BILL ANALYSIS Senate Research Center C.S.S.B. 1738 89R16941 JCG-D By: Huffman Finance 3/19/2025 Committee Report (Substituted) AUTHOR'S / SPONSOR'S STATEMENT OF INTENT During the 88th Regular Legislative Session, S.B. 1245 was passed to reform the Judicial Retirement System of Texas Plan Two. This session, S.B. 1738 provides further clarification relating to the resumption of service by certain judicial officers under the Judicial Retirement System of Texas Plan Two. These clarifications are necessary to carry out the original intent of S.B. 1245 relating to resumption of service, specifying that judges who have rejoined the plan get credit for additional salary increases and that the contribution rate for these judges is 9.5 percent. (Original Author's/Sponsor's Statement of Intent) C.S.S.B. 1738 amends current law relating to the Judicial Retirement System Plan Two, including resuming service in the retirement system and contributions to the retirement system. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 837.102(a), Government Code, to prohibit a retiree who resumes service as a judicial officer other than by assignment described in Section 837.101 (Judicial Assignment) from rejoining or receiving credit in the Judicial Retirement System of Texas Plan Two (retirement system) for the resumed service, except as provided by Section 837.103 (Resumption of Full-Time Judicial Service by Certain Retirees; Optional Election to Rejoin System), rather than unless an election is made as provided by Section 837.103. SECTION 2. Amends Section 837.103, Government Code, by amending Subsections (b) and (c) and adding Subsections (b-1), (b-2), (c-1), and (c-2), as follows: (b) Authorizes a retiree who resumes full-time service as a judicial officer other than by assignment described in Section 837.101, notwithstanding certain provisions and subject to the requirements of this section, to elect to rejoin the retirement system as a member if, before taking the oath of office, the retiree has been separated from judicial service for at least six full consecutive months. Deletes existing text authorizing a retiree described by Section 837.102(a), notwithstanding certain provisions and subject to Subsection (d) (relating to providing that a person is authorized to make an election under this section only once), to 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) Creates this subsection from existing text. Requires the retiree to provide notice of an 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. Makes nonsubstantive changes. (b-2) Requires a person who rejoins the retirement system under this section to resume making member contributions at the rate of 9.5 percent of the person's state compensation. (c) Requires the retirement system, for a person who rejoins the retirement system under this section, rather than for a person who 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, rather than on the resumption of annuity payments that have been suspended under Section 837.102 (Resumption of Full-Time Judicial Service), to 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) the additional service credit established during the person's period of resumed service, rather than during membership under this section. Makes nonsubstantive changes. (c-1) Requires the retirement system, 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, to resume annuity payments suspended under Section 837.102 and issue the person a refund of the person's accumulated member contributions made during the person's period of resumed service. (c-2) Creates this subsection from existing text. Requires the retirement system, if, at the time of the person's original retirement, a person described by Subsection (c) or (c-1) selected an optional retirement annuity payable under certain sections, to reduce the number of months of payments by the number of months for which the annuity was paid before the person resumed service. Makes a nonsubstantive change. SECTION 3. Amends Section 840.1025(b), Government Code, to require a member who elects to make contributions under Subsection (a) (relating to authorizing certain judicial officers to elect to make contributions for each subsequent year of service credit that the member accrues) to contribute 9.5 percent, rather than six percent, of the member's state compensation for each payroll period in the manner provided by Sections 840.102(b)-(f) (relating to the collection of certain member contributions). SECTION 4. Amends Section 840.1027(b), Government Code, to make a conforming change. SECTION 5. Repealer: Section 837.103(e) (relating to requiring that the retirement system implement this section only if the system is considered actuarially sound), Government Code. SECTION 6. (a) Provides that, 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) Authorizes a person described by Subsection (a)(1) of this section to 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. Requires the person, not later than September 1, 2027, to purchase service credit under this subsection and make the required deposits. (c) Makes application of Section 837.103(b-1)(1), Government Code, as added by this Act, prospective. SECTION 7. Provides that SECTION 5 of this Act is contingent upon passage. SECTION 8. Effective date, except as otherwise provided by this Act: September 1, 2025.
BILL ANALYSIS
Senate Research Center C.S.S.B. 1738
89R16941 JCG-D By: Huffman
Finance
3/19/2025
Committee Report (Substituted)
Senate Research Center
C.S.S.B. 1738
89R16941 JCG-D
By: Huffman
Finance
3/19/2025
Committee Report (Substituted)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
During the 88th Regular Legislative Session, S.B. 1245 was passed to reform the Judicial Retirement System of Texas Plan Two. This session, S.B. 1738 provides further clarification relating to the resumption of service by certain judicial officers under the Judicial Retirement System of Texas Plan Two. These clarifications are necessary to carry out the original intent of S.B. 1245 relating to resumption of service, specifying that judges who have rejoined the plan get credit for additional salary increases and that the contribution rate for these judges is 9.5 percent.
(Original Author's/Sponsor's Statement of Intent)
C.S.S.B. 1738 amends current law relating to the Judicial Retirement System Plan Two, including resuming service in the retirement system and contributions to the retirement system.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 837.102(a), Government Code, to prohibit a retiree who resumes service as a judicial officer other than by assignment described in Section 837.101 (Judicial Assignment) from rejoining or receiving credit in the Judicial Retirement System of Texas Plan Two (retirement system) for the resumed service, except as provided by Section 837.103 (Resumption of Full-Time Judicial Service by Certain Retirees; Optional Election to Rejoin System), rather than unless an election is made as provided by Section 837.103.
SECTION 2. Amends Section 837.103, Government Code, by amending Subsections (b) and (c) and adding Subsections (b-1), (b-2), (c-1), and (c-2), as follows:
(b) Authorizes a retiree who resumes full-time service as a judicial officer other than by assignment described in Section 837.101, notwithstanding certain provisions and subject to the requirements of this section, to elect to rejoin the retirement system as a member if, before taking the oath of office, the retiree has been separated from judicial service for at least six full consecutive months. Deletes existing text authorizing a retiree described by Section 837.102(a), notwithstanding certain provisions and subject to Subsection (d) (relating to providing that a person is authorized to make an election under this section only once), to 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) Creates this subsection from existing text. Requires the retiree to provide notice of an 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.
Makes nonsubstantive changes.
(b-2) Requires a person who rejoins the retirement system under this section to resume making member contributions at the rate of 9.5 percent of the person's state compensation.
(c) Requires the retirement system, for a person who rejoins the retirement system under this section, rather than for a person who 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, rather than on the resumption of annuity payments that have been suspended under Section 837.102 (Resumption of Full-Time Judicial Service), to 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) the additional service credit established during the person's period of resumed service, rather than during membership under this section.
Makes nonsubstantive changes.
(c-1) Requires the retirement system, 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, to resume annuity payments suspended under Section 837.102 and issue the person a refund of the person's accumulated member contributions made during the person's period of resumed service.
(c-2) Creates this subsection from existing text. Requires the retirement system, if, at the time of the person's original retirement, a person described by Subsection (c) or (c-1) selected an optional retirement annuity payable under certain sections, to reduce the number of months of payments by the number of months for which the annuity was paid before the person resumed service. Makes a nonsubstantive change.
SECTION 3. Amends Section 840.1025(b), Government Code, to require a member who elects to make contributions under Subsection (a) (relating to authorizing certain judicial officers to elect to make contributions for each subsequent year of service credit that the member accrues) to contribute 9.5 percent, rather than six percent, of the member's state compensation for each payroll period in the manner provided by Sections 840.102(b)-(f) (relating to the collection of certain member contributions).
SECTION 4. Amends Section 840.1027(b), Government Code, to make a conforming change.
SECTION 5. Repealer: Section 837.103(e) (relating to requiring that the retirement system implement this section only if the system is considered actuarially sound), Government Code.
SECTION 6. (a) Provides that, 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) Authorizes a person described by Subsection (a)(1) of this section to 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. Requires the person, not later than September 1, 2027, to purchase service credit under this subsection and make the required deposits.
(c) Makes application of Section 837.103(b-1)(1), Government Code, as added by this Act, prospective.
SECTION 7. Provides that SECTION 5 of this Act is contingent upon passage.
SECTION 8. Effective date, except as otherwise provided by this Act: September 1, 2025.