Bill Text: TX HB2396 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to the accrual of interest on annuity and other payments made to certain retirees who have resumed employment within the Texas Municipal Retirement System.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-03-06 - Referred to Pensions, Investments & Financial Services [HB2396 Detail]

Download: Texas-2019-HB2396-Introduced.html

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86R8892 KFF-D
By: Lozano H.B. No. 2396

A BILL TO BE ENTITLED
AN ACT
relating to the accrual of interest on annuity and other payments
made to certain retirees who have resumed employment within the
Texas Municipal Retirement System.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 852.108(f) and (j), Government Code,
are amended to read as follows:
(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 and recomputed to reflect the
accumulation of interest, [without change in the amount except for]
any increase allowed under Section 854.203, and [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.
(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, plus accumulated interest, 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,
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,
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 September 1, 2019.