Texas House Bill HB159

Texas 2011 - 82nd Regular

• Out of House Committee: 4/27/11
• Introduced: 11/8/10
• Voted on by House: 5/15/11
• Refer: 2/11/11
• Out of Senate Committee: 5/20/11
• Report Pass: 4/19/11
• Voted on by Senate: 5/21/11
• Governor Action: 6/17/11
• Refer: 5/16/11
• Enrolled: 5/24/11
• Passed: 6/17/11

Caption

Relating to the resumption of employment by certain retirees within the Texas Municipal Retirement System.

Impact

The bill is particularly intended to provide clearer guidelines for both retirees and municipalities regarding the suspension and resumption of retirement annuities. As per the amendments, if a retiree resumes work with their previous municipality, their retirement annuity will be suspended during the period of re-employment. However, upon termination of this employment, the annuity payments will resume, which includes provisions for lump-sum payments for the suspended benefits. This adjustment aims to protect both the financial interests of retirees and the administrative processes of the retirement system. The change in law, however, applies only to those who re-apply for retirement benefits after the effective date of the legislation.

Summary

House Bill 159 addresses the issue of the resumption of employment by certain retirees within the Texas Municipal Retirement System (TMRS). It primarily amends existing statutes related to how pensions are handled when a retiree is re-employed by the same municipality that previously employed them. The bill specifies conditions under which retirees can begin receiving their annuity payments again after resuming employment, particularly focusing on the timing and circumstances of their re-employment. This change aims to clarify the rules for retirees returning to work and ensure proper handling of their retirement benefits.

Contention

Notable points of contention surrounding HB 159 may include how the amendments affect retirees' decisions regarding re-employment and how municipalities manage these changes within their financial and administrative codes. Some stakeholders may express concern over the potential financial implications for municipalities needing to regularly adjust retiree benefits, while others could view this bill as a necessary update to accommodate the realities of an aging workforce that may seek to return to work after retirement. Additionally, there might be discussions over the balance between providing retirees with flexibility in their employment choices and protecting the integrity of retirement systems.