bill letting returning city retirees restore their service credit

The text as introduced · 466 words

89R22549 KFF-D

By: Hughes
S.B. No. 3042

A BILL TO BE ENTITLED

AN ACT

relating to the resumption of employment by certain retirees under

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 (e) and (f) and adding Subsection (e-1) to

read as follows:

(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) is entitled to receive :

(1) future payments of the suspended annuity, as

provided by :

(A) Subsection (e-1); or

(B) Subsection (f) ; [ , ] and

(2) if subject to Subsection (f), [ to the ] additional

benefits as provided by Subsections (g), (h), (i), and (j).

(e-1) A person described by Subsection (c) who becomes an

employee of the person's reemploying municipality at any time

during the 120 consecutive days after the effective date of the

person's initial retirement from the reemploying municipality may

elect, in the manner and form prescribed by the board of trustees,

to restore to effect the person's membership, including any prior

service credit, special prior service credit, antecedent service

credit, or updated service credit used in determining the amount of

the person's annuity at the time of the initial retirement. If the

person subsequently retires from the reemploying municipality, the

retirement system shall:

(1) allow the person credit for all current service

for which required contributions have been made and not withdrawn

or distributed;

(2) recompute the person's annuity based on service

before and after the initial retirement, provided the annuity is

actuarially reduced to reflect the value of benefits received by

the person before the person resumed employment with the

reemploying municipality; and

(3) resume monthly payments of the recomputed annuity

effective beginning with the month following the month in which

employment is terminated with the reemploying municipality.

(f) Monthly payments of an annuity suspended under

Subsection (c) other than an annuity subject to Subsection (e-1)

shall resume effective beginning with 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.

SECTION 2. Section 852.108, Government Code, as amended by

this Act, applies to a retiree of the Texas Municipal Retirement

System regardless of whether the person retired from employment

before, on, or after the effective date of this Act.

SECTION 3. This Act takes effect September 1, 2025.