By: Zaffirini S.B. No. 812
(In the Senate - Filed February 21, 2011; March 1, 2011,
read first time and referred to Committee on State Affairs;
April 26, 2011, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 26, 2011,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 812 By: Van de Putte
A BILL TO BE ENTITLED
AN ACT
relating to the service retirement benefits of certain retirees who
resume employment within the Texas Municipal Retirement System.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 852.108, Government Code, is amended by
amending Subsections (e) and (f) and adding Subsection (j) to read
as follows:
(e) After termination of employment with the reemploying
municipality and after filing of an application for resumption of
retirement with the board of trustees, a person described by
Subsection (b) is entitled to receive future payments of the
suspended annuity, as provided by Subsection (f), and to the
additional benefits as provided by Subsections (g), (h), [and] (i),
and (j).
(f) Monthly payments of a suspended annuity shall be resumed
in the month following the month in which employment is terminated
with the reemploying municipality, without change in the amount
except for any increase allowed under Section 854.203 or the
duration of or another condition pertaining to the suspended
benefit. Payment of the resumed benefit may not be made for any
month during which the payment was suspended under this section,
except as provided by Subsection (j).
(j) This subsection applies only to a person described by
Subsection (b) who became an employee of the reemploying
municipality after a bona fide termination of employment of at
least 12 months and has filed an application for resumption of
retirement with the board of trustees. A person who resumes
retirement under this subsection is entitled to receive a lump-sum
payment of an amount equal to the sum of the suspended annuity
payments that the person would have received from the retirement
system had payments not been suspended under this section. The
lump-sum payment is payable from the municipality accumulation fund
and the current service annuity reserve fund as appropriate.
SECTION 2. (a) The changes in law made by this Act to
Section 852.108, Government Code, apply only to the following:
(1) a person who resumes employment on or after the
effective date of this Act with the same municipality the person was
employed by before retiring from service; and
(2) to the extent provided by Subsection (b) of this
section, a person who resumed employment before the effective date
of this Act with the same municipality the person was employed by
before retiring from service and who is in that employment on the
effective date of this Act.
(b) A person described by Subsection (j), Section 852.108,
Government Code, as added by this Act, and Subdivision (2),
Subsection (a) of this section, is entitled to payment of an amount
equal to the sum of suspended annuity payments attributable to the
period of the person's reemployment occurring on or after the
effective date of this Act.
(c) The changes in law made by this Act to Section 852.108,
Government Code, do not apply to a person to whom Section 852.1085,
Government Code, applies.
SECTION 3. This Act takes effect January 1, 2012.
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