HBA-DMD H.B. 986 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 986 By: Williams Pensions and Investments 2/25/1999 Introduced BACKGROUND AND PURPOSE Under current law, a member of the Texas County and District Retirement System (TCDRS) must terminate employment with all participating subdivisions before becoming eligible for service retirement. A member may still receive a retirement annuity if the member begins work with another participating subdivision provided that the member remains 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 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.