1     and the state shall discontinue contributions based on the service.

 3-2           Sec. 813.602.  EQUIVALENT MEMBERSHIP SERVICE.  (a)  A member

 3-3     of the elected class plan two may establish equivalent membership

 3-4     service credit in that class for military service performed in the

 3-5     armed forces of the United States, in a national or state guard

 3-6     unit, or in a reserve or auxiliary unit of a branch of the armed

 3-7     forces of the United States, or, except as provided by Subsection

 3-8     (d), for service performed as an officer or employee of the state

 3-9     or a political subdivision of this state.

3-10           (b)  A member may establish service credit under this section

3-11     for military service in the manner provided for members of the

3-12     elected class.  Except as provided by Subsection (f), a member may

3-13     establish service credit under this section for service as an

3-14     officer or employee of the state or a political subdivision by

3-15     depositing with the retirement system:

3-16                 (1)  a contribution computed on the compensation

3-17     received for the period of service at the combined rate of state

3-18     and legislative member contributions for a member of the system

3-19     during the period of service;

3-20                 (2)  interest computed on the basis of the state fiscal

3-21     year at an annual rate of 10 percent from the date the service was

3-22     performed to the date of deposit; and

3-23                 (3)  any membership fees required of members of the

3-24     system during the period beginning on the date the service was

3-25     performed and ending on the date of deposit.

3-26           (c)  The retirement system shall require evidence

3-27     satisfactory to the system of eligibility to establish credit under

 4-1     this section and relating to the amount of deposits required.

 4-2           (d)  A member may not establish credit under this section for

 4-3     any service that is currently credited in another retirement

 4-4     system.

 4-5           (e)  The maximum amount of service creditable by a member

 4-6     under this section for all equivalent membership service is 24

 4-7     months.

 4-8           (f)  In lieu of or in addition to establishing equivalent

 4-9     membership service credit by making deposits under Subsection (b),

4-10     a member may establish service credit under this section, within

4-11     the maximum amount authorized by Subsection (e), by electing to

4-12     transfer service credit from the employee class to the elected

4-13     class plan two or, if otherwise eligible under Chapter 805, by

4-14     electing to transfer service credit from the Teacher Retirement

4-15     System of Texas to the elected class plan two.

4-16           Sec. 813.603.  OTHER CREDITABLE SERVICE.  A member of the

4-17     elected class plan two may establish service credit in the employee

4-18     class for service creditable in that class, other than service

4-19     performed as a member of the elected class plan two.  A member of

4-20     the elected class plan two may not transfer credit from the

4-21     employee class to the elected class plan two except as provided by

4-22     Section 813.602(f).

4-23           SECTION 5.  Section 814.002, Government Code, is amended to

4-24     read as follows:

4-25           Sec. 814.002.  BENEFITS FROM MORE THAN ONE [BOTH] MEMBERSHIP

4-26     CLASS [CLASSES].  (a)  If a member has service credit in more than

4-27     one class [both classes] of membership, is eligible to retire from

 5-1     one class, and does not hold a position included in either [the]

 5-2     other class, the member may retire from all [both] classes and

 5-3     receive benefits based on all service credited in the retirement

 5-4     system.

 5-5           (b)  If a member is retiring and uses service credited in a

 5-6     class of membership to meet a length-of-service requirement for

 5-7     retirement, the member must retire from that class.

 5-8           SECTION 6.  Chapter 814, Government Code, is amended by

 5-9     adding Subchapter H to read as follows:

5-10       SUBCHAPTER H.  PROVISIONS APPLICABLE TO ELECTED CLASS PLAN TWO

5-11           Sec. 814.701.  ELIGIBILITY FOR SERVICE RETIREMENT.  A member

5-12     of the elected class plan two is eligible to retire and receive a

5-13     service retirement annuity if the member:

5-14                 (1)  is at least 65 years old and has six years of

5-15     service credit in that class; or

5-16                 (2)  is at least 60 years old and has 10 years of

5-17     service credit in that class.

5-18           Sec. 814.702.  SERVICE RETIREMENT BENEFITS.  (a)  The

5-19     standard service retirement annuity for service credited in the

5-20     elected class plan two is an amount equal to the number of years of

5-21     service credit in that class, times five percent of the average

5-22     salary paid in this state during the preceding school year to a

5-23     person employed as a classroom teacher in the public schools of

5-24     this state in the person's initial year of teaching.

5-25           (b)  The retirement system annually shall determine the

5-26     average statewide salary of public school classroom teachers in

5-27     their initial teaching year.  An average shall include the minimum

 6-1     salary required by the state and the supplemental salary paid by

 6-2     school districts.  The commissioner of education shall cooperate

 6-3     with the retirement system in the making of its annual

 6-4     determinations.

 6-5           (c)  As soon as practicable after the system adopts its

 6-6     annual teacher salary determinations, the system shall recompute

 6-7     the annuities attributable to service in the elected class plan two

 6-8     and begin payments of the annuities as recomputed.

 6-9           SECTION 7.  This Act takes effect September 1, 1997.

6-10           SECTION 8.  The importance of this legislation and the

6-11     crowded condition of the calendars in both houses create an

6-12     emergency and an imperative public necessity that the

6-13     constitutional rule requiring bills to be read on three several

6-14     days in each house be suspended, and this rule is hereby suspended.