CHAPTER 803. PROPORTIONATE RETIREMENT PROGRAM
GOVERNMENT CODE
TITLE 8. PUBLIC RETIREMENT SYSTEMS
SUBTITLE A. PROVISIONS GENERALLY APPLICABLE TO PUBLIC RETIREMENT
SYSTEMS
CHAPTER 803. PROPORTIONATE RETIREMENT PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 803.001. DEFINITIONS. In this chapter:
(1) "Combined service credit" means the total of a person's
service credit in only those retirement systems to which this
chapter applies for which the total satisfies the
length-of-service requirements for service retirement at the
person's attained age, and does not include:
(A) any service credit in a retirement system for which the
total of a person's service credit does not satisfy the
length-of-service requirements for service retirement at the
person's attained age; or
(B) service credit earned with or allowed by a subdivision or
municipality not participating in the program provided by this
chapter or, as applicable, a subdivision or municipality whose
participation is limited as provided by Section 803.103.
(2) "Service credit" means service that is in a person's account
in a retirement system to which this chapter applies and that may
be used to meet length-of-service requirements for service
retirement in that system.
(3) Repealed by Acts 1991, 72nd Leg., ch. 131, Sec. 9, eff.
Sept. 1, 1991.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,
1981. Amended by Acts 1985, 69th Leg., ch. 602, Sec. 3, eff.
Sept. 1, 1985. Renumbered from Vernon's Ann.Civ.St. Title 110B,
Sec. 13.001 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept.
1, 1989. Amended by Acts 1991, 72nd Leg., ch. 131, Sec. 2, 9,
eff. Sept. 1, 1991.
Sec. 803.002. PURPOSE OF CHAPTER. The purpose of this chapter
is to implement the authority granted the legislature by Article
XVI, Section 67, of the Texas Constitution to provide a program
of proportionate benefits to qualified members of more than one
retirement system to which this chapter applies. It is contrary
to the purpose of this chapter for a person or class of persons
to receive, because of service in more than one retirement system
to which this chapter applies, proportionately greater benefits
from a particular system than a person who has rendered faithful
career service under that one system.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,
1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.
13.002 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,
1989. Amended by Acts 1991, 72nd Leg., ch. 131, Sec. 3, eff.
Sept. 1, 1991.
Sec. 803.0021. APPLICATION OF CHAPTER. This chapter applies
only to:
(1) a retirement system for general municipal employees in a
municipality with a population of not less than 600,000 nor more
than 700,000;
(2) the Employees Retirement System of Texas, the Teacher
Retirement System of Texas, the Judicial Retirement System of
Texas Plan One, the Judicial Retirement System of Texas Plan Two,
the Texas County and District Retirement System, and the Texas
Municipal Retirement System; and
(3) a retirement system that makes an election under Section
803.101(f).
Added by Acts 1991, 72nd Leg., ch. 131, Sec. 1, eff. Sept. 1,
1991. Amended by Acts 1997, 75th Leg., ch. 1190, Sec. 1, eff.
Sept. 1, 1997; Acts 2001, 77th Leg., ch. 669, Sec. 21, eff. Sept.
1, 2001.
Sec. 803.003. CONSTRUCTION OF CHAPTER. (a) The provisions of
this chapter are exceptions to the other laws governing
retirement systems to which this chapter applies and prevail over
those laws to the extent of explicit conflict, but this chapter
must be construed strictly as against those laws.
(b) Notwithstanding any other law, a person who is involuntarily
transferred to a position included in the coverage of a
retirement system governed by Chapter 101, Acts of the 43rd
Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
Texas Civil Statutes), from a position included in a retirement
system operated by a municipality that does not participate in a
statewide retirement system governed by Chapter 101, Acts of the
43rd Legislature, 1st Called Session, 1933 (Article 6243b,
Vernon's Texas Civil Statutes), may make an irrevocable election
at the time of the transfer to continue membership in the
municipal retirement system. An involuntary transfer is
determined by the employment rules that apply to the person
immediately before the time of the involuntary transfer.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,
1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.
13.003 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,
1989. Amended by Acts 1991, 72nd Leg., ch. 131, Sec. 3, eff.
Sept. 1, 1991; Acts 1999, 76th Leg., ch. 1296, Sec. 2, eff. Sept.
1, 1999.
SUBCHAPTER B. PARTICIPATION AND MEMBERSHIP
Sec. 803.101. PARTICIPATION BY RETIREMENT SYSTEMS. (a) Except
as provided by Subsections (b) and (f), each retirement system to
which this chapter applies is required to participate in the
program of proportionate retirement benefits provided by this
chapter.
(b) A subdivision participating in the Texas County and District
Retirement System or a municipality participating in the Texas
Municipal Retirement System is not required to participate in the
proportionate retirement program if the subdivision or
municipality elected not to participate under the authority of
former law and has not revoked the election under Subsection (c).
(c) A subdivision or municipality that elected not to
participate in the proportionate retirement program may revoke
the election and elect to participate. An election to participate
may be made by vote of the governing body of the subdivision or
municipality in the manner required for official actions of the
governing body. The governing body shall send notice of an
election to participate to the board of trustees of the
retirement system in which the subdivision or municipality
participates.
(d) The effective date of participation in the proportionate
retirement program by a subdivision or municipality electing to
participate under Subsection (c) is the first day of the month
after the month in which the appropriate board of trustees
receives notice of an election.
(e) Participation in the proportionate retirement program
includes all persons who are members of a retirement system to
which this chapter applies and, in the case of members of the
Texas County and District Retirement System or the Texas
Municipal Retirement System, who are also employees or former
employees of a subdivision or municipality participating in the
proportionate retirement program.
(f) The governing body of a public retirement system in this
state for municipal employees that is a qualified plan under
Section 401(a) of the Internal Revenue Code of 1986 (26 U.S.C.
Section 401) may elect to participate in the proportionate
retirement program by adopting a resolution to that effect. A
resolution may not be adopted under this subsection without the
approval of the governing body of the municipality that finances
the retirement system. The governing body of the retirement
system shall notify all other participating retirement systems of
the election. The effective date of participation in the
proportionate retirement program by a retirement system for which
an election is made under this subsection is the first day of the
third month after the month in which notice is given under this
subsection. An election under this subsection does not require
the approval of the participants in the public retirement system
making the election.
(g) The governing body of a municipality described by Section
803.0021(1) that finances a public retirement system for police
officers or firefighters may not approve the retirement system's
election under Subsection (f) to participate in the proportionate
retirement program unless an actuary acting on behalf of the
municipality reviews the initial cost to the municipality of
making the election.
(h) If the governing body of a public retirement system under
Subsection (g) adopts a resolution to participate in the
proportionate retirement program, the governing body of the
municipality that finances the retirement system shall
appropriate and pay to the retirement system, at the same time
the municipality makes the municipality's monthly contribution to
the retirement system, the additional amount necessary, as
determined by the retirement system's actuary, to fund the
additional liabilities incurred by the retirement system as a
result of participating in the proportionate retirement program.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,
1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.
13.101 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.
Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 131, Sec. 4,
eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1190, Sec. 2, eff.
Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1296, Sec. 1, eff. Sept.
1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1427, Sec. 1, eff. June 15, 2007.
Sec. 803.102. RETIREMENT SYSTEM MEMBERSHIP. (a) Membership in
a retirement system to which this chapter applies does not
terminate because of absence from service covered by that system
during a period for which the member earns service credit in
another retirement system to which this chapter applies for
service performed for an employer other than a subdivision or
municipality not participating in the program provided by this
chapter.
(b) A person may continue membership in a retirement system to
which this chapter applies while absent from service with all
retirement systems to which this chapter applies if the person
would be eligible, under the laws governing that system, to
continue membership if the person's combined service credit had
been earned in that system.
(c) In this section, a person's absence from service begins on
the day after the last day of service covered by any retirement
system to which this chapter applies.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,
1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.
13.102 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,
1989. Amended by Acts 1991, 72nd Leg., ch. 131, Sec. 5, eff.
Sept. 1, 1991.
Sec. 803.103. LIMITATION OF PARTICIPATION BY RETIREMENT SYSTEMS.
(a) Participation in the proportionate retirement program by a
subdivision participating in the Texas County and District
Retirement System or a municipality participating in the Texas
Municipal Retirement System does not include:
(1) participation with a retirement system described by Section
803.0021(1) if the subdivision or municipality has elected to so
limit its participation and has not revoked the election under
Subsection (b); or
(2) participation with a retirement system described by Section
803.0021(3).
(b) A subdivision or municipality that has elected to limit its
participation in the proportionate retirement program may revoke
the election and remove the limitation on participation. An
election under this subsection may be made by vote of the
governing body of the subdivision or municipality in the manner
required for official actions of the governing body. The
governing body shall send notice of an election under this
subsection to the board of trustees of the retirement system in
which the subdivision or municipality participates.
(c) The effective date of a removal of a limitation on
participation in the proportionate retirement program by a
subdivision or municipality electing under Subsection (b) is the
first day of the month after the month in which the appropriate
board of trustees receives notice of the election.
Added by Acts 1991, 72nd Leg., ch. 131, Sec. 6, eff. Jan. 1,
1992. Amended by Acts 1997, 75th Leg., ch. 1190, Sec. 3, eff.
Sept. 1, 1997.
SUBCHAPTER C. CREDITABLE SERVICE
Sec. 803.201. RETIREMENT ELIGIBILITY BASED ON COMBINED SERVICE
CREDIT. (a) A person who has membership in two or more
retirement systems to which this chapter applies is subject to
the laws governing each of those systems for determination of the
person's eligibility for service retirement benefits from each
system, except that, for the purpose of determining whether a
person meets the length-of-service requirements for service
retirement of a system, the person's combined service credit must
be considered as if it were all credited in each system.
(b) A person's combined service credit is useable only in
determining eligibility for service retirement benefits and may
not be used in determining:
(1) eligibility for disability retirement benefits, death
benefits, or any type of benefit other than service retirement
benefits; nor
(2) the amount of any type of benefit.
(c) A person receiving service retirement or lifetime disability
retirement benefits from one or more retirement systems to which
this chapter applies may use the program provided by this chapter
to qualify for subsequent service retirement under another
retirement system to which this chapter applies in which the
person has service credit, if the person was not eligible to
retire under the latter system at the time of previous service
retirement, or qualification for lifetime disability retirement
benefits from a retirement system to which this chapter applies,
or if the person's previous retirement was not based on combined
service credit.
(d) Service credit earned with or allowed by more than one
retirement system to which this chapter applies for the same
service may be counted only once in determining the amount of a
person's combined service credit.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,
1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.
13.201 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.
Sept. 1, 1989. Amended by Acts 1989, 71st Leg., ch. 616, Sec. 2,
eff. June 14, 1989; Acts 1991, 72nd Leg., ch. 131, Sec. 7, eff.
Sept. 1, 1991.
Sec. 803.202. SERVICE IN CERTAIN RETIREMENT SYSTEMS. (a) The
board of trustees of the Employees Retirement System of Texas by
rule may:
(1) consider the classes of service in the Employees Retirement
System of Texas as if they were, for purposes of this chapter,
classes in separate statewide retirement systems; or
(2) permit a person who is retiring exclusively from retirement
systems administered by the board to use the shortest
length-of-service requirement provided for retirement in any
class in which the person has service credit.
(b) A member of a retirement system administered by the board of
trustees of the Employees Retirement System of Texas may
reestablish service credit previously canceled in another
retirement system administered by the board if the member holds a
position included in the system of which the person is a member
and has held the position for at least 12 months. The method of
reestablishment and the amount to be deposited are as provided by
the applicable law providing for reestablishment of service
credit generally in the particular retirement system.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,
1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.
13.202 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,
1989. Amended by Acts 1993, 73rd Leg., ch. 791, Sec. 1, eff.
Sept. 1, 1993.
Sec. 803.203. REESTABLISHMENT OF SERVICE CREDIT BY FORMER
MEMBER. (a) Except as provided by Subsection (g), a person who
is a member of a retirement system participating in the program
provided by this chapter may reestablish service credit,
including prior service credit if applicable, previously canceled
in another retirement system that is participating in the program
provided by this chapter if the person:
(1) is not a current member of the system under which the
service was performed;
(2) in the case of the Texas County and District Retirement
System, does not have an open account with the subdivision for
which the person performed the service for which the credit is
sought; or
(3) in the case of an employee to whom Section 803.204 applies,
does not have an open account with the employing hospital
district, charitable organization, or administrative agency, as
applicable, for which the person performed the service for which
the credit is sought.
(b) A person may apply to reestablish service credit under this
section by filing an application with the retirement system in
which the service was originally credited and a certification
that the applicant is currently a member of the certifying
system.
(c) Except as provided by Subsection (f), the retirement system
in which the service credit was originally credited shall grant
the service credit after receiving an application and a
certification required by Subsection (b) and:
(1) to reestablish service credit other than in the Texas County
and District Retirement System, the Texas Municipal Retirement
System, or the retirement system in which a hospital district,
charitable organization, or administrative agency described by
Section 803.204 participates, a contribution in the amount
generally required to reestablish service credit in the system,
including any applicable interest and membership fees;
(2) to reestablish service credit in the Texas County and
District Retirement System, the Texas Municipal Retirement
System, or the retirement system in which a hospital district,
charitable organization, or administrative agency described by
Section 803.204 participates, a statement that the applicant does
not wish to make a contribution for the service credit; or
(3) at the applicant's option, to reestablish current service
credit in the Texas County and District Retirement System, the
actuarial present value of the additional standard service
benefits that would be attributable to the credit based on rates
and tables recommended by the actuary and adopted by the board of
trustees of the system.
(d) A subdivision participating in the Texas County and District
Retirement System under Subchapter H, Chapter 844, or a
municipality participating in the Texas Municipal Retirement
System may make a one-time election to authorize the
reestablishment of service credit under this section by payment
by an applicant of a contribution in the amount provided by
Section 843.003 or 853.003, as applicable, for reestablishment of
service credit generally in the particular system. If a
subdivision or municipality makes an election under this
subsection, the applicant has the choice of reestablishing
service credit under Subsection (c)(2), (c)(3), if applicable, or
this subsection.
(e) Service credit in the Texas County and District Retirement
System, the Texas Municipal Retirement System, or the retirement
system in which a hospital district, charitable organization, or
administrative agency described by Section 803.204 participates
that is reestablished under Subsection (c)(2) may be used only to
meet eligibility requirements for benefits. Service credit
reestablished in the Texas County and District Retirement System
or the Texas Municipal Retirement System under Subsection (c)(3)
or (d) has the same value as service credit performed for the
particular subdivision or municipality at the time of deposit.
The credit is creditable to the member's and employer's accounts
in each subdivision or municipality for which the service was
performed.
(f) To reestablish service credit in a public retirement system
for municipal employees that has elected under Section 803.101(f)
to participate in the program provided by this chapter, a person
must pay the actuarial present value, as determined by the
appropriate system, of the additional standard service retirement
benefits that would be attributable to the credit. A person who
is a member only of a system that has made an election under
Section 803.101(f) must pay the actuarial present value, as
determined by the appropriate system, of the additional standard
service retirement benefits that would be attributable to the
service credit to be reestablished in any other public retirement
system participating in the program provided by this chapter.
(g) Service credit may not be reestablished under this section:
(1) if it is subject to Section 805.002(e); or
(2) in a subdivision participating in the Texas County and
District Retirement System or a municipality participating in the
Texas Municipal Retirement System if the person who seeks to
reestablish the credit is a member only of a retirement system
that the subdivision or municipality excludes from participation
in the proportionate retirement program under Section 803.103.
(h) This section applies to an employee described by Section
803.204 on the date the federal government establishes as the
effective date of the transfer of federally qualified health
center status from a municipality described by Section
803.0021(1) to a hospital district, charitable organization, or
administrative agency described by Section 803.204.
Added by Acts 2001, 77th Leg., ch. 501, Sec. 1, eff. Jan. 1,
2002, Acts 2001, 77th Leg., ch. 1240, Sec. 1, eff. Jan. 1, 2002.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
217, Sec. 1, eff. May 27, 2009.
Sec. 803.204. COMBINED SERVICE CREDIT IN CERTAIN SYSTEMS. (a)
This section applies only to an employee who:
(1) is a member of a municipal retirement system described by
Section 803.0021(1);
(2) is employed by a hospital district, a charitable
organization supervised, overseen, and effectively controlled by
the hospital district, or an administrative agency created under
Section 791.013, either before or after being employed by the
employing municipality located in the same county as the hospital
district, charitable organization, or administrative agency; and
(3) participates in a public retirement system:
(A) that is determined to be a qualified plan under Section
401(a), Internal Revenue Code of 1986 (26 U.S.C. Section 401(a)),
of a hospital district, charitable organization, or
administrative agency that is determined to be a governmental
unit, or an agency or an instrumentality of a governmental unit;
and
(B) that records and reports service credit as defined by
Section 803.001.
(b) Any service credit earned by an employee described by
Subsection (a) with a retirement system established by the
hospital district, charitable organization, or administrative
agency will be combined under Section 803.201 to determine
whether the employee meets the length-of-service requirements for
service retirement under the municipal retirement system.
(c) On retirement, an employee described by Subsection (a) will
receive a benefit from the municipal retirement system as
determined by Subchapter D, and if the hospital district or
administrative agency has established or participates in a
retirement program or the charitable organization has a
retirement plan, will receive a benefit from the hospital
district, administrative agency, or charitable organization as
determined by the terms of the district's, agency's, or
organization's retirement plan.
(d) For purposes of this section, a charitable organization
supervised, overseen, and effectively controlled by a hospital
district or an administrative agency created under Section
791.013 is an agency or instrumentality of a governmental unit.
Added by Acts 2007, 80th Leg., R.S., Ch.
164, Sec. 1, eff. September 1, 2007.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
217, Sec. 2, eff. May 27, 2009.
SUBCHAPTER D. BENEFITS
Sec. 803.301. COMPUTATION OF BENEFITS GENERALLY. The amount of
a benefit payable by a retirement system to which this chapter
applies is determined according to and in the manner prescribed
by laws governing that system and is based solely on a person's
service credit in that system.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,
1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.
13.301 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,
1989. Amended by Acts 1991, 72nd Leg., ch. 131, Sec. 8, eff.
Sept. 1, 1991.
Sec. 803.302. COMPUTATION OF CERTAIN BENEFITS. (a) If payable
to or on behalf of a person who has used combined service credit
to qualify for benefits from at least one retirement system to
which this chapter applies, each of the following types of
benefits must be computed as provided by Subsection (b):
(1) a base retirement annuity that does not vary in amount
directly with the amount of a person's service credit;
(2) a fixed lump-sum death benefit payable on the death of a
retiree;
(3) any death benefit payable on the death of a retiree who
received service retirement benefits; and
(4) a survivor benefit payable to a beneficiary of a deceased
retiree of the Teacher Retirement System of Texas.
(b) The amount of a benefit payable under Subsection (a) by a
retirement system to which this chapter applies is a percentage,
but not more than 100 percent, of the benefit that would be or
would have been payable if the person retired or had retired on
the basis of only the service that is credited in that system.
The percentage applied is equal to the amount of service credit
in that system, divided by the amount of service credit that
would be or would have been required for the benefit if the
person retired or had retired on the basis of only the service
that is credited in that system.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,
1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.
13.302 and amended by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff.
Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., ch. 131, Sec. 8,
eff. Sept. 1, 1991.
SUBCHAPTER E. ADMINISTRATION
Sec. 803.401. ADMINISTRATION OF PROGRAM. (a) The board of
trustees of each retirement system to which this chapter applies
may adopt rules it finds necessary to implement the proportionate
retirement program provided by this chapter.
(b) Each retirement system to which this chapter applies, under
this chapter and other laws governing the particular system, is
responsible for determining:
(1) the eligibility of its members for benefits, including
whether sufficient combined service credit exists to qualify
members for proportionate retirement benefits from that system;
and
(2) the amount and duration of proportionate retirement benefits
payable by that system.
(c) Each retirement system to which this chapter applies shall
cooperate with the other retirement systems to which this chapter
applies in the implementation of the proportionate retirement
program.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,
1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec.
13.401 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1,
1989. Amended by Acts 1991, 72nd Leg., ch. 131, Sec. 8, eff.
Sept. 1, 1991.
Sec. 803.402. RECORDS. Except as provided by other law, records
of members and beneficiaries of a retirement system to which this
chapter applies that are in the custody of any retirement system
to which this chapter applies are confidential and not subject to
disclosure and are exempt from the public access provisions of
Chapter 552. The records or information in the records may be
transferred between retirement systems to which this chapter
applies to the extent necessary to administer the proportionate
retirement program provided by this chapter.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1,
1981. Amended by Acts 1989, 71st Leg., ch. 835, Sec. 11, eff.
Sept. 1, 1989. Renumbered from Vernon's Ann.Civ.St. Title 110B,
Sec. 13.402 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept.
1, 1989. Amended by Acts 1991, 72nd Leg., ch. 16, Sec. 11.05(k),
eff. Aug. 26, 1991; Acts 1991, 72nd Leg., ch. 131, Sec. 8, eff.
Sept. 1, 1991; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(96), eff.
Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1541, Sec. 1, eff. Sept.
1, 1999; Acts 2001, 77th Leg., ch. 1229, Sec. 1, eff. Sept. 1,
2001.