Enact legislation that would amend Section 852.108 of the TMRS Act to allow retirees to return to work for the reemploying municipality without the penalty of having their monthly benefit suspended.

Originally the TMRS Act did not allow a retiree to return to work for any city in a position that normally required performance of service for more than 1,000 hours without the monthly retirement benefit being suspended. The Act was later amended to its current state where a retiree can return to work for any city, other than the “reemploying municipality,” and continue to receive the monthly retirement benefit. However, at that time, the Legislature felt that a retiree would be “double-dipping” if allowed to retire, receive the monthly retirement benefit and return to work for the reemploying municipality. For that reason, Section 852.108 of the TMRS Act was added, providing that if a retiree returns to work for the reemploying municipality, the monthly benefit would be suspended until such time as the retiree has again terminated their employment with that municipality. TMRS is currently attempting to have this limitation removed so that a retiree can return to work for a reemploying municipality, if that municipality so chooses, and receive both the monthly benefit and their employment salary.

During the 2005 Legislative session, a bill was introduced (not by TMRS but with TMRS support) that would have allowed retirees to return to work for the reemploying municipality without the penalty of having their monthly benefit suspended. This bill passed the House, but failed in a procedural move that killed all bills on the calendar in the Senate on the final day of the regular session. The bill passed out of both House and Senate committees unopposed, but as stated above was killed by a procedural move that had nothing to do with the bill itself. During the 2007 Legislative session TMRS will again support action to remove this restriction.