89R4781 KFF-D By: Huffman S.B. No. 1738 A BILL TO BE ENTITLED AN ACT relating to the resumption of service by certain judicial officers under the Judicial Retirement System of Texas Plan Two. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 837.102(a), Government Code, is amended to read as follows: (a) A retiree who resumes service as a judicial officer other than by assignment described in Section 837.101 may not rejoin or receive credit in the retirement system for the resumed service, except [unless an election is made] as provided by Section 837.103. SECTION 2. Section 837.103, Government Code, is amended by amending Subsections (b) and (c) and adding Subsections (b-1), (b-2), (c-1), and (c-2) to read as follows: (b) Notwithstanding Sections 837.001(c) and 837.002(2) and subject to the requirements of this section [Subsection (d)], a retiree who resumes full-time service as a judicial officer other than by assignment described in Section 837.101 [described by Section 837.102(a)] may elect to rejoin the retirement system as a member [and receive service credit in the system for resuming service as a judicial officer] if, before taking the oath of office, the retiree has been separated from judicial service for at least six full consecutive months. (b-1) The retiree shall provide notice of an [the] election to rejoin the retirement system under this section: (1) not later than the 30th day after the date the retiree takes the oath of office; and (2) in the form and manner prescribed by the system. (b-2) A person who rejoins the retirement system under this section shall resume making member contributions at the rate required under Section 840.102(a). (c) For a person who rejoins the retirement system [makes an election] under this section and completes at least 24 months of resumed judicial service, on the person's subsequent retirement from resumed service [the resumption of annuity payments that have been suspended under Section 837.102], the retirement system shall recompute the annuity selected at the time of the person's original retirement to reflect: (1) the highest state annual salary associated with the classification of a court on which the person served during any period of judicial service; and (2) [to include] the [person's] additional service credit established during the person's period of resumed service [membership under this section]. (c-1) For a person who rejoins the retirement system under this section but who does not complete at least 24 months of resumed service, on the person's subsequent retirement from resumed service, the retirement system shall: (1) resume annuity payments suspended under Section 837.102; and (2) issue the person a refund of the person's accumulated member contributions made during the person's period of resumed service. (c-2) If, at the time of the person's original retirement, a [the] person described by Subsection (c) or (c-1) selected an optional retirement annuity payable under Section 839.103(a)(3) or (4), the retirement system shall reduce the number of months of payments by the number of months for which the annuity was paid before the person resumed service. SECTION 3. Section 837.103(e), Government Code, is repealed. SECTION 4. (a) Subject to Subsection (b) of this section and except as provided by Subsection (c) of this section, the changes in law made by this Act apply only to: (1) a former retiree of the Judicial Retirement System of Texas Plan Two who, on the effective date of this Act, holds a judicial office included within the membership of the retirement system; or (2) a retiree who resumes service as a judicial officer on or after the effective date of this Act. (b) The board of trustees of the Employees Retirement System of Texas shall adopt rules necessary to implement this Act, including rules governing the application of Section 837.103, Government Code, as amended by this Act, to persons described by Subsection (a)(1) of this section, including rules: (1) establishing a deadline by which those persons are allowed to make an election to rejoin the Judicial Retirement System of Texas Plan Two under Section 837.103, Government Code, as amended by this Act; and (2) requiring that persons who make an election in accordance with Subdivision (1) of this subsection establish service credit for judicial service performed before the effective date of this Act, not later than September 1, 2027, by depositing with the Judicial Retirement System of Texas Plan Two, for each month of service credit, member contributions calculated by multiplying the member contribution rate required under Section 840.102(a), Government Code, to the person's monthly judicial salary on the effective date of this Act. (c) Section 837.103(b-1)(1), Government Code, as added by this Act, applies only to an election to rejoin the Judicial Retirement System of Texas Plan Two under Section 837.103, Government Code, made on or after the effective date of this Act. SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.