Texas Government Code 825.307 – Member Savings Account
(a) The retirement system shall deposit in a member’s individual account in the member savings account:
(1) the amount of contributions to the retirement system that is deducted from the member’s compensation;
(2) the portion of a deposit made on or after resumption of membership that represents the amount of retirement benefits received;
(3) the portion of a deposit to reinstate service credit previously canceled that represents the amount withdrawn or refunded;
(4) the portion of a deposit to establish military service credit required by § 823.302(c);
(5) the portion of a deposit to establish USERRA credit required by § 823.304(c);
(6) the portion of a deposit to establish:
(A) equivalent membership service credit required by § 823.401(d), 823.402(e), 823.403(d), 823.404(c), or 823.406(b) or former Section 823.405; or
(B) unreported service credit or compensation required by § 825.403(h); and
(7) interest earned on money in the account as provided by Subsections (b) and (c) and § 825.313(c).
(b) Interest on a member’s contribution is earned monthly and computed at the rate of two percent a year. Except as provided by Subsection (c), interest is computed based on the mean balance in the member’s account during that fiscal year and shall be credited on August 31 of each year.
Terms Used In Texas Government Code 825.307
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Month: means a calendar month. See Texas Government Code 312.011
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) If a person‘s membership in the retirement system is terminated during a fiscal year, the interest on the member’s account is computed based on the mean balance in the account from September 1 of the fiscal year until:
(1) the last day of the month that preceded the month in which the membership termination occurred if termination was caused by the member’s death or the withdrawal of contributions; or
(2) the effective date of retirement if membership termination was caused by retirement.
(d) Accumulated contributions in an individual’s account on the date that the individual’s membership in the retirement system is terminated do not earn interest after that date.