By: Hughes  S.B. No. 1105          (In the Senate - Filed March 5, 2021; March 18, 2021, read   first time and referred to Committee on Finance; April 21, 2021,   reported adversely, with favorable Committee Substitute by the   following vote:  Yeas 13, Nays 0, one present not voting;   April 21, 2021, sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 1105 By:  Schwertner     A BILL TO BE ENTITLED   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.     * * * * *