1-1 By: Cain (Senate Sponsor - Leedom) H.B. No. 1944
1-2 (In the Senate - Received from the House May 12, 1993;
1-3 May 13, 1993, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 20, 1993, reported favorably, as
1-5 amended, by the following vote: Yeas 9, Nays 0; May 20, 1993, sent
1-6 to 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 COMMITTEE AMENDMENT NO. 1 By: Leedom
1-21 Amend H.B. 1944 as follows:
1-22 (1) In Section 1 of the bill, revised Section 2.01(31) of
1-23 Article 6243a-1, strike "a defined contribution plan" (House
1-24 Engrossment, page 8, line 1) and substitute "one or more defined
1-25 contribution plans".
1-26 (2) In Section 1 of the bill, revised Section 5.01(b) of
1-27 Article 6243a-1, between "to" and "service" (House Engrossment,
1-28 page 31, line 16), insert "active".
1-29 (3) In Section 1 of the bill, revised Section 5.01(c) of
1-30 Article 6243a-1, between "to" and "service" (House Engrossment,
1-31 page 32, line 3), insert "active".
1-32 (4) In Section 1 of the bill, revised Section 6.09 of
1-33 Article 6243a-1, strike Subsection (c) (House Engrossment, page 76,
1-34 line 26, through page 77, line 15) and substitute the following:
1-35 (c) The special Group A death benefit under this section is
1-36 calculated based on the following formula:
1-37 (P x P x A) + (P x C) + D, where
1-38 service retirement, dies, or becomes disabled, plus longevity pay,
1-39 plus one-twelfth of last-received city service incentive pay;
1-40 the Group A primary party begins service retirement, dies, or
1-41 becomes disabled;
1-42 party's Group A retirement pension or Group A disability pension
1-43 under Section 6.04 of this article multiplied by the amount of the
1-44 adjustments; and
1-45 spouse's Group A death benefit under Section 6.07 of this article
1-46 multiplied by the amount of the adjustments.
1-47 (5) In Section 1 of the bill, revised Section 6.09 of
1-48 Article 6243a-1, strike Subsection (e) (House Engrossment, page 78,
1-49 lines 12-27) and substitute the following:
1-50 (e) This special survivor benefit under this section is
1-51 calculated based on the following formula:
1-52 (P x P x A) + (P x C) + D, where
1-53 primary party begins service retirement, dies, or becomes disabled;
1-54 B disability pension calculated at the time the Group B primary
1-55 party begins service or disability retirement or dies;
1-56 B primary party's Group B retirement pension or Group B disability
1-57 pension under Section 6.05 of this article multiplied by the amount
1-58 of the adjustments; and
1-59 spouse's Group B death benefit under Section 6.08 of this article
1-60 multiplied by the amount of the adjustments.
1-61 (6) In Section 1 of the bill, revised Section 6.11(a) of
1-62 Article 6243a-1, between "survivors" and "are" (House Engrossment,
1-63 page 86, line 4), insert ", or an alternate payee of the primary
1-64 party,".
1-65 (7) In Section 1 of the bill, revised Section 6.12 of
1-66 Article 6243a-1, strike Subsection (b) (House Engrossment, page 90,
1-67 lines 4-15) and reletter Subsection (c) as Subsection (b).
1-68 (8) In Section 1 of the bill, revised Section 6.14(c) of
2-1 Article 6243a-1, strike "6.04" (House Engrossment, page 93, line 2)
2-2 and substitute "6.02".
2-3 (9) In Section 1 of the bill, revised Section 6.14(c) of
2-4 Article 6243a-1, between "equal" and "the" (House Engrossment, page
2-5 93, line 9), insert "one-twelfth of".
2-6 A BILL TO BE ENTITLED
2-7 AN ACT
2-8 relating to certain public retirement systems for police and fire
2-9 personnel.
2-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
2-11 SECTION 1. Article 6243a-1, Revised Statutes, is revised to
2-12 read as follows:
2-13 Art. 6243a-1. PENSION SYSTEM FOR POLICE OFFICERS AND FIRE
2-14 FIGHTERS IN CERTAIN CITIES
2-15 PART 1. PURPOSE
2-16 Sec. 1.01. AMENDMENT, RESTATEMENT, AND CONSOLIDATION.
2-17 (a) The purpose of this article is to restate and amend the
2-18 provisions of a former law governing the pension funds for police
2-19 officers and fire fighters in certain municipalities (Chapter 4,
2-20 Acts of the 43rd Legislature, 1st Called Session, 1933, also known
2-21 as Article 6243a) to permit the consolidation of the terms of
2-22 certain pension plans created under Sections 1, 11A, and 11B of
2-23 that Act for the purpose of simply and accurately reflecting the
2-24 joint administration of the plans.
2-25 (b) The provisions of this article are entirely consistent
2-26 with all terms and conditions relating to benefits and benefit
2-27 entitlement previously contained in the plans. This article does
2-28 not intend to take away or reduce any benefit contained in the
2-29 plans created under former Article 6243a.
2-30 PART 2. GENERAL PROVISIONS
2-31 Sec. 2.01. DEFINITIONS. In this article:
2-32 (1) "Active service" means any period that a member
2-33 receives compensation as a police officer or fire fighter from
2-34 either department for services rendered.
2-35 (2) "Actuarial equivalent" means a form of benefit
2-36 differing in time, duration, or manner of payment from a standard
2-37 benefit payable under this article but having the same value when
2-38 computed using the assumptions set forth in this article.
2-39 (3) "Administrator" means the person designated by the
2-40 board to supervise the affairs of the pension system.
2-41 (4) "Alternate payee" has the meaning given the term
2-42 by Section 414 of the code or any successor provision.
2-43 (5) "Annual additions" means the sum of the following
2-44 amounts credited to a member's account under any defined
2-45 contribution plan maintained by the city for the limitation year:
2-46 (A) city contributions;
2-47 (B) member contributions, other than rollover
2-48 contributions from a plan maintained by any employer other than the
2-49 city;
2-50 (C) forfeitures; and
2-51 (D) amounts allocated after March 31, 1984, to
2-52 an individual medical account, as defined in Section 415(1)(2) of
2-53 the code, that is part of a pension or annuity plan maintained by
2-54 the city.
2-55 The term does not include amounts described in Paragraph (D)
2-56 of this subdivision for the purpose of computing the percentage
2-57 limitation described in Section 415(c)(1)(B) of the code. For any
2-58 limitation year beginning before January 1, 1987, only that portion
2-59 of member contributions equal to the lesser of member contributions
2-60 in excess of six percent of 415 compensation or one-half of member
2-61 contributions to the combined pension plan or any qualified defined
2-62 contribution plan maintained by the city is treated as annual
2-63 additions.
2-64 (6) "Annual benefit" means the aggregate benefit
2-65 attributable to city contributions payable annually under the
2-66 combined pension plan exclusive of any benefit not required to be
2-67 considered for purposes of applying the limitations of Section 415
2-68 of the code to the combined pension plan, payable in the form of a
2-69 straight life annuity beginning at age 62 with no ancillary
2-70 benefits. Solely for purposes of computing the limitations under
3-1 the combined pension plan, benefits actually payable to a pensioner
3-2 are adjusted to the actuarial equivalent of a straight life annuity
3-3 pursuant to Section 8.01 of this article even though no member may
3-4 actually receive a benefit in the form of a straight life annuity.
3-5 (7) "Article 6243a" means Chapter 4, Acts of the 43rd
3-6 Legislature, 1st Called Session, 1933 (former Article 6243a,
3-7 Vernon's Texas Civil Statutes), pertaining to a pension system for
3-8 police officers, fire fighters, and fire alarm operators in certain
3-9 cities.
3-10 (8) "Assignment pay" means monthly pay, in addition to
3-11 salary, granted to a Group B member and authorized by the city
3-12 council for the performance of certain enumerated duty assignments.
3-13 (9) "Base pay" means the maximum monthly civil service
3-14 pay from time to time established by the city for a police officer
3-15 or fire fighter, exclusive of any other form of compensation.
3-16 (10) "Base pension" means the amount of retirement,
3-17 death, or disability benefits computed under this article at the
3-18 time a Group B member leaves active service, dies, or becomes
3-19 disabled.
3-20 (11) "Board" means the board of trustees created for
3-21 the purpose of administering the pension system.
3-22 (12) "Child" means an unmarried person under the age
3-23 of 19 whose natural or adoptive parent is a primary party.
3-24 (13) "City" means each municipality having a
3-25 population of more than 1,000,000 and less than 1,500,000,
3-26 according to the most recent federal census.
3-27 (14) "City council" means the governing body of the
3-28 city.
3-29 (15) "City service incentive pay" means annual pay,
3-30 adjusted by the city from time to time, in addition to the salary
3-31 of a member granted to the member under the authority of the city
3-32 charter and received by the member during active service.
3-33 (16) "Code" means the United States Internal Revenue
3-34 Code of 1986.
3-35 (17) "Combined pension plan" means any pension plan
3-36 created pursuant to this article.
3-37 (18) "Computation pay" shall be used in determining
3-38 the amount of a Group B member's contribution under Section 4.03(d)
3-39 of this article and in determining the base pension of any benefits
3-40 to be paid to a Group B member or the member's qualified survivors
3-41 and means the sum of the following:
3-42 (A) the monthly rate of pay of a Group B member
3-43 for the highest civil service rank the person holds, from time to
3-44 time, as a result of a competitive examination; plus
3-45 (B) the monthly rate of pay of a Group B member
3-46 as educational incentive pay; plus
3-47 (C) the monthly rate of pay of a Group B member
3-48 as longevity pay, as authorized by the legislature; plus
3-49 (D) the city service incentive pay, computed on
3-50 a monthly basis, of a Group B member.
3-51 Any compensation received by a Group B member, other than
3-52 that noted in Paragraphs (A)-(D) of this subdivision (for example,
3-53 compensation for overtime work and the monthly rate of pay a member
3-54 would receive from the city in the form of assignment pay), will
3-55 not be considered in determining the computation pay of a Group B
3-56 member. Any lump-sum payments for compensatory time, unused sick
3-57 leave, unused vacation time, or city service incentive pay payable
3-58 after a Group B member leaves active service, death, disability,
3-59 resignation, or any other type of termination may not be considered
3-60 in determining the computation pay of any Group B member.
3-61 Computation pay for a Group B member for any given month is
3-62 determined on the monthly rates of pay due the Group B member for
3-63 the entire month. If a Group B member works less than the member's
3-64 assigned schedule for any given month, the computation pay for the
3-65 Group B member shall be prorated for the portion of the month that
3-66 the Group B member worked.
3-67 (19) "Educational incentive pay" means incentive pay
3-68 designed to reward completion of certain hours of college credit,
3-69 adjusted by the city from time to time, that is paid to a member in
3-70 addition to the member's salary.
4-1 (20) "Department" means either the police department
4-2 of the city, the fire department of the city, or both the police
4-3 and fire departments of the city together.
4-4 (21) "Dependent parent" means a natural parent or
4-5 parent who adopted a primary party and who immediately before the
4-6 death of a primary party received over half of the parent's
4-7 financial support from the primary party.
4-8 (22) "Disability retirement" means any period that a
4-9 pensioner receives a disability pension.
4-10 (23) "415 compensation" means a member's wages,
4-11 salary, and other amounts received for personal services rendered
4-12 in the course of employment with the city during a limitation year,
4-13 but does not include:
4-14 (A) contributions made by the city to a plan of
4-15 deferred compensation, or a simplified employee pension plan, to
4-16 the extent such contributions are excludable from the member's
4-17 gross income;
4-18 (B) any distributions from a plan of deferred
4-19 compensation, or a simplified employee pension plan, to the extent
4-20 the distributions are excludable from the member's gross income;
4-21 (C) other amounts that received special tax
4-22 benefits, such as premiums for group term life insurance, to the
4-23 extent that the premiums are not includable in the gross income of
4-24 the member, or contributions made by the city, including
4-25 contributions toward the purchase of an annuity described by
4-26 Section 403(b) of the code, whether or not contributed pursuant to
4-27 a salary reduction agreement and whether or not the amounts are
4-28 actually excludable from the gross income of the member; and
4-29 (D) for any limitation year beginning after
4-30 December 31, 1988, compensation in excess of $200,000, adjusted in
4-31 a manner permitted under Section 415(d) of the code.
4-32 (24) "Fund" means all funds and property held for the
4-33 benefit of all persons who are or who may become entitled to any
4-34 benefits under any plan within the pension system, together with
4-35 all income, profits, or other increments.
4-36 (25) "Group A member" means any police officer or fire
4-37 fighter described by Section 5.01(a)(1) of this article.
4-38 (26) "Group B member" means any police officer or fire
4-39 fighter described by Section 5.01(a)(2) of this article.
4-40 (27) "Health director" means any qualified physician
4-41 designated from time to time by the board.
4-42 (28) "Limitation year" means the plan year of the
4-43 combined pension plan and any defined benefit plan or defined
4-44 contribution plan of the city in which a member participates.
4-45 (29) "Longevity pay" means pay in addition to the
4-46 salary of a member granted under Section 141.032, Local Government
4-47 Code, for each year of active service completed by a member in
4-48 either department.
4-49 (30) "Member" means both Group A and Group B members.
4-50 (31) "Member's account" means an account established
4-51 and maintained for a member with respect to the member's total
4-52 interest in a defined contribution plan under this article or
4-53 maintained by the city resulting in annual additions.
4-54 (32) "Old plan" means any pension plan created
4-55 pursuant to Section 1 of Article 6243a.
4-56 (33) "Pensioner," "Group A pensioner," or "Group B
4-57 pensioner" means a former member of the pension system who is on
4-58 either a service or disability retirement.
4-59 (34) "Pension service" means the time, in years, and
4-60 prorated for fractional years, that a member has contributed to the
4-61 fund under the terms of the combined pension plan or any plan
4-62 within the pension system.
4-63 (35) "Pension system" means the fund and any plans
4-64 created pursuant to this article and that are intended to be
4-65 qualified under Section 401(a) of the code.
4-66 (36) "Plan A" means any plan created pursuant to
4-67 Section 11A of Article 6243a.
4-68 (37) "Plan B" means any plan created pursuant to
4-69 Section 11B of Article 6243a.
4-70 (38) "Police officer" or "fire fighter" means a police
5-1 officer, fire fighter, fire alarm operator, fire inspector,
5-2 apprentice police officer, apprentice fire fighter, or similar
5-3 employee of either department as defined in the classifications of
5-4 the personnel department of the city.
5-5 (39) "Primary party," "Group B primary party," or
5-6 "Group A primary party" means a member, former member, or
5-7 pensioner.
5-8 (40) "Qualified actuary" means either:
5-9 (A) an individual who is a Fellow of the Society
5-10 of Actuaries, a Fellow of the Conference of Actuaries in Public
5-11 Practice, or a member of the American Academy of Actuaries; or
5-12 (B) a firm that employs one or more persons who
5-13 are Fellows of the Society of Actuaries, Fellows of the Conference
5-14 of Actuaries in Public Practice, or members of the American Academy
5-15 of Actuaries and are providing services to the pension system.
5-16 (41) "Qualified domestic relations order" has the
5-17 meaning provided by Section 414 of the code.
5-18 (42) "Qualified survivor" means a person who is
5-19 eligible to receive survivor benefits after the death of a primary
5-20 party and includes:
5-21 (A) a surviving spouse, if the spouse was
5-22 continuously married to the primary party both at the date when the
5-23 primary party either voluntarily or involuntarily left active
5-24 service as a member and at the date of the primary party's death;
5-25 (B) all surviving, unmarried, legitimate, and
5-26 legally adopted children under 19 years of age who were born or
5-27 adopted before the primary party as a member either voluntarily or
5-28 involuntarily left active service or who were born after a member
5-29 left active service if the mother was pregnant before the member
5-30 left active service; and
5-31 (C) a surviving dependent parent of a primary
5-32 party if the primary party is not survived by a spouse or child
5-33 eligible for benefits.
5-34 (43) "Service retirement" means any period that a
5-35 pensioner receives a retirement pension but does not include any
5-36 period of disability retirement.
5-37 (44) "Spouse" means the husband or wife of a primary
5-38 party recognized under the laws of this state.
5-39 (45) "Total wages and salaries" means all pay received
5-40 by a member of any plan within the pension system from the city,
5-41 excluding any lump-sum payments for unused sick time or unused
5-42 vacation time accrued by any member and payable as the result of
5-43 the member's death, disability, resignation, or any other reason
5-44 for leaving active service.
5-45 (46) "Trustee" means a member of the board.
5-46 Sec. 2.02. ACTUARIAL ASSUMPTIONS. (a) If the amount of any
5-47 benefit is to be determined on the basis of actuarial assumptions
5-48 that are not otherwise specifically set forth for that purpose in
5-49 this article, the actuarial assumptions to be used are those
5-50 earnings and mortality assumptions being used on the date of the
5-51 determination by the pension system's qualified actuary and
5-52 approved by the board.
5-53 (b) The actuarial assumptions being used at any particular
5-54 time shall be attached by the administrator as an addendum to this
5-55 article and treated for all purposes as a part of any plan created
5-56 by this article.
5-57 (c) The actuarial assumptions may be changed by the pension
5-58 system's qualified actuary at any time if approved by the board,
5-59 but no such change in actuarial assumptions may result in any
5-60 decrease in benefits accrued as of the effective date of the
5-61 change.
5-62 PART 3. ADMINISTRATION
5-63 Sec. 3.01. BOARD OF TRUSTEES. (a) The pension system shall
5-64 be administered by the board.
5-65 (b) The board consists of seven trustees who shall be
5-66 selected and shall serve as follows:
5-67 (1) The city council shall name from among its members
5-68 three council members who shall serve as trustees of the board.
5-69 The council member trustees shall be named as soon as possible
5-70 after the first Monday in May of each odd-numbered year and shall
6-1 serve for the term of office to which they were elected as council
6-2 members. If there is a vacancy in any of the council member
6-3 trustees' seats on the board, the city council shall name another
6-4 council member to serve out the remainder of the unexpired term.
6-5 (2) The police and fire department members of the
6-6 pension plans within the pension system shall separately, by
6-7 department and not by plan, elect from among their respective
6-8 memberships two active police officer and two active fire fighter
6-9 members. On their election, each of the trustees under this
6-10 subdivision shall execute a written affirmation of the person's
6-11 undertaking to faithfully perform duties to the pension system.
6-12 The police and fire department trustees shall serve terms of four
6-13 years each, the terms being staggered so that one term, but not
6-14 both from the same department, shall expire on June 1 of each
6-15 odd-numbered year. If a vacancy occurs among the police and fire
6-16 department trustees, the vacancy shall be filled in accordance with
6-17 the provisions of Subsection (d) of this section. The police and
6-18 fire department trustees will continue to serve beyond the
6-19 expiration of their terms, if their successors have not been
6-20 elected and affirmed in writing their undertaking to faithfully
6-21 perform their duties to the pension system, until their successors
6-22 are elected and have affirmed in writing their undertaking to
6-23 faithfully perform their duties to the pension system.
6-24 (c) In addition to the seven trustees of the board there are
6-25 three alternate trustees of the board who shall serve on the board
6-26 during the absence of a regular trustee and who may serve on any
6-27 subcommittee of the board. In addition, the alternate trustees
6-28 may, and generally are expected to, attend all meetings of the
6-29 board and enter into any discussion or deliberation but may not
6-30 vote unless serving in place of a regular trustee. Alternate
6-31 trustees shall be kept fully appraised of all developments as any
6-32 regular trustee, including when the board deems appropriate, and
6-33 may attend any seminars and meetings as the board approves. The
6-34 alternate trustees shall be selected and shall serve as follows:
6-35 (1) The city council shall name from among its members
6-36 one council member who shall serve as an alternate trustee of the
6-37 board and who may sit as a trustee in the absence of any of the
6-38 three council trustees. The council alternate shall be selected in
6-39 the same manner as the regular council trustees and shall serve for
6-40 a like term.
6-41 (2) One alternate trustee from the police department
6-42 and one alternate trustee from the fire department shall be elected
6-43 in the same manner as a regular trustee. An alternate trustee may
6-44 only replace a regular trustee from the same department. An
6-45 alternate trustee serves a term of four years expiring on June 1 of
6-46 every second year. Alternate trustees will serve beyond the
6-47 expiration of their terms if necessary until their successors have
6-48 been elected and have affirmed in writing their undertaking to
6-49 faithfully perform their duties to the pension system. If an
6-50 alternate trustee cannot serve beyond the expiration of the
6-51 person's term, the board shall appoint a new alternate trustee from
6-52 the department from which the vacancy occurs to serve until a
6-53 successor has been elected and has affirmed in writing that the
6-54 person will undertake to faithfully perform the person's duties to
6-55 the pension system.
6-56 (d) If a vacancy occurs among the police or fire department
6-57 alternate trustees, for reasons other than the failure to elect a
6-58 successor alternate trustee or the occurrence of a vacancy among
6-59 the regular trustees of either department, the board shall appoint
6-60 a new alternate trustee representing the department from which the
6-61 vacancy occurs to serve as the alternate trustee for the remainder
6-62 of the alternate trustee's term. A candidate is not eligible for
6-63 election to an alternate trustee position and to a regular trustee
6-64 position during the same election.
6-65 (e) If a vacancy occurs among the police or fire department
6-66 regular trustees, the alternate trustee representing the department
6-67 from which the vacancy occurs shall serve as the regular trustee
6-68 for the remainder of the unexpired regular trustee's term.
6-69 Thereafter, the board shall appoint a new alternate trustee from
6-70 the same department to serve for a period ending on the earlier of
7-1 the expiration of the regular trustee's term or the original
7-2 alternate trustee's term. If the original alternate trustee's term
7-3 has not expired after serving in place of the regular trustee, then
7-4 that person shall serve out the remainder of the unexpired term.
7-5 After a new regular trustee has been elected, the original
7-6 alternate trustee shall return to serve as an alternate trustee
7-7 until the regular trustee's term has expired. However, if the
7-8 original alternate trustee, while an alternate trustee, is elected
7-9 to a full term as a regular trustee before the expiration of the
7-10 term as an alternate trustee, the term of the new alternate trustee
7-11 extends until the expiration of the original alternate trustee's
7-12 term.
7-13 (f) The election of the trustees representing the police and
7-14 fire departments shall be held under the supervision of the board,
7-15 and the board shall adopt such rules and regulations governing the
7-16 election procedure as it considers appropriate, as long as the
7-17 rules and regulations are consistent with generally accepted
7-18 principles of secret ballot and majority rule. The rules and
7-19 regulations adopted by the board shall be recorded in the minutes
7-20 of the board and made available to the members of any pension plan
7-21 within the pension system.
7-22 (g) The board shall, in June of each odd-numbered year,
7-23 elect from among its trustees a chairman, vice chairman, and a
7-24 deputy vice chairman, each to serve for two-year terms. In
7-25 addition, the board may elect, if it so chooses, a second deputy
7-26 vice chairman to serve during the term of the incumbent chairman.
7-27 The vice chairman shall be authorized to act in the place of the
7-28 chairman in all matters pertaining to the board. In the absence of
7-29 both the chairman and the vice chairman, the deputy vice chairman
7-30 shall be authorized to act. In the absence of the chairman, vice
7-31 chairman, and deputy vice chairman, the duties shall fall to the
7-32 second deputy vice chairman.
7-33 (h) The administrator, or in the administrator's absence a
7-34 member of the administrative staff designated by the board, shall
7-35 serve as the secretary of the board.
7-36 (i) The board shall serve without separate compensation from
7-37 the fund, but with entitlement to any appropriate compensation from
7-38 the city as if the board members were performing their regular
7-39 functions for the police or fire department. The board shall meet
7-40 not less than once each month and may meet at any time on the call
7-41 of its chairman.
7-42 (j) The board has full power to make rules and regulations
7-43 pertaining to the conduct of its meetings and to the operation of
7-44 the pension system as long as its rules are not inconsistent with
7-45 the terms of this article, any pension plan within the pension
7-46 system, or the laws of this state or the United States to the
7-47 extent applicable.
7-48 (k) The board has full power, through the chairman, to issue
7-49 process for witnesses and to administer oaths to witnesses and
7-50 examine witnesses as to any matter affecting retirement,
7-51 disability, or death benefits under any pension plan within the
7-52 pension system, and to compel witnesses to testify. In addition,
7-53 the board may request investigative services from either department
7-54 in connection with any matter before the board.
7-55 (l) The board has the responsibility for the administration
7-56 of the pension system and shall order payment from the fund in
7-57 accordance with the terms of the appropriate plans within the
7-58 pension system. Money from the fund may not be paid except on
7-59 order of the board.
7-60 (m) The board has full power to invest the assets of the
7-61 fund in accordance with Section 4.07 of this article.
7-62 (n) Four trustees of the board constitute a quorum at any
7-63 called meeting, except that a trustee from the police department
7-64 and a trustee from the fire department must be present to conduct
7-65 business.
7-66 (o) No action may be taken by the board except at a meeting,
7-67 and no action shall be taken during a meeting without the approval
7-68 of a majority of the trustees present. Only actions of the board
7-69 taken or approved of during a meeting are binding on the board, and
7-70 no other written or oral statement or representation made by any
8-1 person is binding on the board or the pension system.
8-2 Sec. 3.02. PROFESSIONAL CONSULTANTS. In addition to the
8-3 authority of the board to employ the services of certain
8-4 consultants set forth in this article, the board has the authority
8-5 to employ the services of any professional consultant whenever the
8-6 services of the consultant are considered necessary or desirable
8-7 and in the best interests of the pension system. A professional
8-8 consultant shall receive such compensation as may be determined by
8-9 the board in accordance with Section 4.01 of this article.
8-10 Sec. 3.03. LEGAL ADVISOR. (a) The city attorney of the
8-11 city may ex officio be the legal advisor to the board.
8-12 (b) The city attorney or an assistant city attorney shall
8-13 attend all meetings of the board and advise the board on any matter
8-14 on which the board requests a legal opinion from the city attorney.
8-15 (c) The board may retain other attorneys to represent the
8-16 board or to give advice. Compensation for other attorneys shall be
8-17 made in accordance with Section 4.01 of this article.
8-18 Sec. 3.04. APPOINTMENT OF ADMINISTRATOR. (a) The board has
8-19 the authority to appoint an administrator to carry out the business
8-20 of the board and to keep a record of the proceedings of the board.
8-21 The administrator, in carrying out the business of the board within
8-22 the scope of the administrator's responsibility, may not be
8-23 considered a fiduciary with respect to the pension system.
8-24 (b) Subject to the approval of the board, the administrator
8-25 may select any number of persons to assist the administrator.
8-26 (c) Both the administrator and those persons selected to
8-27 assist the administrator may be considered employees of the city.
8-28 Unless otherwise delegated to the administrator, the board shall
8-29 have the ultimate authority to retain or terminate the engagement
8-30 of any persons selected under this subsection.
8-31 PART 4. FINANCES
8-32 Sec. 4.01. PAYMENT OF ADMINISTRATIVE AND PROFESSIONAL
8-33 SERVICES FEES. (a) The board shall pay for all costs of
8-34 administration, including the cost of salaries of the
8-35 administrator, assistant administrator, and administrative staff,
8-36 office expenses, adequate office space and associated utilities,
8-37 and professional consultants or professional services, out of
8-38 income from the fund when it is actuarially determined that the
8-39 payments will not have an adverse effect on the payment of benefits
8-40 from any of the plans within the pension system and when in the
8-41 judgment of the board the costs are necessary. The city shall
8-42 provide for costs of administration if the board determines that
8-43 payment of the costs by the fund will have an adverse effect on the
8-44 payment of benefits from any plan within the pension system.
8-45 (b) Notwithstanding Subsection (a) of this section, on
8-46 request of the board, the city shall provide the administrator and
8-47 the administrator's staff with first class, Class "A" office space
8-48 at a city-owned office facility. The office space, as well as all
8-49 associated utilities, shall be provided at no expense to the
8-50 pension system.
8-51 (c) No expenditure for the costs of administration or
8-52 payment of any fee for professional consultants or professional
8-53 services may be made from the fund without the approval of the
8-54 board.
8-55 (d) After the board has developed an annual budget for the
8-56 pension system, the budget shall be presented to the city's budget
8-57 office for comment. The city's budget office may request the board
8-58 to reconsider the appropriation for any expenditure at a board
8-59 meeting, but the board shall make the final determination
8-60 concerning any appropriation.
8-61 Sec. 4.02. USE OF PUBLIC FUNDS. (a) The financial share of
8-62 the cost of the pension system to be paid out of the public
8-63 treasury shall be as provided by this section.
8-64 (b) Funds contributed by the city as its share of the amount
8-65 required to finance the payment of benefits under the pension
8-66 system may be used for no other purpose. The contributions shall
8-67 be annually appropriated by the city council and periodically paid
8-68 on the basis of a percentage of the total wages and salaries of the
8-69 members of the police and fire departments who are members of each
8-70 of the plans within the pension system. The amount of this
9-1 percentage and any change in it may be determined only by the
9-2 legislature or by a majority vote of the voters of the city.
9-3 (c) Funds shall be appropriated by the city to carry out
9-4 various other provisions contained in this article that authorize
9-5 expenditures in connection with the administration of the pension
9-6 system.
9-7 (d) The percentage of required contributions from the city
9-8 shall be in accordance with the following schedule and any increase
9-9 or decrease in city contributions shall occur automatically on any
9-10 increases or decreases in the members' contribution percentage:
9-11 City Contributions Member Contributions
9-12 28-1/2% 9%
9-13 27-1/2% 8-1/2%
9-14 26% 8%
9-15 24-1/2% 7-1/2%
9-16 23% 7%
9-17 21-1/2% 6-1/2%
9-18 (e) The city may elect to contribute more than that required
9-19 in the schedule provided by Subsection (d) of this section, except
9-20 that the city's contribution percentage may not exceed 28-1/2
9-21 percent unless approved as provided by Subsection (b) of this
9-22 section. Further, in no event may the city's contribution be less
9-23 than 21-1/2 percent unless approved as provided by Subsection (b).
9-24 (f) For purposes of Subsection (d) of this section, a
9-25 member's contribution rate, regardless of the plan of which the
9-26 person is a member, is considered to be the highest contribution
9-27 rate of any member of any pension plan within the pension system.
9-28 Sec. 4.03. MEMBER CONTRIBUTIONS. (a) Each Group A member
9-29 of the combined pension plan shall have 6.5 percent of base pay
9-30 deducted from the member's wages each month, and the contributions
9-31 shall be promptly remitted to the fund by the city.
9-32 (b) Each member shall continue to contribute to the fund
9-33 under the applicable terms of this section until the member leaves
9-34 active service with either department or until the beginning of the
9-35 member's 33rd year of pension service, at which time the member
9-36 shall cease making contributions.
9-37 (c) Each Group B member shall authorize the city to deduct
9-38 from the member's salary a percentage of the member's computation
9-39 pay. The authorization shall be in writing and filed with the
9-40 administrator.
9-41 (d) Each Group B member shall have 8.5 percent of the
9-42 member's computation pay deducted from the member's wages each
9-43 month, and the contributions shall be promptly remitted to the fund
9-44 by the city.
9-45 (e) The city shall determine the frequency of deductions for
9-46 member contributions, as long as there is at least one deduction
9-47 each month.
9-48 (f) Each Group B member shall contribute to the fund
9-49 beginning on the effective date of the member's Group B membership.
9-50 (g) The percentage of base pay contributed by Group A
9-51 members or computation pay contributed by Group B members may not
9-52 be altered except by an amendment pursuant to the terms of Section
9-53 4.02 of this article.
9-54 (h) The only purposes for which member contributions to the
9-55 fund and the investment income derived from member contributions
9-56 may be applied are:
9-57 (1) to the payment of benefits prescribed by this
9-58 article;
9-59 (2) to the payment of such administrative and
9-60 professional service costs of the pension system as are provided
9-61 for under Section 4.01 of this article or as may be within the
9-62 discretion of the board to incur; and
9-63 (3) to invest any surplus in accordance with Section
9-64 4.07 of this article.
9-65 Sec. 4.04. REFUND OF GROUP B MEMBER CONTRIBUTIONS. (a) A
9-66 Group B member who, either voluntarily or involuntarily, leaves
9-67 active service is entitled to a refund from the fund of the total
9-68 amount of the member's Plan B and Group B contributions, without
9-69 interest, that were paid beginning with the effective date of the
9-70 member's Group B membership or membership in Plan B. A refund
10-1 under this subsection results in an appropriate reduction of
10-2 pension service.
10-3 (b) Old plan or Plan A contributions paid to the fund by a
10-4 Group B member may not be refunded from the fund.
10-5 (c) A former Group B member desiring a refund of the Plan B
10-6 or Group B contributions the person made to the fund must make
10-7 written application for the refund with the administrator. In no
10-8 case may any refund be made to any former Group B member before the
10-9 expiration of 30 days after the date the person leaves active
10-10 service.
10-11 (d) Subject to Subsection (k) of this section, if a Group B
10-12 member with less than five years of pension service either
10-13 voluntarily or involuntarily leaves active service and fails to
10-14 make written application for a refund of contributions within three
10-15 years after the date the notice described by Subsection (j) of
10-16 this section is made by the board, the person forfeits the right to
10-17 withdraw any portion of the contribution, and the total amount of
10-18 Plan B and Group B contributions the person made will remain in the
10-19 fund. If the Group B member described by this subsection dies
10-20 after leaving active service, the person's heirs or, if there are
10-21 no heirs, the deceased member's estate may apply for the refund of
10-22 the person's contributions, resulting in an appropriate loss of
10-23 pension service if the application is filed with the administrator
10-24 within three years after the date the notice described by
10-25 Subsection (j) of this section is made by the board. Subject to
10-26 Subsection (k) of this section, if a Group B member's heirs or
10-27 estate fails to apply for a refund of the Group B member's
10-28 contributions within the three-year period described by this
10-29 subsection, the heirs and the estate forfeit any right to the
10-30 contributions, and the total amount of the Plan B and Group B
10-31 contributions made by the Group B member will remain in the fund.
10-32 (e) Subject to Subsection (k) of this section, if a Group B
10-33 member with five or more years of pension service either
10-34 voluntarily or involuntarily leaves active service and fails to
10-35 make written application for a refund of the person's Plan B and
10-36 Group B contributions within three years after the date the notice
10-37 described by Subsection (j) of this section is made by the board,
10-38 the person forfeits the right to withdraw any portion of the
10-39 contributions, and the total amount of the contributions will
10-40 remain in the fund. A Group B member described by this subsection
10-41 may, however, apply for benefits under this article or, if the
10-42 Group B member dies before the member is eligible to apply for
10-43 Group B benefits, the person's heirs or, if there are no heirs, the
10-44 deceased member's estate may apply for benefits in accordance with
10-45 the provisions of this article, or the heirs or the estate may
10-46 apply for a refund of the Group B member's Plan B and Group B
10-47 contributions, resulting in an appropriate loss of pension service.
10-48 Subject to Subsection (k) of this section, if a Group B member's
10-49 heirs or estate fails to apply for a refund of the Group B and Plan
10-50 B member's contributions within the three-year period described by
10-51 this subsection, the heirs and the estate forfeit any right to the
10-52 contributions, and the total amount of the Plan B and Group B
10-53 contributions made by the Group B member will remain in the fund.
10-54 (f) If a Group B member, other than a Group B member who
10-55 elects or has elected to receive a Group A benefit or a benefit
10-56 determined under the old plan or Plan A, with five or more years of
10-57 pension service either voluntarily or involuntarily leaves active
10-58 service, the person is entitled to:
10-59 (1) have the total amount of the person's Plan B and
10-60 Group B contributions to the fund refunded in accordance with
10-61 Subsection (a) of this section, which results in a loss of all of
10-62 the person's accrued pension service; or
10-63 (2) elect to take a refund of less than the total
10-64 amount of the person's Plan B and Group B contributions while
10-65 leaving a sufficient amount to retain pension service amounting to
10-66 five or more years.
10-67 (g) If a Group B member elects a refund of a portion of the
10-68 person's contributions under Subsection (f)(2) of this section, the
10-69 amount of the refund shall equal the total amount of the person's
10-70 Plan B and Group B annual contributions, without interest, for each
11-1 full year of pension service cancelled, computed based on the
11-2 earliest contributions made.
11-3 (h) A former Group B member who returns to active service is
11-4 permitted to repay to the fund any previously withdrawn employee
11-5 contributions and receive pension service as a Group B member if,
11-6 before again leaving active service, the Group B member repays
11-7 completely to the fund the previously withdrawn contributions with
11-8 interest, calculated at the interest rate from time to time used in
11-9 the pension system's actuarial assumptions, compounded annually, on
11-10 the previously withdrawn contributions for the period from the date
11-11 the contributions were withdrawn until the date the principal and
11-12 accrued interest are repaid in full.
11-13 (i) If a person becomes a Group B member under Section
11-14 5.01(b) of this article and again, either voluntarily or
11-15 involuntarily, leaves active service and makes application for a
11-16 refund of contributions under this section, the person is entitled
11-17 to a refund from the fund of the following:
11-18 (1) the amount of Group B contributions to the fund,
11-19 without interest, that were paid from the date the person returned
11-20 to active service following service or disability retirement; plus
11-21 (2) the excess, if any, of:
11-22 (A) the person's Plan B and Group B
11-23 contributions to the fund, without interest, that were paid from
11-24 the effective date of the person's original Group B or Plan B
11-25 membership in Plan B until the time the person originally left
11-26 active service because of the service or disability retirement;
11-27 less
11-28 (B) the total amount of benefits the person
11-29 received during service or disability retirement.
11-30 (j) On the 50th anniversary of the birth of a Group B member
11-31 described by Subsection (d) or (e) of this section, or on the
11-32 board's receipt of notice of the death of the Group B member, the
11-33 board shall, by registered or certified mail, return receipt
11-34 requested, attempt to notify the Group B member or the member's
11-35 heirs or estate, as applicable, of the status of their entitlement
11-36 to a refund of contributions from the fund.
11-37 (k) A Group B member described by Subsection (d) or (e) of
11-38 this section or the heirs or estate of the Group B member shall
11-39 have their right, title, interest, or claim to a refund of the
11-40 Group B member's contributions reinstated only on the board's grant
11-41 of their written request for a reinstatement and refund. The
11-42 board's decision shall be based on a uniform and nondiscriminatory
11-43 policy that it shall, from time to time, adopt.
11-44 Sec. 4.05. INVESTMENT COUNSELOR; QUALIFICATIONS. (a) The
11-45 board may employ from time to time an investment counselor to
11-46 advise the board in the investment and reinvestment of the assets
11-47 of the fund. Only the following are eligible for employment as an
11-48 investment counselor:
11-49 (1) any organization whose regular business functions
11-50 include rendering investment advisory services to pension and
11-51 retirement funds and that is registered as an "investment adviser"
11-52 under the Investment Advisers Act of 1940; and
11-53 (2) any bank, as defined in the Investment Advisers
11-54 Act of 1940, that maintains a trust department and offers
11-55 investment services to pension and retirement funds.
11-56 (b) The investment counselor shall receive such compensation
11-57 as may be determined by the board and as authorized by Section 4.01
11-58 of this article.
11-59 Sec. 4.06. INVESTMENT CUSTODY ACCOUNT OR MASTER TRUST
11-60 AGREEMENTS. (a) If the board contracts for investment management
11-61 services as authorized by Section 4.07 of this article, it may,
11-62 with respect to every such contract, also enter into an investment
11-63 custody account agreement, designating one or more banks as
11-64 custodian or master trustee for any assets of the fund.
11-65 (b) Under a custody account or master trust agreement, the
11-66 board shall require the designated bank to perform the duties and
11-67 assume the responsibilities of a custodian in relation to the
11-68 investment contract to which the custody account or master trust
11-69 agreement is established.
11-70 (c) The authority of the board to make a custody account or
12-1 master trust agreement is supplementary to its authority to make an
12-2 investment management contract. Allocation of assets to a custody
12-3 account or master trust shall be coordinated by the administrator,
12-4 as authorized by the board, and the bank designated as custodian
12-5 or master trustee for the assets.
12-6 (d) Any custody account or master trust agreement made by
12-7 the board shall establish such compensation for the custodian or
12-8 master trustee as may be determined by the board and as authorized
12-9 by Section 4.01 of this article.
12-10 Sec. 4.07. INVESTMENT OF SURPLUS. (a) If the board
12-11 determines that there is in the fund a surplus exceeding a
12-12 reasonably safe amount to take care of current demands on the
12-13 pension system, the board may invest or direct the investment of
12-14 the surplus for the sole benefit of the pension system.
12-15 (b) In making investments and supervising investments,
12-16 trustees shall exercise the judgment and care under the
12-17 circumstances then prevailing that persons of ordinary prudence,
12-18 discretion, and intelligence exercise in the management of their
12-19 own affairs, not in regard to speculation but in regard to probable
12-20 income from the assets as well as the probable safety of their
12-21 capital.
12-22 (c) The board has the ultimate responsibility for the
12-23 investment of funds. The board may exercise this responsibility
12-24 directly by purchasing or selling securities or other investments,
12-25 or it may exercise discretion in determining the procedure that it
12-26 deems most efficient and beneficial for the pension system in
12-27 carrying out the responsibility. The board may contract for
12-28 professional advisory services regarding the purchase or sale of
12-29 securities or other investments pursuant to Section 3.02 of this
12-30 article. A professional advisory service shall receive such
12-31 compensation as may be determined by the board in accordance with
12-32 Section 4.01 of this article.
12-33 (d) The board also has the authority to contract for
12-34 professional investment management services. Any contract that the
12-35 board makes with an investment manager shall set forth policies and
12-36 guidelines of the board for the use of standard rating services and
12-37 shall include specific criteria for determining the quality of
12-38 investments. A professional investment management service shall
12-39 receive such compensation as may be determined by the board in
12-40 accordance with Section 4.01 of this article.
12-41 (e) The board, in exercising its control, may at any time,
12-42 and shall at frequent intervals, monitor the investments made by
12-43 any investment manager and shall enforce full compliance with the
12-44 requirements of the board.
12-45 (f) If the board contracts for and receives professional
12-46 advisory services or professional investment management services,
12-47 the board has no greater liability under the terms of this section
12-48 than otherwise provided for under the Government Code or the Texas
12-49 Trust Code.
12-50 (g) No investment manager, other than a bank that has a
12-51 contract with the board to provide assistance in making
12-52 investments, shall be the custodian or master trustee of any of the
12-53 securities or other assets of the fund. Pursuant to Section 4.06
12-54 of this article, the board may designate a bank to serve as
12-55 custodian or master trustee, or subcustodian or submaster trustee,
12-56 to perform the customary duty of safekeeping as well as duties
12-57 incident to the execution of transactions. As the demands of the
12-58 pension system require, the board shall withdraw from the custodian
12-59 or master trustee money previously considered surplus in excess of
12-60 current cash and proceeds from the sale of investments. The money
12-61 may without distinction be used for the payment of benefits
12-62 pursuant to each of the plans within the pension system and for
12-63 other uses authorized by this article and approved by the board.
12-64 Sec. 4.08. ACTUARIAL VALUATION. (a) The board has the
12-65 authority to employ a qualified actuary to provide a continuing
12-66 observation of the operation of the pension system and to make
12-67 recommendations and give advice to the board about the condition of
12-68 the assets of the fund and the administration of the pension
12-69 system. A qualified actuary shall receive such compensation as is
12-70 determined by the board in accordance with Section 4.01 of this
13-1 article.
13-2 (b) A qualified actuary shall perform continuing actuarial
13-3 observation of the assets of the fund not less than once every two
13-4 years and make a report of the condition of the assets of the fund
13-5 to the board. The board may require more frequent reports.
13-6 Sec. 4.09. REWARDS, DONATIONS, AND CONTRIBUTIONS. Any
13-7 reward, donation, or contribution given to any member as payment or
13-8 gratuity for service performed in the line of duty shall be turned
13-9 over to the chief of the member's department, who shall, in turn,
13-10 forward the reward, donation, or contribution to the administrator
13-11 of the pension system for deposit in the fund.
13-12 PART 5. MEMBERSHIP
13-13 Sec. 5.01. MEMBERSHIP IN COMBINED PENSION PLAN. (a) The
13-14 membership of the combined pension plan is composed of the
13-15 following persons:
13-16 (1) Group A members:
13-17 (A) police officers or fire fighters who are on
13-18 active service and who as of February 28, 1973, had filed a written
13-19 statement with the pension system of their desire to participate in
13-20 either the old plan or Plan A;
13-21 (B) police officers and fire fighters who are on
13-22 active service, who were employed and receiving compensation from
13-23 the city as a police officer or a fire fighter before March 1,
13-24 1973, and who made contributions to either the old plan or Plan A
13-25 attributable to any period of employment before March 1, 1973; and
13-26 (C) except as provided by Subsection (b) of this
13-27 section, persons who elect to become Group A members under that
13-28 subsection; and
13-29 (2) Group B members:
13-30 (A) police officers and fire fighters who are on
13-31 active service, were formerly members of either the old plan or
13-32 Plan A, and as of April 30, 1973, had filed a written statement
13-33 with the pension system of their desire to participate in Plan B;
13-34 (B) police officers and fire fighters who are on
13-35 active service and who on or after March 1, 1973, and before
13-36 January 1, 1993, became members of Plan B;
13-37 (C) as a condition of employment, any police
13-38 office or fire fighter who is initially employed as a police
13-39 officer or a fire fighter by the city on or after January 1, 1993;
13-40 (D) as a condition of return to active service
13-41 and except as provided by Subsection (b) of this section, former
13-42 members of the old plan or Plan A who left active service before
13-43 March 1, 1973;
13-44 (E) as a condition of return to active service
13-45 and except as provided by Subsection (c) of this section, former
13-46 Group B members, whether or not the persons were ever a member of
13-47 the old plan, Plan A, or the combined pension plan;
13-48 (F) Group A members who are on active service
13-49 and meet the requirements and make an election under Subsection (d)
13-50 of this section; and
13-51 (G) persons who are on active service and make
13-52 an election under Subsection (e) of this section.
13-53 (b) A person who has received an old plan, Plan A, or
13-54 combined pension plan retirement or disability pension on or after
13-55 March 1, 1973, may, if the person returns to active service, elect
13-56 to participate as a Group A or Group B member by filing a written
13-57 application for membership with the administrator not later than 60
13-58 days after the date of return to service. As a condition of either
13-59 Group A or Group B membership, the board may require the person to
13-60 undergo a physical examination and be certified by the health
13-61 director as being capable of performing the duties to which the
13-62 person will be assigned. If the person does not elect to become a
13-63 Group A or Group B member, the person shall on leaving active
13-64 service receive a retirement pension in an amount that is
13-65 unadjusted for the period of return to active service if the person
13-66 meets all of the requirements of Group A membership.
13-67 (c) A Group B pensioner who was never a member of the old
13-68 plan, Plan A, or the combined pension plan before January 1, 1993,
13-69 may, if the person returns to active service, elect to become a
13-70 Group B member by filing a written application for membership with
14-1 the administrator not later than 60 days after the date of return
14-2 to service. As a condition of Group B membership, the board may
14-3 require the pensioner to undergo a physical examination and be
14-4 certified by the health director as being capable of performing the
14-5 duties to which the person will be assigned. If the person does
14-6 not elect to again become a Group B member, on leaving active
14-7 service, if the person meets all applicable requirements of this
14-8 article, the person shall receive benefits in an amount equal to
14-9 the amount the person was receiving as of the day before the day
14-10 the person returned to active service, and the person's base
14-11 pension shall be the same as the base pension originally computed
14-12 before the return to active service.
14-13 (d) A person who is on active service and is a Group A
14-14 member may irrevocably elect to become a Group B member by filing a
14-15 written application with the administrator. On and after the
14-16 filing of the application, the Group A member shall make
14-17 contributions to the fund at the rate applicable to Group B
14-18 members. However, the contributions do not, by themselves,
14-19 constitute Group B membership. Group B membership is contingent on
14-20 the satisfaction of the following conditions:
14-21 (1) The person must pay an amount to the fund equal to
14-22 the difference between the contributions the person would have made
14-23 to the fund had the person been a Group B member for the entire
14-24 period the person could otherwise have been a Group B member before
14-25 making application for membership and the contributions the person
14-26 actually made during that period, plus interest calculated in
14-27 accordance with procedures adopted by the board from time to time.
14-28 (2) The payments described by this subsection must be
14-29 completed before the date on which the person leaves active service
14-30 in accordance with procedures adopted by the board from time to
14-31 time. If the fund does not receive payment by that date, all
14-32 payments of this type, as well as those amounts paid by the person
14-33 after the person's application for Group B membership that are in
14-34 excess of the Group A member contribution rate, shall be returned
14-35 to the person, or in the event of the person's death to the
14-36 person's surviving spouse, children, or estate, as applicable.
14-37 (e) A person who is on active service and has never been a
14-38 member of any plan within the pension system may elect to become a
14-39 Group B member on a prospective basis by filing a written
14-40 application for membership with the administrator.
14-41 Sec. 5.02. EFFECTIVE DATE OF GROUP B MEMBERSHIP. (a) The
14-42 effective date of Group B membership for persons described by
14-43 Section 5.01(a)(2)(A) or (B) of this article is January 1, 1993.
14-44 (b) The effective date of Group B membership for a person
14-45 who becomes a Group B member pursuant to Section 5.01(a)(2)(C) of
14-46 this article is the day the person begins active service.
14-47 (c) The effective date of Group B membership for a person
14-48 who becomes a Group B member and is described by Section
14-49 5.01(a)(2)(D) of this article is the date of the person's return to
14-50 active service.
14-51 (d) The effective date of Group B membership for a former
14-52 Group B member who again becomes a Group B member and is described
14-53 by Section 5.01(a)(2)(E) of this article is the person's original
14-54 effective date of Group B membership, adjusted for any period that
14-55 the person was not on active service, if the person has not
14-56 withdrawn all contributions to the fund pursuant to Section 4.04 of
14-57 this article. If, however, the former Group B member has withdrawn
14-58 all contributions to the fund in accordance with Section 4.04 of
14-59 this article, and the person does not replace the previously
14-60 withdrawn contributions together with interest as provided by
14-61 Section 4.04(h) of this article, the effective date of the person's
14-62 membership is the date of return to active service.
14-63 (e) The effective date of membership for a person who
14-64 becomes a Group B member pursuant to Section 5.01(b) of this
14-65 article is the date written application for membership is filed
14-66 with the administrator. The effective date of membership for a
14-67 person who becomes a Group A member pursuant to Section 5.01(b) of
14-68 this article is the person's original effective date of membership
14-69 in the old plan, Plan A, or the combined pension plan, whichever is
14-70 applicable.
15-1 (f) The effective date of Group B membership for a Group B
15-2 pensioner who again becomes a Group B member pursuant to Section
15-3 5.01(c) of this article is the pensioner's original effective date
15-4 of membership, adjusted for any period the person was not on active
15-5 service.
15-6 (g) The effective date of Group B membership for a person
15-7 who joins this plan pursuant to Section 5.01(d) of this article is
15-8 March 1, 1973.
15-9 (h) A person described by Subsection (a), (c), (d), (e),
15-10 (f), or (g) of this section shall be given full pension service for
15-11 the time the person was a contributing member of the old plan, Plan
15-12 A, the combined pension plan, and Plan B, and the pension service
15-13 shall be counted as if it had been earned while a Group B member.
15-14 Neither the length of time persons described by Subsection (a),
15-15 (c), (d), (e), (f), or (g) of this section received a retirement or
15-16 disability pension, whether under the old plan, Plan A, the
15-17 combined pension plan or Plan B, nor the amount of any benefits
15-18 paid to the person shall have any effect on the pension service
15-19 earned by the person. No pension service may be earned while on
15-20 service retirement or disability retirement, or when the person was
15-21 not on active service. Except as provided by Sections 5.02 and
15-22 5.09 of this article, a person described by Subsection (a), (c),
15-23 (d), (e), (f), or (g) of this section may not be allowed to
15-24 contribute to the fund in order to receive pension service for the
15-25 time the person was not on active service, regardless of whether
15-26 the person was actually receiving a pension.
15-27 (i) The effective date of Group B membership for a person
15-28 who becomes a Group B member pursuant to Section 5.01(e) of this
15-29 article is the date on which written application for Group B
15-30 membership is filed with the administrator.
15-31 Sec. 5.03. TERMINATION OF GROUP B MEMBERSHIP. (a) Group B
15-32 membership, whether by voluntary application or as a condition of
15-33 employment, may be terminated by the Group B member only when the
15-34 person ceases to be on active service.
15-35 (b) Once a police officer or fire fighter becomes a Group B
15-36 member, whether by voluntary application or as a condition of
15-37 employment, the person may never transfer the membership to become
15-38 a Group A member and may never transfer the membership to any
15-39 pension plan for police officers and fire fighters that may be
15-40 created in the future unless the terms of that plan allow the
15-41 transfer.
15-42 (c) A Group B member or former Group B member who also was a
15-43 former contributing member of either the old plan or Plan A may
15-44 elect, when applying for either a retirement or disability pension
15-45 if applicable, to terminate membership and receive a Group A
15-46 retirement or disability pension under the applicable provisions of
15-47 this article, if the Group B member's application for retirement or
15-48 disability pension is granted by the board.
15-49 (d) If a Group B member or former Group B member described
15-50 by Subsection (c) of this section has elected and been granted a
15-51 Group A retirement or disability pension under the applicable
15-52 provisions of this article, the person is entitled to a
15-53 reimbursement from the fund. The reimbursement shall be equal to
15-54 that portion of the person's contributions to the fund, without
15-55 interest, from the person's effective date of Group B membership
15-56 until the time the person left active service, that is in excess of
15-57 the total amount the person would have contributed as a Group A
15-58 member or as a member of the old plan or Plan A for the same
15-59 period. A Group B member or former Group B member desiring a
15-60 refund of excess contributions must make written application for
15-61 the refund with the administrator within three years after the date
15-62 the person's Group A retirement or disability pension begins or
15-63 lose all right, title, interest, or claim to the refund until such
15-64 time as the board grants the refund in response to the person's
15-65 written request. The refund shall be made as soon as practicable
15-66 after written application is filed with the administrator.
15-67 Sec. 5.04. GROUP B MEMBERSHIP MAY BE DECLARED INACTIVE.
15-68 (a) If a Group B member with less than five years of pension
15-69 service either voluntarily or involuntarily leaves active service,
15-70 the person's Group B membership remains active as long as the
16-1 person has not withdrawn the person's contributions pursuant to
16-2 Section 4.04 of this article.
16-3 (b) If a Group B member with five or more years of pension
16-4 service either voluntarily or involuntarily leaves active service,
16-5 the person's Group B membership remains active as long as the
16-6 person has not withdrawn the person's entire contributions pursuant
16-7 to Section 4.04 of this article.
16-8 (c) If the board receives valid information that a Group B
16-9 primary party has died, leaving one or more heirs, the board shall
16-10 attempt to notify the heirs of the procedures for applying and
16-11 qualifying for survivor benefits or a refund of the Group B primary
16-12 party's contributions, if applicable.
16-13 (d)(1) Subject to the provisions of Subdivision (5)(A) of
16-14 this subsection, the membership of a Group B member described by
16-15 Subsection (a) of this section shall be declared inactive and all
16-16 of the person's accrued pension service voided if the person does
16-17 not return to active service within three years after receiving the
16-18 notice described by Subdivision (4) of this subsection.
16-19 (2) Subject to the provisions of Subdivision (5)(B) of
16-20 this subsection, the membership of a Group B member described by
16-21 Subsection (b) of this section shall be declared inactive and all
16-22 of the person's accrued pension service voided if the person does
16-23 not file an application for a Group B retirement pension with the
16-24 board within three years after receiving the notice described by
16-25 Subdivision (4) of this subsection.
16-26 (3) Subject to the provisions of Subdivision (5)(C) of
16-27 this subsection, the heirs or estate of a deceased primary party
16-28 described by Subsection (c) of this section have no right, title,
16-29 interest, or claim for benefits or a refund of the primary party's
16-30 contributions to the fund, if the heirs or the estate, whichever is
16-31 applicable, fails to file an application for the primary party's
16-32 benefits or contributions within three years of receiving the
16-33 notice described by Subdivision (4) of this subsection.
16-34 (4) On the 50th anniversary of the birth of a Group B
16-35 member described by Subsection (a) or (b) of this section or on the
16-36 board's receipt of notice of the death of a primary party described
16-37 by Subsection (c) of this section, the board shall, by registered
16-38 or certified mail, return receipt requested, attempt to notify the
16-39 Group B member or the heirs or estate of a primary party, whichever
16-40 is applicable, of the status of their entitlement to benefits or
16-41 contributions from the fund.
16-42 (5)(A) A Group B member described by Subdivision (1)
16-43 of this subsection shall have the person's Group B membership and
16-44 pension service reinstated on the person's return to active
16-45 service.
16-46 (B) A Group B member described by Subdivision
16-47 (2) of this subsection shall have the person's Group B membership
16-48 and pension service reinstated on the person's return to active
16-49 service or on the grant of the person's written request to the
16-50 board of the person's desire to apply for a Group B service
16-51 retirement benefit.
16-52 (C) The heirs or estate of a primary party
16-53 described by Subdivision (3) of this subsection shall have their
16-54 right, title, interest, or claim to the primary party's refund of
16-55 contributions reinstated on the board's grant of their written
16-56 request for the reinstatement and refund. The board's decision
16-57 shall be based on a uniform and nondiscriminatory policy that it
16-58 shall, from time to time, adopt.
16-59 Sec. 5.05. PENSION SERVICE. (a) A member shall receive
16-60 pension service for the time, computed in years and fractional
16-61 years for months and days, completed as a member of the combined
16-62 pension plan, the old plan, Plan A, or Plan B.
16-63 (b) A member who elects to pay contributions for time spent
16-64 on military leave, authorized leave of absence, or for an
16-65 apprenticeship or probationary period, or for any other reason
16-66 provided for by this article may not receive any pension service
16-67 for any part of the time for which the member is contributing until
16-68 the entire amount due the fund for the entire period involved has
16-69 been paid as if the service were performed as a member.
16-70 (c) If a member, either voluntarily or involuntarily, leaves
17-1 active service and later returns to active service, the person
17-2 shall receive full pension service for the period of the person's
17-3 original membership, if the person did not withdraw the person's
17-4 contributions pursuant to Section 4.04 of this article. If,
17-5 however, the member had withdrawn the person's contributions and
17-6 does not replace the previously withdrawn contributions with
17-7 interest as required by Section 4.04 of this article, the person
17-8 forfeits any pension service accrued while a member before the date
17-9 of the person's return to active service.
17-10 Sec. 5.06. VESTED RIGHTS OF GROUP B MEMBERS. (a) If a
17-11 Group B member accrues five years of pension service, whether the
17-12 pension service is accrued while a Group B member or while a member
17-13 of the old plan, Plan B, Plan A, the combined pension plan, or a
17-14 combination of plans, the Group B member has vested rights and is
17-15 eligible to apply for a retirement pension in accordance with
17-16 Section 6.02 of this article.
17-17 (b) If a Group B member has vested rights as determined
17-18 under Subsection (a) of this section, and the Group B member either
17-19 voluntarily or involuntarily leaves active service before becoming
17-20 eligible to receive any benefits under Section 6.02 of this
17-21 article, the person shall be provided with a letter approved by the
17-22 board and signed by the administrator that, barring clerical error,
17-23 miscalculation, or other error, is incontestable and shall state:
17-24 (1) the total amount of pension service the Group B
17-25 member had accrued until the date the person left active service;
17-26 (2) the total amount of contributions the Group B
17-27 member made under the terms of Plan B and the combined pension
17-28 plan; and
17-29 (3) the monthly retirement pension due the Group B
17-30 member at age 50.
17-31 Sec. 5.07. PURCHASE OF PENSION SERVICE BY GROUP B MEMBERS.
17-32 (a) A Group B member who has previously elected not to become a
17-33 contributing member of the old plan and Plan A may purchase pension
17-34 service from the fund for that period during which the member
17-35 performed active service with either department until the effective
17-36 date of the member's Group B membership. No pension service may be
17-37 given to the Group B member until payment is made for the entire
17-38 period described by this subsection, and no pension service may be
17-39 purchased for any period that is of greater or lesser length.
17-40 (b) Payment for the purchase of pension service under this
17-41 section shall be equal to the amount of contributions the Group B
17-42 member would have made to the old plan and Plan A had the member
17-43 been a contributing member of either of the plans during the period
17-44 described by Subsection (a) of this section, plus interest
17-45 calculated in accordance with procedures adopted by the board from
17-46 time to time.
17-47 (c) A Group B member may repay the fund all employee
17-48 contributions withdrawn by an alternate payee pursuant to the terms
17-49 of a qualified domestic relations order and receive pension service
17-50 as a Group B member attributable to the contributions, if the Group
17-51 B member repays completely to the fund the withdrawn contributions
17-52 with interest, calculated at the interest rate from time to time
17-53 used in the pension system's actuarial assumptions, compounded
17-54 annually, on the contributions for the period from the date the
17-55 contributions were withdrawn until the date the principal and
17-56 accrued interest are repaid in full.
17-57 (d) No pension service may be given to a Group B member
17-58 under Subsection (b) or (c) of this section until the entire amount
17-59 described by Subsection (b) or (c) has been paid to the fund. If
17-60 payment of the entire amount is not completed by the date the Group
17-61 B member leaves active service, all partial payments shall be
17-62 returned to the Group B member or, if the Group B member has died,
17-63 to the member's heirs or estate, whichever is applicable.
17-64 Sec. 5.08. MEMBERS IN ARMED SERVICES. (a) A member may
17-65 receive pension service for time spent away from either department
17-66 while on active duty in any of the military services of the United
17-67 States, including service in any state or National Guard or any
17-68 reserve component of any military service in accordance with the
17-69 military leave provided by this section.
17-70 (b) Any member inducted into the armed forces as a draftee
18-1 must reapply for reinstatement with the member's prior department
18-2 within 90 days after the date of honorable discharge or separation
18-3 from military service. On such reinstatement, the member may elect
18-4 to repay the member's contributions at any time under the procedure
18-5 described by Subsection (h) of this section.
18-6 (c) Any member enlisting in the armed forces, other than as
18-7 a reservist, whose military service between June 24, 1948, and
18-8 August 1, 1961, did not exceed four years, or whose military
18-9 service began after August 1, 1961, and did not exceed five years
18-10 if the fifth year is at the request and convenience of the federal
18-11 government, and who was honorably discharged or separated from
18-12 service is guaranteed, under the provisions of coverage described
18-13 by this subsection, the right to restore pension service under the
18-14 procedure described by Subsection (h) of this section. The four-
18-15 and five-year leaves permitted by this subsection apply to all of a
18-16 member's employment with the city. An enlistment plus any number
18-17 of reenlistments may not exceed the four- or five-year limitations
18-18 stated above.
18-19 (d) Any member ordered to an initial period of active duty
18-20 for training in a reserve component of not less than 12 consecutive
18-21 weeks is entitled to restore pension service for the period absent
18-22 from the member's department, if the member returns to the member's
18-23 department within 31 days after the date of honorable discharge or
18-24 separation from duty in the reserve unit.
18-25 (e) Any member serving in a reserve component, voluntarily
18-26 or involuntarily, may remain on military leave for four years,
18-27 which may be extended for periods when the President of the United
18-28 States calls the reserve unit into active duty. The service
18-29 extension for members joining a reserve unit voluntarily is
18-30 available only when the additional service is at the request and
18-31 for the convenience of the federal government. Any member
18-32 returning to the member's department under this provision must
18-33 report back to work within the time specified to the member by the
18-34 department, giving due regard for travel time and hospitalization,
18-35 if required. Any inquiry into the validity of orders extending
18-36 terms of reservist active duty for training will be referred to the
18-37 Department of Labor's Office of Veterans' Employment and Training.
18-38 (f) Any member on military leave for short periods of
18-39 authorized training, such as two-week encampments, are treated as
18-40 on leave with pay for up to 15 working days in any one calendar
18-41 year, during which time pension service automatically accrues.
18-42 Leave in excess of 15 days will be treated as described by
18-43 Subsection (e) of this section.
18-44 (g) With the exception of those circumstances described by
18-45 Subsection (f) of this section, the city is not required to match
18-46 contributions made by members under the terms of this section.
18-47 (h) Repayment shall be made in accordance with the procedure
18-48 set forth in any uniform and nondiscriminatory military leave and
18-49 payment procedure adopted by the board and in effect from time to
18-50 time.
18-51 Sec. 5.09. NONMILITARY LEAVE OF ABSENCE. (a) An authorized
18-52 leave of absence means any leave of absence that meets the
18-53 following conditions:
18-54 (1) the leave of absence must be an official leave
18-55 authorized by the chief of either department; and
18-56 (2) the leave of absence must be for the purpose of
18-57 benefitting the department.
18-58 (b) A member may receive pension service for time spent away
18-59 from either department on an authorized nonmilitary leave of
18-60 absence. To receive pension service for a nonmilitary leave of
18-61 absence, the following conditions must be met:
18-62 (1) before the date the member's leave of absence is
18-63 to begin, the member must file with the administrator a written
18-64 application to pay any contributions that will accrue during the
18-65 member's leave as set forth in Subdivisions (2) and (3) of this
18-66 subsection;
18-67 (2) the member must agree to pay into the fund the
18-68 amount the member would have contributed had the member remained on
18-69 active service, the amount to be based on the computation pay the
18-70 member would have normally received had there been no change in the
19-1 member's position during the period of leave;
19-2 (3) the member must agree to pay into the fund an
19-3 amount equal to the amount the city would have contributed computed
19-4 on the basis of total wages and salary the member would normally
19-5 have received had the member remained on active service and had
19-6 there been no change in the member's position during the period of
19-7 leave, the payment to represent the total amount that would have
19-8 been contributed by the city on the member's behalf had the member
19-9 remained on active service and paid in addition to the amount the
19-10 member must contribute as set forth in Subdivision (2) of this
19-11 subsection;
19-12 (4) if the city's contribution rate changes as
19-13 provided by Section 4.02 of this article, the percentage of total
19-14 wages and salary required to be paid by the member also changes, so
19-15 that the amount paid by the member in accordance with this section
19-16 always equals the amount that would have been contributed by the
19-17 city on the member's behalf had the member remained on active
19-18 service, and in no event is the city required to pay into the fund
19-19 any contributions that would have been made on behalf of a member
19-20 had the member remained on active service during the period of an
19-21 authorized leave of absence;
19-22 (5) payment of contributions as set forth in
19-23 Subdivisions (3) and (4) of this subsection shall begin coincident
19-24 with the beginning of the applicable leave of absence and shall be
19-25 made monthly to the administrator for deposit in the fund, unless
19-26 the board authorizes the deferment of the payments until the member
19-27 has returned to active service; no pension service will be granted
19-28 to the member until the member returns to active service, and if
19-29 the member does not return to active service, the contributions
19-30 paid will be returned to the member except as provided by
19-31 Subsection (c) of this section; if the board authorizes the
19-32 deferment of the payments, the payment may be made either by
19-33 authorizing the deduction of pro rata portions of the total amount
19-34 due from the member's salary over a one-year period, or by cash
19-35 payment made to the administrator within one year after the date of
19-36 the member's return to active service, except that the board may
19-37 approve a longer period for making the payment if it finds that the
19-38 one-year limit would work a financial hardship on the member;
19-39 (6) the member must return to active service within 90
19-40 days after the date the member's authorized leave expires, or if
19-41 the member's authorized leave does not have a fixed expiration
19-42 date, within a reasonable time to be determined by the board, or
19-43 the member forfeits the right to pay for the leave time; and
19-44 (7) no member may ever be allowed to pay leave of
19-45 absence contributions under this section for any time in excess of
19-46 the time actually spent on an authorized leave of absence.
19-47 (c)(1) If a member of the combined pension plan is disabled
19-48 or dies while on an authorized leave of absence, the member or the
19-49 member's heirs are entitled to either a refund of contributions
19-50 pursuant to Section 4.04 of this article or the member or the
19-51 member's qualified survivors are entitled to benefits under the
19-52 provisions of this article, to the extent applicable.
19-53 (2) A member who is disabled or dies while on leave of
19-54 absence pursuant to this section may receive no pension service for
19-55 any portion of the period of the leave; except that if the member
19-56 had, before the disability or death, paid for contributions while
19-57 on leave of absence in accordance with Subsection (a) of this
19-58 section, the member shall receive pension service for the leave
19-59 time actually paid for at the time of the member's disability or
19-60 death, but the member may receive no pension service for any
19-61 portion of the period of leave for which contributions have not
19-62 been paid to the administrator for deposit in the fund.
19-63 PART 6. BENEFITS
19-64 Sec. 6.01. GROUP A RETIREMENT PENSION. (a) A Group A
19-65 member or former Group A member must have 20 years of pension
19-66 service to be eligible for a Group A retirement pension under this
19-67 section. A member's application under this section, once made, is
19-68 irrevocable. If a Group A pensioner returns to active service as a
19-69 police officer or fire fighter with the city, the person's Group A
19-70 retirement pension ceases until the time that the person again
20-1 leaves active service with the city.
20-2 (b) At age 50 a Group A member or former Group A member is
20-3 eligible to begin drawing a monthly Group A retirement pension. A
20-4 monthly Group A retirement pension equals 50 percent of the base
20-5 pay per month, plus 50 percent of any longevity pay the Group A
20-6 member was receiving at the time the member left active service.
20-7 Although the number of years used in the computation of longevity
20-8 pay remains fixed at the time a Group A member or former Group A
20-9 member leaves active service, the monthly rate of longevity pay
20-10 used in this computation is subject to change in the event of an
20-11 amendment to the state law governing longevity pay. The monthly
20-12 Group A retirement pension benefits of Group A pensioners shall be
20-13 adjusted from time to time in a like manner.
20-14 (c) In addition to the amount computed under Subsection (b)
20-15 of this section, at age 50, a Group A member is eligible to begin
20-16 drawing an annual Group A retirement pension. An annual retirement
20-17 pension equals 50 percent of the difference between the annualized
20-18 amount of city service incentive pay and longevity pay. In
20-19 determining city service incentive pay and longevity pay for
20-20 purposes of this element of the annual Group A retirement pension
20-21 only the following apply:
20-22 (1) City service incentive pay is calculated in the
20-23 same manner as the city service incentive pay is calculated for
20-24 members currently on active service except:
20-25 (A) the annual salary of a Group A pensioner
20-26 used in calculating city service incentive pay is determined on the
20-27 basis of the last city civil service rank held by the Group A
20-28 pensioner when the person was on active service; however, if the
20-29 rank no longer exists, its closest equivalent shall be determined
20-30 by the board and applied; and
20-31 (B) the annual salary of a Group A pensioner as
20-32 determined under Paragraph (A) of this subdivision shall be that
20-33 amount in effect on the last day of September of each year the
20-34 Group A pensioner's annual retirement pension is calculated.
20-35 (2) Longevity pay shall be calculated as 12 times the
20-36 amount of monthly longevity pay the Group A pensioner was receiving
20-37 at the time such person left active service, except that the
20-38 monthly rate of longevity pay used in this computation is subject
20-39 to change if an amendment to state law governing longevity pay is
20-40 enacted.
20-41 (d) The element of annual retirement pension computed under
20-42 Subsection (c)(1) of this section is subject to the following
20-43 limitations:
20-44 (1) it shall be prorated for the year in which the
20-45 pensioner begins receiving a retirement pension;
20-46 (2) it shall be payable only to those Group A
20-47 pensioners who as a Group A member on active service received city
20-48 service incentive pay and who receive a monthly Group A retirement
20-49 pension as determined under Subsection (b) of this section on the
20-50 last day of September of each year; and
20-51 (3) it shall be paid to Group A pensioners as long as
20-52 the city continues to pay city service incentive pay to Group A
20-53 members on active service.
20-54 (4) Notwithstanding Subsections (b) and (c) of this
20-55 section, a Group A member with a minimum of 20 years of pension
20-56 service may apply for an actuarially reduced retirement pension to
20-57 begin no earlier than when the member attains age 45 but before the
20-58 member attains age 50. The Group A member or a former Group A
20-59 member who has made an application may receive a retirement pension
20-60 calculated under Subsections (b) and (c) of this section reduced by
20-61 two-thirds of one percent per month for each whole calendar month
20-62 the benefit is payable before the month in which the Group A member
20-63 or former Group A member attains age 50.
20-64 (e) At age 55 a Group A member or former Group A member is
20-65 eligible to begin drawing a monthly retirement pension computed as
20-66 follows:
20-67 (1)(A) at the rate of three percent of base pay for
20-68 each year, prorated for fractional years, of pension service, with
20-69 a maximum of 32 years of pension service, or 96 percent of base
20-70 pay; or
21-1 (B) if the Group A member or former Group A
21-2 member had 34 or more years of pension service as of April 30,
21-3 1990, at the rate calculated under the terms of the combined
21-4 pension plan in effect on April 30, 1990, if greater than the
21-5 amount calculated under Paragraph (A) of this subdivision; plus
21-6 (2) one-half of the longevity pay the Group A member
21-7 or former Group A member was receiving at the time the person left
21-8 active service; plus
21-9 (3) 1/24th, without subsequent adjustment, of the
21-10 annualized amount of the city service incentive pay the Group A
21-11 member or former Group A member received at the time the person
21-12 left active service.
21-13 (f) Notwithstanding Subsection (e) of this section, Group A
21-14 pensioners payments under Subsection (e)(3) of this section are
21-15 contingent on the city's continuing payment of city service
21-16 incentive pay to Group A members on active service. For purposes
21-17 of this section, base pay and longevity pay are the amounts in
21-18 effect on the date benefits are to begin, without subsequent
21-19 adjustment.
21-20 (g) Notwithstanding Subsection (e) of this section, a Group
21-21 A member or former Group A member with 20 or more years of pension
21-22 service may apply for an actuarially reduced Group A retirement
21-23 pension beginning on or after the date the Group A member or former
21-24 Group A member attains age 50 but before the person attains age 55.
21-25 The Group A member or former Group A member may receive a
21-26 retirement pension calculated under Subsection (e) of this section
21-27 reduced by two-thirds of one percent per month for each whole
21-28 calendar month the benefit is payable before the month in which the
21-29 Group A member or former Group A member attains age 55.
21-30 (h) Entitlement to the Group A retirement pension described
21-31 by this section is subject to the following conditions:
21-32 (1) written application must be filed with the
21-33 administrator;
21-34 (2) the grant of a Group A retirement pension by the
21-35 board must be made at a meeting of the board held during the month
21-36 the Group A retirement pension is to become effective, or as soon
21-37 after that as possible; and
21-38 (3) the Group A member must no longer be on active
21-39 service.
21-40 Sec. 6.02. GROUP B RETIREMENT PENSION. (a) A Group B
21-41 member or former Group B member who has accrued five or more years
21-42 of pension service may make application for a Group B retirement
21-43 pension on reaching 50 years of age, or for an actuarially reduced
21-44 Group B retirement pension on reaching 45 years of age.
21-45 (b) A former Group B member or Group B pensioner who
21-46 withdrew any of the person's Plan B or Group B contributions and
21-47 who on again becoming a Group B member does not replace such
21-48 previously withdrawn contributions with interest thereon as
21-49 provided by Section 4.04 of this article must earn at least five
21-50 years of pension service after the time the person returns to
21-51 active service to be eligible for a Group B retirement pension.
21-52 (c) Entitlement to a Group B retirement pension as described
21-53 by Subsection (a) or (b) of this section is subject to the
21-54 following conditions:
21-55 (1) written application must be filed with the
21-56 administrator;
21-57 (2) the grant of the Group B retirement pension by the
21-58 board must be made at a meeting of the board held during the month
21-59 the Group B retirement pension is to become effective, or as soon
21-60 after that as possible; and
21-61 (3) the Group B member may no longer be on active
21-62 service.
21-63 (d) A Group B retirement pension shall be computed at the
21-64 rate of three percent of the average computation pay determined
21-65 over the 60 consecutive months in which the Group B member received
21-66 the highest computation pay, multiplied by the number of years,
21-67 prorated for fractional years, of pension service to a maximum of
21-68 32 years of pension service or 96 percent of the computation pay as
21-69 determined under this subsection.
21-70 (e) However, a Group B member or former Group B member with
22-1 34 or more years of pension service as of April 30, 1990, shall
22-2 receive the greater of a Group B retirement pension calculated
22-3 under the terms of Plan B as in effect on that date or a Group B
22-4 retirement pension calculated pursuant to Subsection (d) of this
22-5 section.
22-6 (f) A Group B member, or any former Group B member who was a
22-7 Group B member as of any date after April 30, 1990, may apply for
22-8 an actuarially reduced Group B retirement pension beginning no
22-9 earlier than the person's 45th birthday but before the person's
22-10 50th birthday. A Group B member or former Group B member who
22-11 applies for an actuarially reduced Group B retirement pension
22-12 beginning on or after the person's 45th birthday shall receive a
22-13 pension calculated under Subsection (d) of this section, reduced by
22-14 two-thirds of one percent per month for each whole calendar month
22-15 the pension would be payable before the month in which the Group B
22-16 member or former Group B member attains age 50.
22-17 (g) In no event may any Group B member or former Group B
22-18 member who was at any time a Group A member or a contributing
22-19 member of the old plan or Plan A and who satisfied the applicable
22-20 length-of-service requirements of the applicable plan receive a
22-21 retirement pension in an amount less than the amount the person
22-22 would be entitled to receive as a Group A member.
22-23 (h) A former Group B member who was not a Group B member on
22-24 or after May 1, 1990, shall receive a retirement pension calculated
22-25 under the applicable provisions of this plan as in effect on the
22-26 date the person left active service.
22-27 (i) A former Group B member who was not a Group B member
22-28 after April 30, 1990, may request an actuarially reduced retirement
22-29 pension beginning no earlier than the person's 45th birthday but
22-30 before the person's 50th birthday. A former Group B member
22-31 described by this subsection shall receive a retirement pension
22-32 under the applicable provisions of Plan B as in effect on the date
22-33 the person left active service, reduced by two-thirds of one
22-34 percent per month for each whole calendar month the pension would
22-35 be payable before the month in which the former Group B member
22-36 attains age 50.
22-37 Sec. 6.03. DISABILITY BENEFITS. (a) If a member becomes
22-38 disabled to the extent that the member cannot perform the member's
22-39 duties with the member's department, the member may apply for a
22-40 disability pension, in accordance with any uniform and
22-41 nondiscriminatory disability application procedure adopted by the
22-42 board and in effect from time to time.
22-43 (b) No disability pension may be paid until a member has
22-44 been prevented, by a disability, from performing the member's
22-45 duties with the member's department for a period of at least 90
22-46 consecutive calendar days, and no disability benefits may be paid
22-47 for any portion of the 90-day period. The board may waive the
22-48 waiting period on request by the member, if the request is
22-49 supported by credible evidence acceptable to the board that the
22-50 disability is wholly and immediately incapacitating. The board may
22-51 request from the city such information, including any employment
22-52 application and any related physical test and medical examination
22-53 records, as may be desirable in evaluating the disability
22-54 application.
22-55 (c) No disability pension may be paid for any disability if
22-56 the disability was a result of the member's commission of a felony,
22-57 except that this restriction may be waived by the board if it
22-58 believes that facts exist that would mitigate the denial of the
22-59 member's application for a disability pension.
22-60 (d) No disability pension may be paid to a member for any
22-61 disability if the disability was a result of an intentionally
22-62 self-inflicted injury or a chronic illness resulting from an
22-63 addiction by the member through a protracted course of noncoerced
22-64 indulgence in alcohol, narcotics, or other substance abuse.
22-65 (e) No disability pension may be paid until the health
22-66 director has either examined the member or reviewed reports of the
22-67 member's physical or mental condition submitted to the health
22-68 director by competent outside medical practitioners.
22-69 (f) No disability pension may be paid if the chief of the
22-70 member's department is able to provide the member with duties that
23-1 are within the member's physical or mental capabilities, as long as
23-2 the board agrees that the duties are within the member's
23-3 capabilities, even though the duties are different from the duties
23-4 the member performed before the disability.
23-5 (g) Written application for a disability pension must be
23-6 filed with the administrator. The application must be accompanied
23-7 by a recommendation from the health director. This recommendation
23-8 shall contain a statement indicating whether the member became
23-9 disabled while the member was on duty or off duty and whether the
23-10 disability was service-connected or nonservice-connected.
23-11 (h) The recommendation from the health director shall also
23-12 contain a statement indicating the date the member became disabled
23-13 or indicating that the disability prevented the member from
23-14 performing the member's duties for a period of not less than 90
23-15 days.
23-16 (i) An application for disability retirement will be
23-17 considered at the meeting of the board held during the month the
23-18 disability pension is to become effective or as soon after the
23-19 effective date of the disability pension as possible. No
23-20 disability pension may be paid, however, until the board has
23-21 approved the application.
23-22 (j) If a person who became a Group B member pursuant to
23-23 Section 5.01(a)(2)(E) of this article withdraws the person's
23-24 contributions pursuant to Section 4.04 of this article and leaves
23-25 active service with vested rights in the old plan, Plan A, or the
23-26 combined pension plan in existence before January 1, 1993, the
23-27 Group B member must, on return to active service, earn five years
23-28 of pension service after the date of return to receive a Group B
23-29 disability pension. If the Group B member is disabled before
23-30 earning five years of pension service following a return to active
23-31 service, the person may receive only a Group A disability pension.
23-32 Sec. 6.04. CALCULATION OF GROUP A DISABILITY PENSION.
23-33 (a) If a Group A member's application for a Group A disability
23-34 pension has been approved by the board pursuant to Section 6.03 of
23-35 this article, including any procedures adopted under that section,
23-36 the Group A member may elect to receive a Group A disability
23-37 pension calculated in the same manner as the benefit under Sections
23-38 6.01(b) and (c) of this article or under Subsection (b) of this
23-39 section. An election under this section, once made, is
23-40 irrevocable.
23-41 (b) When a Group A member elects to accept a Group A
23-42 disability pension under this section, it shall be calculated as
23-43 provided by Subsections (c), (d), and (e) of this section.
23-44 (c) If a Group A member's disability results during the
23-45 performance of duties with either department, the member is
23-46 entitled to a monthly disability pension calculated as follows:
23-47 (1) at a rate of three percent of base pay for each
23-48 year, prorated for fractional years, of pension service, with a
23-49 minimum of 20 years of pension service being deemed credited and a
23-50 maximum of 32 years of pension service being credited, or 96
23-51 percent of base pay or, if the Group A member had 34 or more years
23-52 of pension service as of May 1, 1990, the member shall receive the
23-53 greater of a disability pension calculated under the terms of the
23-54 combined pension plan in effect on that date or as calculated under
23-55 this subdivision; plus
23-56 (2) one-half of the longevity pay the Group A member
23-57 was receiving at the time the member left active service; plus
23-58 (3) 1/24th, without subsequent adjustment, of the
23-59 annualized amount of city service incentive pay the Group A member
23-60 received at the time the member left active service.
23-61 (d) Notwithstanding Subsection (c) of this section, the
23-62 amount of a disability retirement benefit of a Group A pensioner
23-63 who is on disability retirement under Subsection (c)(3) of this
23-64 section is contingent on the city's continuing payment of city
23-65 service incentive pay to Group A members on active service. For
23-66 purposes of this subsection, base pay and longevity pay are the
23-67 amounts in effect on the date the benefits are to begin, without
23-68 subsequent adjustment.
23-69 (e) If a Group A member's disability does not result during
23-70 the performance of the member's duties with either department, the
24-1 member is entitled to a monthly disability pension calculated:
24-2 (1) at a rate of three percent of base pay for each
24-3 year, prorated for fractional years, of pension service, with a
24-4 maximum of 32 years of pension service, or 96 percent of base pay,
24-5 except that if the Group A member had 34 or more years of pension
24-6 service as of April 30, 1990, the member shall receive the greater
24-7 of a disability pension calculated under the combined pension plan
24-8 in effect on that date or as calculated under this subdivision;
24-9 plus
24-10 (2) one-half of the longevity pay the Group A member
24-11 was receiving at the time the member left active service; plus
24-12 (3) 1/24th of the annualized amount of city service
24-13 incentive pay the Group A member received at the time the member
24-14 left active service, without regard to any subsequent adjustment.
24-15 (f) Payments of the amounts described by Subsection (e)(3)
24-16 of this section are contingent on the city's continuing payment of
24-17 city service incentive pay to Group A members on active service.
24-18 (g) For purposes of Subsection (e)(3) of this section, base
24-19 pay and longevity pay are the amounts in effect on the date the
24-20 benefits are to begin, without subsequent adjustment.
24-21 Sec. 6.05. CALCULATION OF GROUP B DISABILITY BENEFITS.
24-22 (a) If a Group B member's application for a Group B disability
24-23 pension has been approved by the board pursuant to Section 6.03 of
24-24 this article, including any procedures adopted under that section,
24-25 the Group B member may, depending on the circumstances, elect to
24-26 receive a Group B disability pension calculated in the manner
24-27 described by Subsection (b) or (c) of this section.
24-28 (b) If a Group B member becomes disabled during the
24-29 performance of the member's duties with either department, the
24-30 member is entitled to a monthly disability pension calculated at a
24-31 rate of three percent of the average computation pay determined
24-32 over the 60 consecutive months in which the Group B member received
24-33 the member's highest computation pay multiplied by the number of
24-34 years, prorated for fractional years, of the member's pension
24-35 service with a minimum of 20 years of pension service being deemed
24-36 credited, or 60 percent of average computation pay determined over
24-37 the 60 consecutive months in which the Group B member received the
24-38 member's highest computation pay, except that if the Group B
24-39 member has less than five years of pension service, the Group B
24-40 member's average computation pay will be computed based on the
24-41 member's entire pension service. If a Group B member had 34 or
24-42 more years of pension service as of April 30, 1990, the Group B
24-43 member is entitled to receive the greater of a Group B disability
24-44 pension calculated under the terms of Plan B in effect on that date
24-45 or calculated pursuant to this subsection.
24-46 (c) The Group B disability pension for any Group B member
24-47 whose disability does not result during the performance of the
24-48 member's duties with either department shall be computed at a rate
24-49 of three percent of the average computation pay determined over the
24-50 60 consecutive months in which the Group B member received the
24-51 member's highest computation pay multiplied by the number of years,
24-52 prorated for fractional years, of the member's pension service,
24-53 except that any partial year of pension service for the first 20
24-54 years of pension service shall be counted as a full year of pension
24-55 service. If the Group B member has less than five years of pension
24-56 service, the Group B member's average computation pay will be
24-57 computed based on the member's entire pension service, and if a
24-58 Group B member had 34 or more years of pension service as of April
24-59 30, 1990, the Group B member is entitled to receive the greater of
24-60 a disability pension calculated under the terms of Plan B in effect
24-61 on that date or calculated pursuant to this subsection.
24-62 (d) The board shall require any Group B pensioner who became
24-63 a member of Plan B or the combined pension plan on or after May 1,
24-64 1990, and who is receiving a Group B disability pension in
24-65 accordance with Subsection (b) or (c) of this section to provide
24-66 the board annually, on or before May 1 of each year, with a true
24-67 and complete copy of those portions of the person's federal and, if
24-68 applicable, state tax return, including appropriate schedules, for
24-69 the previous calendar year that indicate the person's occupations
24-70 and earned income for the previous calendar year. However, the
25-1 board may waive the May 1 date in lieu of one later in the same
25-2 calendar year if the Group B pensioner provides the board with a
25-3 true and complete copy of a grant of an extension of time for the
25-4 filing of the person's tax return from the appropriate governmental
25-5 agency or a true and complete copy of an extension request that
25-6 results in any automatic extension. If the Group B pensioner is or
25-7 has been receiving earned income from one or more employments,
25-8 including self-employment, during the preceding year, the board
25-9 shall reduce future disability pension payments to the Group B
25-10 pensioner in accordance with the following formula: $1 for each $1
25-11 that the sum of "a" + "b" is greater than "c," where "a" is the
25-12 earned income of the Group B pensioner attributable to the previous
25-13 calendar year from the person's employments, "b" is the total
25-14 amount of Group B disability pension received by the Group B
25-15 pensioner the previous calendar year, and "c" is the annualized
25-16 amount of the average computation pay the Group B pensioner
25-17 received as of the date the person left active service. For
25-18 purposes of this computation, the average computation pay shall be
25-19 deemed increased at a rate of four percent simple interest, without
25-20 compounding during the year, as of each January 1 that the Group B
25-21 pensioner receives a Group B disability pension.
25-22 (e) For purposes of Subsection (d) of this section, the
25-23 phrase "earned income" means income earned by a Group B pensioner
25-24 in the form of wages, salaries, commissions, fees, tips,
25-25 unemployment benefits, and other amounts received by virtue of
25-26 employment or self-employment but paid before any deduction for
25-27 taxes or insurance. In addition, earned income also includes those
25-28 amounts contributed on a before-tax basis to any retirement plan or
25-29 employee health and welfare benefit plan.
25-30 Sec. 6.06. GENERAL RULES GOVERNING DEATH BENEFITS. (a) Any
25-31 award of a death benefit is subject to the conditions required by
25-32 this section.
25-33 (b) A written application for benefits must be filed with
25-34 the administrator.
25-35 (c) The application will be considered at the meeting of the
25-36 board held during the month death benefits are to become effective,
25-37 or as soon as possible after the date the benefits become
25-38 effective. No benefits may be paid, however, until the board has
25-39 approved the application.
25-40 (d) The board may require the applicant to provide proof of
25-41 eligibility, such as marriage licenses, birth certificates,
25-42 adoption papers, or sworn statements. The board may withhold any
25-43 death benefit until the eligibility of the applicant has been
25-44 confirmed.
25-45 (e) If the qualified surviving children are not entitled to
25-46 death benefits, the qualified surviving spouse is entitled only to
25-47 receive a share of the death benefits in the amount calculated
25-48 under Section 6.07(a) or (b) or Section 6.08(b)(1), (c)(1), (d)(1),
25-49 or (e)(1) of this article, whichever is applicable, and is not
25-50 entitled to what otherwise would be the qualified surviving
25-51 children's share. If there is no qualifying surviving spouse, any
25-52 qualified surviving children shall receive only the amount
25-53 calculated under Section 6.07(a) or (b) or Section 6.08(b)(2),
25-54 (c)(2), (d)(2), or (e)(2) of this article, whichever is applicable,
25-55 and are not entitled to what otherwise would be the qualified
25-56 surviving spouse's share. If there is no qualified surviving
25-57 spouse or qualified surviving children, any qualified dependent
25-58 parent shall receive only the amount calculated under Section
25-59 6.07(c) or Section 6.08(b)(3), (d)(3), or (e)(3) of this article,
25-60 whichever is applicable, and is not entitled to what otherwise
25-61 would be the qualified surviving spouse's or qualified surviving
25-62 children's share.
25-63 (f) The death benefit received by the qualified surviving
25-64 spouse, qualified surviving children, or qualified dependent parent
25-65 may not exceed the pension to which the deceased primary party was
25-66 entitled per month.
25-67 (g) If there is no surviving spouse or legal guardian for
25-68 the qualified surviving children and if the board determines that
25-69 the qualified surviving children lack the discretion to handle
25-70 money, or in other appropriate circumstances, notwithstanding any
26-1 other provision of this section, the board may request a court of
26-2 competent jurisdiction to appoint a suitable person to receive and
26-3 administer the qualified surviving children's money or in those
26-4 circumstances described in Subsection (n) of this section, appoint
26-5 a new trustee to administer the qualified surviving children's
26-6 support trust.
26-7 (h) With the exception of a support trust described in
26-8 Subsection (n) of this section, no death benefits awarded to
26-9 qualified surviving children may be used for any purpose other than
26-10 to benefit the qualified surviving children. The board may
26-11 withhold payment of benefits if it has reason to believe the
26-12 benefits are not being properly applied.
26-13 (i) Death benefits paid to qualified surviving children
26-14 living with a surviving spouse shall be delivered to the spouse,
26-15 who is required to use the benefits on behalf of the qualified
26-16 surviving children.
26-17 (j) With the exception of those circumstances described in
26-18 Subsection (n) of this section, death benefits paid to qualified
26-19 surviving children living with a person other than the surviving
26-20 spouse shall be delivered to the person with whom the qualified
26-21 surviving children are living, if the board has designated the
26-22 person as being a suitable person to receive and administer the
26-23 benefits. The board may, however, withhold payment of benefits to
26-24 anyone but the legal guardian of the qualified surviving children
26-25 and may require proof that a person has been appointed legal
26-26 guardian of the qualified surviving children before authorizing any
26-27 benefits to be delivered to that person.
26-28 (k) The qualified surviving dependent parents of a member
26-29 are entitled to receive any survivor benefits provided by this
26-30 article for the remainder of their lives.
26-31 (l) The board may require all persons receiving death
26-32 benefits, including qualified surviving spouses, qualified
26-33 surviving children or their guardians, and qualified surviving
26-34 dependent parents, to file with the administrator, at least once
26-35 every two years, a sworn statement concerning their eligibility to
26-36 continue to receive death benefits. The board may also require a
26-37 sworn statement from any person receiving death benefits at any
26-38 time. The board may withhold death benefits from any person who
26-39 fails or refuses to file a statement when requested to do so.
26-40 (m) When the last qualified survivor of any primary party
26-41 becomes ineligible to continue to receive death benefits, that
26-42 survivor shall be paid in a lump sum an amount equal to the
26-43 difference, if any, between the total amount of all contributions
26-44 made to the fund while a member, and the sum of all benefits paid
26-45 to the primary party and all of his qualified survivors. The total
26-46 amount to be paid in benefits to the primary party and all
26-47 qualified survivors shall never be less than the total amount of
26-48 contributions the primary party made to the fund while a member.
26-49 (n) Notwithstanding any other provision of this section,
26-50 death benefits awarded to an unmarried qualified surviving child of
26-51 a primary party who is determined by the board to be handicapped
26-52 under the terms of Subsection (o) of this section may be paid to
26-53 the trustee of a support trust established for the benefit of the
26-54 qualified surviving child if:
26-55 (1) an opinion of counsel of the trustee of the
26-56 support trust is furnished to the board indicating that payments
26-57 made to the support trust will not, under existing law, be
26-58 considered a resource of the qualified surviving child under Title
26-59 42, Section 1396(a)(17), of the United States Code or any successor
26-60 statute, as well as applicable state law or regulations governing
26-61 the situation;
26-62 (2) coincident with the furnishing of the opinion of
26-63 counsel, the board is provided with an executed original of the
26-64 support trust document for the records of the pension system;
26-65 (3) the terms of the trust provide that the board will
26-66 receive an annual accounting of the support trust from its trustee,
26-67 although the board has no legal responsibility to oversee the
26-68 support trust; and
26-69 (4) the support trust will terminate as soon as
26-70 practicable on the earlier occurrence of the following events:
27-1 (A) the date on which the qualified surviving
27-2 child is determined by the board to no longer be handicapped under
27-3 the terms of this section;
27-4 (B) the date on which the qualified surviving
27-5 child is lawfully married;
27-6 (C) the date on which the qualified surviving
27-7 child is deceased;
27-8 (D) the date on which the assets of the support
27-9 trust are deemed to be the resources of the child under applicable
27-10 federal or state laws or regulations; or
27-11 (E) unless otherwise excused by the board, the
27-12 trustee of the support trust fails to provide the board with an
27-13 annual accounting of the trust within six months after the close of
27-14 the support trust's fiscal year.
27-15 (o) When a qualified surviving child who is entitled to
27-16 receive death benefits under this article reaches the age of 19,
27-17 the qualified surviving child may no longer participate in the
27-18 division of the benefits, but the same undiminished qualified
27-19 surviving child's share as determined by this section shall be paid
27-20 to any remaining qualified surviving children under 19 years of
27-21 age. However, a handicapped qualified surviving child may not be
27-22 removed from participation in the division of benefits on reaching
27-23 the age of 19 nor may the child be barred from original
27-24 participation at any time after reaching the age of 19, and the
27-25 payments shall continue for the duration of the handicap. If a
27-26 qualified surviving child is not married and, after cessation of
27-27 benefits (because of attainment of age 19) but before age 23,
27-28 becomes handicapped, the child is entitled to participate in the
27-29 division of death benefits under this article. Notwithstanding the
27-30 preceding, all death benefits granted under this subsection are
27-31 conditioned on the board finding that:
27-32 (1) the qualified surviving child is so physically or
27-33 mentally handicapped, either congenitally or through injury
27-34 suffered or disease contracted, as to be unable to be
27-35 self-supporting or to secure and hold gainful employment or pursue
27-36 an occupation;
27-37 (2) the qualified surviving child is not married;
27-38 (3) the handicap was not the result of an occupational
27-39 injury for which the qualified surviving child received
27-40 compensation equal to or greater than that provided under this
27-41 article;
27-42 (4) the handicap was not the result of an intentional
27-43 self-inflicted injury or a chronic illness itself resulting from an
27-44 addiction of the qualified surviving child through a protracted
27-45 course of noncoerced indulgence in alcohol, narcotics, or other
27-46 substance abuse; and
27-47 (5) the handicap did not occur as a result of the
27-48 qualified surviving child's participation in the commission of a
27-49 felony.
27-50 (p) If a handicapped qualified surviving child received or
27-51 is receiving compensation resulting from an occupational injury
27-52 equal to an amount less than the death benefit to be provided under
27-53 this section, the difference shall be paid out of the assets of the
27-54 fund in the form otherwise payable as monthly benefits. For
27-55 purposes of Subsection (o) of this section, if a lump sum is
27-56 awarded for an injury, the fund's actuary may compute a
27-57 corresponding monthly equivalent. A finding relating to a
27-58 qualified surviving child's handicap is subject to review and
27-59 modification by the board.
27-60 (q) On the death or marriage of a qualified surviving child
27-61 granted death benefits under this article, the death benefits shall
27-62 cease being paid to that child; however, the same undiminished
27-63 qualified surviving child's share as determined by this section
27-64 shall be uniformly distributed among any remaining unmarried
27-65 qualified surviving children who are under 19 years of age and any
27-66 unmarried qualified surviving children who are handicapped as
27-67 described by Subsection (o) of this section.
27-68 (r) A spouse resulting from any marriage to a former member
27-69 or pensioner after the date the member or pensioner leaves active
27-70 service is not a qualified surviving spouse and is not entitled to
28-1 death benefits under this article.
28-2 (s) To be eligible for death benefits under this article,
28-3 qualified surviving children must be conceived, born, or legally
28-4 adopted before the primary party leaves active service.
28-5 (t) A qualified surviving spouse who first remarried on or
28-6 after April 21, 1988, is eligible to receive death benefits for the
28-7 remainder of the qualified surviving spouse's life. This
28-8 subsection may not be applied retroactively.
28-9 Sec. 6.07. GROUP A DEATH BENEFITS. (a)(1) If a Group A
28-10 member dies before service retirement and before the Group A member
28-11 has 20 years of pension service, leaving both a qualified surviving
28-12 spouse and qualified surviving children, the qualified surviving
28-13 spouse shall make an election for all survivors to receive a Group
28-14 A death benefit consisting in the aggregate of an amount equal to a
28-15 Group A retirement pension computed under the terms of Section 6.01
28-16 of this article as if the Group A member had completed 20 years of
28-17 pension service. An election under this subdivision, once made, is
28-18 irrevocable. This Group A death benefit shall be divided one-half
28-19 to the qualified surviving spouse and one-half to the qualified
28-20 surviving children.
28-21 (2) If a Group A pensioner dies during disability
28-22 retirement and before the Group A pensioner had 20 years of pension
28-23 service, leaving both a qualified surviving spouse and qualified
28-24 children, the survivors in the aggregate shall receive a Group A
28-25 death benefit calculated either under Sections 6.01(b) and (c) of
28-26 this article if the Group A pensioner's Group A disability pension
28-27 was calculated under Section 6.04(a) of this article, or under
28-28 Section 6.01(e) of this article if the Group A pensioner's Group A
28-29 disability pension was calculated under Section 6.04(b) of this
28-30 article. This Group A death benefit shall be divided one-half to
28-31 the qualified surviving spouse and one-half to the qualified
28-32 surviving children.
28-33 (b)(1) If a Group A member or former Group A member dies
28-34 before service retirement and after the Group A member or former
28-35 Group A member has 20 years of pension service, leaving both a
28-36 qualified surviving spouse and qualified surviving children, the
28-37 qualified surviving spouse shall make an election for all survivors
28-38 to receive a Group A death benefit of an amount equal to a Group A
28-39 retirement pension the Group A member or former Group A member
28-40 would have received had the person left active service on the date
28-41 of death, computed under the terms of Section 6.01 of this article.
28-42 An election under this subdivision, once made, is irrevocable.
28-43 This Group A death benefit shall be divided one-half to the
28-44 qualified surviving spouse and one-half to the qualified surviving
28-45 children.
28-46 (2)(A) If a Group A pensioner dies leaving both a
28-47 qualified surviving spouse and qualified surviving children, the
28-48 qualified surviving spouse shall make an election for all survivors
28-49 to receive a Group A death benefit in the amount of the Group A
28-50 retirement pension being received by the Group A pensioner before
28-51 the person's death. This Group A death benefit shall be divided
28-52 one-half to the qualified surviving spouse and one-half to the
28-53 qualified surviving children.
28-54 (B) With the exception of those circumstances
28-55 described by Section 6.06(n) of this article, the Group A death
28-56 benefits awarded to the qualified survivors under this subsection
28-57 shall be paid entirely to the qualified surviving spouse and the
28-58 qualified surviving children. The qualified surviving children's
28-59 one-half share shall be equally and uniformly distributed by the
28-60 qualified surviving spouse to them.
28-61 (c)(1) If a Group A member or former Group A member dies
28-62 leaving no qualified surviving spouse or qualified surviving
28-63 children but leaves surviving one or both qualified surviving
28-64 dependent parents, the qualified surviving dependent parents may
28-65 elect to receive a Group A death benefit equal to the Group A
28-66 retirement pension the Group A member or former Group A member
28-67 would have been entitled to under Section 6.01 of this article
28-68 after leaving active service. If there are two qualified dependent
28-69 parents, the election must be mutual. An election under this
28-70 subdivision, once made, is irrevocable. The qualified surviving
29-1 dependent parents of a Group A pensioner shall receive a Group A
29-2 death benefit equal to the amount of the actual Group A retirement
29-3 pension being received at the time of the pensioner's death,
29-4 divided equally between the qualified surviving dependent parents.
29-5 (2) If a Group A pensioner dies during disability
29-6 retirement and before the Group A pensioner had 20 years of pension
29-7 service, leaving no qualified surviving spouse or qualified
29-8 surviving children, but leaves surviving one or both qualified
29-9 surviving dependent parents, the qualified surviving dependent
29-10 parents may elect to receive a Group A death benefit calculated
29-11 either: under Sections 6.01(b) and (c) of this article if the
29-12 Group A pensioner's Group A disability pension was calculated under
29-13 Section 6.04(a) of this article, or under Section 6.01(e) of this
29-14 article if the Group A pensioner's Group A disability pension was
29-15 calculated under Section 6.04(b) of this article. An election
29-16 under this subdivision, once made, is irrevocable.
29-17 (d) If there is only one qualified surviving dependent
29-18 parent, the parent is entitled to one-half of the amount determined
29-19 under Subsection (c)(1) or (c)(2) of this section.
29-20 Sec. 6.08. GROUP B DEATH BENEFITS. (a) If a Group B member
29-21 dies while on active service, a former Group B member who is vested
29-22 under Section 5.06 of this article dies, or a Group B pensioner
29-23 dies while on service or disability retirement, the person's
29-24 qualified survivors, or the guardian of the qualified surviving
29-25 children if no qualified surviving spouse exists, may make
29-26 application for Group B death benefits. The qualified surviving
29-27 spouse of a Group B member or former Group B member described by
29-28 this subsection, the guardian of the qualified surviving children
29-29 of the person if no qualified surviving spouse exists, or the
29-30 qualified dependent parents if no qualified surviving spouse or
29-31 qualified surviving children exist, have the option to select
29-32 whether Group A or Group B death benefits are received, if the
29-33 Group B member or former Group B member was eligible to receive
29-34 either a Group A or Group B retirement pension. A qualified
29-35 survivor who receives Group A death benefits under this subsection
29-36 is entitled to a ratable portion of a reimbursement from the fund
29-37 in the same amount and manner determined under Section 5.03(d) of
29-38 this article. A qualified survivor or guardian desiring a refund
29-39 of excess contributions must make application for the refund with
29-40 the administrator within three years after the date the qualified
29-41 survivor or guardian makes application for Group A death benefits.
29-42 The option contained in this subsection is not available to
29-43 qualified survivors of a Group B member or former Group B member
29-44 who had, at the time of death, already applied for a retirement
29-45 pension and selected a Group A retirement pension as provided by
29-46 Section 5.03(c) of this article, but the qualified survivors are
29-47 entitled to receive a Group A death benefit.
29-48 (b) Death benefits shall be computed as follows for the
29-49 qualified survivors of Group B members who die while on active
29-50 service:
29-51 (1) A qualified surviving spouse's Group B death
29-52 benefit shall be computed at the rate of 1.5 percent of the Group B
29-53 member's average computation pay determined over the 60 consecutive
29-54 months in which the Group B member received the highest computation
29-55 pay, for each year, and prorated for fractional years, of pension
29-56 service with a minimum of 20 years of pension service assumed, or
29-57 30 percent of the average computation pay determined over the 60
29-58 consecutive months in which the member received the highest
29-59 computation pay. The benefit may not exceed a computation for 32
29-60 years of pension service, or 48 percent of the average computation
29-61 pay determined over the 60 consecutive months in which the Group B
29-62 member received the highest computation pay. If the Group B member
29-63 had less than five years of pension service, the average
29-64 computation pay will be computed based on the person's entire
29-65 pension service.
29-66 (2) A qualified surviving child's Group B death
29-67 benefit shall be computed in the same manner as a qualified
29-68 surviving spouse's benefit is computed under Subdivision (1) of
29-69 this subsection and shall be divided equally among all of the
29-70 qualified surviving children.
30-1 (3) Each qualified surviving dependent parent's Group
30-2 B death benefit shall be computed in the same manner as a qualified
30-3 surviving spouse's Group B benefit is computed under Subdivision
30-4 (1) of this subsection.
30-5 (c) Group B death benefits shall be computed as follows for
30-6 the qualified survivors of any former Group B member who died after
30-7 leaving active service and who had vested rights under Section 5.06
30-8 of this article but who had not received Group B retirement
30-9 benefits under Section 6.02 of this article at the time of death:
30-10 (1) The qualified surviving spouse of the former Group
30-11 B member is entitled to a Group B death benefit equal to 50 percent
30-12 of any Group B retirement pension the former Group B member would
30-13 have been entitled to under Section 6.02 of this article as of the
30-14 date the former Group B member left active service.
30-15 (2) The qualified surviving children of the former
30-16 Group B member are entitled to a Group B benefit calculated in the
30-17 same manner as the Group B death benefit of a qualified surviving
30-18 spouse, to be divided equally between the qualified surviving
30-19 children.
30-20 (3) Each of the qualified surviving dependent parents
30-21 of the former Group B member is entitled to a Group B death benefit
30-22 equal to 50 percent of any Group B retirement pension the former
30-23 Group B member would have been entitled to under the provisions of
30-24 Section 6.02 of this article as of the date the former Group B
30-25 member left active service.
30-26 (d) Group B death benefits shall be computed as follows for
30-27 the qualified survivors of any Group B pensioner of this plan who
30-28 dies while receiving a Group B retirement pension:
30-29 (1) The qualified surviving spouse of a Group B
30-30 pensioner is entitled to Group B death benefits equal to 50 percent
30-31 of any retirement pension the Group B pensioner was receiving at
30-32 the time of death.
30-33 (2) The qualified surviving children of a Group B
30-34 pensioner are entitled to a Group B death benefit calculated in the
30-35 same manner as the Group B death benefit of a qualified surviving
30-36 spouse, to be divided equally between the qualified surviving
30-37 children.
30-38 (3) Each of the qualified surviving dependent parents
30-39 of a Group B pensioner is entitled to a Group B death benefit equal
30-40 to 50 percent of any retirement pension the Group B pensioner was
30-41 receiving at the time of death.
30-42 (e) Group B death benefits shall be computed as follows for
30-43 the qualified survivors of any Group B pensioner who dies while
30-44 receiving a Group B disability pension due to either a
30-45 service-connected or nonservice-connected disability:
30-46 (1) The qualified surviving spouse of the Group B
30-47 pensioner is entitled to the greater of a Group B death benefit
30-48 equal to 50 percent of any Group B disability pension the Group B
30-49 pensioner would have been entitled to under Section 6.05 of this
30-50 article as of the date the Group B pensioner left active service
30-51 because of disability, or a Group B death benefit equal to 50
30-52 percent of any Group B disability pension the Group B pensioner was
30-53 receiving at the time of death.
30-54 (2) The qualified surviving children of the Group B
30-55 pensioner are entitled to a Group B death benefit calculated in the
30-56 same manner as the Group B death benefit of a qualified surviving
30-57 spouse, to be divided equally between the qualified surviving
30-58 children.
30-59 (3) Each of the qualified surviving dependent parents
30-60 of the Group B pensioner is entitled to the greater of a Group B
30-61 death benefit equal to 50 percent of any disability pension the
30-62 Group B pensioner would have been entitled to under Section 6.05 of
30-63 this article as of the date the Group B pensioner left active
30-64 service because of disability, or a Group B death benefit equal to
30-65 50 percent of any Group B disability pension the Group B pensioner
30-66 was receiving at the time of death.
30-67 Sec. 6.09. QUALIFIED SURVIVING SPOUSE SPECIAL DEATH BENEFIT.
30-68 (a) Notwithstanding Sections 6.06 and 6.07 of this article, the
30-69 qualified surviving spouse of a Group A primary party is entitled
30-70 to a special death benefit under this section if:
31-1 (1) the Group A primary party elected to receive a
31-2 Group A retirement pension and later died, was receiving a
31-3 disability or retirement pension either under the terms of Plan A
31-4 before the original enactment of this article or elected to receive
31-5 a Group A retirement pension under Sections 6.01(e), (f), and (g)
31-6 of this article and later died, or was receiving a Group A
31-7 disability pension under Section 6.04(c) of this article and later
31-8 died;
31-9 (2) the Group A primary party (i) had at least 20
31-10 years of pension service and left active service after October 1,
31-11 1985, and was at least 55 years of age or older; or (ii) on or
31-12 after May 1, 1990, the Group A primary party, after accruing at
31-13 least 20 years of pension service, left active service and had a
31-14 total of at least 80 credits, with each year of pension service,
31-15 prorated for fractional years, equal to one credit and with each
31-16 year of age, prorated for fractional years, equal to one credit;
31-17 and
31-18 (3) the qualified surviving spouse has attained 55
31-19 years of age and there are no qualified surviving children eligible
31-20 for death benefits.
31-21 (b) Until the requirements of Subsection (a) of this section
31-22 are satisfied, a qualified surviving spouse shall receive a Group A
31-23 death benefit in accordance with Section 6.07 of this article.
31-24 (c) The special Group A death benefit under this section is
31-25 calculated based on the following formula:
31-26 (P x B x A) + (P x C) + D, where
31-27 service retirement, dies, or becomes disabled, plus longevity pay,
31-28 plus one-twelfth of last-received city service incentive pay;
31-29 the Group A primary party begins service retirement, dies, or
31-30 becomes disabled;
31-31 party's Group A retirement pension or Group A disability pension
31-32 under Section 6.12 of this article multiplied by the amount of the
31-33 adjustments; and
31-34 spouse's Group A death benefit under Section 6.12 of this article
31-35 multiplied by the amount of the adjustments.
31-36 (d) Notwithstanding Sections 6.03 and 6.05 of this article,
31-37 a qualified surviving spouse of a Group B primary party who is
31-38 entitled to any death benefits under Sections 6.06 or 6.08 of this
31-39 article is also entitled to a special benefit under this section
31-40 if:
31-41 (1) the Group B primary party elected to receive a
31-42 Group B retirement pension and later died, or was receiving a Group
31-43 B disability or retirement pension under this article and died;
31-44 (2) the Group B primary party:
31-45 (A) had at least 20 years of pension service,
31-46 left active service after October 1, 1985, and was at least 55
31-47 years of age at the time of leaving active service; or
31-48 (B) on or after May 1, 1990, the Group B primary
31-49 party left active service having a total of at least 80 credits,
31-50 with each year of pension service, prorated for fractional years,
31-51 equal to one credit and with each year of age, prorated for
31-52 fractional years, equal to one credit; and
31-53 (3) the qualified surviving spouse has attained 55
31-54 years of age, and there are no qualified surviving children.
31-55 Until the requirements of Subsection (c) of this section are
31-56 satisfied, a qualified surviving spouse may only receive a Group B
31-57 death benefit in accordance with Sections 6.03 and 6.05 of this
31-58 article.
31-59 (e) This special survivor benefit under this section is
31-60 calculated based on the following formula:
31-61 (P x B x A) + (P x C) + D, where
31-62 primary party begins service retirement, dies, or becomes disabled;
31-63 B disability pension calculated at the time the Group B primary
31-64 party begins service or disability retirement or dies;
31-65 B primary party's Group B retirement pension or Group B disability
31-66 pension under Section 6.12 of this article multiplied by the amount
31-67 of the adjustments; and
31-68 spouse's Group B death benefit under Section 6.12 of this article
31-69 multiplied by the amount of the adjustments.
31-70 Sec. 6.10A. MINIMUM BENEFITS TO GROUP A PRIMARY PARTIES WHO
32-1 ELECT TO RECEIVE RETIREMENT PENSION UNDER SECTIONS 6.01(B) AND (C)
32-2 AND THEIR QUALIFIED SURVIVORS. (a) Except as provided by
32-3 Subsections (b) and (h) of this section and notwithstanding any
32-4 benefit computation and determination to the contrary contained in
32-5 this article, the minimum Group A benefits provided by this section
32-6 shall be paid to any Group A primary party who elects to receive a
32-7 Group A retirement pension under Sections 6.01(b) and (c) of this
32-8 article or the primary party's qualified survivors. The benefits
32-9 under this section shall be distributed in accordance with Sections
32-10 6.01(b) and (c), 6.04(a), or 6.07 of this article, as applicable,
32-11 except that a Group A primary party who elects to receive an
32-12 actuarially reduced Group A retirement pension because of the
32-13 primary party's request to receive a Group A retirement pension
32-14 before 50 years of age and the primary party's qualified survivors
32-15 are not entitled to the Group A minimum benefits specified under
32-16 this section. An alternate payee is not entitled to the Group A
32-17 minimum benefits specified in this section.
32-18 (b) A Group A primary party who elects to receive a Group A
32-19 retirement pension under Sections 6.01(b) and (c) of this article
32-20 and who left active service with 20 or more years of pension
32-21 service is entitled to receive a minimum Group A retirement pension
32-22 of $1,500 a month. If the Group A primary party's Group A
32-23 retirement pension is subject to a qualified domestic relations
32-24 order and the sum of the actuarial equivalents of the monthly
32-25 benefits payable to the Group A primary party and the alternate
32-26 payee is less than the actuarial equivalent of the minimum monthly
32-27 Group A retirement pension described by this subsection, the Group
32-28 A primary party's monthly Group A retirement pension will be
32-29 increased so that the sum of the actuarial equivalents of the
32-30 alternate payee's and the Group A primary party's monthly Group A
32-31 retirement pension equals the actuarial equivalent of the minimum
32-32 monthly Group A retirement pension calculated under this
32-33 subsection.
32-34 (c) A qualified surviving spouse of a Group A primary party
32-35 who elected to receive a Group A retirement pension under Sections
32-36 6.01(b) and (c) of this article will receive a minimum monthly
32-37 Group A death benefit of $750.
32-38 (d) A qualified surviving spouse of a Group A primary party
32-39 who elected to receive a Group A retirement pension under Sections
32-40 6.01(b) and (c) of this article will receive, if there are
32-41 qualified surviving children, a minimum Group A death benefit of
32-42 $750 a month. The qualified surviving children, as a group, will
32-43 receive a minimum Group A death benefit of $750 a month, to be
32-44 divided equally among them.
32-45 (e) In the absence of a qualified surviving spouse of a
32-46 Group A primary party who elected to receive a Group A retirement
32-47 pension under Sections 6.01(b) and (c) of this article, the primary
32-48 party's qualified surviving children, as a group, will receive a
32-49 minimum Group A death benefit of $750 a month, to be divided
32-50 equally among them.
32-51 (f) In the absence of both a qualified surviving spouse and
32-52 qualified surviving children of a Group A primary party who elected
32-53 to receive a Group A retirement pension under Sections 6.01(b) and
32-54 (c) of this article, each qualified surviving dependent parent will
32-55 receive a minimum Group A death benefit of $750 a month. If only
32-56 one of them is surviving, the qualified surviving dependent parent
32-57 will receive a minimum Group A death benefit equal to $750 a month.
32-58 (g) Notwithstanding the minimum monthly benefit described in
32-59 other subsections of this section, a Group A primary party who
32-60 receives a Group A disability pension under Section 6.04(a) of this
32-61 article, calculated in the same manner as a Group A retirement
32-62 pension under Sections 6.01(b) and (c) of this article, shall
32-63 receive a minimum Group A disability pension equal to $1,500 a
32-64 month.
32-65 (h) If a Group A primary party's disability pension is
32-66 subject to a qualified domestic relations order and the sum of the
32-67 actuarial equivalents of the monthly benefits payable to the Group
32-68 A primary party and the alternate payee is less than the actuarial
32-69 equivalent of the minimum monthly Group A disability pension
32-70 determined under Subsection (g) of this section, the Group A
33-1 primary party's minimum monthly Group A disability pension will be
33-2 increased so that the sum of the actuarial equivalents of the
33-3 alternate payee's and the Group A primary party's minimum monthly
33-4 Group A disability pension equals the amount determined under
33-5 Subsection (g) of this section.
33-6 (i) If a Group A pensioner who received a disability under
33-7 Section 6.04(a) of this article, calculated in the same manner as a
33-8 Group A retirement pension under Sections 6.01(b) and (c) of this
33-9 article before the completion of 20 years of pension service dies,
33-10 the qualified survivors will receive a minimum Group A death
33-11 benefit as provided under Subsection (c), (d), (e), or (f) of this
33-12 section, as applicable, whichever is greatest.
33-13 Sec. 6.10B. MINIMUM BENEFITS TO GROUP A PRIMARY PARTIES WHO
33-14 ELECT TO RECEIVE RETIREMENT PENSION UNDER SECTION 6.01(E) AND THEIR
33-15 QUALIFIED SURVIVORS. (a) Except as provided by Subsections (b)
33-16 and (h) of this section and notwithstanding any benefit computation
33-17 and determination to the contrary contained in this article, the
33-18 minimum Group A benefits provided by this section shall be paid to
33-19 any Group A primary party who elects to receive a Group A
33-20 retirement pension under Section 6.01(e) of this article or the
33-21 primary party's qualified survivors. The benefits under this
33-22 section shall be distributed in accordance with Section 6.01(e),
33-23 6.04(b), or 6.07 of this article, as applicable, except that a
33-24 Group A primary party who elects to receive an actuarially reduced
33-25 Group A retirement pension because of the primary party's request
33-26 to receive a Group A retirement pension before 55 years of age and
33-27 the primary party's qualified survivors are not entitled to the
33-28 Group A minimum benefits specified under this section. An
33-29 alternate payee is not entitled to the Group A minimum benefits
33-30 specified in this section.
33-31 (b) A Group A primary party who elected to receive a Group A
33-32 retirement pension under Section 6.01(e) of this article and who
33-33 left active service with 20 or more years of pension service is
33-34 entitled to receive a minimum Group A retirement pension equal to
33-35 the greater of (i) $1,500 a month or (ii) $1,000 a month adjusted
33-36 in the manner described by Section 6.12(a) of this article. If the
33-37 Group A primary party's Group A retirement pension is subject to a
33-38 qualified domestic relations order and the sum of the actuarial
33-39 equivalents of the monthly benefits payable to the Group A primary
33-40 party and the alternate payee is less than the actuarial equivalent
33-41 of the minimum monthly Group A retirement pension described by this
33-42 subsection, the Group A primary party's monthly Group A retirement
33-43 pension will be increased so that the sum of the actuarial
33-44 equivalents of the alternate payee's and the Group A primary
33-45 party's monthly Group A retirement pension equals the actuarial
33-46 equivalent of the minimum monthly Group A retirement pension
33-47 calculated under this subsection.
33-48 (c) A qualified surviving spouse of a Group A primary party
33-49 who elected to receive a Group A retirement pension under Section
33-50 6.01(e) of this article will receive a minimum Group A death
33-51 benefit equal to the greater of (i) $750 a month or (ii) $500 a
33-52 month adjusted in the manner described by Section 6.12(a) of this
33-53 article.
33-54 (d) A qualified surviving spouse of a Group A primary party
33-55 who elects to receive a Group A retirement pension under Section
33-56 6.01(e) of this article, will receive, if there are qualified
33-57 surviving children, a minimum Group A death benefit equal to the
33-58 greater of (i) $750 a month or (ii) $500 a month adjusted in the
33-59 manner described by Section 6.12(a) of this article. The qualified
33-60 surviving children, as a group, will receive a minimum Group A
33-61 death benefit equal to the greater of (iii) $750 a month or (iv)
33-62 $500 a month adjusted in the manner described by Section 6.12(a) of
33-63 this article, to be divided equally among them.
33-64 (e) In the absence of a qualified surviving spouse of a
33-65 Group A primary party who elected to receive a Group A retirement
33-66 pension under Section 6.01(e) of this article, the qualified
33-67 surviving children of a Group A primary party, as a group, will
33-68 receive a minimum Group A death benefit equal to the greater of (i)
33-69 $750 a month or (ii) $500 a month adjusted in the manner described
33-70 by Section 6.12(a) of this article, to be divided equally among
34-1 them.
34-2 (f) In the absence of both a qualified surviving spouse and
34-3 qualified surviving children of a Group A primary party who elected
34-4 to receive a Group A retirement pension under Section 6.01(e) of
34-5 this article, each qualified surviving dependent parent will
34-6 receive a minimum Group A death benefit equal to the greater of (i)
34-7 $750 a month or (ii) $500 a month adjusted in the manner described
34-8 by Section 6.12(a) of this article. If only one of them is
34-9 surviving, the qualified surviving dependent parent will receive a
34-10 minimum Group A death benefit equal to the greater of (iii) $750 a
34-11 month or (iv) $500 a month adjusted in the manner described by
34-12 Section 6.12(a) of this article.
34-13 (g) Notwithstanding the minimum monthly benefit as described
34-14 in other subsections of this section, a Group A primary party who
34-15 leaves active service on a nonservice-connected disability under
34-16 Section 6.04(b)(2) of this article with less than 20 years of
34-17 pension service shall receive a minimum monthly Group A disability
34-18 pension equal to the greater of (i) $75 multiplied by the number of
34-19 years of the primary party's pension service or (ii) $50 multiplied
34-20 by the number of years of the primary party's pension service, the
34-21 product adjusted in the manner described by Section 6.12(a) of this
34-22 article.
34-23 (h) If the disability pension of a Group A primary party who
34-24 leaves active service on disability retirement under Section
34-25 6.04(b) or (c) of this article is subject to a qualified domestic
34-26 relations order and the sum of the actuarial equivalents of the
34-27 monthly benefits payable to the Group A primary party and the
34-28 alternate payee is less than the actuarial equivalent of the
34-29 monthly Group A disability pension determined under Subsection (g)
34-30 of this section, the Group A primary party's monthly Group A
34-31 disability pension will be increased so that the sum of the
34-32 actuarial equivalents of the alternate payee's and the Group A
34-33 primary party's monthly Group A disability pension equals the
34-34 amount determined under Subsection (g) of this section.
34-35 (i) If a Group A pensioner who received a
34-36 nonservice-connected disability under Section 6.04(b)(2) of this
34-37 article before the completion of 20 years of pension service dies,
34-38 the qualified survivors will each receive the amount specified in
34-39 Section 6.07 of this article or the minimum monthly Group A death
34-40 benefit as provided under Subsection (c), (d), (e), or (f) of this
34-41 section, as applicable, whichever is greatest.
34-42 Sec. 6.11. MINIMUM BENEFITS TO GROUP B PRIMARY PARTIES AND
34-43 THEIR QUALIFIED SURVIVORS. (a) Except as provided by Subsections
34-44 (b), (c), and (h) of this section and notwithstanding any benefit
34-45 computation and determination to the contrary contained in this
34-46 article, the minimum Group B benefits provided by this section
34-47 shall be paid to any Group B primary party or the primary party's
34-48 qualified survivors, except that a Group B primary party who elects
34-49 to receive an actuarially reduced Group B retirement pension
34-50 because of the primary party's request to receive the pension at or
34-51 after age 45, but before age 50 and the primary party's qualified
34-52 survivors are not entitled to the Group B minimum benefits
34-53 specified by this section.
34-54 (b) If a Group B primary party leaves active service with 20
34-55 or more years of pension service, the Group B primary party is
34-56 entitled to receive a Group B minimum retirement pension equal to
34-57 the greater of (i) $1,500 a month or (ii) $925 a month, which sum
34-58 may (A) increase at the rate of $5 a month for each year of pension
34-59 service beyond 20 years, but the increase may not exceed $75 and
34-60 (B) be adjusted in the manner described by Section 6.12(a) of this
34-61 article. If a Group B primary party's Group B retirement pension
34-62 is or becomes subject to a qualified domestic relations order and
34-63 the sum of the actuarial equivalents of the monthly Group B
34-64 retirement pension payable to the Group B primary party and the
34-65 alternate payee is less than the actuarial equivalent of the
34-66 minimum monthly Group B retirement pension as calculated under this
34-67 subsection, the Group B primary party's monthly Group B retirement
34-68 pension will be increased so that the sum of the actuarial
34-69 equivalents of both the alternate payee's and the Group B primary
34-70 party's Group B retirement pensions equals the actuarial equivalent
35-1 of the minimum monthly Group B retirement pension as calculated
35-2 under this subsection.
35-3 (c) If a Group B primary party leaves active service with
35-4 less than 20 years of pension service, the primary party is
35-5 entitled to receive a minimum monthly Group B retirement pension
35-6 equal to the greater of (i) $1,500 a month divided by 20 and
35-7 multiplied by the Group B primary party's number of years of
35-8 pension service or (ii) $925 a month divided by 20 and multiplied
35-9 by the Group B primary party's number of years of pension service,
35-10 which amount is then adjusted in the manner described by Section
35-11 6.12(a) of this article. If a Group B primary party's retirement
35-12 pension is or becomes subject to a qualified domestic relations
35-13 order and the sum of the actuarial equivalents of the monthly Group
35-14 B retirement pension payable to the Group B primary party and the
35-15 alternate payee is less than the actuarial equivalent of the
35-16 monthly retirement pension as calculated under this subsection, the
35-17 Group B primary party's monthly Group B retirement pension will be
35-18 increased so that the sum of the actuarial equivalents of the
35-19 alternate payee's and the Group B primary party's monthly Group B
35-20 retirement pensions equals the actuarial equivalent of the minimum
35-21 monthly Group B retirement pension as calculated under this
35-22 subsection.
35-23 (d) In the absence of qualified surviving children, the
35-24 qualified surviving spouse of a Group B primary party will receive
35-25 a minimum Group B death benefit equal to the greater of (i) $750 a
35-26 month or (ii) $600 a month adjusted in the manner described by
35-27 Section 6.12(a) of this article.
35-28 (e) A qualified surviving spouse of a Group B primary party
35-29 will receive, if there are qualified surviving children, the
35-30 greater of a minimum Group B death benefit of 50 percent of the
35-31 primary party's minimum monthly Group B retirement pension
35-32 described by Subsection (b) or (c) of this section, whichever is
35-33 applicable. The qualified surviving children, as a group, will
35-34 receive the greater of a minimum monthly Group B death benefit of
35-35 50 percent of the minimum monthly Group B retirement pension
35-36 described by Subsection (b) or (c) of this section, whichever is
35-37 applicable, to be divided equally among them.
35-38 (f) In the absence of a qualified surviving spouse, the
35-39 qualified surviving children of a Group B primary party, as a
35-40 group, will receive a minimum Group B death benefit equal to the
35-41 greater of (i) $750 a month or (ii) $600 a month adjusted in the
35-42 manner described by Section 6.12(a) of this article, to be divided
35-43 equally between them.
35-44 (g) In the absence of either a qualified surviving spouse or
35-45 qualified surviving children, each qualified surviving dependent
35-46 parent of the deceased Group B primary party will receive a Group
35-47 B minimum death benefit equal to the greater of 50 percent of the
35-48 Group B primary party's minimum monthly Group B retirement pension
35-49 described by Subsection (b) or (c) of this section, whichever is
35-50 applicable. If only one qualified surviving dependent parent is
35-51 surviving, the parent will receive a Group B minimum death benefit
35-52 of 50 percent of the minimum monthly Group B retirement pension
35-53 described by Subsection (b) or (c) of this section, whichever is
35-54 applicable.
35-55 (h) Notwithstanding the minimum monthly Group B retirement
35-56 pension otherwise described by this section, a Group B primary
35-57 party who left active service on a nonservice-connected disability
35-58 with less than 20 years of pension service will receive a minimum
35-59 monthly Group B disability pension equal to the greater of (i) $75
35-60 multiplied by the number of years of the primary party's pension
35-61 service or (ii) $46.25 multiplied by the number of years of the
35-62 primary party's pension service, the product adjusted in the manner
35-63 described by Section 6.12(a) of this article. If the Group B
35-64 primary party's Group B disability pension is or becomes subject to
35-65 a qualified domestic relations order and the sum of the actuarial
35-66 equivalents of the monthly Group B disability pension payable to
35-67 the Group B primary party and the alternate payee is less than the
35-68 actuarial equivalent of the monthly disability pension as
35-69 calculated under this subsection, the Group B primary party's
35-70 monthly Group B disability pension will be increased so that the
36-1 sum of the actuarial equivalents of the alternate payee's and the
36-2 Group B primary party's monthly Group B disability pensions equals
36-3 the actuarial equivalents of the minimum monthly Group B disability
36-4 pension as calculated under this subsection. If a Group B primary
36-5 party who was receiving a nonservice-connected Group B disability
36-6 pension before the completion of 20 years pension service dies, the
36-7 qualified survivors will receive the amount specified in Section
36-8 6.08 of this article, or the Group B minimum monthly death benefits
36-9 granted to qualified survivors as provided by Subsections (d), (e),
36-10 (f), and (g) of this section, as applicable, whichever is greater.
36-11 Sec. 6.12. ADJUSTMENTS TO RETIREMENT AND DISABILITY PENSION
36-12 BENEFITS. (a) Annually on the first day of October, a retirement
36-13 pension calculated under Section 6.01 or 6.02 of this article, a
36-14 disability pension calculated under Section 6.04 or 6.05 of this
36-15 article, or a death benefit calculated under Section 6.07 or 6.08
36-16 of this article currently in pay status, or pending board approval
36-17 on the last day of September, will be increased by an amount equal
36-18 to four percent, not compounded, of the original amount of the
36-19 retirement or disability pension or death benefit.
36-20 (b) The minimum monthly benefits provided to a primary party
36-21 or a qualified survivor under Section 6.10A, 6.10B, or 6.11 of this
36-22 article shall be adjusted in the same manner described by
36-23 Subsection (a) of this section; however, the adjustments apply only
36-24 to the amount of the minimum monthly benefit first received by the
36-25 primary party or qualified survivor after September 30, 1992, which
36-26 is known as the base benefit. If the base benefit of a primary
36-27 party or qualified survivor is an amount less than the minimum
36-28 monthly benefit currently provided for under Section 6.10A, 6.10B,
36-29 or 6.11 of this article, the minimum monthly benefit may not be
36-30 increased until the adjusted base benefit exceeds the minimum
36-31 monthly benefit.
36-32 (c) A Group B retirement or Group B disability pension paid
36-33 to any Group B pensioner may not be less than the Group B
36-34 pensioner's base pension. The death benefit of a Group B qualified
36-35 surviving spouse, Group B qualified surviving dependent parents, as
36-36 a group, or Group B qualified surviving children, as a group, may
36-37 not be less than 50 percent of a Group B pensioner's base pension.
36-38 Sec. 6.13. SUPPLEMENT TO CERTAIN RECIPIENTS 55 YEARS OF AGE
36-39 OR OLDER. If a pensioner had at least 20 years of pension service
36-40 under any plan adopted pursuant to Article 6243a or this article,
36-41 or if a pensioner is receiving a service-connected disability
36-42 pension, the pensioner, the pensioner's qualified surviving spouse
36-43 who is eligible to receive benefits under this article, or the
36-44 pensioner's qualified surviving children, as a group, under Section
36-45 6.06(o) of this article are entitled to receive, when the pensioner
36-46 or qualified surviving spouse attains 55 years of age, the greater
36-47 of a monthly supplement equal to $50 or three percent of their
36-48 total monthly benefit, and for years beginning on and after January
36-49 1, 1991, the monthly supplement will be equal to the greater of $75
36-50 or three percent of their total monthly benefit. For purposes only
36-51 of calculating this supplement, the phrase "their total monthly
36-52 benefit" means the amount payable to a pensioner or qualified
36-53 survivors under the terms of the plans described by this section
36-54 under which the pensioner or qualified survivor elected to receive
36-55 benefits but does not include the supplement authorized by this
36-56 section.
36-57 Sec. 6.14. DEFERRED RETIREMENT OPTION PLAN. (a) In lieu of
36-58 either leaving active service and commencing a retirement pension
36-59 as provided for under Section 6.01 or 6.02 of this article,
36-60 whichever is applicable, or remaining in active service and
36-61 continuing to accrue additional pension benefits as provided under
36-62 Section 6.01 or 6.02, a member who is eligible to receive an
36-63 unreduced retirement pension under Section 6.01 or 6.02 may remain
36-64 in active service, become a participant in the Deferred Retirement
36-65 Option Plan ("DROP") in accordance with Subsections (b) and (c) of
36-66 this section, and defer the beginning of the person's retirement
36-67 pension. Once an election to participate in the DROP has been
36-68 made, the election continues in effect as long as the member
36-69 remains in active service. On leaving active service, the member
36-70 may apply for a retirement pension under Sections 6.01(b) and (c),
37-1 Section 6.01(e), or Section 6.02 of this article, whichever is
37-2 applicable, together with any DROP benefit provided under this
37-3 section.
37-4 (b) The election to participate in the DROP shall be made in
37-5 accordance with procedures set forth in any uniform and
37-6 nondiscriminatory election form adopted by the board and in effect
37-7 from time to time. To determine the proper amount to be credited
37-8 to a member's DROP account, the election shall indicate whether the
37-9 member desires to receive a retirement pension under Sections
37-10 6.01(b) and (c), Section 6.01(e), or Section 6.02 of this article,
37-11 whichever is applicable. The election may be made at any time on
37-12 or after the date the member becomes eligible for an unreduced
37-13 retirement pension under Sections 6.01(b) and (c), Section 6.01(e),
37-14 or Section 6.02 of this article, whichever is applicable, and
37-15 becomes effective on the first day of the first month after the
37-16 date on which the member makes the election. On and after the
37-17 effective date of the election, the member will no longer make
37-18 member contributions to the fund, notwithstanding Section 4.03(b)
37-19 or (f) of this article, whichever is applicable. The election by
37-20 one or more members to participate in the DROP has no effect on the
37-21 amount of city contributions to the fund under Section 4.02 of this
37-22 article.
37-23 (c) Each month after a member has made an election to
37-24 participate in the DROP and indicated a desire to receive a
37-25 retirement pension under Sections 6.01(b) and (c), Section 6.01(e),
37-26 or Section 6.02 of this article, whichever is applicable, and until
37-27 the member leaves active service, an amount equal to the retirement
37-28 pension the member would have received under Sections 6.01(b) and
37-29 (c), Section 6.01(e), or Section 6.04, whichever is applicable, for
37-30 that month if the member had left active service and been granted a
37-31 retirement pension by the board on the effective date of DROP
37-32 participation shall be transferred to a separate DROP account
37-33 maintained within the fund for the benefit of the member. Amounts
37-34 held in a member's DROP account shall be credited at the end of
37-35 each calendar month with interest at a rate that will approximately
37-36 equal the annual rate assumed by the pension system's qualified
37-37 actuary and approved by the board as the assumed actuarial rate of
37-38 return for the fund.
37-39 (d) On leaving active service and on the board's grant of a
37-40 retirement pension, a member who participates in DROP shall begin
37-41 to receive the balance in the person's DROP account under one of
37-42 the following methods of distribution elected by the member:
37-43 (1) a single-sum distribution made at a time selected
37-44 by the member but not later than April 1 of the year after the
37-45 member attains 70-1/2 years of age;
37-46 (2) an annuity to be paid in equal monthly payments
37-47 for the life of the member, or for the life of the member and a
37-48 designated beneficiary in the same manner as a retirement pension
37-49 computed under Sections 6.01(b) and (c), Section 6.01(e), or
37-50 Section 6.02 of this article, whichever is applicable, determined
37-51 as of the date the member leaves active service based on the
37-52 person's account balance and age and the age of the designated
37-53 beneficiary, if applicable, on that date and using the mortality
37-54 and earnings assumptions being used on that date by the pension
37-55 system's qualified actuary and approved by the board as the assumed
37-56 actuarial rate of return for the fund; or
37-57 (3) substantially equal monthly or annual payments of
37-58 the person's account balance beginning at a time selected by the
37-59 member that is on or before April 1st of the year after the member
37-60 attains 70-1/2 years of age and extending over a fixed period that
37-61 does not exceed the life expectancy of the member, or the life
37-62 expectancy of the member and the member's designated beneficiary,
37-63 if applicable.
37-64 (e) The DROP account balance of a member who elects the
37-65 method of distribution described by Subsection (d)(3) of this
37-66 section shall be credited with interest on the unpaid balance at
37-67 the end of each calendar month in the same manner as is prescribed
37-68 by Subsection (c) of this section. A member may change a
37-69 distribution election at any time before the member attains 70-1/2
37-70 years of age to receive one or more additional payments or to
38-1 accelerate or delay any payment not then due, if the change is
38-2 communicated to the plan administrator, in accordance with
38-3 procedures then in effect, not less than 30 days before the day it
38-4 is to take effect and if the change does not result in a failure of
38-5 the distributions to satisfy the requirements of Section 401(a)(9)
38-6 of the code.
38-7 (f) Any election made in accordance with Subsection (d) of
38-8 this section may be changed at any time before leaving active
38-9 service to any other election permitted by that subsection, subject
38-10 to the requirements for spousal consent, in Section 6.14(d)(1), if
38-11 applicable.
38-12 (g) The provisions of Sections 6.06, 6.07, and 6.08 of this
38-13 article pertaining to death benefits of a qualified survivor do not
38-14 apply to amounts held in a member's DROP account, and the class of
38-15 persons eligible to become qualified survivors of a member closes
38-16 on the effective date of the member's participation in DROP.
38-17 Instead, a member who participates in DROP may designate a
38-18 beneficiary to receive the balance of the member's DROP account in
38-19 the event of the member's death in the following manner:
38-20 (1) The beneficiary designation must be made on an
38-21 election form adopted by the board and in effect from time to time
38-22 and in accordance with the conditions on the form, except that if
38-23 the member is married, the designation of a beneficiary other than
38-24 the member's spouse is valid only if the spouse consents to the
38-25 designation at the time, in the manner, and on the consent form as
38-26 is adopted by the board and in effect from time to time.
38-27 (2) If a member who participates in DROP dies while in
38-28 active service or before the beginning of the member's DROP
38-29 account, distributions will begin no more than one year after the
38-30 date of the member's death under a method described by Subsection
38-31 (d) of this section and shall be completed within the life, or life
38-32 expectancy, of the designated beneficiary.
38-33 (3) If a member who participates in DROP dies after
38-34 having begun to receive distributions in accordance with Subsection
38-35 (d) of this section, the balance in the member's DROP account shall
38-36 continue to be distributed to the member's designated beneficiary
38-37 or other person described by Subdivision (4) of this subsection in
38-38 accordance with any elections that had been made under Subsection
38-39 (d) of this section.
38-40 (4) If the deceased member has not designated a
38-41 beneficiary or has designated a beneficiary but not a method of
38-42 distribution, the member's DROP account shall be distributed in a
38-43 single-sum payment as soon as administratively feasible after the
38-44 member's death to the beneficiary if one was designated and
38-45 otherwise to the spouse if the member was married at the time of
38-46 death or, if the member was not married, to the member's estate.
38-47 (5) A member who participates in DROP becomes
38-48 ineligible for any disability benefits described by Sections 6.03,
38-49 6.04, and 6.05 of this article, but instead, on the board's
38-50 acknowledgment of a disability that would otherwise qualify the
38-51 member for disability benefits, the board shall grant a retirement
38-52 pension in accordance with Sections 6.01(b) and (c), Section
38-53 6.01(e), or Section 6.02 of this article, whichever is applicable,
38-54 and the member is also entitled to receive both a retirement
38-55 pension and a distribution of the DROP account in accordance with
38-56 Subsection (d) of this section.
38-57 (h) The base pay in effect as of the effective date of a
38-58 Group A member's participation in DROP shall be used in calculating
38-59 the member's Group A retirement pension under Section 6.01 of this
38-60 article. A Group A member who elects to participate in DROP does
38-61 not accrue additional pension service for purposes of computing the
38-62 Group A retirement pension provided under Section 6.01(e) of this
38-63 article for any period after the effective date of the election.
38-64 (i) A Group B member who elects to participate in DROP does
38-65 not accrue additional pension service for purposes of calculating a
38-66 Group B retirement pension under Section 6.02 of this article, and
38-67 any compensation earned by a Group B member during that period may
38-68 not be considered in the calculation of the benefit.
38-69 (j) If a pensioner who participated in DROP returns to
38-70 active service, the person must once again become a participant in
39-1 DROP under the terms and conditions in effect at the time of the
39-2 person's return.
39-3 (k) Without affecting any member's continued participation
39-4 in DROP and notwithstanding Subsections (a)-(j) of this section, no
39-5 member may elect to begin participation in DROP after any date, not
39-6 sooner than five years after the effective date of the DROP, on
39-7 which the pension system's qualified actuary certifies that DROP
39-8 participation is resulting in a significant actuarial loss to the
39-9 fund.
39-10 Sec. 6.15. MEDICAL EXAMINATION. (a) The board may require
39-11 the following pensioners receiving a disability pension to appear
39-12 and undergo a medical examination by the health director or, if the
39-13 health director approves, by any licensed medical practitioner, to
39-14 determine if the pensioner's disability continues or has been
39-15 removed to the extent that the pensioner is able to resume duties
39-16 with the department:
39-17 (1) any Group A pensioner who has served less than 20
39-18 years;
39-19 (2) any Group A pensioner who elected a Group B
39-20 disability pension under Section 6.04(e) of this article and who
39-21 has served more than 20 years but is less than 55 years of age; and
39-22 (3) any Group B pensioner who elected a Group B
39-23 disability under Section 6.05 of this article and is less than 50
39-24 years of age.
39-25 (b) Any medical examination under this section is subject to
39-26 the following conditions:
39-27 (1) Except as otherwise provided by this section, the
39-28 board has complete discretion to require a pensioner to appear and
39-29 undergo a medical examination as well as the time that may pass
39-30 between examinations. When it becomes clear to the board from
39-31 reliable medical evidence that the disability is unequivocally
39-32 permanent and is not expected to diminish, the board may not
39-33 require subsequent examinations.
39-34 (2) A pensioner may not be required to undergo a
39-35 medical examination more often than once in a six-month period,
39-36 except that the board may order the pensioner to undergo an
39-37 examination at any time if the board has reason to believe the
39-38 pensioner's disability has been removed and that the pensioner may
39-39 be able to resume duties with the pensioner's former department or
39-40 if the pensioner requests to be allowed to return to duty.
39-41 (3) If a pensioner fails to undergo an examination
39-42 after being notified by the board that the examination is required,
39-43 the board may discontinue disability benefits until the pensioner
39-44 has undergone the examination and the results of the examination
39-45 have been sent to the board.
39-46 (4) If the pensioner is examined by an approved
39-47 outside medical practitioner other than the health director, the
39-48 reasonable and customary cost of the examination, if any, is
39-49 payable from the assets of the fund.
39-50 (c) After a pensioner has undergone a medical examination,
39-51 the health director shall provide the board with a report of the
39-52 pensioner's present medical condition together with the doctor's
39-53 opinion as to whether the pensioner continues to be disabled or
39-54 whether the pensioner is no longer disabled to the extent that the
39-55 pensioner could resume duties with the pensioner's former
39-56 department. The report and opinion may be divulged only to persons
39-57 who have a legitimate need for them.
39-58 (d) If, in the opinion of the health director, the pensioner
39-59 continues to be disabled, the board must continue payment of
39-60 benefits. If, in the opinion of the health director, the pensioner
39-61 is no longer disabled, or is not so disabled that the pensioner
39-62 could not perform some duties for the pensioner's former
39-63 department, the board shall notify the department to determine if a
39-64 position is available. If a position is available, the board shall
39-65 notify the pensioner to return to duty. Disability benefits shall
39-66 continue to be paid, however, until the pensioner returns to active
39-67 service. However, if the pensioner refuses to return to duty or is
39-68 refused employment by either department for reasons other than
39-69 disability, the board shall order disability payments stopped. If
39-70 a position is not available, the board must continue payments of
40-1 the pensioner's disability pension.
40-2 (e) Pursuant to its authority under Section 6.06(o) of this
40-3 article to review and modify any funding relating to a qualified
40-4 surviving child's handicap, the board may require a handicapped
40-5 qualified surviving child receiving death benefits to appear and
40-6 undergo medical examination by the health director or, if the
40-7 health director approves, by any licensed medical practitioner, to
40-8 determine if the handicap continues or if the handicap has been
40-9 removed.
40-10 Sec. 6.16. WAIVER OF BENEFITS. (a) A pensioner who is on
40-11 either service or disability retirement, a qualified surviving
40-12 spouse, a handicapped qualified surviving child, a member who may
40-13 be a participant in DROP, a beneficiary of a deceased former DROP
40-14 participant, or a qualified surviving dependent parent may, on a
40-15 form prescribed by the board and filed with the administrator,
40-16 irrevocably waive all or a portion of the benefits, to which the
40-17 person who waives the benefit is entitled.
40-18 (b) The irrevocable waiver described by Subsection (a) of
40-19 this section applies only to retirement, disability, or DROP
40-20 survivor benefits that become payable on or after the date the
40-21 waiver is filed.
40-22 (c) If there are two qualified surviving dependent parents
40-23 receiving death benefits, the waiver described by Subsection (a) of
40-24 this section must be executed by both of the parents.
40-25 Sec. 6.17. DENIAL OF BENEFITS: DEATH CAUSED BY SURVIVOR. A
40-26 qualified survivor or beneficiary of a member's DROP account is not
40-27 eligible for, or entitled to, benefits if the person is the
40-28 principal or an accomplice in wilfully bringing about the death of
40-29 a primary party or another qualified survivor or beneficiary of a
40-30 member's DROP account whose death would otherwise have resulted in
40-31 a benefit or benefit increase to the person. The determination of
40-32 the board that a person wilfully brought about the death must be
40-33 made during a meeting of the board from a preponderance of the
40-34 evidence presented and is not controlled by any other finding in
40-35 any other forum, whether considered under the same or another
40-36 degree of proof.
40-37 Sec. 6.18. INVESTIGATION. (a) The board shall consider all
40-38 applications for retirement and disability pensions of members, all
40-39 applications for death benefits by qualified survivors, and all
40-40 elections for participation by a member in DROP. The board shall
40-41 give notice to those persons, advising of their right to appear
40-42 before the board and offer such sworn evidence as they may desire.
40-43 Any primary party, survivor, or other person claiming DROP benefits
40-44 may appear before the board in person and offer testimony that is
40-45 relevant to a contested application for a retirement pension,
40-46 disability pension, death benefit, or DROP benefit. The chairman
40-47 of the board may issue process for witnesses, administer oaths to
40-48 witnesses, and examine any witness as to any matter affecting
40-49 benefits under any plan within the pension system. Process for
40-50 witnesses shall be served by any member of the police or fire
40-51 department or by any other method of serving process or person
40-52 permitted by the state law in any civil judicial proceeding. A
40-53 witness who fails or refuses to attend and testify may be compelled
40-54 to attend and testify, as in any judicial proceeding. The board
40-55 may seek assistance from any court of competent jurisdiction to
40-56 further compel or sanction a witness who fails or refuses to attend
40-57 and testify.
40-58 (b) Any primary party, spouse, child, dependent parent, or
40-59 other person claiming DROP benefits who is aggrieved by a
40-60 determination of the board on the person's application for or
40-61 continuation of a retirement pension, disability pension, or death
40-62 benefit, or an election for DROP benefits may appeal the board
40-63 determination to a state district court in the county where the
40-64 pension system is located by giving written notice of appeal. The
40-65 notice shall contain a statement of the grounds and reasons why the
40-66 party feels aggrieved. The notice shall be served personally on
40-67 the secretary of the board within 20 days after the date of the
40-68 board's determination. After service of the notice, the party
40-69 appealing shall file with the state district court a copy of the
40-70 notice of intention to appeal, together with an affidavit of the
41-1 party making service showing how, when, and on whom the notice was
41-2 served.
41-3 (c) Within 30 days after the date of service of the notice
41-4 of appeal on the board, the secretary of the board shall make up
41-5 and file with the state district court a transcript of all papers
41-6 and proceedings in the case before the board. When the copy of the
41-7 notice of appeal and the transcript has been filed with the court,
41-8 the appeal is perfected, and the court shall docket the appeal,
41-9 assign the appeal a number, fix a date for hearing the appeal, and
41-10 notify both the appellant and the board of the date fixed for the
41-11 hearing.
41-12 (d) At any time before rendering its decision on the appeal,
41-13 the court may require further or additional proof or information,
41-14 either documentary or under oath. On rendition of a decision on
41-15 appeal, the court shall give to each party to the appeal a copy of
41-16 the decision of the case. The decision or order of the court is
41-17 appealable in the same manner as are civil cases generally.
41-18 (e) The board shall approve all money used for
41-19 investigations as provided under Section 4.01 of this article. The
41-20 board may request the investigative services of either the police
41-21 or fire departments in connection with any matter arising under
41-22 this section.
41-23 Sec. 6.19. CERTIFICATE OF RETIREMENT. When a member has
41-24 earned 20 years of pension service, the member shall be issued a
41-25 certificate of retirement that, barring administrative error,
41-26 miscalculation, or other error, after issuance is incontestable.
41-27 The certificate shall state that the calculation of the retirement
41-28 pension to which the member is entitled, or any disability benefits
41-29 to which the member may become entitled, shall be determined solely
41-30 under the actual terms of the combined pension plan. The
41-31 certificate shall further state that in the case of the member's
41-32 death, the member's survivors shall be entitled to survivor
41-33 benefits as determined under the terms of the combined pension
41-34 plan. The certificate shall be signed by the mayor, or the mayor
41-35 pro tem, or the city manager and by the chairman of the board and
41-36 attested under the seal of the city by the city secretary.
41-37 PART 7. AMENDMENT OF PENSION SYSTEM
41-38 Sec. 7.01. AMENDMENT. (a) The members of the plans within
41-39 the pension system have previously amended the pension system by
41-40 establishing Plan A and Plan B pursuant to Sections 11A and 11B,
41-41 respectively, of Article 6243a and establishing this article. The
41-42 members of the plans within the pension system may further amend
41-43 any plan within the pension system in any manner, including
41-44 amendments to:
41-45 (1) benefits or eligibility requirements for those
41-46 benefits, or both; or
41-47 (2) create a new plan or amend or restate any existing
41-48 plan within the pension system that embodies changes in addition to
41-49 those set forth in Subdivision (1) of this subsection if:
41-50 (A) the amendment is first approved as being
41-51 actuarially sound by a qualified actuary selected by a majority
41-52 vote of the board;
41-53 (B) the amendment is approved by a majority of
41-54 the board;
41-55 (C) 65 percent of the votes cast by membership
41-56 of each of the collective plans within the pension system are cast
41-57 in favor of the amendment, the voting to be made by secret ballot;
41-58 and
41-59 (D) the amendment does not deprive any member of
41-60 any plan within the pension system of any of the benefits that have
41-61 become fully vested or nonforfeitable to the member unless the
41-62 member:
41-63 (i) executes a written consent to
41-64 participate in the amended plan; and
41-65 (ii) has qualified under the amended plan.
41-66 (b) Any amendment made pursuant to this section may not in
41-67 any manner affect any rights or responsibilities existing under
41-68 Article 6243a or create any new rights or responsibilities except
41-69 as fully set forth in the adopted amendment.
41-70 (c) Any amendment made pursuant to this section is not
42-1 required to be ratified by the legislature, but is effective when
42-2 properly recorded in the permanent records of the pension system.
42-3 (d) Unless otherwise provided by the amendment, the
42-4 amendment applies only to members of the plans within the pension
42-5 system who are on active service at the time of the amendment and
42-6 those other persons who may qualify under the provisions of the
42-7 plan affected or created by the amendment.
42-8 (e) Before any election under this section, the board by
42-9 majority vote shall issue a notice of the calling of the election.
42-10 The notice must state the proposition to be voted upon and include
42-11 verbatim the amendment sought to be made. The notice must be
42-12 posted at least two weeks before the date of the election at the
42-13 city hall and at all fire stations and police stations and upon the
42-14 bulletin boards at the places where the police officers and fire
42-15 fighters are assembled for duty. The balloting in that election
42-16 shall be held over a period of at least three consecutive 24-hour
42-17 periods with ballot boxes placed at the places that may be
42-18 determined by the board, so as to be generally convenient to those
42-19 voting. The ballot boxes shall be kept locked at all times until
42-20 canvassed by the board or under their supervision.
42-21 (f) The minutes of the board shall be reduced to writing and
42-22 certified by the administrator of the board showing:
42-23 (1) the proposed amendment whether to one or more
42-24 plans within the pension system;
42-25 (2) the calling of the election and the giving of
42-26 notice of the election; and
42-27 (3) the canvassing of the votes in the election, under
42-28 the general supervision of the board, and a certification of the
42-29 results by the board at a called meeting.
42-30 (g) When reduced to writing the minutes shall become a part
42-31 of the permanent records of the pension system to be filed in the
42-32 office of the secretary of the board. The minutes are evidence of
42-33 the matters contained in the minutes and are admissible in all
42-34 courts and proceedings.
42-35 (h) Notwithstanding any amendment adopted under this
42-36 section, contributions by the city to the fund shall be the same as
42-37 provided for under Section 4.02(c) of this article. Any change in
42-38 the rate of the city's contributions to the fund may only be made
42-39 in accordance with Section 4.02(a) of this article.
42-40 PART 8. TREATMENT UNDER FEDERAL AND STATE LAW
42-41 Sec. 8.01. QUALIFICATION UNDER FEDERAL TAX LAW. (a) The
42-42 plans within the pension system and the assets of the fund are
42-43 intended to qualify under Section 401 of the code, be exempt from
42-44 federal income taxes under Section 501(a) of the code, and conform
42-45 at all times to applicable requirements of law, regulations, and
42-46 orders of duly constituted federal governmental authorities.
42-47 Accordingly, if any provision of this article is subject to more
42-48 than one construction, one of which will permit the qualification
42-49 of a plan that is within the pension system, that construction that
42-50 will permit the plan to qualify and conform will prevail.
42-51 (b) The plans within the pension system as well as the
42-52 assets of the fund shall be maintained for the exclusive benefit of
42-53 members and their beneficiaries. At no time before the termination
42-54 of all the plans within the pension system and the satisfaction of
42-55 all liabilities with respect to members and their beneficiaries
42-56 under all plans shall any part of the principal or interest from
42-57 the assets of the fund be used for or diverted to purposes other
42-58 than the exclusive benefit of the members and beneficiaries.
42-59 (c) Notwithstanding any other provisions of this article,
42-60 the pension provided with respect to any member may not exceed an
42-61 annual benefit computed in accordance with the limitations
42-62 prescribed by this subsection.
42-63 (1) The maximum annual benefit payable in any
42-64 limitation year to a member may not exceed the lesser of:
42-65 (A) $90,000; or
42-66 (B) 100 percent of a member's 415 compensation
42-67 averaged over the three consecutive limitation years, or the actual
42-68 number of limitation years for a member whose total pension service
42-69 is less than three consecutive limitation years, during which the
42-70 member had the greatest aggregate 415 compensation from the city.
43-1 (2) Benefits provided to a member under this article
43-2 and under any defined benefit plan or plans maintained by the city
43-3 shall be aggregated for purposes of determining whether the
43-4 limitations in Subdivision (1) of this subsection are met. If the
43-5 aggregate benefits otherwise payable from any qualified plans
43-6 created under this article and any other defined benefit plan or
43-7 plans maintained by the city would otherwise exceed the limitations
43-8 of Subdivision (1) of this subsection, the reductions in benefits
43-9 shall first be made to the extent possible from the other plan or
43-10 plans.
43-11 (3) The adjustments on retirement are the following:
43-12 (A) If the annual benefit begins before a member
43-13 attains age 62, the $90,000 limitation, as adjusted, shall be
43-14 reduced in a manner prescribed by the secretary of the treasury.
43-15 However, that adjustment may not reduce the member's annual benefit
43-16 below $75,000, if the member's benefit begins after age 55, or the
43-17 actuarial equivalent of $75,000 beginning at age 55 if benefits
43-18 begin before age 55. Furthermore, except as provided by Paragraph
43-19 (C) of this subdivision, an adjustment may not reduce the member's
43-20 annual benefit below $50,000, regardless of the age at which the
43-21 benefit begins.
43-22 (B) If the annual benefit begins after a member
43-23 attains age 65, the $90,000 limitation, as adjusted, will be
43-24 increased so that it is the actuarial equivalent of the $90,000
43-25 limitation at age 65.
43-26 (C) If a member's benefits begin before the
43-27 member has at least 15 years of pension service as a full-time
43-28 employee of the police or fire department, or both, including
43-29 credit for full-time service in the armed forces of the United
43-30 States, Paragraphs (A) and (B) of this subdivision shall be applied
43-31 by substituting "social security retirement age" for "age 62" and
43-32 for "age 65," and the last two sentences of Paragraph (A) of this
43-33 subdivision do not apply in computing the benefit limitation for
43-34 that member.
43-35 (D) The portion of a member's benefit that is
43-36 attributable to the member's own contributions is not part of the
43-37 annual benefit subject to the limitations of Subdivision (1) of
43-38 this subsection. Instead, the amount of those contributions is
43-39 treated as an annual addition to a qualified defined contribution
43-40 plan maintained by the city.
43-41 (4)(A) The dollar limitation on annual benefits
43-42 provided by Subdivision (1) of this subsection, and the $50,000
43-43 limitation provided by Subdivision (3) of this subsection, but not
43-44 the $75,000 limitation provided by that subsection, shall be
43-45 adjusted annually as provided by Section 415(d) of the code and the
43-46 regulations prescribed by the secretary of the treasury. The
43-47 adjusted limitation is effective as of January 1 of each calendar
43-48 year and is applicable to limitation years ending with or within
43-49 that calendar year.
43-50 (B) The limitation provided by this paragraph
43-51 for a member who has separated from service with a vested right to
43-52 a pension shall be adjusted annually as provided by Section 415(d)
43-53 of the code and the regulations prescribed by the secretary of the
43-54 treasury.
43-55 (5) The following interest rate assumptions shall be
43-56 used in computing the limitations under this section:
43-57 (A) For the purpose of determining the portion
43-58 of the annual benefit that is purchased with member contributions,
43-59 the interest rate assumption is 8.5 percent, compounded annually,
43-60 for plan years beginning before 1988 and 120 percent of the federal
43-61 mid-term rate, as in effect under Section 1274 of the code,
43-62 compounded annually, for plan years beginning after 1987.
43-63 (B) For the purpose of adjusting the annual
43-64 benefit to a straight life annuity, the interest rate assumption is
43-65 five percent, unless a different rate is required by the secretary
43-66 of the treasury.
43-67 (C) For the purpose of adjusting the $90,000
43-68 limitation after a member attains age 65, the interest rate
43-69 assumption is five percent, unless a different rate is required by
43-70 the secretary of the treasury, and the mortality decrement shall be
44-1 ignored to the extent that a forfeiture does not occur at death.
44-2 (6) For purposes of Subdivisions (1) and (3) of this
44-3 subsection, an adjustment under Section 415(d) of the code may not
44-4 be taken into account before the limitation year for which that
44-5 adjustment first takes effect. For purposes of Subdivisions (1)
44-6 and (5) of this subsection, an adjustment is not required for the
44-7 value of qualified joint and survivor annuity benefits,
44-8 preretirement death benefits, postretirement medical benefits, or
44-9 postretirement cost-of-living increases made in accordance with
44-10 Section 415(d) of the code and Section 1.415-3(c) of the Income Tax
44-11 Regulations.
44-12 (7) This plan may pay an annual benefit to any member
44-13 in excess of the member's maximum annual benefit otherwise allowed
44-14 if:
44-15 (A) the annual benefit derived from the city's
44-16 contributions under any qualified plans within this article and all
44-17 defined benefit plans maintained by the city does not in the
44-18 aggregate exceed $10,000 for the limitation year or for any prior
44-19 limitation year; and
44-20 (B) the member has not at any time participated
44-21 in a defined contribution plan maintained by the city.
44-22 For purposes of this subdivision, member contributions to the
44-23 plan are not considered a separate defined contribution plan
44-24 maintained by the city.
44-25 (8) If a member has less than 10 years of pension
44-26 service in the plan at the time the member begins to receive
44-27 benefits under the plan, the $90,000 limitation, as adjusted, shall
44-28 be reduced by multiplying the limitation by a fraction in which the
44-29 numerator is the number of years of pension service and the
44-30 denominator is 10; provided, however, that the fraction may not be
44-31 less than one-tenth. The 100 percent limitation of Subdivision
44-32 (1)(B) of this subsection, and the $10,000 limitation of
44-33 Subdivision (7) of this subsection shall be reduced in the same
44-34 manner as provided by this subdivision, except the numerator shall
44-35 be the number of years of employment with the city rather than
44-36 years of pension service.
44-37 (9) If a member is or has been a participant in one or
44-38 more defined benefit plans and one or more defined contribution
44-39 plans maintained by the city, the following provisions shall apply:
44-40 (A) The sum of the defined benefit plan fraction
44-41 and the defined contribution plan fraction for any limitation year
44-42 may not exceed 1.0.
44-43 (B) The defined benefit plan fraction for any
44-44 limitation year is a fraction in which:
44-45 (I) the numerator is the projected annual
44-46 benefit of a member, determined as of the close of the limitation
44-47 year pursuant to Section 1.415-7(b)(3) of the Income Tax
44-48 Regulations; and
44-49 (II) the denominator is the lesser of:
44-50 (i) the product of 1.25 and the
44-51 maximum dollar limitation provided by Subdivision (1)(A) of this
44-52 subsection, as adjusted, for the limitation year; or
44-53 (ii) the product of 1.4 and the
44-54 amount that may be taken into account under Subdivision (1)(B) of
44-55 this subsection for the limitation year.
44-56 (C) The defined contribution plan fraction for
44-57 any limitation year is a fraction in which:
44-58 (I) the numerator is the sum of the annual
44-59 additions to the member's account as of the close of the limitation
44-60 year; and
44-61 (II) the denominator is the sum of the
44-62 lesser of the following amounts determined for the limitation year
44-63 and each prior year of service with the city:
44-64 (i) the product of 1.25 and the
44-65 dollar limitation in effect under Section 415(c)(1)(A) of the code
44-66 for the limitation year, determined without regard to Section
44-67 415(c)(6) of the code; or
44-68 (ii) the product of 1.4 and the
44-69 amount that may be taken into account under Section 415(c)(1)(B) of
44-70 the code for the limitation year beginning before January 1, 1987;
45-1 the annual additions may not be recomputed to treat all member
45-2 contributions as an annual addition.
45-3 (D) If the sum of the defined benefit plan
45-4 fraction and the defined contribution plan fraction exceeds 1.0 in
45-5 any limitation year for any member of any plan within the pension
45-6 system, the administrator shall limit, to the extent necessary, the
45-7 annual additions to the member's account for that limitation year.
45-8 If after limiting to the extent possible the annual additions to
45-9 the member's account for the limitation year, the sum of the
45-10 defined benefit plan fraction and the defined contribution plan
45-11 fraction still exceeds 1.0, the administrator shall adjust the
45-12 benefits under the defined benefit plan fraction so that the sum of
45-13 both fractions shall not exceed 1.0 in any limitation year for the
45-14 member.
45-15 (10) For purposes of determining the limits provided
45-16 by this section, all qualified defined benefit plans, whether
45-17 terminated or not, ever maintained by or contributed to by the
45-18 city, shall be treated as one defined benefit plan, and all
45-19 qualified defined contribution plans, whether terminated or not,
45-20 ever maintained by or contributed to by the city, shall be treated
45-21 as one defined contribution plan.
45-22 (11) Notwithstanding anything contained in this
45-23 section to the contrary, the limitations, adjustments, and other
45-24 requirements prescribed by this section shall at all times comply
45-25 with the requirements of Section 415 of the code and all
45-26 regulations promulgated under the code. If any provision of
45-27 Section 415 of the code is repealed or is not enforced by the
45-28 Internal Revenue Service, that provision may not reduce the
45-29 benefits of any member after the effective date of the repeal of
45-30 the provision or during the period in which the provision is not
45-31 enforced.
45-32 (d) A member's retirement pension may not begin later than
45-33 April 1 of the year after the later of the year in which the member
45-34 leaves active service or the year in which the member attains age
45-35 70-1/2. Benefits to a qualified beneficiary may not begin later
45-36 than one year after the date of the member's death.
45-37 (e) Any member or beneficiary who receives any distribution
45-38 from any plan within the system that is an eligible rollover
45-39 distribution as defined by Section 402(f)(2)(A) of the code is
45-40 entitled to have that distribution transferred directly to another
45-41 eligible retirement plan of the member's or beneficiary's choice on
45-42 providing direction regarding that transfer to the administrator in
45-43 accordance with procedures established by the administrator.
45-44 (f) The annual compensation taken into account under this
45-45 article may not exceed $200,000 for any calendar year. For a Group
45-46 A member the term "annual compensation" means the aggregate of the
45-47 member's base pay. For a Group B member the term "annual
45-48 compensation" means the aggregate of the member's computation pay
45-49 for any given plan year. The $200,000 limit shall be adjusted on
45-50 January 1 of each year at the same time and in the same manner as
45-51 provided by Section 415(d) of the code. In determining the
45-52 compensation of a member for purposes of this limitation, the
45-53 family aggregation rules of Section 414(q)(6) of the code apply,
45-54 except that the term "family member" includes only the spouse of
45-55 the member and any lineal descendants of the member who have not
45-56 attained age 19 at the end of the plan year. If as a result of
45-57 this family aggregation requirement, the $200,000 limit is
45-58 exceeded, the limitation shall be prorated among the affected
45-59 individuals in proportion to each individual's compensation as
45-60 determined before application of the limit.
45-61 Sec. 8.02. EXCESS BENEFIT PLAN FOR POLICE OFFICERS AND FIRE
45-62 FIGHTERS. On the enactment of federal legislation enabling public
45-63 retirement systems to establish excess benefit plans for the
45-64 benefit of employees for whom additional benefits from retirement
45-65 plans qualified under Section 401 of the code would exceed the
45-66 limitations of Section 415 of the code, there is created outside
45-67 the pension system a separate, nonqualified excess benefit plan
45-68 containing the following terms and provisions:
45-69 (a)(1) All definitions prescribed by Section 2.01 of
45-70 this article are applicable to the plan created pursuant to this
46-1 section except:
46-2 (A) if a different definition is set forth
46-3 in this subsection; or
46-4 (B) the context in which a term is used in
46-5 this section indicates a different meaning is clearly intended than
46-6 that prescribed by Section 2.01 of this article.
46-7 (2) "Excess benefit plan" means this separate,
46-8 nonqualified, unfunded excess benefit plan as created by this
46-9 section for the benefit of eligible members, as amended or restated
46-10 from time to time.
46-11 (3) "Qualified plan" means any plan maintained
46-12 within the pension system or maintained by the city outside the
46-13 pension system for the exclusive benefit of some or all of the
46-14 employees of the city if the plan has been found by the Internal
46-15 Revenue Service to be qualified or has been treated by the city as
46-16 a qualified plan under Section 401 of the code.
46-17 (4) "Maximum benefit" means the retirement
46-18 benefit a member or, the spouse, any child, or any dependent parent
46-19 of a member if those persons are entitled, is entitled to receive
46-20 from all qualified plans in any month after giving effect to
46-21 Section 8.01 of this article and any similar provisions of any
46-22 other qualified plans designed to conform to Section 415 of the
46-23 code.
46-24 (5) "Excess benefit participant" means any
46-25 member whose retirement benefits as determined on the basis of all
46-26 qualified plans without regard to the limitations of Section 8.01
46-27 of this article and comparable provisions of other qualified plans
46-28 would exceed the maximum benefit permitted under Section 415 of the
46-29 code.
46-30 (6) "Unrestricted benefit" means the monthly
46-31 retirement benefit a member, or the spouse or any child of a
46-32 member, would have received under the terms of all qualified plans
46-33 except for the restrictions of Section 8.01 of this article and any
46-34 similar provisions of any other qualified plans designed to conform
46-35 to Section 415 of the code.
46-36 (b)(1) An excess benefit participant who is receiving
46-37 benefits from an applicable qualified plan is entitled to a monthly
46-38 benefit under this excess benefit plan in an amount equal to the
46-39 lesser of:
46-40 (A) the member's unrestricted benefit less
46-41 the maximum benefit; or
46-42 (B) the amount by which the member's
46-43 monthly benefit from the qualified plan or plans approved by the
46-44 members has been reduced due to the limitations of Section 415 of
46-45 the code.
46-46 (2) In the case of the death of an excess
46-47 benefit participant whose spouse or child is entitled to
46-48 preretirement or postretirement death benefits under a qualified
46-49 plan, the excess benefit participant's surviving spouse or child is
46-50 entitled to a monthly benefit under the excess benefit plan equal
46-51 to the benefit determined in accordance with the qualified plans
46-52 without regard to the limitations under Section 8.01 of this
46-53 article or Section 415 of the code, less the maximum benefit.
46-54 (3) Unless the excess benefit participant makes
46-55 a timely election to the contrary, a retirement benefit payable
46-56 under this excess benefit plan shall be paid in the form and at the
46-57 time it would have been paid under the applicable qualified plan
46-58 except for the limitations under Section 415 of the code. However,
46-59 retirement benefits payable under this excess benefit plan shall be
46-60 paid at the time and in the form, including a single-sum
46-61 distribution, as the excess benefit participant elects from among
46-62 the benefit payment forms made available under the election form as
46-63 approved by the board. An excess benefit participant makes an
46-64 election under this subdivision by sending written notice to the
46-65 administrator on the election form approved by the board. Each
46-66 optional benefit form permitted under this excess benefit plan
46-67 shall be the actuarial equivalent of each other permitted benefit
46-68 form. On or after an excess benefit participant's leaving active
46-69 service with an entitlement to a retirement benefit under any
46-70 qualified plan approved by the members, a benefit under this
47-1 subdivision may be elected to be paid.
47-2 (c)(1) This plan shall be administered by the board,
47-3 and the administrator shall also carry out the business of the
47-4 board with respect to this excess benefit plan. Except as provided
47-5 to the contrary by this subsection, the rights, duties, and
47-6 responsibilities of the board and administrator shall be the same
47-7 for this excess benefit plan as for the qualified pension plans
47-8 within the pension system.
47-9 (2) The qualified actuary employed pursuant to
47-10 Section 4.08 of this article is responsible for determining the
47-11 amount of benefits that may not be provided under the qualified
47-12 plans solely by reason of the limitations of Section 415 of the
47-13 code and thus the amount of city contributions that will be made to
47-14 this excess benefit plan rather than to a qualified plan.
47-15 (3) The legal advisors described by Section 3.03
47-16 of this article shall also provide advice to the board for this
47-17 excess benefit plan.
47-18 (d) Contributions may not be accumulated under this
47-19 excess benefit plan to pay future retirement benefits. Instead,
47-20 each payment of city contributions that would otherwise be made to
47-21 the fund pursuant to Section 4.02 of this article or comparable
47-22 provisions of other qualified plans approved by the members shall
47-23 be reduced by the amount determined by the administrator as
47-24 necessary to meet the requirements for retirement benefits under
47-25 this excess benefit plan until the next payment of city
47-26 contributions is expected to be made to the fund by the city. The
47-27 city shall then pay to this excess benefit plan, out of the
47-28 withheld city contributions no earlier than the 14th day before the
47-29 date of each distribution of monthly retirement benefits is
47-30 required to be made from this excess benefit plan, the amount
47-31 necessary to satisfy the obligation to pay this excess benefit plan
47-32 monthly retirement benefits. The administrator shall satisfy the
47-33 obligation of this excess benefit plan to pay retirement benefits
47-34 out of the city contributions so transferred for that month. The
47-35 city contributions otherwise required to the pension system
47-36 pursuant to Section 4.02 of this article and any other qualified
47-37 plan approved by the members shall be divided into those
47-38 contributions required to pay retirement benefits pursuant to this
47-39 section and those contributions paid into and accumulated to pay
47-40 the maximum benefits required under the qualified plans. City
47-41 contributions made to provide retirement benefits pursuant to this
47-42 section may not be commingled with the monies of the fund or any
47-43 other qualified plan.
47-44 (e) Amendments to this excess benefit plan shall be
47-45 made in the same manner provided by Section 7.01 of this article.
47-46 Sec. 8.03. EXEMPTION OF BENEFITS FROM JUDICIAL PROCESS.
47-47 (a) A portion of the fund or benefit or amount awarded to any
47-48 primary party qualified survivor or beneficiary of a member's DROP
47-49 account under this article may not be held, seized, taken,
47-50 subjected to, or detained or levied on by virtue of any execution,
47-51 attachment, garnishment, injunction, or other writ, order, or
47-52 decree, or any process or proceedings issued from or by any court
47-53 for the payment or satisfaction, in whole or in part, of any debt,
47-54 damage, claim, demands, or judgment against any person entitled to
47-55 benefits from any plan within the pension system. The fund or any
47-56 claim against the fund may not be directly or indirectly assigned
47-57 or transferred, and any attempt to transfer or assign the fund or a
47-58 claim against the fund is void.
47-59 (b) A benefit under any plan created or existing pursuant to
47-60 this article or Article 6243a is subject to division pursuant to
47-61 the terms of a qualified domestic relations order. The
47-62 administrator shall determine the qualifications of a domestic
47-63 relations order according to a uniform, consistent procedure
47-64 approved by the board. The total benefit payable to a primary
47-65 party or to an alternate payee under a qualified domestic relations
47-66 order may not actuarially exceed the benefits to which a primary
47-67 party would be entitled in the absence of the qualified domestic
47-68 relations order. In calculating the alternate payee's benefits
47-69 under a qualified domestic relations order, the interest rate is
47-70 the rate used by the pension system's actuary in the actuarial
48-1 evaluation for that year, except that the minimum interest rate for
48-2 this purpose is the minimum required by Section 414 of the code.
48-3 (c) This section does not preclude the payment of death
48-4 benefits to a support trust for certain surviving children of a
48-5 primary party pursuant to Section 6.06(n) of this article.
48-6 SECTION 2. The importance of this legislation and the
48-7 crowded condition of the calendars in both houses create an
48-8 emergency and an imperative public necessity that the
48-9 constitutional rule requiring bills to be read on three several
48-10 days in each house be suspended, and this rule is hereby suspended,
48-11 and that this Act take effect and be in force from and after its
48-12 passage, and it is so enacted.
48-13 * * * * *
48-14 Austin,
48-15 Texas
48-16 May 20, 1993
48-17 Hon. Bob Bullock
48-18 President of the Senate
48-19 Sir:
48-20 We, your Committee on Intergovernmental Relations to which was
48-21 referred H.B. No. 1944, have had the same under consideration, and
48-22 I am instructed to report it back to the Senate with the
48-23 recommendation that it do pass, as amended, and be printed.
48-24 Armbrister,
48-25 Chairman
48-26 * * * * *
48-27 WITNESSES
48-28 FOR AGAINST ON
48-29 ___________________________________________________________________
48-30 FOR AGAINST ON
48-31 ___________________________________________________________________
48-32 Name: Dwight Walker x
48-33 Representing: Dallas Police Fire Pension Fnd
48-34 City: Rockwall
48-35 -------------------------------------------------------------------
48-36 Name: Richard L. Tettamant x
48-37 Representing: Dallas Police Fire Pension Fd
48-38 City: Colleyville
48-39 -------------------------------------------------------------------
48-40 Name: Larry D. Eddington x
48-41 Representing: Dallas Police Fire Pension Fd
48-42 City: Garland
48-43 -------------------------------------------------------------------
48-44 Name: Ken Bailey x
48-45 Representing: Tx State Assn. of Fire Fight
48-46 City: Austin
48-47 -------------------------------------------------------------------
48-48 Name: Flenn M. White x
48-49 Representing: Dallas Police Association
48-50 City: Dallas
48-51 -------------------------------------------------------------------
48-52 Name: Thomas K. Elliott x
48-53 Representing: Dallas Police Assoc.
48-54 City: Dallas
48-55 -------------------------------------------------------------------