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HB 2434

AN ACT relating to the purchase of service credit by certain members of the

House Bill
Filed

Filed

Bill introduced by legislator

Committee

Hearing

Passed Cmte

Calendar

Passed

Sent

Enrolled

Governor

Signed

89th Regular Session

Jan 14, 2025 - Jun 2, 2025 • Session ended

Awaiting Committee Assignment

Bill filed, pending referral to House committee

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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.

Subject Areas

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

filed

Bill filed: AN ACT relating to the purchase of service credit by certain members of the