Bill Text: TX HB3355 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to purchase of service credit in the Teacher Retirement System of Texas.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-04-29 - Comm. report sent to Local & Consent Calendar [HB3355 Detail]
Download: Texas-2011-HB3355-Introduced.html
82R11053 SGA-D | ||
By: Truitt | H.B. No. 3355 |
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relating to purchase of service credit in the Teacher Retirement | ||
System of Texas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The heading to Section 823.304, Government Code, | ||
is amended to read as follows: | ||
Sec. 823.304. USERRA [ |
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SECTION 2. Sections 823.304(a), (c), and (d), Government | ||
Code, are amended to read as follows: | ||
(a) A person eligible to establish USERRA [ |
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Employment and [ |
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U.S.C. Section 4301 [ |
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reemployment in a position included within the membership of the | ||
retirement system and who is entitled under that Act to additional | ||
credit and benefits from the retirement system because of the | ||
person's active duty in the armed forces of the United States. | ||
(c) A person may establish credit under this section by | ||
depositing with the retirement system for each year of service | ||
claimed an amount equal to[ |
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system, as determined by the retirement system, that the person | ||
would have made had the person continued to be employed in the | ||
person's former position covered by the retirement system during | ||
the entire period of active duty in the armed forces for which the | ||
person is to receive retirement credit[ |
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(d) To the extent required by the Uniformed Services | ||
Employment and [ |
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permitted by Sections 401(a) and 415 of the Internal Revenue Code of | ||
1986 (26 U.S.C. Sections 401 and 415), the retirement system may: | ||
(1) grant the person service credit for the period of | ||
active duty in the armed forces as if the person had been employed | ||
in a position eligible for membership and credit with the | ||
retirement system if the person establishes credit by making the | ||
required deposits, or, if the person has not made the required | ||
deposits, consider the period of active duty for the purpose of | ||
determining whether the person meets the length-of-service | ||
eligibility requirements for retirement or other benefits | ||
administered by the retirement system, as if the person had | ||
established the credit; and | ||
(2) include in relevant benefit computations under | ||
this subtitle the annual compensation, as determined by the | ||
retirement system, that would have been otherwise received by the | ||
person for service covered by the retirement system during any year | ||
in which the person had active duty in the armed forces. | ||
SECTION 3. Section 823.401(c), Government Code, is amended | ||
to read as follows: | ||
(c) A member eligible to establish credit under this section | ||
is one who has at least five years of service credit in the | ||
retirement system for actual service in public schools, including | ||
at least one year completed after the relevant out-of-state | ||
service. | ||
SECTION 4. Sections 823.402(c), (d), and (e), Government | ||
Code, are amended to read as follows: | ||
(c) A member eligible to establish credit under this section | ||
is one who: | ||
(1) has at least five years of service credited | ||
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occurs; [ |
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(2) has, [ |
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time the required deposits for the credit are paid, at least one | ||
year of membership service credit in the retirement system | ||
following the developmental leave; and | ||
(3) has at least five years of service credited in the | ||
retirement system at the time the required deposits for the credit | ||
are paid [ |
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(d) On or before the date a member takes developmental | ||
leave, the member must [ |
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notice of intent to take developmental leave, and the member's | ||
employer must [ |
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certification that the leave meets the requirements of Subsection | ||
(b). The notice of intent and the certification must be in the form | ||
required by the retirement system. Leave is not creditable in the | ||
retirement system if the member does not submit notice of intent and | ||
obtain the certification required by this subsection. | ||
(e) A member may establish credit under this section by | ||
depositing with the retirement system for each year of | ||
developmental leave certified the actuarial present value, at the | ||
time of deposit, of the additional standard retirement annuity | ||
benefits that would be attributable to the purchase of the service | ||
credit under this section, based on rates and tables recommended by | ||
the retirement system's actuary and adopted by the board of | ||
trustees [ |
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SECTION 5. Section 823.501(c), Government Code, is amended | ||
to read as follows: | ||
(c) A member may reinstate canceled credit under this | ||
section by depositing with the retirement system: | ||
(1) the amount withdrawn or refunded; plus | ||
(2) a reinstatement fee of eight [ |
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compounded annually, of the amount withdrawn or refunded from the | ||
date of withdrawal or refund to the date of redeposit. | ||
SECTION 6. Sections 825.403(h) and (j), Government Code, | ||
are amended to read as follows: | ||
(h) If deductions were previously required but not paid, the | ||
retirement system may not provide benefits based on the service or | ||
compensation unless the deposits required by this section have been | ||
fully paid. The person's employer at the time the unreported | ||
service was rendered or compensation was paid must verify the | ||
service or compensation as required by Subsection (j), and the | ||
person must submit the verification to the retirement system not | ||
later than five years after [ |
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service was rendered or compensation was paid. To establish the | ||
service or compensation credit, the person must deposit with the | ||
retirement system the actuarial present value, at the time of | ||
deposit, of the additional standard retirement annuity benefits | ||
that would be attributable to the purchase of service or | ||
compensation credit under this section, based on rates and tables | ||
recommended by the retirement system's actuary and adopted by the | ||
board of trustees [ |
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The board of trustees shall: | ||
(1) prescribe terms for payments under this | ||
subsection; and | ||
(2) credit the person [ |
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which the person [ |
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(j) If deductions were previously required [ |
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not paid, proof of service satisfactory to the retirement system | ||
must be made before service credit is granted or payment for the | ||
credit is required. Proof of service is sufficient if the person's | ||
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or near the time of service that establish the amount of time worked | ||
and salary earned. [ |
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affidavit based on memory without written records made at or near | ||
the time of service is not sufficient documentation for the | ||
establishment of service credit. The retirement system may audit | ||
records used for documentation under this subsection. A person who | ||
does not obtain proof of service as required by this section may not | ||
establish the service or compensation credit. | ||
SECTION 7. (a) The following sections of the Government | ||
Code are repealed: | ||
(1) Section 823.401(i); | ||
(2) Sections 823.402(g) and (h); and | ||
(3) Section 823.501(e). | ||
(b) Section 57, Chapter 1359 (S.B. 1691), Acts of the 79th | ||
Legislature, Regular Session, 2005, is repealed. | ||
SECTION 8. Sections 823.401(d) and (e), Government Code, as | ||
amended by Section 10, Chapter 1359 (S.B. 1691), Acts of the 79th | ||
Legislature, Regular Session, effective September 1, 2005, apply to | ||
a person who was a member of the Teacher Retirement System of Texas | ||
on December 31, 2005, and to out-of-state service performed before | ||
January 1, 2006, notwithstanding Section 57 of that Act. | ||
SECTION 9. For unreported service rendered or unreported | ||
compensation paid before the effective date of this Act, the | ||
verification required under Section 825.403(h), Government Code, | ||
as amended by this Act, must be received by the Teacher Retirement | ||
System of Texas not later than August 31, 2016. | ||
SECTION 10. (a) Notwithstanding the service credit cost | ||
provisions of Section 8 of this Act and Sections 823.402(e), | ||
823.501(c)(2), and 825.403(h), Government Code, as amended by this | ||
Act, a person may establish service credit by paying the deposits | ||
and fees required under Sections 823.402, 823.501, and 825.403, | ||
Government Code, and by Section 57, Chapter 1359 (S.B. 1691), Acts | ||
of the 79th Legislature, Regular Session, 2005, as those sections | ||
existed before amendment or repeal by this Act, if: | ||
(1) the person otherwise meets all eligibility | ||
requirements under those sections as amended by this Act; | ||
(2) the service for which credit is sought to be | ||
established was rendered, or the compensation for which credit is | ||
sought was paid, before the effective date of this Act; and | ||
(3) the person makes payment for the service credit, | ||
or enters into an installment agreement for payment, not later than | ||
August 31, 2013. | ||
(b) If a person has an installment agreement under | ||
Subsection (a) of this section that is terminated after August 31, | ||
2013, before the person has made all of the payments, the person may | ||
establish credit only as provided by Sections 823.402, 823.501, and | ||
825.403, Government Code, as amended by this Act, and by Section 8 | ||
of this Act. | ||
SECTION 11. This Act takes effect September 1, 2011. |