84R6262 KFF-D
By: Márquez H.B. No. 2859
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of membership service credit by a
member of the Employees Retirement System of Texas for employment
with a tribal government.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 811.001(16), Government Code, is amended
to read as follows:
(16) "Service credit" means the amount of membership
and tribal government or military service ascribed to a person's
account in the retirement system for which all required
contributions have been made to, and are being held by, the
retirement system.
SECTION 2. Section 813.001, Government Code, is amended to
read as follows:
Sec. 813.001. TYPES OF CREDITABLE SERVICE. The types of
service creditable in the retirement system are membership service,
tribal government service, military service, and equivalent
membership service.
SECTION 3. Section 813.101, Government Code, is amended to
read as follows:
Sec. 813.101. DETERMINATION OF REQUIRED DEPOSITS. The
retirement system shall determine in each case the amount of money
to be deposited by a member claiming credit for membership, tribal
government service, or military service previously canceled or not
previously established. The system may not provide benefits based
on the claimed service until the determined amount has been fully
paid.
SECTION 4. Section 813.106, Government Code, is amended to
read as follows:
Sec. 813.106. SERVICE NOT PREVIOUSLY ESTABLISHED. The
state shall make contributions for service not previously
established that is established under Section 813.104 in the amount
provided by Section 813.202(c) for membership service, [or] the
amount provided by Section 813.302(d) for military service, or the
amount provided by Section 813.602(b) for tribal government
service, as applicable. The state contributions will be made at the
time the service credit is granted.
SECTION 5. Section 813.401, Government Code, is amended to
read as follows:
Sec. 813.401. SERVICE CREDITABLE IN ELECTED CLASS. Service
creditable in the elected class of membership is:
(1) membership service in an office included in that
class;
(2) military service established as provided by
Subchapter D; [and]
(3) tribal government service established as provided
by Subchapter G; and
(4) equivalent membership service specifically made
creditable in that class.
SECTION 6. Section 813.404, Government Code, is amended to
read as follows:
Sec. 813.404. CONTRIBUTIONS FOR SERVICE NOT PREVIOUSLY
ESTABLISHED. For each month of membership, military, tribal
government, or equivalent membership service not previously
credited in the retirement system, a member claiming credit in the
elected class shall pay a contribution in an amount equal to the
greater of:
(1) eight percent of the monthly salary paid to
members of the legislature at the time the credit is established; or
(2) the appropriate member contribution provided by
Section 815.402 for a person who holds, at the time the credit is
established, the office for which credit is sought.
SECTION 7. Section 813.501, Government Code, is amended to
read as follows:
Sec. 813.501. SERVICE CREDITABLE IN EMPLOYEE CLASS.
Service creditable in the employee class of membership is:
(1) membership service in a position included in that
class;
(2) military service established as provided by
Subchapter D;
(3) service creditable in or transferred from the
elected class as provided by Section 813.503; [and]
(4) administrative board service established as
provided by Section 813.502; and
(5) tribal government service established as provided
by Subchapter G.
SECTION 8. Section 813.503(a), Government Code, is amended
to read as follows:
(a) A member may establish in, or have transferred to, the
employee class all service credited in the elected class, if the
contributions made to establish the service in the elected class
equal or exceed contributions required of a member of the employee
class for the same amount of service during the same time and at the
same rate of compensation. A member or retiree who has, or had at
the time of retirement, at least eight years of service credit in
the elected class of membership, exclusive of tribal government or
military service, may transfer service credit between classes
before or after retirement.
SECTION 9. Section 813.505(a), Government Code, is amended
to read as follows:
(a) A member claiming credit in the employee class for
membership service not previously established, including a member
claiming credit in the employee class for tribal government
service, shall, for each month of the service, pay a contribution in
an amount equal to the greater of:
(1) the appropriate member contribution provided by
Section 815.402 for the service during the time for which credit is
sought; or
(2) $18.
SECTION 10. Chapter 813, Government Code, is amended by
adding Subchapter G to read as follows:
SUBCHAPTER G. ESTABLISHMENT OF TRIBAL GOVERNMENT SERVICE
Sec. 813.601. CREDITABLE TRIBAL GOVERNMENT SERVICE. (a) A
member may establish membership service credit for employment with
a tribal government in accordance with this subchapter.
(b) A member may establish one month of service credit for
each month or fraction of a month of employment with a tribal
government, but not more than 60 months of service credit in the
retirement system for tribal government service.
Sec. 813.602. TRIBAL GOVERNMENT SERVICE NOT PREVIOUSLY
ESTABLISHED. (a) A member may establish service credit under
Section 813.603 by depositing with the retirement system in a lump
sum a contribution computed as provided by Section 813.404 or
813.505, as applicable, plus, if the member does not establish the
credit before the first anniversary of the date of first
eligibility, interest computed on the basis of the state fiscal
year at an annual rate of 10 percent from the date of first
eligibility to the date of deposit.
(b) The state shall contribute for service established
under this section an amount in the same ratio to the member's
contribution for the service as the state's contribution bears to
the contribution for current service required of a member of the
employee class at the time the service is established under this
section. The state's contribution shall be paid from the fund from
which the member receives compensation at the time the service is
established or, if the member does not hold a position at the time
the service is established, from the fund from which the member
received compensation when the member most recently held a
position.
(c) The board of trustees may require members applying for
credit under this section to submit any information the board finds
necessary to enable it to determine eligibility for or amount of
service or amounts of required contributions.
Sec. 813.603. SERVICE CREDITED TO MEMBERSHIP CLASS. Tribal
government service is creditable in a class of membership that
includes a position held by the member at the time the member
establishes service credit.
Sec. 813.604. USE OF TRIBAL GOVERNMENT SERVICE CREDIT. (a)
The retirement system shall use service credit established under
this subchapter in computing occupational disability retirement
benefits and death benefits and in determining eligibility to
select an optional death benefit plan.
(b) The retirement system shall use service credit
established under this subchapter in computing service retirement
or nonoccupational disability retirement benefits of a member of
the employee class only if the member has, without service credit
established under this subchapter, at least five years of service
credit in that class.
(c) The retirement system shall use service credit
established under this subchapter in computing service retirement
or nonoccupational disability retirement benefits of a member of
the elected class only if the member has enough service credit,
exclusive of the service credit established under this subchapter,
to be eligible for service retirement benefits at age 60.
SECTION 11. Section 815.311(a), Government Code, is amended
to read as follows:
(a) The retirement system shall deposit in a member's
individual account in the employees saving account the following
amounts:
(1) the amount of contributions to the retirement
system that is deducted from the member's compensation;
(2) the portion of a deposit required to reinstate
service credit previously canceled that represents only the amount
withdrawn;
(3) the portion of a deposit required to establish
service credit not previously established that represents only the
required contribution; [and]
(4) the portion of a deposit required to establish
military service credit that represents only the member's
contribution for that credit; and
(5) the portion of a deposit required to establish
tribal government service credit that represents only the member's
contribution for that credit.
SECTION 12. Section 815.312(b), Government Code, is amended
to read as follows:
(b) The retirement system also shall deposit in the state
accumulation account the interest portion of the following deposits
made by members:
(1) deposits required to reinstate service previously
canceled;
(2) deposits required to establish service credit not
previously established; [and]
(3) deposits required to establish military service
credit; and
(4) deposits required to establish tribal government
service credit.
SECTION 13. This Act takes effect September 1, 2015.