2005 Texas Government Code CHAPTER 843. CREDITABLE SERVICE

GOVERNMENT CODE

CHAPTER 843. CREDITABLE SERVICE

SUBCHAPTER A. GENERAL PROVISIONS


	§ 843.001. TYPES OF CREDITABLE SERVICE.  The types of 
service creditable as credited service in the retirement system are 
prior service and current service.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.001 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.


	§ 843.002. BENEFIT ELIGIBILITY AND AMOUNT.  A member's 
eligibility to receive a benefit is based on the member's amount of 
credited service and attained age on the effective date of 
retirement.  The monthly amount of a standard retirement annuity is 
based on the sum of the member's service credit and accumulated 
contributions and is computed using the member's attained age and 
the actuarial assumptions described by Section 841.001(1).

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.002 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 2001, 77th Leg., ch. 122, § 11, eff. Dec. 31, 2001.


	§ 843.003. REESTABLISHING CREDITED SERVICE AND SERVICE 
CREDIT PREVIOUSLY FORFEITED.  (a) An eligible member who has 
withdrawn contributions from the retirement system may reestablish 
the forfeited credit in the system if the service on which the 
credit was based was performed for a participating subdivision the 
governing body of which by order authorizes reestablishment of the 
credit by eligible employee members of the subdivision.
	(b)  A member eligible to reestablish credit under this 
section is one who is a member as an employee of the subdivision on 
the effective date of an order authorized by the subdivision under 
Subsection (a).
	(c)  A member eligible under this section may reestablish 
credit by depositing with the retirement system in a lump sum the 
amount withdrawn from the system, plus a withdrawal charge computed 
at an annual rate of five percent from the date of withdrawal to the 
date of redeposit.
	(d)  A governing body may not make an order under Subsection 
(a) except on the terms provided by Subchapter H, Chapter 844.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1985, 69th Leg., ch. 491, § 8, eff. June 12, 
1985.  Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.003 
and amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1991, 72nd Leg., ch. 460, § 4, eff. Jan. 1, 
1992;  Acts 2003, 78th Leg., ch. 621, § 8, 9, eff. Jan. 1, 2004.


	§ 843.0031. ALTERNATIVE REESTABLISHMENT OF CREDITED 
SERVICE PREVIOUSLY FORFEITED;  OPTION TO PAY LUMP-SUM AMOUNT.  (a) 
A member who has withdrawn contributions from the retirement system 
and who subsequently resumes employment with a subdivision may by 
application to the system at any time before retirement reestablish 
forfeited prior and current credited service.
	(b)  A member who has withdrawn contributions from the 
retirement system and who subsequently resumes employment with a 
subdivision may at any time before retirement pay to the system a 
lump sum in any amount that does not exceed the actuarial present 
value of the additional benefits that would have been attributable 
to the withdrawn contributions.
	(c)  An amount paid under Subsection (b) is not subject to 
employer matching contributions, even if the member would otherwise 
be eligible under an order adopted under Section 843.003.

Added by Acts 2003, 78th Leg., ch. 621, § 10, eff. Jan. 1, 2004.           


	§ 843.004. COMPOSITION OF SERVICE CREDIT.  Service credit 
consists of allocated prior service credit, current service credit, 
and multiple matching credit as authorized by a participating 
subdivision and accumulated interest under this subtitle.

Added by Acts 2001, 77th Leg., ch. 122, § 12, eff. Sept. 1, 2001.          

SUBCHAPTER B. ESTABLISHMENT OF PRIOR SERVICE GENERALLY


	§ 843.101. CREDITABLE PRIOR SERVICE.  Prior service 
creditable in the retirement system is service performed as an 
employee of a participating subdivision before the date the 
subdivision's participation in the retirement system became 
effective.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.101 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.


	§ 843.102. ELIGIBILITY FOR PRIOR SERVICE.  (a) Except as 
provided by Section 843.108, a member is eligible to receive credit 
in the retirement system for prior service if the member:
		(1)  became a member as an employee of a subdivision on 
the effective date of the subdivision's participation in the 
retirement system;  or
		(2)  became a member as an employee of a subdivision 
before the fifth anniversary of the effective date of its 
participation and continues as an employee of the subdivision for 
at least five consecutive years after reemployment.
	(b)  The board of trustees may adopt rules concerning 
eligibility for prior service under Subsection (a).
	(c)  A person who has withdrawn contributions from an account 
for service for a subdivision and who subsequently resumes 
employment with the subdivision is not eligible to receive service 
credit under this section for prior service for the subdivision 
that was not established before the person withdrew the 
contributions.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.102 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1991, 72nd Leg., ch. 460, § 5, eff. Jan. 1, 
1992;  Acts 2003, 78th Leg., ch. 621, § 11, eff. Jan. 1, 2004.


	§ 843.103. STATEMENT OF PRIOR SERVICE.  A member eligible 
to receive prior service credit shall claim the credit by filing a 
detailed statement of the service with the subdivision for which 
the service was performed.  The statement must be filed before the 
fifth anniversary of the date the person becomes a member as an 
employee of the subdivision.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.103 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 2001, 77th Leg., ch. 122, § 13, eff. Dec. 31, 2001;  Acts 
2003, 78th Leg., ch. 621, § 12, eff. Jan. 1, 2004;  Acts 2005, 
79th Leg., ch. 506, § 14, eff. Jan. 1, 2006.


	§ 843.104. CERTIFICATION OF SERVICE AND AVERAGE 
COMPENSATION.  (a) As soon as practicable after a member files a 
statement of prior service under Section 843.103, the subdivision 
employing the officer receiving the statement shall verify the 
prior service claimed and certify to the board of trustees the 
amount of service approved and the member's average prior service 
compensation.
	(b)  Except as provided by Subsection (c), the average prior 
service compensation of a member is computed as the average monthly 
compensation for service performed for the subdivision:
		(1)  for the 36 months immediately preceding the 
effective date of the subdivision's participation in the retirement 
system;  or
		(2)  if the member did not perform service in each of 
the 36 months immediately preceding participation, for the number 
of months of service within the 36-month period.
	(c)  In a computation of average prior service compensation 
for service performed for a subdivision whose retirement system 
participation began before January 1, 1978, monthly compensation is 
excluded to the extent that it exceeds the lower of the following 
rates of compensation:
		(1)  the annual compensation for member contributions 
as determined by the subdivision governing body at the time of its 
election to participate in the retirement system;  or
		(2)  annual compensation of $12,000.                                          
	(d)  The board of trustees may adopt rules concerning 
verification and certification of service and compensation under 
this section.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.104 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.


	§ 843.105. DETERMINATION OF ALLOCATED PRIOR SERVICE 
CREDIT.  (a) After receiving a certification of prior service and 
average prior service compensation under Section 843.104, the board 
of trustees shall determine the member's maximum and allocated 
prior service credits.
	(b)  The maximum prior service credit is an amount equal to 
the accumulation at interest of a series of equal monthly amounts 
for the number of months of approved prior service.  Each monthly 
amount equals twice the subdivision's initial deposit rate, times 
the member's average prior service compensation.  Interest is 
allowed at the end of each 12-month period on an accumulated amount 
at the beginning of each period and is credited only for each whole 
12-month period.  The rate of interest allowed on a maximum prior 
service credit granted by a subdivision having an effective date of 
participation in the retirement system after December 31, 1981, is 
three percent a year.
	(c)  The allocated prior service credit is the percentage of 
the maximum prior service credit granted by the subdivision to all 
members who performed prior service for the subdivision.
	(d)  Interest is earned on an allocated prior service credit 
from the effective date of membership to the effective date of 
retirement at the applicable rate for the period as provided by 
Section 845.314.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1981, 67th Leg., 1st C.S., p. 209, ch. 18, § 45, 
eff. Nov. 10, 1981;  Acts 1985, 69th Leg., ch. 491, § 10, eff. 
June 12, 1985.  Renumbered from Vernon's Ann.Civ.St. Title 110B, 
§ 53.105 and amended by Acts 1989, 71st Leg., ch. 179, § 1, 
eff. Sept. 1, 1989.  Amended by Acts 1991, 72nd Leg., ch. 460, § 
6, eff. Jan. 1, 1992;  Acts 1999, 76th Leg., ch. 427, § 14, eff. 
Dec. 31, 1999;  Acts 2001, 77th Leg., ch. 122, § 14, eff. Dec. 31, 
2001.


	§ 843.108. RESTRICTED CREDIT FOR PREVIOUS SERVICE.  (a) 
Subject to approval of the board of trustees of this retirement 
system, the governing body of a subdivision that has maintained and 
provided for its employees a locally administered retirement plan 
that allowed employee members benefits for service performed for 
the subdivision may, in the order or resolution electing to have the 
subdivision participate in the retirement system, provide that its 
employees who become members of this retirement system be allowed 
creditable service for periods of employment for which the 
employees would otherwise have been entitled to prior service 
credit under Section 843.102 but not be allowed an allocated prior 
service credit under Section 843.105, or other monetary credit, for 
or by reason of service performed before the effective date of 
subdivision participation in the retirement system.
	(b)  A person who becomes a member of the retirement system 
as an employee of a subdivision that begins participation under an 
order or resolution adopted under Subsection (a) shall be granted 
credited service for periods of employment with the subdivision for 
which the person would otherwise have been allowed prior service 
credit but is not entitled to an allocated prior service credit for 
or by reason of the service.

Added by Acts 1991, 72nd Leg., ch. 460, § 7, eff. Jan. 1, 1992.            

SUBCHAPTER C. OPTIONAL PRIOR SERVICE


	§ 843.201. SERVICE CREDIT FOR CERTAIN PUBLIC 
EMPLOYMENT.  (a) The governing body of a participating subdivision 
by order may authorize the establishment of prior service credit in 
the retirement system for service performed in a public hospital, 
utility, or other public facility or governmental function during a 
time the facility was operated or function was performed by a unit 
of government other than the subdivision and before:
		(1)  the effective date of the subdivision's 
participation in the retirement system, if the facility was 
acquired or the governmental function was taken over by the 
subdivision before that date;  or
		(2)  the date of acquisition of the facility or the date 
the governmental function was taken over, if the facility was 
acquired or the governmental function was taken over after the 
effective date of the subdivision's participation in the retirement 
system.
	(b)  A member eligible to establish credit under this section 
after an order under Subsection (a) is one who was employed by a 
public facility or by an entity performing the governmental 
function:
		(1)  on the effective date of subdivision 
participation, for service under Subsection (a)(1);  or
		(2)  on the date of acquisition of the facility or the 
date the governmental function was taken over, for service under 
Subsection (a)(2).
	(c)  The allocated prior service credit allowable under this 
section may be limited by the order of the governing body to zero or 
to any percentage that is a multiple of five percent and that does 
not exceed the percentage applicable to the computation of 
allocated prior service credits for employees of other departments 
of the subdivision.
	(d)  Allocated prior service credits are allowable for a 
subdivision only if:
		(1)  the subdivision has adopted the provisions for an 
annually determined contribution rate plan under Subchapter H, 
Chapter 844;  or
		(2)  the retirement system's actuary determines that 
the subdivision's unfunded actuarial accrued liability 
amortization period will be less than 20 years, if the subdivision 
has not adopted the provisions of Subchapter H, Chapter 844.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1989, 71st Leg., ch. 769, § 2, eff. Aug. 28, 
1989.  Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.201 
and amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989;  Amended by Acts 1991, 72nd Leg., ch. 16, § 11.04(b), eff. 
Aug. 26, 1991.  Amended by Acts 1995, 74th Leg., ch. 245, § 8, 
eff. Sept. 1, 1995;  Acts 1999, 76th Leg., ch. 427, § 15, eff. 
Dec. 31, 1999;  Acts 2003, 78th Leg., ch. 621, § 13, eff. Jan. 1, 
2004.

SUBCHAPTER E. ESTABLISHMENT OF CURRENT SERVICE


	§ 843.401. CURRENT SERVICE GENERALLY.  Current service is 
service performed by an employee of a participating subdivision 
while a member of the retirement system and credited as provided 
under this section.  The retirement system shall grant one month of 
current service for each month for which the required contributions 
are made, reported, and certified by the employing subdivision.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.401 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 2003, 78th Leg., ch. 621, § 16, eff. Jan. 1, 2004.


	§ 843.403. DETERMINATION OF CURRENT SERVICE CREDIT AND 
MATCHING CREDIT.  (a) As soon as practicable after the end of each 
calendar year, the board of trustees shall determine a member's 
current service credit and multiple matching credit.
	(b)  The current service credit of a member is an amount 
equal to a percentage of the contributions made by the member to the 
retirement system during a calendar year.  The percentage is 
determined by the governing body of the employing subdivision at 
the time of its election to participate in the retirement system, 
except that the percentage for a subdivision that begins 
participation after December 31, 1977, is 100 percent.
	(c)  The multiple matching credit of a member is an amount 
equal to a percentage of the contributions made by the member to the 
retirement system during a calendar year.  The percentage is 0 
percent until a greater percentage is adopted as provided by 
Section 843.703 or, for a subdivision whose participation in the 
retirement system began after October 31, 1980, unless a greater 
percentage is adopted by its governing body before the first 
anniversary of the subdivision's effective date of retirement 
system participation, after the actuary has determined and 
certified that the greater percentage would not impair the ability 
of the subdivision to amortize, before the 20th anniversary of the 
participation date, all obligations that are charges against its 
account in the subdivision accumulation fund.  A multiple matching 
credit includes any portion of a current service credit in effect on 
January 1, 1978, that exceeds the member's current service credit 
determined under Subsection (b).
	(d)  Interest is earned on a current service credit or 
multiple matching credit from the end of each calendar year to the 
effective date of the member's retirement at the rate credited 
annually to a member's individual account in the employees saving 
fund.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1981, 67th Leg., 1st C.S., p. 210, ch. 18, § 46, 
eff. Nov. 10, 1981;  Acts 1985, 69th Leg., ch. 491, § 11, eff. 
June 12, 1985.  Renumbered from Vernon's Ann.Civ.St. Title 110B, 
§ 53.403 and amended by Acts 1989, 71st Leg., ch. 179, § 1, 
eff. Sept. 1, 1989.  Amended by Acts 1991, 72nd Leg., ch. 460, § 
8, eff. Jan. 1, 1992;  Acts 1999, 76th Leg., ch. 427, § 17, eff. 
Dec. 31, 1999;  Acts 2001, 77th Leg., ch. 122, § 16, eff. Dec. 31, 
2001;  Acts 2003, 78th Leg., ch. 621, § 17, eff. Jan. 1, 2004.

SUBCHAPTER F. CURRENT SERVICE FOR LEGISLATIVE SERVICE


	§ 843.501. LEGISLATIVE SERVICE.  (a) A member may 
establish credited service in the retirement system for service 
performed as a member of the legislature.  A member claiming 
credited service for previous legislative service shall file a 
detailed statement of the service with the subdivision by which the 
member is currently employed.  As soon as practicable after the 
filing of a statement, the employing subdivision shall verify the 
service claimed and certify to the board of trustees the amount of 
service approved.
	(b)  Credited service may not be established under this 
section for service that is credited by another retirement system 
or program established or governed by state law.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.501 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 1999, 76th Leg., ch. 427, § 18, eff. Dec. 31, 1999;  Acts 
2001, 77th Leg., ch. 122, § 17, eff. Dec. 31, 2001.

SUBCHAPTER G. OPTIONAL CURRENT SERVICE


	§ 843.601. CURRENT SERVICE FOR QUALIFIED MILITARY 
SERVICE.  (a) In this section, "qualified military service" means 
service in the uniformed services, as that term is defined in the 
Uniformed Services Employment and Reemployment Rights Act of 1994 
(38 U.S.C. Section 4301 et seq.), that meets the requirements of 
that Act as it now exists or is amended as to the character of 
service performed.
	(b)  All members of the retirement system are entitled to 
receive credit for qualified military service that is subject to 
the Uniformed Services Employment and Reemployment Rights Act of 
1994 (38 U.S.C. Section 4301 et seq.). Notwithstanding any 
provision of this subtitle to the contrary, contributions, 
benefits, and service credit for qualified military service will be 
provided in accordance with Section 414(u) of the Internal Revenue 
Code of 1986.  The board of trustees may adopt rules that modify the 
terms of this subtitle for the purpose of compliance with the 
provisions of that Act.
	(c)  The governing body of a participating subdivision also 
may, on the terms provided by Section 844.704, authorize the 
establishment of credited service in the retirement system for 
qualified active duty military service as provided by this 
subsection.  Qualified military service includes military service 
before becoming an employee of the subdivision.  A member eligible 
to establish credited service under this subsection is one who has 
credited service in the retirement system for at least the minimum 
period required to receive a service retirement annuity at the age 
of 60 from the subdivision from which credit under this subsection 
is sought. An eligible member may establish credited service under 
this subsection by filing an application with the retirement 
system.
	(d)  A subdivision whose governing body authorized "current 
service for military duty" before December 31, 1999, has authorized 
credit for current service under Subsection (c).
	(e)  Except for credited service established with the 
retirement system before December 31, 1999, the maximum amount of 
credited service that a person may receive under this section is 
five years.  If a person would receive more than five years of 
credited service as a result of having received credit under 
Subsection (c) before receiving credit under Subsection (b), the 
retirement system shall cancel credited service under Subsection 
(c) to the extent necessary to reduce the total to five years of 
credit.
	(f)  Credited service may not be established under this 
section for any month of service that is credited under another 
section of this subtitle or by another retirement system or program 
established or governed by state law.
	(g)  Repealed by Acts 2003, 78th Leg., ch. 621, § 37(4).                    

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.602 by 
Acts 1981, 67th Leg., 1st C.S., p. 210, ch. 18, § 47, eff. Nov. 
10, 1981.  Amended by Acts 1985, 69th Leg., ch. 491, § 12, eff. 
June 12, 1985.  Renumbered from Vernon's Ann.Civ.St. Title 110B, 
§ 53.601 and amended by Acts 1989, 71st Leg., ch. 179, § 1, 
eff. Sept. 1, 1989.  Amended by Acts 1999, 76th Leg., ch. 427, § 
19, eff. Dec. 31, 1999;  Acts 2001, 77th Leg., ch. 122, § 18, eff. 
Dec. 31, 2001;  Acts 2003, 78th Leg., ch. 621, § 18, 37(4), eff. 
Jan. 1, 2004;  Acts 2005, 79th Leg., ch. 506, § 15, eff. Jan. 1, 
2006.

SUBCHAPTER H. OPTIONAL INCREASES IN SERVICE CREDITS


	§ 843.701. INCREASE IN PRIOR SERVICE CREDITS.  The 
governing body of a participating subdivision may not increase the 
percentage of maximum prior service credits used in determining the 
allocated prior service credits under Section 843.105 except on the 
terms provided by Subchapter H, Chapter 844.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.701 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1999, 76th Leg., ch. 427, § 20, eff. Dec. 
31, 1999.


	§ 843.703. INCREASE IN MULTIPLE MATCHING CREDITS.  The 
governing body of a participating subdivision may not increase the 
percentage used in determining multiple matching credits under 
Section 843.403 except on the terms provided by Subchapter H, 
Chapter 844.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1985, 69th Leg., ch. 491, § 14, eff. June 12, 
1985.  Renumbered from Vernon's Ann.Civ.St. Title 110B, § 53.703 
and amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1999, 76th Leg., ch. 427, § 21, eff. Dec. 
31, 1999.