Texas 2021 - 87th Regular

Texas House Bill HB3902 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~87R14337~~ KFF-F
	1	+	87R8896 KFF-F
2	2		By: Anchia H.B. No. 3902
3		-	Substitute the following for H.B. No. 3902:
4		-	By: Capriglione C.S.H.B. No. 3902
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to the resumption of employment by certain retirees within
10	8		the Texas Municipal Retirement System.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Section 852.108, Government Code, is amended by
13	11		amending Subsections (a), (c), (e), (f), (h), (i), and (j) and
14	12		adding Subsections (b-1), (k), (l), (m), and (n) to read as follows:
15	13		(a) In this section and Sections 852.1085 and 852.109, a
16	14		person's reemploying municipality is the municipality for which the
17	15		person most recently performed [was performing] creditable service
18	16		before [at the time of] the person's retirement with respect to the
19	17		person's particular individual account under this subtitle.
20	18		(b-1) Unless subject to Subsection (c), the retirement
21	19		annuity of a person subject to this section is not suspended.
22	20		(c) If a person becomes an employee of the person's
23	21		reemploying municipality at any time during the 12 consecutive
24	22		months after the effective date of the person's last retirement
25	23		from the reemploying municipality, the [The] retirement system
26	24		shall discontinue and suspend the full amount of the monthly
27	25		payments of the [each] service retirement annuity that is allowed
28	26		because of the person's previous retirement from [service with] the
29	27		reemploying municipality beginning with the month the retirement
30	28		system determines that the person has again become an employee of
31	29		the reemploying municipality. After the suspension and except as
32	30		provided by Subsection (j), the retirement system may not make
33	31		payments of the annuity for any month during which the person
34	32		remains an employee of the reemploying municipality. The
35	33		suspension of a benefit under this section does not suspend payment
36	34		of a benefit to an alternate payee under a qualified domestic
37	35		relations order.
38	36		(e) After termination of employment with the reemploying
39	37		municipality and after filing of an application for resumption of
40	38		retirement with the board of trustees, a person described by
41	39		Subsection (c) [(b)] is entitled to receive future payments of the
42	40		suspended annuity, as provided by Subsection (f), and to the
43	41		additional benefits as provided by Subsections (g), (h), (i), and
44	42		(j).
45	43		(f) Monthly payments of an [a suspended] annuity suspended
46		-	under Subsection (c) shall resume ~~effective~~ beginning with [be
47		-	~~resumed in]~~ the month following the month in which employment is
48		-	~~terminated~~ with the reemploying municipality, without change in the
49		-	~~amount~~ except for any increase allowed under Section 854.203 or the
	44	+	under Subsection (c) shall resume beginning with [be resumed in]
	45	+	the month following the month in which employment is terminated
	46	+	with the reemploying municipality, without change in the amount
	47	+	except for any increase allowed under Section 854.203 or the
50	48		duration of or another condition pertaining to the suspended
51	49		benefit. Except as provided by Subsection (j), payment of the
52	50		resumed benefit may not be made for any month during which the
53	51		payment was suspended under this section.
54	52		(h) The additional service retirement benefit allowable to
55	53		a person to whom this section applies is, at the option of that
56	54		person, either:
57	55		(1) a refund of accumulated contributions made since
58	56		reemployment plus any accrued interest on the accumulated
59	57		contributions allowed by the retirement system; or
60	58		(2) a benefit consisting of:
61	59		(A) a basic annuity actuarially determined from
62	60		the sum of the member's contributions [deposits] made and
63	61		accumulated since the date the person last became a member,
64	62		together with interest accumulated on that amount since the person
65	63		last became a member and an amount from the benefit accumulation
66	64		fund equal to the amount of the member's contributions credited to
67	65		the member's individual account since the person last became a
68	66		member together with interest accrued on that amount since the
69	67		person last became a member; or
70	68		(B) a greater amount authorized by the
71	69		municipality under Section 855.501.
72	70		(i) The additional benefit described by Subsection (h)(2)
73	71		[(h)] is payable as a standard service retirement benefit or, at the
74	72		election of the member, any optional benefit authorized under this
75	73		subtitle that is the actuarial equivalent of the standard
76	74		retirement benefit. The first benefit payment date under this
77	75		subsection is the later of the end of the month following the last
78	76		month of employment or the end of the month following the month in
79	77		which the person files an application for payment. The first
80	78		payment may not be made if the person has resumed employment with
81	79		the reemploying municipality in a position that would make the
82		-	person an employee.
	80	+	person an employee at any time during the 12 consecutive months
	81	+	after the effective date of the person's last retirement from the
	82	+	reemploying municipality.
83	83		(j) Subject to Subsection (m), a [A] person who resumed
84	84		employment with the person's reemploying municipality before
85	85		September 1, 2021, [to whom this section applies] shall receive a
86	86		lump-sum payment in an amount equal to the sum of the service
87	87		retirement annuity payments the person would have received had the
88	88		person's annuity payments not been discontinued and suspended under
89	89		this section as it existed on the date the person resumed employment
90	90		with the reemploying municipality, if the person:
91	91		(1) initially retired based on a bona fide termination
92	92		of employment; and
93	93		(2) resumed employment with the person's reemploying
94	94		municipality at least eight years after the effective date of the
95	95		person's retirement.
96	96		(k) If the annuity payments of a person who resumed
97	97		employment with the person's reemploying municipality before
98	98		September 1, 2021, were discontinued and suspended under this
99	99		section as it existed on the date the person resumed employment with
100		-	the reemploying municipality and the person has not terminated
101		-	employment with the reemploying municipality, then on filing of a
102		-	written application with the retirement system, the retirement
103		-	system shall, subject to Subsection (l), resume making the annuity
104		-	payments to the person, provided:
	100	+	the reemploying municipality, on filing of a written application
	101	+	with the retirement system, the retirement system shall, subject to
	102	+	Subsection (l), resume making the annuity payments to the person,
	103	+	provided:
105	104		(1) the person's retirement that preceded the
106	105		resumption of employment was based on a bona fide termination of
107		-	employment; ~~and~~
	106	+	employment;
108	107		(2) the person did not become an employee of the
109	108		person's reemploying municipality at any time during the 12
110	109		consecutive months after the effective date of the person's
111		-	retirement described by Subdivision (1).
112		-	(l) Monthly payments of an annuity resumed under Subsection
113		-	(k) shall resume effective beginning with the month following the
	110	+	retirement described by Subdivision (1); and
	111	+	(3) the person has not terminated employment with the
	112	+	reemploying municipality.
	113	+	(l) Monthly payments of an annuity suspended under
	114	+	Subsection (k) shall resume beginning with the month following the
114	115		month in which the written application is approved by the
115		-	retirement system, without change in the amount except for any
	116	+	retirement system without change in the amount except for any
116	117		increase allowed under Section 854.203 or the duration of or
117	118		another condition pertaining to the suspended benefit. Except as
118	119		provided by Subsection (j), payment of the resumed benefit may not
119	120		be made for any month during which the payment was suspended under
120	121		this section as it existed on the date the person resumed employment
121	122		with the reemploying municipality.
122		-	(m) At the time a person ~~resumes receiving payment of an~~
123		-	~~annuity~~ under Subsection (k), the retirement system shall ~~pay the~~
124		-	person any lump-sum payment owed to the person under ~~Subsection~~
125		-	(j).
	123	+	(m) At the time a person files a written application to
	124	+	resume benefits under Subsection (k), the retirement system shall
	125	+	pay the person any lump-sum payment owed to the person under
	126	+	Subsection (j).
126	127		(n) The board of trustees may adopt rules to implement this
127	128		section.
128	129		SECTION 2. Sections 852.109(a), (e), and (f), Government
129	130		Code, are amended to read as follows:
130	131		(a) If a person becomes an employee of a municipality after
131	132		the effective date of the person's [beginning to receive a]
132	133		retirement from a participating municipality [benefit], and the
133	134		municipality is not the person's reemploying municipality, the
134	135		person again becomes a member of the retirement system, and the
135	136		person's retirement annuity is not suspended.
136	137		(e) The additional benefit described by Subsection (d)(2)
137	138		[(d)] is payable as a standard service retirement benefit or, at the
138	139		election of the member, any optional benefit authorized under this
139	140		subtitle that is the actuarial equivalent of the standard
140	141		retirement benefit. The first benefit payment date under this
141	142		subsection is the later of the end of the month following the last
142	143		month of employment or the end of the month following the month in
143	144		which the person files an application for payment. The first
144	145		payment may not be made if the person has resumed employment that
145	146		would result in suspension of a benefit.
146	147		(f) If a person became an employee of a municipality other
147	148		than the person's reemploying municipality after the effective date
148	149		of the person's [beginning to receive a] retirement from a
149	150		participating municipality [benefit], and the person's service
150	151		retirement annuity was suspended under Section 852.108 as it
151	152		existed at the time of reemployment, the person may, on written
152	153		application to the retirement system, resume receiving the
153	154		suspended annuity.
154	155		SECTION 3. This Act takes effect September 1, 2021.