1 | 1 | | 84R6262 KFF-D |
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2 | 2 | | By: Márquez H.B. No. 2859 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the establishment of membership service credit by a |
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8 | 8 | | member of the Employees Retirement System of Texas for employment |
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9 | 9 | | with a tribal government. |
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10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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11 | 11 | | SECTION 1. Section 811.001(16), Government Code, is amended |
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12 | 12 | | to read as follows: |
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13 | 13 | | (16) "Service credit" means the amount of membership |
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14 | 14 | | and tribal government or military service ascribed to a person's |
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15 | 15 | | account in the retirement system for which all required |
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16 | 16 | | contributions have been made to, and are being held by, the |
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17 | 17 | | retirement system. |
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18 | 18 | | SECTION 2. Section 813.001, Government Code, is amended to |
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19 | 19 | | read as follows: |
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20 | 20 | | Sec. 813.001. TYPES OF CREDITABLE SERVICE. The types of |
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21 | 21 | | service creditable in the retirement system are membership service, |
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22 | 22 | | tribal government service, military service, and equivalent |
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23 | 23 | | membership service. |
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24 | 24 | | SECTION 3. Section 813.101, Government Code, is amended to |
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25 | 25 | | read as follows: |
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26 | 26 | | Sec. 813.101. DETERMINATION OF REQUIRED DEPOSITS. The |
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27 | 27 | | retirement system shall determine in each case the amount of money |
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28 | 28 | | to be deposited by a member claiming credit for membership, tribal |
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29 | 29 | | government service, or military service previously canceled or not |
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30 | 30 | | previously established. The system may not provide benefits based |
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31 | 31 | | on the claimed service until the determined amount has been fully |
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32 | 32 | | paid. |
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33 | 33 | | SECTION 4. Section 813.106, Government Code, is amended to |
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34 | 34 | | read as follows: |
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35 | 35 | | Sec. 813.106. SERVICE NOT PREVIOUSLY ESTABLISHED. The |
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36 | 36 | | state shall make contributions for service not previously |
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37 | 37 | | established that is established under Section 813.104 in the amount |
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38 | 38 | | provided by Section 813.202(c) for membership service, [or] the |
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39 | 39 | | amount provided by Section 813.302(d) for military service, or the |
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40 | 40 | | amount provided by Section 813.602(b) for tribal government |
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41 | 41 | | service, as applicable. The state contributions will be made at the |
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42 | 42 | | time the service credit is granted. |
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43 | 43 | | SECTION 5. Section 813.401, Government Code, is amended to |
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44 | 44 | | read as follows: |
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45 | 45 | | Sec. 813.401. SERVICE CREDITABLE IN ELECTED CLASS. Service |
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46 | 46 | | creditable in the elected class of membership is: |
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47 | 47 | | (1) membership service in an office included in that |
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48 | 48 | | class; |
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49 | 49 | | (2) military service established as provided by |
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50 | 50 | | Subchapter D; [and] |
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51 | 51 | | (3) tribal government service established as provided |
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52 | 52 | | by Subchapter G; and |
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53 | 53 | | (4) equivalent membership service specifically made |
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54 | 54 | | creditable in that class. |
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55 | 55 | | SECTION 6. Section 813.404, Government Code, is amended to |
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56 | 56 | | read as follows: |
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57 | 57 | | Sec. 813.404. CONTRIBUTIONS FOR SERVICE NOT PREVIOUSLY |
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58 | 58 | | ESTABLISHED. For each month of membership, military, tribal |
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59 | 59 | | government, or equivalent membership service not previously |
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60 | 60 | | credited in the retirement system, a member claiming credit in the |
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61 | 61 | | elected class shall pay a contribution in an amount equal to the |
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62 | 62 | | greater of: |
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63 | 63 | | (1) eight percent of the monthly salary paid to |
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64 | 64 | | members of the legislature at the time the credit is established; or |
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65 | 65 | | (2) the appropriate member contribution provided by |
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66 | 66 | | Section 815.402 for a person who holds, at the time the credit is |
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67 | 67 | | established, the office for which credit is sought. |
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68 | 68 | | SECTION 7. Section 813.501, Government Code, is amended to |
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69 | 69 | | read as follows: |
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70 | 70 | | Sec. 813.501. SERVICE CREDITABLE IN EMPLOYEE CLASS. |
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71 | 71 | | Service creditable in the employee class of membership is: |
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72 | 72 | | (1) membership service in a position included in that |
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73 | 73 | | class; |
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74 | 74 | | (2) military service established as provided by |
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75 | 75 | | Subchapter D; |
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76 | 76 | | (3) service creditable in or transferred from the |
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77 | 77 | | elected class as provided by Section 813.503; [and] |
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78 | 78 | | (4) administrative board service established as |
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79 | 79 | | provided by Section 813.502; and |
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80 | 80 | | (5) tribal government service established as provided |
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81 | 81 | | by Subchapter G. |
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82 | 82 | | SECTION 8. Section 813.503(a), Government Code, is amended |
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83 | 83 | | to read as follows: |
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84 | 84 | | (a) A member may establish in, or have transferred to, the |
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85 | 85 | | employee class all service credited in the elected class, if the |
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86 | 86 | | contributions made to establish the service in the elected class |
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87 | 87 | | equal or exceed contributions required of a member of the employee |
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88 | 88 | | class for the same amount of service during the same time and at the |
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89 | 89 | | same rate of compensation. A member or retiree who has, or had at |
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90 | 90 | | the time of retirement, at least eight years of service credit in |
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91 | 91 | | the elected class of membership, exclusive of tribal government or |
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92 | 92 | | military service, may transfer service credit between classes |
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93 | 93 | | before or after retirement. |
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94 | 94 | | SECTION 9. Section 813.505(a), Government Code, is amended |
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95 | 95 | | to read as follows: |
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96 | 96 | | (a) A member claiming credit in the employee class for |
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97 | 97 | | membership service not previously established, including a member |
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98 | 98 | | claiming credit in the employee class for tribal government |
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99 | 99 | | service, shall, for each month of the service, pay a contribution in |
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100 | 100 | | an amount equal to the greater of: |
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101 | 101 | | (1) the appropriate member contribution provided by |
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102 | 102 | | Section 815.402 for the service during the time for which credit is |
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103 | 103 | | sought; or |
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104 | 104 | | (2) $18. |
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105 | 105 | | SECTION 10. Chapter 813, Government Code, is amended by |
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106 | 106 | | adding Subchapter G to read as follows: |
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107 | 107 | | SUBCHAPTER G. ESTABLISHMENT OF TRIBAL GOVERNMENT SERVICE |
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108 | 108 | | Sec. 813.601. CREDITABLE TRIBAL GOVERNMENT SERVICE. (a) A |
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109 | 109 | | member may establish membership service credit for employment with |
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110 | 110 | | a tribal government in accordance with this subchapter. |
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111 | 111 | | (b) A member may establish one month of service credit for |
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112 | 112 | | each month or fraction of a month of employment with a tribal |
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113 | 113 | | government, but not more than 60 months of service credit in the |
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114 | 114 | | retirement system for tribal government service. |
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115 | 115 | | Sec. 813.602. TRIBAL GOVERNMENT SERVICE NOT PREVIOUSLY |
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116 | 116 | | ESTABLISHED. (a) A member may establish service credit under |
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117 | 117 | | Section 813.603 by depositing with the retirement system in a lump |
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118 | 118 | | sum a contribution computed as provided by Section 813.404 or |
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119 | 119 | | 813.505, as applicable, plus, if the member does not establish the |
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120 | 120 | | credit before the first anniversary of the date of first |
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121 | 121 | | eligibility, interest computed on the basis of the state fiscal |
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122 | 122 | | year at an annual rate of 10 percent from the date of first |
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123 | 123 | | eligibility to the date of deposit. |
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124 | 124 | | (b) The state shall contribute for service established |
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125 | 125 | | under this section an amount in the same ratio to the member's |
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126 | 126 | | contribution for the service as the state's contribution bears to |
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127 | 127 | | the contribution for current service required of a member of the |
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128 | 128 | | employee class at the time the service is established under this |
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129 | 129 | | section. The state's contribution shall be paid from the fund from |
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130 | 130 | | which the member receives compensation at the time the service is |
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131 | 131 | | established or, if the member does not hold a position at the time |
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132 | 132 | | the service is established, from the fund from which the member |
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133 | 133 | | received compensation when the member most recently held a |
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134 | 134 | | position. |
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135 | 135 | | (c) The board of trustees may require members applying for |
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136 | 136 | | credit under this section to submit any information the board finds |
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137 | 137 | | necessary to enable it to determine eligibility for or amount of |
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138 | 138 | | service or amounts of required contributions. |
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139 | 139 | | Sec. 813.603. SERVICE CREDITED TO MEMBERSHIP CLASS. Tribal |
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140 | 140 | | government service is creditable in a class of membership that |
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141 | 141 | | includes a position held by the member at the time the member |
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142 | 142 | | establishes service credit. |
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143 | 143 | | Sec. 813.604. USE OF TRIBAL GOVERNMENT SERVICE CREDIT. (a) |
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144 | 144 | | The retirement system shall use service credit established under |
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145 | 145 | | this subchapter in computing occupational disability retirement |
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146 | 146 | | benefits and death benefits and in determining eligibility to |
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147 | 147 | | select an optional death benefit plan. |
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148 | 148 | | (b) The retirement system shall use service credit |
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149 | 149 | | established under this subchapter in computing service retirement |
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150 | 150 | | or nonoccupational disability retirement benefits of a member of |
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151 | 151 | | the employee class only if the member has, without service credit |
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152 | 152 | | established under this subchapter, at least five years of service |
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153 | 153 | | credit in that class. |
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154 | 154 | | (c) The retirement system shall use service credit |
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155 | 155 | | established under this subchapter in computing service retirement |
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156 | 156 | | or nonoccupational disability retirement benefits of a member of |
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157 | 157 | | the elected class only if the member has enough service credit, |
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158 | 158 | | exclusive of the service credit established under this subchapter, |
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159 | 159 | | to be eligible for service retirement benefits at age 60. |
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160 | 160 | | SECTION 11. Section 815.311(a), Government Code, is amended |
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161 | 161 | | to read as follows: |
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162 | 162 | | (a) The retirement system shall deposit in a member's |
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163 | 163 | | individual account in the employees saving account the following |
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164 | 164 | | amounts: |
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165 | 165 | | (1) the amount of contributions to the retirement |
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166 | 166 | | system that is deducted from the member's compensation; |
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167 | 167 | | (2) the portion of a deposit required to reinstate |
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168 | 168 | | service credit previously canceled that represents only the amount |
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169 | 169 | | withdrawn; |
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170 | 170 | | (3) the portion of a deposit required to establish |
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171 | 171 | | service credit not previously established that represents only the |
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172 | 172 | | required contribution; [and] |
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173 | 173 | | (4) the portion of a deposit required to establish |
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174 | 174 | | military service credit that represents only the member's |
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175 | 175 | | contribution for that credit; and |
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176 | 176 | | (5) the portion of a deposit required to establish |
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177 | 177 | | tribal government service credit that represents only the member's |
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178 | 178 | | contribution for that credit. |
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179 | 179 | | SECTION 12. Section 815.312(b), Government Code, is amended |
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180 | 180 | | to read as follows: |
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181 | 181 | | (b) The retirement system also shall deposit in the state |
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182 | 182 | | accumulation account the interest portion of the following deposits |
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183 | 183 | | made by members: |
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184 | 184 | | (1) deposits required to reinstate service previously |
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185 | 185 | | canceled; |
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186 | 186 | | (2) deposits required to establish service credit not |
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187 | 187 | | previously established; [and] |
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188 | 188 | | (3) deposits required to establish military service |
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189 | 189 | | credit; and |
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190 | 190 | | (4) deposits required to establish tribal government |
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191 | 191 | | service credit. |
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192 | 192 | | SECTION 13. This Act takes effect September 1, 2015. |
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