HBA-CMT S.B. 1569 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1569
By: West, Royce
Pensions & Investments
5/16/2001
Engrossed



BACKGROUND AND PURPOSE 

Some judges have voiced concern over inequities between benefits and
options offered by the Judicial Retirement System of Texas (JRS) Plan One
and Plan Two.  Senate Bill 1569 authorizes JRS members who are not retired
to buy service credit in either plan, as applicable, using the same formula
and rate of contribution.  

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

Senate Bill 1569 amends the Government Code to authorize a member of the
Judicial Retirement System (JRS) who has not retired to establish service
credit in the JRS Plan One or Plan Two, as applicable, for any calendar
year during which the member held an office included in the membership of
JRS or was eligible to take the oath for an office included in the
membership of JRS.  The member is authorized to establish credit by
depositing with JRS a contribution computed for each month of credit
claimed at the rate of six percent of the member's current monthly salary
plus, if the member does not establish credit before the first anniversary
of the first eligibility, interest computed on the basis of the state
fiscal year at an annual rate of 10 percent from the date of first
eligibility to the date of deposit. 

The bill requires JRS Plan One and Plan Two to increase by 10 percent of
the amount of the applicable state salary or the annuity of a member who on
the effective date of retirement has served as a visiting judge in this
state and the first anniversary of the last day of that service has not
occurred.   

The bill provides that a member who accrues 20 years of service credit in
JRS Plan One ceases making contributions. 

EFFECTIVE DATE

September 1, 2001.