Lopez Retirement Bill Lets Former Agency Heads Grow Their Pensions

The text as introduced · 612 words

By: Lopez of Cameron
H.B. No. 4694

A BILL TO BE ENTITLED

AN ACT

relating to benefits available under the Employees Retirement

System of Texas for certain retirees who resume membership in the

employee class of membership.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 812.201, Government Code, is amended by

amending Subsections (a) and (c) and adding Subsections (c-1) and

(d) to read as follows:

(a) Except as provided by Subsection (c) or (d) , a retiree

may not rejoin the retirement system as a member of the class from

which the person retired.

(c) A person who is retired from the elected class of

membership and who again holds a position included in that class may

elect to become a member again by filing notice with the retirement

system.

(c-1) Except as provided by Section 812.203(c), when

benefit payments are resumed for a person described by Subsection

(c) or (d), as applicable , the retirement system shall recompute

the annuity selected at the time of the person's original

retirement to include the additional service established during

membership under Subsection (c) or (d), as applicable [ this

subsection ].

(d) A person who is retired from the employee class of

membership and who again holds a position included in that class may

elect to become a member again, if:

(1) the person has 25 or more years of service credit

in the employee class of membership some of which was earned as the

head of a state agency;

(2) the position the person holds on rejoining the

retirement system:

(A) requires appointment by the governor, with

the advice and consent of the senate; and

(B) is provided a salary under the General

Appropriations Act; and

(3) the person files notice with the retirement

system.

SECTION 2. Section 812.202(b), Government Code, is amended

to read as follows:

(b) Unless the retiree resumes membership under Section

812.201(d), the [ The ] payment of benefits to a retiree for service

credited in the employee class of membership is not affected by the

retiree's taking a position included in the employee class.

SECTION 3. Sections 812.203(a) and (c), Government Code,

are amended to read as follows:

(a) If a retiree takes the oath for a position included in

the elected class of membership, the retirement system shall

suspend annuity payments to the person for service that was

credited in that class, until the person no longer holds that

position. If a retiree of the employee class elects to become a

member again under Section 812.201(d), the retirement system shall

suspend annuity payments to the person for service that was

credited in that class, until the person no longer holds that

position.

(c) If a member who originally retired with service credited

at the time of that retirement only in the elected class of

membership again retires, the person at the time of subsequent

retirement may select an annuity based on service in the elected

class as if the person were retiring for the first time. If a member

who originally retired with service credited at the time of that

retirement only in the employee class of membership again retires,

the person at the time of subsequent retirement may select an

annuity based on service in the employee class as if the person were

retiring for the first time. If the person selects an annuity under

Section 814.108(c)(3) or (4) [ (c)(4) ], the retirement system shall

reduce the number of months of guaranteed payment by the number of

months for which an annuity was paid under the person's original

retirement.

SECTION 4. This Act takes effect September 1, 2025.