H.B. No. 159
 
 
 
 
AN ACT
  relating to the resumption of employment by certain retirees within
  the Texas Municipal Retirement System.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 852.108, Government Code, is amended by
  amending Subsections (c), (e), and (f) and adding Subsection (j) to
  read as follows:
         (c)  The retirement system shall discontinue and suspend
  payments of each service retirement annuity that is allowed because
  of the person's previous service with the reemploying municipality
  beginning with the month the retirement system determines that the
  person has again become an employee of the reemploying
  municipality. After the suspension and except as provided by
  Subsection (j), the retirement system may not make payments of the
  annuity for any month during which the person remains an employee of
  the reemploying municipality. The suspension of a benefit under
  this section does not suspend payment of a benefit to an alternate
  payee under a qualified domestic relations order.
         (e)  After termination of employment with the reemploying
  municipality and after filing of an application for resumption of
  retirement with the board of trustees, a person described by
  Subsection (b) is entitled to receive future payments of the
  suspended annuity, as provided by Subsection (f), and to the
  additional benefits as provided by Subsections (g), (h), [and] (i),
  and (j).
         (f)  Monthly payments of a suspended annuity shall be resumed
  in the month following the month in which employment is terminated
  with the reemploying municipality, without change in the amount
  except for any increase allowed under Section 854.203 or the
  duration of or another condition pertaining to the suspended
  benefit. Except as provided by Subsection (j), payment [Payment]
  of the resumed benefit may not be made for any month during which
  the payment was suspended under this section.
         (j)  A person to whom this section applies shall receive a
  lump-sum payment in an amount equal to the sum of the service
  retirement annuity payments the person would have received had the
  person's annuity payments not been discontinued and suspended under
  this section if the person:
               (1)  initially retired based on a bona fide termination
  of employment; and
               (2)  resumed employment with the person's reemploying
  municipality at least eight years after the effective date of the
  person's retirement.
         SECTION 2.  The change in law made by this Act applies only
  to a member of the Texas Municipal Retirement System who terminates
  employment with the person's reemploying municipality and files an
  application for resumption of retirement with the board of trustees
  of the Texas Municipal Retirement System under Section 852.108(e),
  Government Code, as amended by this Act, on or after the effective
  date of this Act. A member who terminates employment with the
  person's reemploying municipality and files an application for
  resumption of retirement with the board under Section 852.108(e),
  Government Code, before the effective date of this Act is governed
  by the law as it existed immediately before that date, and the
  former law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 159 was passed by the House on May 13,
  2011, by the following vote:  Yeas 91, Nays 49, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 159 was passed by the Senate on May
  21, 2011, by the following vote:  Yeas 31, Nays 0
  .
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor