HB 2434
AN ACT relating to the purchase of service credit by certain members of the
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Allows certain members of the Employees Retirement System of Texas to purchase service credit for a 90-day waiting period after beginning employment, even if they did not make contributions during that time. When a member purchases service credit for months before their most recent hiring date, the retirement system will consider their date of hiring as the first day of the earliest month for which service credit is purchased. The retirement system will calculate the deposit amount in a way that does not cause an actuarial loss.
Bill Text
relating to the purchase of service credit by certain members of the Employees Retirement System of Texas. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 813.514, Government Code, is amended by amending Subsection (a-1) and adding Subsections (f) and (g) to (a-1) A member may establish service credit under this section in the employee class only for service performed during a 90-day waiting period to become a member after beginning employment or holding office. The member may establish service credit for each month of any 90-day waiting period in which the member performed service, regardless of whether the member made a contribution during the 90-day waiting period for which the member establishes (f) Notwithstanding any other provision of this subtitle, if a member purchases service credit under this section for a month that occurred before the member's most recent date of hiring, the retirement system shall consider for purposes of this subtitle the member's date of hiring to be the first day of the month of the earliest month for which service credit is purchased under this (g) The retirement system shall compute the amount of the deposit required by this section in a manner that does not result in an actuarial loss to the retirement system. SECTION 2. This Act takes effect September 1, 2025.
Bill History
Bill filed: AN ACT relating to the purchase of service credit by certain members of the
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