Texas 2011 - 82nd Regular

Texas Senate Bill SB1668 Compare Versions

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1	1	By: Duncan S.B. No. 1668
2	2	(Truitt)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to purchase of service credit in the Teacher Retirement
8	8	System of Texas.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Section 823.304, Government Code,
11	11	is amended to read as follows:
12	12	Sec. 823.304. USERRA [REEMPLOYED VETERAN'S] CREDIT.
13	13	SECTION 2. Subsections (a), (c), and (d), Section 823.304,
14	14	Government Code, are amended to read as follows:
15	15	(a) A person eligible to establish USERRA [reemployed
16	16	veteran's] credit is one who qualifies under the Uniformed Services
17	17	Employment and [Veteran's] Reemployment Rights Act of 1994, 38
18	18	U.S.C. Section 4301 [2021] et seq., for the benefits of
19	19	reemployment in a position included within the membership of the
20	20	retirement system and who is entitled under that Act to additional
21	21	credit and benefits from the retirement system because of the
22	22	person's active duty in the armed forces of the United States.
23	23	(c) A person may establish credit under this section by
24	24	depositing with the retirement system for each year of service
25	25	claimed an amount equal to[:
26	26	[(1)] the member contributions to the retirement
27	27	system, as determined by the retirement system, that the person
28	28	would have made had the person continued to be employed in the
29	29	person's former position covered by the retirement system during
30	30	the entire period of active duty in the armed forces for which the
31	31	person is to receive retirement credit[; and
32	32	[(2) a fee of five percent, compounded annually, of
33	33	the required contribution from the date of the person's first
34	34	eligibility to establish the credit to the date of deposit].
35	35	(d) To the extent required by the Uniformed Services
36	36	Employment and [Veteran's] Reemployment Rights Act of 1994 and
37	37	permitted by Sections 401(a) and 415 of the Internal Revenue Code of
38	38	1986 (26 U.S.C. Sections 401 and 415), the retirement system may:
39	39	(1) grant the person service credit for the period of
40	40	active duty in the armed forces as if the person had been employed
41	41	in a position eligible for membership and credit with the
42	42	retirement system if the person establishes credit by making the
43	43	required deposits, or, if the person has not made the required
44	44	deposits, consider the period of active duty for the purpose of
45	45	determining whether the person meets the length-of-service
46	46	eligibility requirements for retirement or other benefits
47	47	administered by the retirement system as if the person had
48	48	established the credit; and
49	49	(2) include in relevant benefit computations under
50	50	this subtitle the annual compensation, as determined by the
51	51	retirement system, that would have been otherwise received by the
52	52	person for service covered by the retirement system during any year
53	53	in which the person had active duty in the armed forces.
54	54	SECTION 3. Subsection (c), Section 823.401, Government
55	55	Code, is amended to read as follows:
56	56	(c) A member eligible to establish credit under this section
57	57	is one who has at least five years of service credit in the
58	58	retirement system for actual service in public schools, including
59	59	at least one year completed after the relevant out-of-state
60	60	service.
61	61	SECTION 4. Subsections (c), (d), and (e), Section 823.402,
62	62	Government Code, are amended to read as follows:
63	63	(c) A member eligible to establish credit under this section
64	64	is one who:
65	65	(1) has at least five years of service credited
66	66	[credit] in the retirement system before the developmental leave
67	67	occurs; [and]
68	68	(2) has, [is an employee of a public school] at the
69	69	time the required deposits for the credit are paid, at least one
70	70	year of membership service credit in the retirement system
71	71	following the developmental leave; and
72	72	(3) has at least five years of service credited in the
73	73	retirement system at the time the required deposits for the credit
74	74	are paid [is sought].
75	75	(d) On or before the date a member takes developmental
76	76	leave, the member must [shall] file with the retirement system a
77	77	notice of intent to take developmental leave, and the member's
78	78	employer must [shall] file with the retirement system a
79	79	certification that the leave meets the requirements of Subsection
80	80	(b). The notice of intent and the certification must be in the form
81	81	required by the retirement system. Leave is not creditable in the
82	82	retirement system if the member does not submit notice of intent and
83	83	obtain the certification required by this subsection.
84	84	(e) A member may establish credit under this section by
85	85	depositing with the retirement system for each year of
86	86	developmental leave certified the actuarial present value, at the
87	87	time of deposit, of the additional standard retirement annuity
88	88	benefits that would be attributable to the purchase of the service
89	89	credit under this section, based on rates and tables recommended by
90	90	the retirement system's actuary and adopted by the board of
91	91	trustees [claimed an amount equal to the sum of:
92	92	[(1) the rate of member contributions required during
93	93	the year of leave, times the member's annual rate of compensation
94	94	during the member's most recent year of creditable service that
95	95	preceded the year of leave; plus
96	96	[(2) the amount that the state would have contributed
97	97	had the member performed membership service during the year of
98	98	leave at the member's annual rate of compensation during the most
99	99	recent year of service that preceded the leave].
100	100	SECTION 5. Subsection (c), Section 823.501, Government
101	101	Code, is amended to read as follows:
102	102	(c) A member may reinstate canceled credit under this
103	103	section by depositing with the retirement system:
104	104	(1) the amount withdrawn or refunded; plus
105	105	(2) a reinstatement fee of eight [six] percent,
106	106	compounded annually, of the amount withdrawn or refunded from the
107	107	date of withdrawal or refund to the date of redeposit.
108	108	SECTION 6. Subsections (h) and (j), Section 825.403,
109	109	Government Code, are amended to read as follows:
110	110	(h) If deductions were previously required but not paid, the
111	111	retirement system may not provide benefits based on the service or
112	112	compensation unless the deposits required by this section have been
113	113	fully paid. The person's employer at the time the unreported
114	114	service was rendered or compensation was paid must verify the
115	115	service or compensation as required by Subsection (j) and the
116	116	person must submit the verification to the retirement system not
117	117	later than five years after [member shall pay the amount of those
118	118	deductions plus a fee computed at a rate of five percent a year on
119	119	the unpaid amount from] the end of the school year in which the
120	120	service was rendered or compensation was paid. To establish the
121	121	service or compensation credit, the person must deposit with the
122	122	retirement system the actuarial present value, at the time of
123	123	deposit, of the additional standard retirement annuity benefits
124	124	that would be attributable to the purchase of service or
125	125	compensation credit under this section, based on rates and tables
126	126	recommended by the retirement system's actuary and adopted by the
127	127	board of trustees [deductions first became due or the end of the
128	128	1974-75 school year, whichever is later, to the date of payment].
129	129	The board of trustees shall:
130	130	(1) prescribe terms for payments under this
131	131	subsection; and
132	132	(2) credit the person [member] for prior service to
133	133	which the person [member] is entitled under this subtitle[; and
134	134	[(3) deposit the fee required by this subsection in
135	135	the state contribution account].
136	136	(j) If deductions were previously required [of a member] but
137	137	not paid, proof of service satisfactory to the retirement system
138	138	must be made before service credit is granted or payment for the
139	139	credit is required. Proof of service is sufficient if the person's
140	140	[member's] employer documents that the employer has records made at
141	141	or near the time of service that establish the amount of time worked
142	142	and salary earned. [A member may submit in lieu of employer
143	143	documentation internal revenue, social security, bank, or other
144	144	written records that were made at or near the time of service and
145	145	that establish the amount of time worked and salary earned.] An
146	146	affidavit based on memory without written records made at or near
147	147	the time of service is not sufficient documentation for the
148	148	establishment of service credit. The retirement system may audit
149	149	records used for documentation under this subsection. A person who
150	150	does not obtain proof of service as required by this section may not
151	151	establish the service or compensation credit.
152	152	SECTION 7. (a) The following sections of the Government
153	153	Code are repealed:
154	154	(1) Subsection (i), Section 823.401;
155	155	(2) Subsections (g) and (h), Section 823.402; and
156	156	(3) Subsection (e), Section 823.501.
157	157	(b) Section 57, Chapter 1359 (S.B. 1691), Acts of the 79th
158	158	Legislature, Regular Session, 2005, is repealed.
159	159	SECTION 8. Subsections (d) and (e), Section 823.401,
160	160	Government Code, as amended by Section 10, Chapter 1359 (S.B.
161	161	1691), Acts of the 79th Legislature, Regular Session, effective
162	162	September 1, 2005, apply to a person who was a member of the Teacher
163	163	Retirement System of Texas on December 31, 2005, and to
164	164	out-of-state service performed before January 1, 2006,
165	165	notwithstanding Section 57 of that Act.
166	166	SECTION 9. For unreported service rendered or unreported
167	167	compensation paid before the effective date of this Act, the
168	168	verification required under Subsection (h), Section 825.403,
169	169	Government Code, as amended by this Act, must be received by the
170	170	Teacher Retirement System of Texas not later than August 31, 2016.
171	171	SECTION 10. (a) Notwithstanding the service credit cost
172	172	provisions of Section 8 of this Act and Subsection (e), Section
173	173	823.402, Subdivision (2), Subsection (c), Section 823.501, and
174	174	Subsection (h), Section 825.403, Government Code, as amended by
175	175	this Act, a person may establish service credit by paying the
176	176	deposits and fees required under Sections 823.402, 823.501, and
177	177	825.403, Government Code, and by Section 57, Chapter 1359 (S.B.
178	178	1691), Acts of the 79th Legislature, Regular Session, 2005, as
179	179	those sections existed before amendment or repeal by this Act, if:
180	180	(1) the person otherwise meets all eligibility
181	181	requirements under those sections as amended by this Act;
182	182	(2) the service for which credit is sought to be
183	183	established was rendered, or the compensation for which credit is
184	184	sought was paid, before the effective date of this Act; and
185	185	(3) the person makes payment for the service credit,
186	186	or enters into an installment agreement for payment, not later than
187	187	August 31, 2013.
188	188	(b) If a person has an installment agreement under
189	189	Subsection (a) of this section that is terminated after August 31,
190	190	2013, before the person has made all of the payments, the person may
191	191	establish credit only as provided by Sections 823.402, 823.501, and
192	192	825.403, Government Code, as amended by this Act, and by Section 8
193	193	of this Act.
194	194	SECTION 11. This Act takes effect September 1, 2011.