HBA-SEB C.S.S.B. 1144 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 1144 By: Fraser Pensions and Investments 5/19/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, district attorneys and criminal district attorneys are eligible for participation in the elected class of the Employees Retirement System of Texas. In the contribution system, a state-paid prosecutor or judge contributes six percent of the member's salary into a retirement account. The two professionals earn the same salary, but after 20 years of service credit a prosecutor becomes entitled to a pension equal to 45 percent of a district judge's salary while a judge becomes entitled to 60 percent. C.S.S.B. 1144 provides that the standard service retirement annuity payable for at least 20 years service credit as a district or criminal district attorney or a county attorney performing the duties of a district attorney by a person who first received credit for the service before September 1, 1985, is an amount equal to 60 percent of the state salary being paid a district judge or the amount computed for service retirement benefits for elected class service, whichever is greater. 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 Subchapter B, Chapter 814, Government Code, by adding Section 814.1031, as follows: Sec. 814.1031. SERVICE RETIREMENT BENEFITS FOR CERTAIN SERVICE AS DISTRICT OR CRIMINAL DISTRICT ATTORNEY OR COUNTY ATTORNEY PERFORMING DISTRICT ATTORNEY DUTIES. Provides that the standard service retirement annuity payable for at least 20 years service credit as a district or criminal district attorney or a county attorney performing the duties of a district attorney by a person who first received credit for the service before September 1, 1985, is an amount equal to the greater of 60 percent of the state salary being paid a district judge, as adjusted from time to time, or the amount computed under Section 814.103 (Service Retirement Benefits for Elected Class Service), notwithstanding that section. SECTION 2. Amends Section 812.002(a), Government Code, to include in the membership of the elected class of the Employees Retirement System of Texas (ERS) a county attorney performing the duties of a district attorney. SECTION 3. Amends Section 814.108(a), Government Code, to make a conforming change. SECTION 4. Requires ERS to recompute each annuity that is being paid on August 31, 1999, and that is based on the service of a district or criminal district attorney or a county attorney performing the duties of a district attorney who had service credit for that service in ERS before September 1, 1985, as if Section 814.1031, Government Code, as added by this Act, had been in effect on the date of retirement or death for which the annuity is payable. Provides that an annuity as recomputed under this section becomes payable on the first payment that becomes due on or after the effective date of this Act. SECTION 5. Provides that the change in law made by this Act to Section 812.002(a), Government Code, is intended to clarify the law in effect and being administered immediately before the effective date of this Act. SECTION 6. Effective date: September 1, 1999. SECTION 7. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original in SECTION 1 to change proposed Section 814.1031, Government Code, as follows: Sec. 814.1031. New title: SERVICE RETIREMENT BENEFITS FOR CERTAIN SERVICE AS DISTRICT OR CRIMINAL DISTRICT ATTORNEY OR COUNTY ATTORNEY PERFORMING DISTRICT ATTORNEY DUTIES. The substitute provides that the standard service retirement annuity payable for at least 20 years service credit as a district or criminal district attorney or a county attorney performing the duties of a district attorney by a person who first received credit for the service before September 1, 1985, is an amount equal to the greater of 60 percent of the state salary being paid a district judge, as adjusted from time to time, or the amount computed under Section 814.103 (Service Retirement Benefits for Elected Class Service), notwithstanding that section. The original would not have specified the date by which the person first received credit. The original would have provided that the standard service retirement annuity payable for at least 20 years service credit as such an attorney is an amount equal to the number of years of service credit in that position, multiplied by a percentage of the state salary being paid a district judge, not to exceed 100 percent of that salary and notwithstanding Section 814.103. The original would have also specified that the percentage used in this computation was the sum of the percentage used in Section 814.103, plus .5 percent. The substitute modifies the original in SECTION 4 to make a conforming change with respect to the addition of the eligibility requirement that a person have service credit in the Employees Retirement System of Texas before September 1, 1985, for the purposes of recomputation of annuities.