HBA-DMD H.B. 986 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 986
By: Williams
Pensions and Investments
7/27/1999
Enrolled



BACKGROUND AND PURPOSE 

Prior to the 76th Legislative Session, a member of the Texas County and
District Retirement System (TCDRS) was required to terminate employment
with all participating subdivisions before becoming eligible for service
retirement. A member was still able to receive a retirement annuity if the
member began work with another participating subdivision provided that the
member remained unemployed by the TCDRS for 30 days between jobs.  H.B. 986
allows a member to retire from the current job, begin working at another
job, and receive retirement benefits from the initial employer without
having to be unemployed for a period of time.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 844.003, Government Code, by amending Subsection
(a) and adding Subsection (d), as follows: 

(a)  Makes conforming changes.

(d) Authorizes a member who is eligible for service retirement on the day
the member terminates  employment with a participating subdivision to apply
for and receive a service retirement annuity regardless of whether the
member becomes an employee of another participating subdivision.  Prohibits
service with the member's new employer from being used in determining
eligibility for the annuity and prohibits contributions for the service
from being used to determine the amount of the annuity.  Sets forth that
the effective date of a retirement is the last day of the month in which
the retirement system receives the application and prohibits the date from
being later than the last day of the third month after the month the member
begins employment with a new employer.  Provides that a person who retires
under this subsection is considered a retiree who has resumed service with
a different employer under Section 842.111 (Resumption of Service with
Different Employer by Retiree).  

SECTION 2.  (a) Authorizes a member of the Texas County and District
Retirement System who resigned from employment with a participating
subdivision to accept employment with another participating subdivision
after January 1, 1998, and before the effective date of this Act, who is
also a contributing member of the retirement system, and who would have met
the requirement of Section 844.003(d), Government Code, if that law had
been in effect on January 1, 1998, to apply for and receive a service
retirement annuity under the terms of that law if the retirement system
receives the application before January 1, 2000.  Sets forth that the
effective date of retirement of an eligible person who makes a timely
application under this subsection is the last day of the month in which the
member resigned from employment with a subdivision. 

(b) Sets forth that the amount of a service retirement annuity will be
determined under the plan terms and conditions in effect on the last day of
the month in which the member resigned from employment with the
subdivision.  Requires the retirement system to pay  all unpaid annuity
payments that would have been paid if Section 844.003(d), Government Code,
had been in effect on January 1, 1998, in a single sum. 

SECTION 3.  Emergency clause.
  Effective date: upon passage.