H.B. No. 159

	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 (c), (e), and (f) and adding Subsection (j) to
	read as follows:
	(c)  The retirement system shall discontinue and suspend
	payments of each service retirement annuity that is allowed because
	of the person's previous 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 (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), [and] (i),
	and (j).
	(f)  Monthly payments of a suspended annuity shall 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 [Payment]
	of the resumed benefit may not be made for any month during which
	the payment was suspended under this section.
	(j)  A person 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 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.
	SECTION 2.  The change in law made by this Act applies only
	to a member of the Texas Municipal Retirement System who terminates
	employment with the person's reemploying municipality and files an
	application for resumption of retirement with the board of trustees
	of the Texas Municipal Retirement System under Section 852.108(e),
	Government Code, as amended by this Act, on or after the effective
	date of this Act. A member who terminates employment with the
	person's reemploying municipality and files an application for
	resumption of retirement with the board under Section 852.108(e),
	Government Code, before the effective date of this Act is governed
	by the law as it existed immediately before that date, and the
	former law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution.  If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2011.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 159 was passed by the House on May 13,
	2011, by the following vote:  Yeas 91, Nays 49, 1 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 159 was passed by the Senate on May
	21, 2011, by the following vote:  Yeas 31, Nays 0
	.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor