1-1  By:  Greenberg (Senate Sponsor - Barrientos)           H.B. No. 721
    1-2        (In the Senate - Received from the House March 30, 1993;
    1-3  March 31, 1993, read first time and referred to Committee on
    1-4  Intergovernmental Relations; April 15, 1993, reported favorably by
    1-5  the following vote:  Yeas 7, Nays 0; April 15, 1993, sent to
    1-6  printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Armbrister         x                               
   1-10        Leedom             x                               
   1-11        Carriker                                       x   
   1-12        Henderson                                      x   
   1-13        Madla              x                               
   1-14        Moncrief                                       x   
   1-15        Patterson          x                               
   1-16        Rosson             x                               
   1-17        Shapiro            x                               
   1-18        Wentworth          x                               
   1-19        Whitmire                                       x   
   1-20                         A BILL TO BE ENTITLED
   1-21                                AN ACT
   1-22  relating to benefits and eligibility for benefits from fire
   1-23  fighters' retirement systems in certain municipalities.
   1-24        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-25        SECTION 1.  Section 3(a)(1), Chapter 183, Acts of the 64th
   1-26  Legislature, 1975 (Article 6243e.1, Vernon's Texas Civil Statutes),
   1-27  is amended to read as follows:
   1-28              (1)  Any fire fighter who has been duly appointed and
   1-29  enrolled and who has performed service in any rank, as a fully paid
   1-30  fire fighter, in one or more fire departments in any city in this
   1-31  state covered by the provisions of this Act may retire and be
   1-32  entitled to receive from the fire fighter's relief and retirement
   1-33  fund of that city a monthly pension equal to 2-1/2  percent of the
   1-34  fire fighter's average monthly salary multiplied by the number of
   1-35  the person's years of service and any fraction of a year of
   1-36  service, if the fire fighter:
   1-37                    (A)  has attained the age of 52 <53> years and
   1-38  completed at least 10 years of service; or
   1-39                    (B)  has served actively for a period of at least
   1-40  27 <28> years, regardless of age.
   1-41        SECTION 2.  Section 3(f), Chapter 183, Acts of the 64th
   1-42  Legislature, 1975 (Article 6243e.1, Vernon's Texas Civil Statutes),
   1-43  is amended to read as follows:
   1-44        (f)  Any person who has been appointed and enrolled and
   1-45  either has attained the age of 50 years and served actively for a
   1-46  period of at least 10 years, or has served at least 25 years,
   1-47  regardless of age, <and whose service was performed> in any rank,
   1-48  as a fully paid fire fighter <fireman>, in one or more regularly
   1-49  organized fire departments in any city covered by this Act may
   1-50  retire and be entitled to receive from the fire fighter's relief
   1-51  and retirement fund of that city a <reduced> monthly pension equal
   1-52  to the pension described under Section 3(a) of this Act, reduced
   1-53  according to tables recommended by the board of trustees' actuary
   1-54  and adopted by the board for <multiplied by a percentage determined
   1-55  by the board of trustees' actuary as the percentage necessary to
   1-56  provide an actuarially equivalent> early retirement <benefit>.
   1-57        SECTION 3.  Section 5(a)(1), Chapter 183, Acts of the 64th
   1-58  Legislature, 1975 (Article 6243e.1, Vernon's Texas Civil Statutes),
   1-59  is amended to read as follows:
   1-60              (1)  A fire fighter's normal retirement age is the
   1-61  earliest age at which the fire fighter will be at least 52 <53>
   1-62  years of age and will have completed at least 10 years of service
   1-63  or the earliest age at which the fire fighter would have completed
   1-64  at least 27 <28> years of service had the fire fighter not
   1-65  terminated employment.
   1-66        SECTION 4.  Section 5(b), Chapter 183, Acts of the 64th
   1-67  Legislature, 1975 (Article 6243e.1, Vernon's Texas Civil Statutes),
   1-68  is amended to read as follows:
    2-1        (b)  In the event a fire fighter who terminates employment
    2-2  with the fire department under this section dies either before age
    2-3  52 <53> or after attaining the age of 52 <53> and beginning to
    2-4  receive benefits under this section, the fire fighter's surviving
    2-5  spouse is entitled to receive an immediate monthly benefit as
    2-6  described under Section 11(c) of this Act, if the spouse was
    2-7  married to the fire fighter:
    2-8              (1)  on the fire fighter's date of termination, if the
    2-9  fire fighter's death occurred before age 52 <53>; or
   2-10              (2)  when the fire fighter attained the age of 52 <53>,
   2-11  if the fire fighter's death occurred after attaining the age of 52
   2-12  <53>.
   2-13        SECTION 5.  Section 10(e), Chapter 183, Acts of the 64th
   2-14  Legislature, 1975 (Article 6243e.1, Vernon's Texas Civil Statutes),
   2-15  is amended to read as follows:
   2-16        (e)(1)  The severance benefit of a fire fighter who
   2-17  <subsequently> terminates the fire fighter's employment before
   2-18  eligibility for retirement shall be an amount equal to the amount
   2-19  of the fire fighter's monthly contributions, with <without>
   2-20  interest, made while a participating member of the fire fighter's
   2-21  relief and retirement fund, in excess of the amount of benefits
   2-22  that the member previously received from the fund.  If the member's
   2-23  employment is terminated by death before retirement and the member
   2-24  leaves no surviving beneficiary entitled to pension benefits, the
   2-25  member's estate shall receive the amount of the member's
   2-26  contributions, with <without> interest, in excess of the amount of
   2-27  benefits that the member previously received from the fund.  In
   2-28  each instance in which a member's contributions are to be paid to a
   2-29  fire fighter or a fire fighter's estate or surviving relative, the
   2-30  payment will include accumulated interest computed as provided by
   2-31  this section.
   2-32              (2)  On December 31, 1993, the fund shall credit
   2-33  interest to the account of each fire fighter who had contributions
   2-34  on deposit with the fund on January 1, 1993, and has not retired,
   2-35  died, or withdrawn those contributions.  The amount of interest
   2-36  credited on December 31, 1993, will be computed by multiplying five
   2-37  percent by an amount equal to one-half of the member's
   2-38  contributions on deposit on January 1, 1993, and then multiplying
   2-39  that product by the number of whole calendar years that the fire
   2-40  fighter has been a member of the fund on December 31, 1993.
   2-41              (3)  Beginning December 31, 1994, the fund shall credit
   2-42  interest on December 31 of each year to the account of each fire
   2-43  fighter in an amount equal to five percent of the accumulated
   2-44  contributions, including previously credited interest, on deposit
   2-45  on January 1 of that year.
   2-46              (4)  The fund may not pay interest on a fire fighter's
   2-47  contributions for part of a year or for any period that is more
   2-48  than five calendar years after the date of termination of
   2-49  employment.
   2-50        SECTION 6.  Sections 11(a), (b), (c), (d), and (f), Chapter
   2-51  183, Acts of the 64th Legislature, 1975 (Article 6243e.1, Vernon's
   2-52  Texas Civil Statutes), are amended to read as follows:
   2-53        (a)  If a fire fighter <fireman> dies before retirement, the
   2-54  fire fighter's <fireman's> surviving spouse, if married to the
   2-55  member on the member's date of death, shall be entitled to receive
   2-56  an immediate monthly pension, the amount of which<, if the spouse
   2-57  was two years younger than the member,> shall be 75 percent of the
   2-58  member's accrued unreduced pension as determined under Section 3(a)
   2-59  of this Act when 20 years of service is assumed.  <If the relative
   2-60  ages of the fireman and the fireman's spouse were not as described
   2-61  by this subsection, the death benefit is a percentage of the
   2-62  member's accrued unreduced pension as described in Subsection (g)
   2-63  of this section.>
   2-64        (b)  On the death of a member who retired under Section 3(a)
   2-65  or (f) or Section 6(a) or (b) of this Act, the surviving spouse, if
   2-66  married to the person on the person's date of retirement, is
   2-67  entitled to receive an immediate monthly pension<, if the spouse
   2-68  was two years younger than the member,> equal to 75 percent of the
   2-69  pension being paid to the member.  <If the relative ages of the
   2-70  member and the member's spouse were not as described by this
    3-1  subsection, the death benefit is a percentage of the pension as
    3-2  described in Subsection (g) of this section.>
    3-3        (c)  On the death of a fire fighter who terminated employment
    3-4  with the fire department after 10 or more years of service before
    3-5  age 52 <53>, the surviving spouse is entitled to receive an
    3-6  immediate monthly pension equal to 75 percent of the pension the
    3-7  member was either receiving or entitled to receive at age 52 <53>,
    3-8  if:
    3-9              (1)  <the spouse was two years younger than the member;
   3-10  and>
   3-11              <(2)(A)>  the spouse was married to the member on the
   3-12  date of the member's termination of employment, if the member's
   3-13  death occurred before age 52 <53>; or
   3-14              (2) <(B)>  the spouse was married to the member when
   3-15  the member attained the age of 52 <53>, if the member's death
   3-16  occurred after the member attained the age of 52 <53>.  <If the
   3-17  relative ages of the member and the member's spouse were not as
   3-18  described by this subsection, the death benefit is a percentage of
   3-19  the amount the fire fighter was receiving or was entitled to
   3-20  receive at age 53 as described in Subsection (g) of this section.>
   3-21        (d)  A deceased member's unmarried children under the age of
   3-22  22 are entitled to receive, if there is no surviving spouse, a
   3-23  total amount of monthly pension equal to 75 percent of the monthly
   3-24  benefit based on <the factor described by Section 3(b) of this
   3-25  Act,> the fire fighter's average monthly salary at the time of
   3-26  death<,> and the number of years and any fraction of a year of the
   3-27  fire fighter's service, assuming 20 years of service if service is
   3-28  less than 20 years.  Each dependent child is entitled to receive an
   3-29  equal share of the total amount of monthly pension.  If there is a
   3-30  surviving spouse, each deceased member's unmarried child under the
   3-31  age of 22 is entitled to receive 15 percent of the monthly benefit
   3-32  based on <the factor described by Section 3(b) of this Act,> the
   3-33  fire fighter's average monthly salary at the time of death<,> and
   3-34  the number of years and any fraction of a year of the fire
   3-35  fighter's service, assuming 20 years of service if service is less
   3-36  than 20 years.  The total amount of benefits being paid to the
   3-37  children if there is a surviving spouse may not exceed the total
   3-38  amount of benefits payable to dependent children if there is no
   3-39  surviving spouse.  Payments to a child shall be made whether or not
   3-40  a spouse survives and shall continue after the death of a surviving
   3-41  spouse but shall cease on the earliest of the child's death,
   3-42  marriage, or attainment of age 22.
   3-43        (f)  If a deceased or retired member leaves no surviving
   3-44  spouse or children eligible to receive a benefit under this section
   3-45  but is survived by one or more dependent parents, the dependent
   3-46  parent, or one of the surviving parents designated by the board of
   3-47  trustees, is entitled to receive a monthly pension equal to the
   3-48  amount that would have been payable to a surviving spouse <who was
   3-49  two years younger than the deceased member>.  If a deceased member
   3-50  leaves no surviving spouse, children, or dependent parent eligible
   3-51  to receive a benefit as provided in this section, the member's
   3-52  total contributions, less any amount previously paid to the member,
   3-53  shall be paid to the member's estate.
   3-54        SECTION 7.  Section 11(g), Chapter 183, Acts of the 64th
   3-55  Legislature, 1975 (Article 6243e.1, Vernon's Texas Civil Statutes),
   3-56  is repealed.
   3-57        SECTION 8.  The changes in law made by this Act in the
   3-58  benefits payable to survivors of deceased members or retirees apply
   3-59  to all payments that become due on or after the effective date of
   3-60  this Act to survivors of persons who die on or after that date,
   3-61  except that the retirement system may not reduce a benefit being
   3-62  paid on   the effective date of this Act because of the changes
   3-63  made by this Act.
   3-64        SECTION 9.  This Act takes effect September 1, 1993.
   3-65        SECTION 10.  The importance of this legislation and the
   3-66  crowded condition of the calendars in both houses create an
   3-67  emergency   and   an   imperative   public   necessity   that   the
   3-68  constitutional rule requiring bills to be read on three several
   3-69  days in each house be suspended, and this rule is hereby suspended.
   3-70                               * * * * *
    4-1                                                         Austin,
    4-2  Texas
    4-3                                                         April 15, 1993
    4-4  Hon. Bob Bullock
    4-5  President of the Senate
    4-6  Sir:
    4-7  We, your Committee on Intergovernmental Relations to which was
    4-8  referred H.B. No. 721, have had the same under consideration, and I
    4-9  am instructed to report it back to the Senate with the
   4-10  recommendation that it do pass and be printed.
   4-11                                                         Armbrister,
   4-12  Chairman
   4-13                               * * * * *
   4-14                               WITNESSES
   4-15                                                  FOR   AGAINST  ON
   4-16  ___________________________________________________________________
   4-17  Name:  Leslie P. Finertie                        x
   4-18  Representing:  Austin Fire Fighters Relief
   4-19  City:  San Antonio
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   4-21  Name:  Donald Lee                                x
   4-22  Representing:  Harris County Commissioners Ct
   4-23  City:  Houston
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