| |
| |
| |
|
|
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 (a), (c), (e), (f), (h), (i), and (j) and |
|
|
adding Subsections (b-1), (k), (l), (m), and (n) to read as follows: |
|
|
(a) In this section and Sections 852.1085 and 852.109, a |
|
|
person's reemploying municipality is the municipality for which the |
|
|
person most recently performed [was performing] creditable service |
|
|
before [at the time of] the person's retirement with respect to the |
|
|
person's particular individual account under this subtitle. |
|
|
(b-1) Unless subject to Subsection (c), the retirement |
|
|
annuity of a person subject to this section is not suspended. |
|
|
(c) If a person becomes an employee of the person's |
|
|
reemploying municipality at any time during the 12 consecutive |
|
|
months after the effective date of the person's last retirement |
|
|
from the reemploying municipality, the [The] retirement system |
|
|
shall discontinue and suspend the full amount of the monthly |
|
|
payments of the [each] service retirement annuity that is allowed |
|
|
because of the person's previous retirement from [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 (c) [(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), (i), and |
|
|
(j). |
|
|
(f) Monthly payments of an [a suspended] annuity suspended |
|
|
under Subsection (c) shall resume effective beginning with [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 of the |
|
|
resumed benefit may not be made for any month during which the |
|
|
payment was suspended under this section. |
|
|
(h) The additional service retirement benefit allowable to |
|
|
a person to whom this section applies is, at the option of that |
|
|
person, either: |
|
|
(1) a refund of accumulated contributions made since |
|
|
reemployment plus any accrued interest on the accumulated |
|
|
contributions allowed by the retirement system; or |
|
|
(2) a benefit consisting of: |
|
|
(A) a basic annuity actuarially determined from |
|
|
the sum of the member's contributions [deposits] made and |
|
|
accumulated since the date the person last became a member, |
|
|
together with interest accumulated on that amount since the person |
|
|
last became a member and an amount from the benefit accumulation |
|
|
fund equal to the amount of the member's contributions credited to |
|
|
the member's individual account since the person last became a |
|
|
member together with interest accrued on that amount since the |
|
|
person last became a member; or |
|
|
(B) a greater amount authorized by the |
|
|
municipality under Section 855.501. |
|
|
(i) The additional benefit described by Subsection (h)(2) |
|
|
[(h)] is payable as a standard service retirement benefit or, at the |
|
|
election of the member, any optional benefit authorized under this |
|
|
subtitle that is the actuarial equivalent of the standard |
|
|
retirement benefit. The first benefit payment date under this |
|
|
subsection is the later of the end of the month following the last |
|
|
month of employment or the end of the month following the month in |
|
|
which the person files an application for payment. The first |
|
|
payment may not be made if the person has resumed employment with |
|
|
the reemploying municipality in a position that would make the |
|
|
person an employee. |
|
|
(j) Subject to Subsection (m), a [A] person who resumed |
|
|
employment with the person's reemploying municipality before |
|
|
September 1, 2021, [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 as it existed on the date the person resumed employment |
|
|
with the reemploying municipality, 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. |
|
|
(k) If the annuity payments of a person who resumed |
|
|
employment with the person's reemploying municipality before |
|
|
September 1, 2021, were discontinued and suspended under this |
|
|
section as it existed on the date the person resumed employment with |
|
|
the reemploying municipality and the person has not terminated |
|
|
employment with the reemploying municipality, then on filing of a |
|
|
written application with the retirement system, the retirement |
|
|
system shall, subject to Subsection (l), resume making the annuity |
|
|
payments to the person, provided: |
|
|
(1) the person's retirement that preceded the |
|
|
resumption of employment was based on a bona fide termination of |
|
|
employment; and |
|
|
(2) the person did not become an employee of the |
|
|
person's reemploying municipality at any time during the 12 |
|
|
consecutive months after the effective date of the person's |
|
|
retirement described by Subdivision (1). |
|
|
(l) Monthly payments of an annuity resumed under Subsection |
|
|
(k) shall resume effective beginning with the month following the |
|
|
month in which the written application is approved by the |
|
|
retirement system, 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 of the resumed benefit may not |
|
|
be made for any month during which the payment was suspended under |
|
|
this section as it existed on the date the person resumed employment |
|
|
with the reemploying municipality. |
|
|
(m) At the time a person resumes receiving payment of an |
|
|
annuity under Subsection (k), the retirement system shall pay the |
|
|
person any lump-sum payment owed to the person under Subsection |
|
|
(j). |
|
|
(n) The board of trustees may adopt rules to implement this |
|
|
section. |
|
|
SECTION 2. Sections 852.109(a), (e), and (f), Government |
|
|
Code, are amended to read as follows: |
|
|
(a) If a person becomes an employee of a municipality after |
|
|
the effective date of the person's [beginning to receive a] |
|
|
retirement from a participating municipality [benefit], and the |
|
|
municipality is not the person's reemploying municipality, the |
|
|
person again becomes a member of the retirement system, and the |
|
|
person's retirement annuity is not suspended. |
|
|
(e) The additional benefit described by Subsection (d)(2) |
|
|
[(d)] is payable as a standard service retirement benefit or, at the |
|
|
election of the member, any optional benefit authorized under this |
|
|
subtitle that is the actuarial equivalent of the standard |
|
|
retirement benefit. The first benefit payment date under this |
|
|
subsection is the later of the end of the month following the last |
|
|
month of employment or the end of the month following the month in |
|
|
which the person files an application for payment. The first |
|
|
payment may not be made if the person has resumed employment that |
|
|
would result in suspension of a benefit. |
|
|
(f) If a person became an employee of a municipality other |
|
|
than the person's reemploying municipality after the effective date |
|
|
of the person's [beginning to receive a] retirement from a |
|
|
participating municipality [benefit], and the person's service |
|
|
retirement annuity was suspended under Section 852.108 as it |
|
|
existed at the time of reemployment, the person may, on written |
|
|
application to the retirement system, resume receiving the |
|
|
suspended annuity. |
|
|
SECTION 3. This Act takes effect September 1, 2021. |
|
|
|
|
|
|
| |
| |
| |
| |
______________________________ |
______________________________ |
| |
President of the Senate |
Speaker of the House |
| |
|
|
I hereby certify that S.B. No. 1105 passed the Senate on |
|
|
April 27, 2021, by the following vote: Yeas 31, Nays 0. |
|
|
|
| |
| |
______________________________ |
| |
Secretary of the Senate |
| |
|
|
I hereby certify that S.B. No. 1105 passed the House on |
|
|
May 14, 2021, by the following vote: Yeas 135, Nays 10, two |
|
|
present not voting. |
|
|
|
| |
| |
______________________________ |
| |
Chief Clerk of the House |
| |
|
|
|
| |
|
|
Approved: |
|
|
|
|
|
______________________________ |
|
|
Date |
|
|
|
|
|
|
|
|
______________________________ |
|
|
Governor |