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A BILL TO BE ENTITLED
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AN ACT
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relating to participation in and contributions to the optional |
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retirement program for certain employees of institutions of higher |
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education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 830.102, Government Code, is amended by |
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amending Subsection (c) and adding Subsections (c-1) and (c-2) to |
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read as follows: |
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(c) Except as provided by Subsections (c-1) and (c-2), a [A] |
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person who becomes eligible to participate in the optional |
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retirement program after the date the program becomes available at |
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the person's place of employment must elect to participate before |
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the 91st day after becoming eligible. |
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(c-1) A person who becomes eligible to participate in the |
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optional retirement program and is notified by the person's |
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employer of the opportunity to participate after the first day and |
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before the 91st day after the date the person becomes eligible must |
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elect to participate in the program before the later of: |
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(1) the 91st day after the date the person becomes |
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eligible; or |
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(2) the 31st day after the date the person receives |
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notice of the opportunity to participate in the program. |
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(c-2) A person who becomes eligible to participate in the |
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optional retirement program and is notified of the opportunity to |
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participate in the program by the person's employer on or after the |
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91st day after the date the person becomes eligible must be notified |
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by the employer before the 151st day after the date the person |
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becomes eligible. The person must elect to participate in the |
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program before the later of: |
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(1) the 151st day after the date the person becomes |
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eligible; or |
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(2) the 31st day after the date the person receives |
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notice of the opportunity to participate in the program. |
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SECTION 2. Subchapter B, Chapter 830, Government Code, is |
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amended by adding Section 830.108 to read as follows: |
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Sec. 830.108. CORRECTION OF CERTAIN ERRORS. (a) For |
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purposes of this section, an employing institution of higher |
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education submits in error a member contribution to the retirement |
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system on behalf of a participant in the optional retirement |
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program if: |
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(1) the participant on behalf of whom the contribution |
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is submitted previously elected to participate in the optional |
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retirement program; |
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(2) the participant participated in the program for at |
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least one year; and |
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(3) the participant is employed by an institution of |
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higher education and is not eligible for resumption of membership |
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in the retirement system under Section 830.106. |
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(b) An employing institution of higher education that |
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submits in error a member contribution to the retirement system on |
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behalf of a participant in the optional retirement program shall |
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restore the participant's participation in the program immediately |
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on discovering the error. |
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(c) As soon as practicable after receiving notice that an |
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employer submitted a member contribution in error, the retirement |
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system shall remit to the participant the amount of the member's |
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contribution submitted in error plus an amount representing |
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earnings on the member's contribution at the assumed rate of return |
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provided by Subsection (f). The retirement system shall reduce the |
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amount remitted to the participant by any amount required to be |
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withheld by law or court order. |
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(d) As soon as practicable after certification by an |
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employer that submitted a member contribution in error, the |
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comptroller shall remit to the participant an amount equal to the |
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state contribution that would have been paid for the benefit of the |
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participant under Section 830.201 plus an amount representing |
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earnings on the state contribution at the assumed rate of return |
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provided by Subsection (f). The comptroller shall reduce the |
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amount remitted to the participant by any amount required to be |
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withheld by law or court order. |
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(e) As soon as practicable after discovering the error, an |
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employer that submitted a member contribution in error shall remit |
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to the participant the amount of the employer contribution that |
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would have been paid for the benefit of the participant under |
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Section 830.2015 and under any other law, rule, or employer policy |
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plus an amount representing earnings on the employer contribution |
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at the assumed rate of return provided by Subsection (f). The |
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employer shall reduce the amount remitted to the participant by any |
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amount required to be withheld by law or court order. |
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(f) The assumed rate of return is earned monthly and |
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computed at the rate of four percent per year. Except as provided by |
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this subsection, the amount of earnings based on the assumed rate of |
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return is credited annually at the end of each 12-month period. The |
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first 12-month period begins on the date the first member |
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contribution was submitted in error. The amount of assumed |
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earnings is prorated to the month of payment. |
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SECTION 3. Section 830.108, Government Code, as added by |
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this Act, applies to a member contribution submitted in error as |
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provided by that section regardless of whether the contribution was |
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submitted before, on, or after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2017. |