82R11053 SGA-D
	By: Truitt	H.B. No. 3355

	A BILL TO BE ENTITLED
	AN ACT
	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 [REEMPLOYED VETERAN'S] CREDIT.
	SECTION 2.  Sections 823.304(a), (c), and (d), Government
	Code, are amended to read as follows:
	(a)  A person eligible to establish USERRA [reemployed
	veteran's] credit is one who qualifies under the Uniformed Services
	Employment and [Veteran's] Reemployment Rights Act of 1994, 38
	U.S.C. Section 4301 [2021] et seq., for the benefits of
	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[:
	[(1)]  the member contributions to the retirement
	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[; and
	[(2)     a fee of five percent, compounded annually, of
	the required contribution from the date of the person's first
	eligibility to establish the credit to the date of deposit].
	(d)  To the extent required by the Uniformed Services
	Employment and [Veteran's] Reemployment Rights Act of 1994 and
	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
	[credit] in the retirement system before the developmental leave
	occurs; [and]
	(2)  has, [is an employee of a public school] at the
	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 [is sought].
	(d)  On or before the date a member takes developmental
	leave, the member must [shall] file with the retirement system a
	notice of intent to take developmental leave, and the member's
	employer must [shall] file with the retirement system a
	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 [claimed an amount equal to the sum of:
	[(1)     the rate of member contributions required during
	the year of leave, times the member's annual rate of compensation
	during the member's most recent year of creditable service that
	preceded the year of leave; plus
	[(2)     the amount that the state would have contributed
	had the member performed membership service during the year of
	leave at the member's annual rate of compensation during the most
	recent year of service that preceded the leave].
	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 [six] percent,
	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 [member shall pay the amount of those
	deductions plus a fee computed at a rate of five percent a year on
	the unpaid amount from] the end of the school year in which the
	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 [deductions first became due or the end of the
	1974-75 school year, whichever is later, to the date of payment].
	The board of trustees shall:
	(1)  prescribe terms for payments under this
	subsection; and
	(2)  credit the person [member] for prior service to
	which the person [member] is entitled under this subtitle[; and
	[(3)     deposit the fee required by this subsection in
	the state contribution account].
	(j)  If deductions were previously required [of a member] but
	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
	[member's] employer documents that the employer has records made at
	or near the time of service that establish the amount of time worked
	and salary earned. [A member may submit in lieu of employer
	documentation internal revenue, social security, bank, or other
	written records that were made at or near the time of service and
	that establish the amount of time worked and salary earned.] An
	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.