| 1 | 1 | | 86R8892 KFF-D |
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| 2 | 2 | | By: Lozano H.B. No. 2396 |
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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 accrual of interest on annuity and other payments |
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| 8 | 8 | | made to certain retirees who have resumed employment within the |
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| 9 | 9 | | Texas Municipal Retirement System. |
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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. Sections 852.108(f) and (j), Government Code, |
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| 12 | 12 | | are amended to read as follows: |
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| 13 | 13 | | (f) Monthly payments of a suspended annuity shall be resumed |
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| 14 | 14 | | in the month following the month in which employment is terminated |
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| 15 | 15 | | with the reemploying municipality and recomputed to reflect the |
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| 16 | 16 | | accumulation of interest, [without change in the amount except for] |
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| 17 | 17 | | any increase allowed under Section 854.203, and [or] the duration |
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| 18 | 18 | | of or another condition pertaining to the suspended benefit. Except |
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| 19 | 19 | | as provided by Subsection (j), payment of the resumed benefit may |
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| 20 | 20 | | not be made for any month during which the payment was suspended |
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| 21 | 21 | | under this section. |
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| 22 | 22 | | (j) A person to whom this section applies shall receive a |
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| 23 | 23 | | lump-sum payment in an amount equal to the sum of the service |
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| 24 | 24 | | retirement annuity payments the person would have received had the |
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| 25 | 25 | | person's annuity payments not been discontinued and suspended under |
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| 26 | 26 | | this section, plus accumulated interest, if the person: |
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| 27 | 27 | | (1) initially retired based on a bona fide termination |
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| 28 | 28 | | of employment; and |
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| 29 | 29 | | (2) resumed employment with the person's reemploying |
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| 30 | 30 | | municipality at least eight years after the effective date of the |
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| 31 | 31 | | person's retirement. |
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| 32 | 32 | | SECTION 2. The change in law made by this Act applies only |
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| 33 | 33 | | to a member of the Texas Municipal Retirement System who terminates |
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| 34 | 34 | | employment with the person's reemploying municipality and files an |
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| 35 | 35 | | application for resumption of retirement with the board of trustees |
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| 36 | 36 | | of the Texas Municipal Retirement System under Section 852.108, |
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| 37 | 37 | | Government Code, as amended by this Act, on or after the effective |
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| 38 | 38 | | date of this Act. A member who terminates employment with the |
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| 39 | 39 | | person's reemploying municipality and files an application for |
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| 40 | 40 | | resumption of retirement with the board under Section 852.108, |
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| 41 | 41 | | Government Code, before the effective date of this Act is governed |
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| 42 | 42 | | by the law as it existed immediately before that date, and the |
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| 43 | 43 | | former law is continued in effect for that purpose. |
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| 44 | 44 | | SECTION 3. This Act takes effect September 1, 2019. |
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