By: Lopez of Cameron H.B. No. 4694 A BILL TO BE ENTITLED AN ACT relating to benefits available under the Employees Retirement System of Texas for certain retirees who resume membership in the employee class of membership. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 812.201, Government Code, is amended by amending Subsections (a) and (c) and adding Subsections (c-1) and (d) to read as follows: (a) Except as provided by Subsection (c) or (d), a retiree may not rejoin the retirement system as a member of the class from which the person retired. (c) A person who is retired from the elected class of membership and who again holds a position included in that class may elect to become a member again by filing notice with the retirement system. (c-1) Except as provided by Section 812.203(c), when benefit payments are resumed for a person described by Subsection (c) or (d), as applicable, the retirement system shall recompute the annuity selected at the time of the person's original retirement to include the additional service established during membership under Subsection (c) or (d), as applicable [this subsection]. (d) A person who is retired from the employee class of membership and who again holds a position included in that class may elect to become a member again, if: (1) the person has 25 or more years of service credit in the employee class of membership some of which was earned as the head of a state agency; (2) the position the person holds on rejoining the retirement system: (A) requires appointment by the governor, with the advice and consent of the senate; and (B) is provided a salary under the General Appropriations Act; and (3) the person files notice with the retirement system. SECTION 2. Section 812.202(b), Government Code, is amended to read as follows: (b) Unless the retiree resumes membership under Section 812.201(d), the [The] payment of benefits to a retiree for service credited in the employee class of membership is not affected by the retiree's taking a position included in the employee class. SECTION 3. Sections 812.203(a) and (c), Government Code, are amended to read as follows: (a) If a retiree takes the oath for a position included in the elected class of membership, the retirement system shall suspend annuity payments to the person for service that was credited in that class, until the person no longer holds that position. If a retiree of the employee class elects to become a member again under Section 812.201(d), the retirement system shall suspend annuity payments to the person for service that was credited in that class, until the person no longer holds that position. (c) If a member who originally retired with service credited at the time of that retirement only in the elected class of membership again retires, the person at the time of subsequent retirement may select an annuity based on service in the elected class as if the person were retiring for the first time. If a member who originally retired with service credited at the time of that retirement only in the employee class of membership again retires, the person at the time of subsequent retirement may select an annuity based on service in the employee class as if the person were retiring for the first time. If the person selects an annuity under Section 814.108(c)(3) or (4) [(c)(4)], the retirement system shall reduce the number of months of guaranteed payment by the number of months for which an annuity was paid under the person's original retirement. SECTION 4. This Act takes effect September 1, 2025.