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.