Texas House Bill HB1838

Texas 2009 - 81st Regular

Caption

Relating to eligibility for and the establishment of service credit in the Employees Retirement System of Texas for military service.

Impact

If enacted, HB1838 would change the financial obligations related to retirement contributions for members that have previously served in the military. By allowing these members to establish service credit without requiring a state contribution if they are receiving federal retirement payments, the bill adjusts how retirement benefits are calculated for those with significant military service. This change could potentially affect many service members and their approach to retirement planning.

Summary

House Bill 1838 aims to amend existing regulations regarding the eligibility and establishment of service credit for military service within the Employees Retirement System of Texas. The bill allows members who have received or are eligible to receive federal retirement payments based on 20 years or more of active military duty to establish service credit by depositing an amount equal to required member contributions. This provision changes the previous stipulation, thereby broadening eligibility for military service credit.

Contention

One notable point of contention surrounding HB1838 is the potential financial implications for the Employees Retirement System of Texas. Critics might argue that allowing military members to secure service credit without a state contribution could create an imbalance within the retirement fund. Supporters may contend that this change is necessary to recognize the sacrifices made by military personnel and to ensure fair treatment in retirement opportunities.