85R11899 LED-F
By: Hughes S.B. No. 1954
A BILL TO BE ENTITLED
AN ACT
relating to participation in and contributions to the optional
retirement program for certain employees of institutions of higher
education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 830.102, Government Code, is amended by
amending Subsection (c) and adding Subsections (c-1) and (c-2) to
read as follows:
(c) Except as provided by Subsections (c-1) and (c-2), a [A]
person who becomes eligible to participate in the optional
retirement program after the date the program becomes available at
the person's place of employment must elect to participate before
the 91st day after becoming eligible.
(c-1) A person who becomes eligible to participate in the
optional retirement program and is notified by the person's
employer of the opportunity to participate after the first day and
before the 91st day after the date the person becomes eligible must
elect to participate in the program before the later of:
(1) the 91st day after the date the person becomes
eligible; or
(2) the 31st day after the date the person receives
notice of the opportunity to participate in the program.
(c-2) A person who becomes eligible to participate in the
optional retirement program and is notified of the opportunity to
participate in the program by the person's employer on or after the
91st day after the date the person becomes eligible must be notified
by the employer before the 151st day after the date the person
becomes eligible. The person must elect to participate in the
program before the later of:
(1) the 151st day after the date the person becomes
eligible; or
(2) the 31st day after the date the person receives
notice of the opportunity to participate in the program.
SECTION 2. Subchapter B, Chapter 830, Government Code, is
amended by adding Section 830.108 to read as follows:
Sec. 830.108. CORRECTION OF CERTAIN ERRORS. (a) For
purposes of this section, an employing institution of higher
education submits in error a member contribution to the retirement
system on behalf of a participant in the optional retirement
program if:
(1) the participant on behalf of whom the contribution
is submitted previously elected to participate in the optional
retirement program;
(2) the participant participated in the program for at
least one year; and
(3) the participant is employed by an institution of
higher education and is not eligible for resumption of membership
in the retirement system under Section 830.106.
(b) An employing institution of higher education that
submits in error a member contribution to the retirement system on
behalf of a participant in the optional retirement program shall
restore the participant's participation in the program immediately
on discovering the error.
(c) As soon as practicable after receiving notice that an
employer submitted a member contribution in error, the retirement
system shall remit to the participant the amount of the member's
contribution submitted in error plus an amount representing
earnings on the member's contribution at the assumed rate of return
provided by Subsection (f). The retirement system shall reduce the
amount remitted to the participant by any amount required to be
withheld by law or court order.
(d) As soon as practicable after certification by an
employer that submitted a member contribution in error, the
comptroller shall remit to the participant an amount equal to the
state contribution that would have been paid for the benefit of the
participant under Section 830.201 plus an amount representing
earnings on the state contribution at the assumed rate of return
provided by Subsection (f). The comptroller shall reduce the
amount remitted to the participant by any amount required to be
withheld by law or court order.
(e) As soon as practicable after discovering the error, an
employer that submitted a member contribution in error shall remit
to the participant the amount of the employer contribution that
would have been paid for the benefit of the participant under
Section 830.2015 and under any other law, rule, or employer policy
plus an amount representing earnings on the employer contribution
at the assumed rate of return provided by Subsection (f). The
employer shall reduce the amount remitted to the participant by any
amount required to be withheld by law or court order.
(f) The assumed rate of return is earned monthly and
computed at the rate of four percent per year. Except as provided by
this subsection, the amount of earnings based on the assumed rate of
return is credited annually at the end of each 12-month period. The
first 12-month period begins on the date the first member
contribution was submitted in error. The amount of assumed
earnings is prorated to the month of payment.
SECTION 3. Section 830.108, Government Code, as added by
this Act, applies to a member contribution submitted in error as
provided by that section regardless of whether the contribution was
submitted before, on, or after the effective date of this Act.
SECTION 4. This Act takes effect September 1, 2017.