85R11899 LED-F
 
  By: Lozano H.B. No. 3267
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to participation in and contributions to the optional
  retirement program for certain employees of institutions of higher
  education.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 830.102, Government Code, is amended by
  amending Subsection (c) and adding Subsections (c-1) and (c-2) to
  read as follows:
         (c)  Except as provided by Subsections (c-1) and (c-2), a [A]
  person who becomes eligible to participate in the optional
  retirement program after the date the program becomes available at
  the person's place of employment must elect to participate before
  the 91st day after becoming eligible.
         (c-1)  A person who becomes eligible to participate in the
  optional retirement program and is notified by the person's
  employer of the opportunity to participate after the first day and
  before the 91st day after the date the person becomes eligible must
  elect to participate in the program before the later of:
               (1)  the 91st day after the date the person becomes
  eligible; or
               (2)  the 31st day after the date the person receives
  notice of the opportunity to participate in the program. 
         (c-2)  A person who becomes eligible to participate in the
  optional retirement program and is notified of the opportunity to
  participate in the program by the person's employer on or after the
  91st day after the date the person becomes eligible must be notified
  by the employer before the 151st day after the date the person
  becomes eligible. The person must elect to participate in the
  program before the later of:
               (1)  the 151st day after the date the person becomes
  eligible; or
               (2)  the 31st day after the date the person receives
  notice of the opportunity to participate in the program.
         SECTION 2.  Subchapter B, Chapter 830, Government Code, is
  amended by adding Section 830.108 to read as follows:
         Sec. 830.108.  CORRECTION OF CERTAIN ERRORS. (a) For
  purposes of this section, an employing institution of higher
  education submits in error a member contribution to the retirement
  system on behalf of a participant in the optional retirement
  program if:
               (1)  the participant on behalf of whom the contribution
  is submitted previously elected to participate in the optional
  retirement program;
               (2)  the participant participated in the program for at
  least one year; and 
               (3)  the participant is employed by an institution of
  higher education and is not eligible for resumption of membership
  in the retirement system under Section 830.106.
         (b)  An employing institution of higher education that
  submits in error a member contribution to the retirement system on
  behalf of a participant in the optional retirement program shall
  restore the participant's participation in the program immediately
  on discovering the error.
         (c)  As soon as practicable after receiving notice that an
  employer submitted a member contribution in error, the retirement
  system shall remit to the participant the amount of the member's
  contribution submitted in error plus an amount representing
  earnings on the member's contribution at the assumed rate of return
  provided by Subsection (f).  The retirement system shall reduce the
  amount remitted to the participant by any amount required to be
  withheld by law or court order. 
         (d)  As soon as practicable after certification by an
  employer that submitted a member contribution in error, the
  comptroller shall remit to the participant an amount equal to the
  state contribution that would have been paid for the benefit of the
  participant under Section 830.201 plus an amount representing
  earnings on the state contribution at the assumed rate of return
  provided by Subsection (f).  The comptroller shall reduce the
  amount remitted to the participant by any amount required to be
  withheld by law or court order.
         (e)  As soon as practicable after discovering the error, an
  employer that submitted a member contribution in error shall remit
  to the participant the amount of the employer contribution that
  would have been paid for the benefit of the participant under
  Section 830.2015 and under any other law, rule, or employer policy
  plus an amount representing earnings on the employer contribution
  at the assumed rate of return provided by Subsection (f).  The
  employer shall reduce the amount remitted to the participant by any
  amount required to be withheld by law or court order.
         (f)  The assumed rate of return is earned monthly and
  computed at the rate of four percent per year. Except as provided by
  this subsection, the amount of earnings based on the assumed rate of
  return is credited annually at the end of each 12-month period.  The
  first 12-month period begins on the date the first member
  contribution was submitted in error.  The amount of assumed
  earnings is prorated to the month of payment.
         SECTION 3.  Section 830.108, Government Code, as added by
  this Act, applies to a member contribution submitted in error as
  provided by that section regardless of whether the contribution was
  submitted before, on, or after the effective date of this Act.
         SECTION 4.  This Act takes effect September 1, 2017.