HBA-DMH, MPM H.B. 437 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 437
By: Gallego
Pensions & Investments
3/12/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, most law enforcement officers are members of the
employee class of the Employee Retirement System (ERS), with the exception
of law enforcement officers who are commissioned and employed by
institutions of higher education, and contribute to the Teachers Retirement
System (TRS). Law enforcement officers who are members of ERS receive
retirement benefits based on a higher multiplier than other members of ERS.
House Bill 437 includes law enforcement officers who are commissioned and
employed by an institution of higher education in ERS, rather than TRS, to
make them eligible to receive the same benefits as other law enforcement
officers.  

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. 

ANALYSIS

House Bill 437 amends the Government Code to include law enforcement
officers commissioned by an institution of higher education (officers) as
members of the Employee Retirement System (ERS).  The bill excludes
officers as  members of the Teacher Retirement System (TRS).   

The bill provides that all officers commissioned and employed by an
institution of higher education on August 31, 2001, who were contributors
to TRS on that date and who remain in employment on September 1, 2001,
become members of ERS on the latter date.  The bill provides for transfer
of service credit from TRS to ERS as though it were service credit in ERS
for purposes of determining eligibility benefits.  The bill requires TRS
and ERS to compute and transfer money at the time of retirement of an
officer whose membership has been transferred to ERS according to
established laws governing the crediting of service and financing of
benefits.   

The bill requires each institution of higher education, before October 1,
2001, to certify to ERS the name of each officer employed by the
institution on September 1, 2001, as well as other information as
determined by ERS for the crediting of service and financing of benefits.   

EFFECTIVE DATE

September 1, 2001.