Texas House Bill HB2396

Texas 2019 - 86th Regular

Caption

Relating to the accrual of interest on annuity and other payments made to certain retirees who have resumed employment within the Texas Municipal Retirement System.

Impact

The impact of HB2396 is primarily on members of the TMRS who have previously terminated their employment, retired, and subsequently returned to work within a municipally affiliated role. Under the new provisions, these individuals would be eligible for a lump-sum payment that includes both the annuity payments they would have accrued during their absence, as well as any interest accrued on those payments. This change is expected to provide financial relief and incentivize retirees to return to public service roles without the penalty of losing retirement benefits under certain conditions.

Summary

House Bill 2396 is designed to amend the Texas Government Code regarding the accrual of interest on certain payments and annuities made to retirees who have returned to work within the Texas Municipal Retirement System (TMRS). This bill seeks to address the financial implications for retirees who resume employment with a reemploying municipality. Specifically, it outlines the conditions under which retirees can receive resumed payments of suspended annuities, including provisions for the accumulation of interest during the suspension period.

Contention

There are notable points of contention regarding the bill, particularly concerning its long-term financial implications for the TMRS and how best to support retired employees re-entering the workforce. Discussions may arise over the balance of benefits to retirees against the sustainability of the retirement system, as well as the potential for increased liabilities for municipalities that employ returning retirees. Additionally, ensuring that such changes do not adversely affect younger employees or new entrants to the workforce is a concern that may be addressed in future debates surrounding this legislation.