89R22549 KFF-D
By: Hughes S.B. No. 3042
A BILL TO BE ENTITLED
AN ACT
relating to the resumption of employment by certain retirees under
the Texas Municipal Retirement System.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 852.108, Government Code, is amended by
amending Subsections (e) and (f) and adding Subsection (e-1) to
read as follows:
(e) After termination of employment with the reemploying
municipality and after filing of an application for resumption of
retirement with the board of trustees, a person described by
Subsection (c) is entitled to receive:
(1) future payments of the suspended annuity, as
provided by:
(A) Subsection (e-1); or
(B) Subsection (f);[,] and
(2) if subject to Subsection (f), [to the] additional
benefits as provided by Subsections (g), (h), (i), and (j).
(e-1) A person described by Subsection (c) who becomes an
employee of the person's reemploying municipality at any time
during the 120 consecutive days after the effective date of the
person's initial retirement from the reemploying municipality may
elect, in the manner and form prescribed by the board of trustees,
to restore to effect the person's membership, including any prior
service credit, special prior service credit, antecedent service
credit, or updated service credit used in determining the amount of
the person's annuity at the time of the initial retirement. If the
person subsequently retires from the reemploying municipality, the
retirement system shall:
(1) allow the person credit for all current service
for which required contributions have been made and not withdrawn
or distributed;
(2) recompute the person's annuity based on service
before and after the initial retirement, provided the annuity is
actuarially reduced to reflect the value of benefits received by
the person before the person resumed employment with the
reemploying municipality; and
(3) resume monthly payments of the recomputed annuity
effective beginning with the month following the month in which
employment is terminated with the reemploying municipality.
(f) Monthly payments of an annuity suspended under
Subsection (c) other than an annuity subject to Subsection (e-1)
shall resume effective beginning with the month following the month
in which employment is terminated with the reemploying
municipality, without change in the amount except for any increase
allowed under Section 854.203 or the duration of or another
condition pertaining to the suspended benefit. Except as provided
by Subsection (j), payment of the resumed benefit may not be made
for any month during which the payment was suspended under this
section.
SECTION 2. Section 852.108, Government Code, as amended by
this Act, applies to a retiree of the Texas Municipal Retirement
System regardless of whether the person retired from employment
before, on, or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2025.