Texas Government Code 843.402 – Current Service Credit and Multiple Matching Credit
(a) Current service credit is a monetary amount credited by a subdivision to be computed at a member’s effective retirement date and used in determining the member’s basic annuity. At the determination date, a member’s current service credit is an amount equal to the sum of the employee contributions in the member’s individual account and the interest accumulated on those contributions as provided by this subtitle.
(b) Multiple matching credit is a monetary amount credited by the governing body of a subdivision to be computed at a member’s effective retirement date and, together with any prior service credit, used in determining a member’s supplemental annuity. Multiple matching credit is an amount equal to a percentage of the sum of employee contributions in a member’s individual account that were made for a particular calendar year and the interest accumulated on those contributions as provided under this subtitle. At the determination date, the multiple matching credit of a member is equal to the sum of the multiple matching credit for all years of the person‘s membership.
Terms Used In Texas Government Code 843.402
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- 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) The percentage to be used in the computation of the multiple matching credit for a particular year is adopted by the governing body of a subdivision and applied in accordance with this subtitle.