Relating to the Judicial Retirement System Plan Two, including resuming service in the retirement system and contributions to the retirement system, the official text

S.B. No. 1738

AN ACT

relating to the Judicial Retirement System Plan Two, including

resuming service in the retirement system and contributions to the

retirement system.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 837.102(a), Government Code, is amended

to read as follows:

(a) A retiree who resumes service as a judicial officer

other than by assignment described in Section 837.101 may not

rejoin or receive credit in the retirement system for the resumed

service, except [unless an election is made] as provided by Section

837.103.

SECTION 2. Section 837.103, Government Code, is amended by

amending Subsections (b) and (c) and adding Subsections (b-1),

(b-2), (c-1), and (c-2) to read as follows:

(b) Notwithstanding Sections 837.001(c) and 837.002(2) and

subject to the requirements of this section [Subsection (d)], a

retiree who resumes full-time service as a judicial officer other

than by assignment described in Section 837.101 [described by

Section 837.102(a)] may elect to rejoin the retirement system as a

member [and receive service credit in the system for resuming

service as a judicial officer] if, before taking the oath of office,

the retiree has been separated from judicial service for at least

six full consecutive months.

(b-1) The retiree shall provide notice of an [the] election

to rejoin the retirement system under this section:

(1) not later than the 60th day after the date the

retiree takes the oath of office; and

(2) in the form and manner prescribed by the system.

(b-2) A person who rejoins the retirement system under this

section shall resume making member contributions at the rate of 9.5

percent of the person's state compensation.

(c) For a person who rejoins the retirement system [makes an

election] under this section and completes at least 24 months of

resumed judicial service, on the person's subsequent retirement

from resumed service [the resumption of annuity payments that have

been suspended under Section 837.102], the retirement system shall

recompute the annuity selected at the time of the person's original

retirement to reflect:

(1) the highest annual state salary earned by the

person while holding a judicial office included within the

membership of the retirement system; and

(2) [to include] the [person's] additional service

credit established during the person's period of resumed service

[membership under this section].

(c-1) For a person who rejoins the retirement system under

this section but who does not complete at least 24 months of resumed

service, on the person's subsequent retirement from resumed

service, the retirement system shall:

(1) resume annuity payments suspended under Section

837.102; and

(2) issue the person a refund of the person's

accumulated member contributions made during the person's period of

resumed service.

(c-2) If, at the time of the person's original retirement, a

[the] person described by Subsection (c) or (c-1) selected an

optional retirement annuity payable under Section 839.103(a)(3) or

(4), the retirement system shall reduce the number of months of

payments by the number of months for which the annuity was paid

before the person resumed service.

SECTION 3. Section 840.1025(b), Government Code, is amended

to read as follows:

(b) A member who elects to make contributions under

Subsection (a) shall contribute 9.5 [six] percent of the member's

state compensation for each payroll period in the manner provided

by Sections 840.102(b)-(f).

SECTION 4. Section 840.1027(b), Government Code, is amended

to read as follows:

(b) A member who elects to make contributions under

Subsection (a) shall contribute 9.5 [six] percent of the member's

state compensation for each payroll period in the manner provided

by Sections 840.102(b)-(f).

SECTION 5. Section 837.103(e), Government Code, is

repealed.

SECTION 6. (a) Except as provided by Subsection (c) of this

section, Sections 837.102 and 837.103, Government Code, as amended

by this Act, apply only to:

(1) a former retiree of the Judicial Retirement System

of Texas Plan Two who, on the effective date of this Act, holds a

judicial office and has resumed membership in the retirement

system; or

(2) a retiree who, on or after the effective date of

this Act, resumes service as a judicial officer holding a judicial

office included in the membership of the retirement system.

(b) A person described by Subsection (a)(1) of this section

may purchase service credit for resumed judicial service performed

before the effective date of this Act, including service performed

before June 18, 2023, by depositing with the Judicial Retirement

System of Texas Plan Two, for each month of service credit, member

contributions calculated by multiplying 9.5 percent by the person's

monthly judicial state salary on the effective date of this Act.

Not later than September 1, 2027, the person must purchase service

credit under this subsection and make the required deposits.

(c) Section 837.103(b-1)(1), Government Code, as added by

this Act, applies only to an election to rejoin the Judicial

Retirement System of Texas Plan Two under Section 837.103,

Government Code, made on or after the effective date of this Act.

SECTION 7. Section 5 of this Act takes effect immediately if

this Act receives a vote of two-thirds of all the members elected to

each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, Section 5 has no effect.

SECTION 8. Except as otherwise provided by this Act, this

Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 1738 passed the Senate on

April 2, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 1738 passed the House on

April 30, 2025, by the following vote: Yeas 141, Nays 0, two

present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor