85R11899 LED-F     By: Hughes S.B. No. 1954       A BILL TO BE ENTITLED   AN ACT   relating to participation in and contributions to the optional   retirement program for certain employees of institutions of higher   education.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 830.102, Government Code, is amended by   amending Subsection (c) and adding Subsections (c-1) and (c-2) to   read as follows:          (c)  Except as provided by Subsections (c-1) and (c-2), a [A]   person who becomes eligible to participate in the optional   retirement program after the date the program becomes available at   the person's place of employment must elect to participate before   the 91st day after becoming eligible.          (c-1)  A person who becomes eligible to participate in the   optional retirement program and is notified by the person's   employer of the opportunity to participate after the first day and   before the 91st day after the date the person becomes eligible must   elect to participate in the program before the later of:                (1)  the 91st day after the date the person becomes   eligible; or                (2)  the 31st day after the date the person receives   notice of the opportunity to participate in the program.           (c-2)  A person who becomes eligible to participate in the   optional retirement program and is notified of the opportunity to   participate in the program by the person's employer on or after the   91st day after the date the person becomes eligible must be notified   by the employer before the 151st day after the date the person   becomes eligible. The person must elect to participate in the   program before the later of:                (1)  the 151st day after the date the person becomes   eligible; or                (2)  the 31st day after the date the person receives   notice of the opportunity to participate in the program.          SECTION 2.  Subchapter B, Chapter 830, Government Code, is   amended by adding Section 830.108 to read as follows:          Sec. 830.108.  CORRECTION OF CERTAIN ERRORS. (a) For   purposes of this section, an employing institution of higher   education submits in error a member contribution to the retirement   system on behalf of a participant in the optional retirement   program if:                (1)  the participant on behalf of whom the contribution   is submitted previously elected to participate in the optional   retirement program;                (2)  the participant participated in the program for at   least one year; and                 (3)  the participant is employed by an institution of   higher education and is not eligible for resumption of membership   in the retirement system under Section 830.106.          (b)  An employing institution of higher education that   submits in error a member contribution to the retirement system on   behalf of a participant in the optional retirement program shall   restore the participant's participation in the program immediately   on discovering the error.          (c)  As soon as practicable after receiving notice that an   employer submitted a member contribution in error, the retirement   system shall remit to the participant the amount of the member's   contribution submitted in error plus an amount representing   earnings on the member's contribution at the assumed rate of return   provided by Subsection (f).  The retirement system shall reduce the   amount remitted to the participant by any amount required to be   withheld by law or court order.           (d)  As soon as practicable after certification by an   employer that submitted a member contribution in error, the   comptroller shall remit to the participant an amount equal to the   state contribution that would have been paid for the benefit of the   participant under Section 830.201 plus an amount representing   earnings on the state contribution at the assumed rate of return   provided by Subsection (f).  The comptroller shall reduce the   amount remitted to the participant by any amount required to be   withheld by law or court order.          (e)  As soon as practicable after discovering the error, an   employer that submitted a member contribution in error shall remit   to the participant the amount of the employer contribution that   would have been paid for the benefit of the participant under   Section 830.2015 and under any other law, rule, or employer policy   plus an amount representing earnings on the employer contribution   at the assumed rate of return provided by Subsection (f).  The   employer shall reduce the amount remitted to the participant by any   amount required to be withheld by law or court order.          (f)  The assumed rate of return is earned monthly and   computed at the rate of four percent per year. Except as provided by   this subsection, the amount of earnings based on the assumed rate of   return is credited annually at the end of each 12-month period.  The   first 12-month period begins on the date the first member   contribution was submitted in error.  The amount of assumed   earnings is prorated to the month of payment.          SECTION 3.  Section 830.108, Government Code, as added by   this Act, applies to a member contribution submitted in error as   provided by that section regardless of whether the contribution was   submitted before, on, or after the effective date of this Act.          SECTION 4.  This Act takes effect September 1, 2017.