Texas 2025 - 89th Regular

Texas Senate Bill SB1738 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Huffman S.B. No. 1738
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	2	+	(In the Senate - Filed February 27, 2025; March 13, 2025,
	3	+	read first time and referred to Committee on Finance;
	4	+	March 24, 2025, reported adversely, with favorable Committee
	5	+	Substitute by the following vote: Yeas 15, Nays 0; March 24, 2025,
	6	+	sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 1738 By: Huffman
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6	11		A BILL TO BE ENTITLED
7	12		AN ACT
8	13		relating to the Judicial Retirement System Plan Two, including
9	14		resuming service in the retirement system and contributions to the
10	15		retirement system.
11	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	17		SECTION 1. Section 837.102(a), Government Code, is amended
13	18		to read as follows:
14	19		(a) A retiree who resumes service as a judicial officer
15	20		other than by assignment described in Section 837.101 may not
16	21		rejoin or receive credit in the retirement system for the resumed
17	22		service, except [unless an election is made] as provided by Section
18	23		837.103.
19	24		SECTION 2. Section 837.103, Government Code, is amended by
20	25		amending Subsections (b) and (c) and adding Subsections (b-1),
21	26		(b-2), (c-1), and (c-2) to read as follows:
22	27		(b) Notwithstanding Sections 837.001(c) and 837.002(2) and
23	28		subject to the requirements of this section [Subsection (d)], a
24	29		retiree who resumes full-time service as a judicial officer other
25	30		than by assignment described in Section 837.101 [described by
26	31		Section 837.102(a)] may elect to rejoin the retirement system as a
27	32		member [and receive service credit in the system for resuming
28	33		service as a judicial officer] if, before taking the oath of office,
29	34		the retiree has been separated from judicial service for at least
30	35		six full consecutive months.
31	36		(b-1) The retiree shall provide notice of an [the] election
32	37		to rejoin the retirement system under this section:
33	38		(1) not later than the 60th day after the date the
34	39		retiree takes the oath of office; and
35	40		(2) in the form and manner prescribed by the system.
36	41		(b-2) A person who rejoins the retirement system under this
37	42		section shall resume making member contributions at the rate of 9.5
38	43		percent of the person's state compensation.
39	44		(c) For a person who rejoins the retirement system [makes an
40	45		election] under this section and completes at least 24 months of
41	46		resumed judicial service, on the person's subsequent retirement
42	47		from resumed service [the resumption of annuity payments that have
43	48		been suspended under Section 837.102], the retirement system shall
44	49		recompute the annuity selected at the time of the person's original
45	50		retirement to reflect:
46	51		(1) the highest annual state salary earned by the
47	52		person while holding a judicial office included within the
48	53		membership of the retirement system; and
49	54		(2) [to include] the [person's] additional service
50	55		credit established during the person's period of resumed service
51	56		[membership under this section].
52	57		(c-1) For a person who rejoins the retirement system under
53	58		this section but who does not complete at least 24 months of resumed
54	59		service, on the person's subsequent retirement from resumed
55	60		service, the retirement system shall:
56	61		(1) resume annuity payments suspended under Section
57	62		837.102; and
58	63		(2) issue the person a refund of the person's
59	64		accumulated member contributions made during the person's period of
60	65		resumed service.
61	66		(c-2) If, at the time of the person's original retirement, a
62	67		[the] person described by Subsection (c) or (c-1) selected an
63	68		optional retirement annuity payable under Section 839.103(a)(3) or
64	69		(4), the retirement system shall reduce the number of months of
65	70		payments by the number of months for which the annuity was paid
66	71		before the person resumed service.
67	72		SECTION 3. Section 840.1025(b), Government Code, is amended
68	73		to read as follows:
69	74		(b) A member who elects to make contributions under
70	75		Subsection (a) shall contribute 9.5 [six] percent of the member's
71	76		state compensation for each payroll period in the manner provided
72	77		by Sections 840.102(b)-(f).
73	78		SECTION 4. Section 840.1027(b), Government Code, is amended
74	79		to read as follows:
75	80		(b) A member who elects to make contributions under
76	81		Subsection (a) shall contribute 9.5 [six] percent of the member's
77	82		state compensation for each payroll period in the manner provided
78	83		by Sections 840.102(b)-(f).
79	84		SECTION 5. Section 837.103(e), Government Code, is
80	85		repealed.
81	86		SECTION 6. (a) Except as provided by Subsection (c) of this
82	87		section, Sections 837.102 and 837.103, Government Code, as amended
83	88		by this Act, apply only to:
84	89		(1) a former retiree of the Judicial Retirement System
85	90		of Texas Plan Two who, on the effective date of this Act, holds a
86	91		judicial office and has resumed membership in the retirement
87	92		system; or
88	93		(2) a retiree who, on or after the effective date of
89	94		this Act, resumes service as a judicial officer holding a judicial
90	95		office included in the membership of the retirement system.
91	96		(b) A person described by Subsection (a)(1) of this section
92	97		may purchase service credit for resumed judicial service performed
93	98		before the effective date of this Act, including service performed
94	99		before June 18, 2023, by depositing with the Judicial Retirement
95	100		System of Texas Plan Two, for each month of service credit, member
96	101		contributions calculated by multiplying 9.5 percent by the person's
97	102		monthly judicial state salary on the effective date of this Act.
98	103		Not later than September 1, 2027, the person must purchase service
99	104		credit under this subsection and make the required deposits.
100	105		(c) Section 837.103(b-1)(1), Government Code, as added by
101	106		this Act, applies only to an election to rejoin the Judicial
102	107		Retirement System of Texas Plan Two under Section 837.103,
103	108		Government Code, made on or after the effective date of this Act.
104	109		SECTION 7. Section 5 of this Act takes effect immediately if
105	110		this Act receives a vote of two-thirds of all the members elected to
106	111		each house, as provided by Section 39, Article III, Texas
107	112		Constitution. If this Act does not receive the vote necessary for
108	113		immediate effect, Section 5 has no effect.
109	114		SECTION 8. Except as otherwise provided by this Act, this
110	115		Act takes effect September 1, 2025.
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