Overall Vote Recommendation

Vote Yes; Amend

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

SB 1738 amends provisions in the Texas Government Code related to the Judicial Retirement System Plan Two. The bill allows retired judicial officers to reenter the retirement system if they return to full-time judicial service under specific conditions. Notably, a retiree must have been separated from judicial service for at least six consecutive months prior to rejoining and must provide notice of their intent to rejoin within 60 days of retaking the oath of office. This election must be made in the form and manner prescribed by the system.

Upon rejoining, the judicial officer is required to resume making member contributions at a rate of 9.5% of their state salary. If the judge completes at least 24 months of additional service after rejoining, the retirement system must recompute the judge’s annuity based on the newly accrued service, effectively adjusting the retirement benefit to reflect their extended career.

The legislation modifies Sections 837.102 and 837.103 of the Government Code to create a more structured and accountable process for retired judges wishing to resume public service while preserving the integrity of the retirement system. The changes aim to balance judicial workforce flexibility with responsible pension administration.

The Committee Substitute for SB1738 introduces several key refinements to the originally filed version, focusing on administrative clarity, implementation feasibility, and simplification of the reentry process for retired judicial officers. One of the most notable changes is the extension of the deadline for a retiree to notify the retirement system of their intent to rejoin. Originally, this notice was required within 30 days of taking the oath of office; the substitute version extends this to 60 days, offering returning judges more practical leeway in managing reentry paperwork.

Additionally, the originally filed bill referenced the statutory contribution rate under Section 840.102(a), which could vary or require interpretation. The committee substitute simplifies this by explicitly stating the contribution rate as 9.5%, thus providing immediate clarity and avoiding the need for statutory cross-referencing. This fixed-rate approach enhances predictability for both members and system administrators.

Another important modification is the removal of retroactive provisions. The original version allowed currently serving judicial officers to opt into the new system and receive credit for prior service, contingent on making back contributions by a set date. The committee substitute omits these transitional rules, signaling a cleaner, prospective application of the law and reducing the administrative burden of verifying and processing past service credit.

Finally, the substitute version streamlines language related to annuity recalculation and benefit eligibility. Where the original version contained detailed language about salary classification and service credit metrics, the substitute generalizes these provisions to focus on minimum service requirements and annuity recomputation, emphasizing simplicity and administrative efficiency. Collectively, these changes maintain the bill’s core intent while reducing complexity and potential implementation hurdles.

Author

Joan Huffman

Sponsor

Greg Bonnen

Contact the Author

Sen. Joan Huffman

Capitol Phone:

(512) 463-0117

Capitol Office:

EXT E.14

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB), SB 1738 would have no significant fiscal implication to the state. The proposal allows judicial retirees under Judicial Retirement System Plan Two (JRS 2) to rejoin the system and mandates they contribute 9.5% of their state compensation upon resuming full-time judicial service. This represents an increase from the standard 6% contribution rate for certain long-serving members, effectively aligning returning members with the higher rate applicable to active participants.

If a returning judge serves for at least 24 additional months, their annuity would be recalculated based on the newly earned service credit and the highest judicial salary earned during service. For those who serve less than 24 months, the system will simply reinstate their previously suspended annuity and refund their resumed contributions. This design ensures that the system is not unduly burdened by short-term reentries that do not yield a net benefit.

Importantly, the bill’s structure—particularly the requirement for continued contributions and the 24-month service threshold—acts as a fiscal safeguard. By linking recalculated annuities to substantial additional service and ensuring all rejoining judges pay into the system, the bill minimizes any actuarial strain. The Legislative Budget Board also found no fiscal impact on local governments, confirming that the bill’s effects are limited to the state-level judicial retirement framework.

Vote Recommendation Notes

SB 1738 clarifies and refines the rules governing how retirees in the Judicial Retirement System Plan Two (JRS 2) can reenter the system upon returning to full-time judicial service. It requires a six-month separation period before eligibility, imposes a 9.5% contribution rate upon reentry, and permits recalculation of retirement annuities if the returning judge completes at least 24 months of resumed service. The substitute version enhances clarity by extending deadlines for reentry notification and eliminating retroactive application complexities, making the bill more administratively manageable.

The bill analysis shows this legislation is intended to implement the full vision of reforms begun under SB 1245 from the previous session. By enabling returning judges to receive updated service credit and salary-based benefits, the bill supports workforce flexibility in the judiciary while maintaining fairness in retirement benefits. From a fiscal standpoint, the Legislative Budget Board determined that SB 1738 would have no significant cost impact to the state, as contributions by reentering judges help offset any potential liability increases.

However, while the bill is sound in intent and does not pose an immediate fiscal risk, certain amendments could improve its alignment with principles of limited government and fiscal transparency. For example, requiring a routine actuarial review of the impact of returning retirees on the pension fund, and clarifying safeguards against potential long-term liability expansion would strengthen accountability. For these reasons, Texas Policy Research recommends lawmakers vote YES on SB 1738, but also recommends lawmakers strongly consider amendments that ensure transparency and protect the sustainability of the retirement system.

Related Legislation

HB 4641 (Same As)

View Bill Text and Status