By: Huffman S.B. No. 1738
(In the Senate - Filed February 27, 2025; March 13, 2025,
read first time and referred to Committee on Finance;
March 24, 2025, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 15, Nays 0; March 24, 2025,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1738 By: Huffman
A BILL TO BE ENTITLED
AN ACT
relating to the Judicial Retirement System Plan Two, including
resuming service in the retirement system and contributions to the
retirement system.
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 60th 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 of 9.5
percent of the person's state compensation.
(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 annual state salary earned by the
person while holding a judicial office included within the
membership of the retirement system; 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 840.1025(b), Government Code, is amended
to read as follows:
(b) A member who elects to make contributions under
Subsection (a) shall contribute 9.5 [six] percent of the member's
state compensation for each payroll period in the manner provided
by Sections 840.102(b)-(f).
SECTION 4. Section 840.1027(b), Government Code, is amended
to read as follows:
(b) A member who elects to make contributions under
Subsection (a) shall contribute 9.5 [six] percent of the member's
state compensation for each payroll period in the manner provided
by Sections 840.102(b)-(f).
SECTION 5. Section 837.103(e), Government Code, is
repealed.
SECTION 6. (a) Except as provided by Subsection (c) of this
section, Sections 837.102 and 837.103, Government Code, as amended
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 and has resumed membership in the retirement
system; or
(2) a retiree who, on or after the effective date of
this Act, resumes service as a judicial officer holding a judicial
office included in the membership of the retirement system.
(b) A person described by Subsection (a)(1) of this section
may purchase service credit for resumed judicial service performed
before the effective date of this Act, including service performed
before June 18, 2023, by depositing with the Judicial Retirement
System of Texas Plan Two, for each month of service credit, member
contributions calculated by multiplying 9.5 percent by the person's
monthly judicial state salary on the effective date of this Act.
Not later than September 1, 2027, the person must purchase service
credit under this subsection and make the required deposits.
(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 7. Section 5 of this Act takes effect immediately if
this Act 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, Section 5 has no effect.
SECTION 8. Except as otherwise provided by this Act, this
Act takes effect September 1, 2025.
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