H.B. No. 2308
1-1 AN ACT
1-2 relating to eligibility for benefits payable by retirement systems
1-3 for police officers in certain municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 11(a), Chapter 76, Acts of the 50th
1-6 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
1-7 is amended to read as follows:
1-8 (a) A person who becomes a member of the Pension System on
1-9 or after September 1, 1975, and who has been in the service of the
1-10 city police department for the period of twenty (20) years may
1-11 retire on or after July 1, 1993, <1988, at the age of fifty (50)
1-12 years> and shall be entitled to a retirement pension of an amount
1-13 equal to two and one-fourth percent (2.25%) <forty-five percent
1-14 (45%)> of his base salary per month for the first twenty (20) years
1-15 of service, plus an additional amount equal to two percent (2%) of
1-16 his base salary per month for each year of service in the police
1-17 department in excess of twenty (20) years, not to exceed a total
1-18 pension equal to eighty percent (80%) of base salary, such base
1-19 salary to be the base salary provided for the classified position
1-20 in the police department held by the member, provided that if the
1-21 member has not held the same classified position for three (3)
1-22 years prior to the date of retirement, the retirement pension shall
1-23 be based on the average monthly base salary of the member for three
1-24 (3) years preceding retirement. <Except as provided in Subsection
2-1 (a-1) of this section, no retirement pension may be paid to a
2-2 member who has not attained the age of fifty (50) years.>
2-3 SECTION 2. Section 11(a), Article 6243g-3, Revised Statutes,
2-4 is amended to read as follows:
2-5 (a) A member shall become eligible to receive a service
2-6 pension, after he has terminated employment, on or after July 1,
2-7 1993 <1988>, on the day he has 20 years of credited service <and
2-8 has attained age 50>.
2-9 SECTION 3. Section 12(a), Article 6243g-3, Revised Statutes,
2-10 is amended to read as follows:
2-11 (a) A member who has 20 years of credited service shall have
2-12 a vested right to a service pension, computed in accordance with
2-13 the provisions of this article in effect when he ceased to be an
2-14 employee<, payable beginning with the first month after his
2-15 attainment of age 50>.
2-16 SECTION 4. Section 2, Chapter 76, Acts of the 50th
2-17 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
2-18 is amended by adding Subdivisions (i) and (j) to read as follows:
2-19 (i) "Surviving spouse" means a person who was married to a
2-20 deceased active member at the time of the member's death, or to a
2-21 deceased retired member before the member's retirement or for a
2-22 period of at least five years before the member's death, and whose
2-23 marriage was recorded in the records of the recorder's office in
2-24 the county in which the marriage ceremony was performed; or a
2-25 person who has on file with the Pension Board a declaration of
2-26 common-law marriage supported by evidence as required by the Board
2-27 and signed by the member and the member's common-law spouse before
3-1 a notary public.
3-2 (j) "Widow" or "widower" means a deceased member's surviving
3-3 spouse who remains unmarried, never having had another marriage
3-4 certificate recorded in any county's recording office after the
3-5 date of the member's death.
3-6 SECTION 5. Subdivision (1), Subsection (d), Section 4,
3-7 Chapter 76, Acts of the 50th Legislature, 1947 (Article 6243g-1,
3-8 Vernon's Texas Civil Statutes), is amended to read as follows:
3-9 (1) The Board shall elect from its membership,
3-10 annually, a chairman, vice-chairman and secretary. The chairman
3-11 must be a person who has been elected to the Board by the members
3-12 of the police department and the Pension System. Pursuant to the
3-13 powers granted under the charter of such city and except as
3-14 provided by Subdivision (2) of this subsection, the mayor or
3-15 administrative head of the city shall appoint one or more employees
3-16 whose positions and salaries shall be fixed by the governing body
3-17 of the city and who, acting under the direction of the mayor or
3-18 administrative head of the city and treasurer or director of the
3-19 treasury, shall keep all of the records of, and perform all of the
3-20 clerical services for, the Pension System. The salaries of such
3-21 employees shall be paid by the city.
3-22 SECTION 6. Section 4, Chapter 76, Acts of the 50th
3-23 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
3-24 is amended by adding Subsection (j) to read as follows:
3-25 (j) The Pension Board may purchase from an insurer licensed
3-26 to do business in this state one (1) or more policies of insurance
3-27 that provide for reimbursement of a Board member, officer, or
4-1 employee of the Board for liability imposed as damages because of
4-2 an alleged act, error, or omission committed in the individual's
4-3 capacity as fiduciary or co-fiduciary of assets of the Pension Fund
4-4 and for costs and expenses incurred by a fiduciary or co-fiduciary
4-5 in defense of a claim of an alleged act, error, or omission. A
4-6 policy of insurance purchased under this subsection may not provide
4-7 for reimbursement of a Board member, officer, or employee of the
4-8 Board for liability imposed or expenses incurred because of the
4-9 individual's personal dishonesty, fraudulent breach of trust, lack
4-10 of good faith, intentional fraud or deception, or intentional
4-11 failure to act prudently. The cost of insurance coverage purchased
4-12 under this subsection shall be paid from money in the Pension Fund.
4-13 SECTION 7. Subsection (b), Section 6, Chapter 76, Acts of
4-14 the 50th Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil
4-15 Statutes), is amended to read as follows:
4-16 (b) The maximum contribution which may be made to the fund
4-17 by a member shall be limited to a contribution based on the salary
4-18 of the second highest classification within the salary schedule of
4-19 the police department. It is the intent of this section to limit
4-20 both the contribution and retirement benefits of any member to the
4-21 salary level of the second highest rank of the police department
4-22 personnel classification schedule, provided that if the member has
4-23 not held the same classified position for three (3) <five (5)>
4-24 years immediately preceding <prior to> the date of retirement, the
4-25 retirement pension shall be based on the average monthly base
4-26 salary of the member for three (3) <five (5)> years immediately
4-27 preceding the date of retirement.
5-1 SECTION 8. Subsections (a-1), (b), (e), and (h), Section 11,
5-2 Chapter 76, Acts of the 50th Legislature, 1947 (Article 6243g-1,
5-3 Vernon's Texas Civil Statutes), are amended to read as follows:
5-4 <(a-1) A person who was a member of the pension system
5-5 before September 1, 1975, may retire on or after July 1, 1988,
5-6 regardless of age upon completion of twenty (20) years of service
5-7 in the city police department and shall be entitled to a retirement
5-8 pension of an amount equal to forty five percent (45%) of his base
5-9 salary per month, plus an additional amount equal to two percent
5-10 (2%) of his base salary per month for each year of service in the
5-11 police department in excess of twenty (20) years, not to exceed a
5-12 total pension equal to eighty percent (80%) of base salary, such
5-13 base salary to be the base salary provided for the classified
5-14 position in the police department held by the member, provided that
5-15 if the member has not held the same classified position for three
5-16 (3) years prior to the date of retirement, the retirement pension
5-17 shall be based on the average monthly base salary of the member for
5-18 three (3) years preceding retirement.>
5-19 (b) If a member of the Police Pension System is promoted or
5-20 appointed to any classified position above the second highest in
5-21 the police department personnel classification schedule, that
5-22 member's contribution and retirement benefits will be computed on
5-23 the base salary of the second highest classified position in the
5-24 police department personnel classification schedule, provided that
5-25 if the member has not held the same classified position for three
5-26 (3) <five (5)> years immediately preceding <prior to> the date of
5-27 retirement, the retirement pension shall be based on the average
6-1 monthly base salary of the member for three (3) <five (5)> years
6-2 immediately preceding retirement. For the purposes of this Act,
6-3 the position of the Chief of Police shall be considered the highest
6-4 classified position in the personnel classification schedule in the
6-5 police department.
6-6 (e) Upon a member's completion of twenty (20) years of
6-7 service in the police department and thereafter, when such member
6-8 retires, whether such retirement be voluntary or involuntary, such
6-9 monthly payment shall begin forthwith and continue for the
6-10 remainder of the member's life. <However, when such member has
6-11 completed twenty (20) years' service in the police department and
6-12 if the physicians of Pension Board agree that the member is
6-13 physically fit to continue his active duties in the police
6-14 department, they may so certify, and the member may continue in the
6-15 service of the city police department until the member attains the
6-16 age of sixty five (65) years, at which time his retirement pension
6-17 shall be computed as hereinbefore stated.>
6-18 (h) A retiree who receives a service or disability
6-19 retirement pension under this Act is entitled to receive an
6-20 additional amount each month equal to $88.05, beginning on the
6-21 person's retirement date or on the effective date of the 1989
6-22 amendment of this Act, whichever is later, and continuing until the
6-23 end of <person reaches age 65. Thereafter, the payment will be
6-24 reduced to $55.38 each month. Payments of an additional amount
6-25 provided by this subsection end with> the month in which the
6-26 retiree <person> dies. This amount is intended to defray the
6-27 retiree's group medical insurance costs and will be paid directly
7-1 by the Pension Fund <to the insurer providing group coverage, as
7-2 long as the retiree is covered by the insurance. If a retiree
7-3 elects not to obtain the coverage or terminates the coverage, the
7-4 monthly amount will be paid> to the retiree <directly> for the
7-5 person's lifetime.
7-6 SECTION 9. Section 13, Chapter 76, Acts of the 50th
7-7 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil
7-8 Statutes), is amended by amending Subsection (a) and adding
7-9 Subsection (e) to read as follows:
7-10 (a) If any member of the police department who has been
7-11 retired on allowance because of length of service or disability
7-12 thereafter dies on or after July 1, 1986, from any cause whatsoever
7-13 after he has become entitled to an allowance or pension, and leaves
7-14 a surviving <a> spouse <to whom the member was married prior to his
7-15 retirement or for a period of at least five (5) years prior to the
7-16 member's death (hereinafter referred to as the "surviving
7-17 spouse")>, a child or children under the age of eighteen (18) years
7-18 or a dependent parent, the Board shall order paid a monthly
7-19 allowance as follows: (a) to the surviving spouse, so long as he
7-20 or she remains a widow or widower, a sum equal to the allowance
7-21 which was granted to the member upon service or disability pension
7-22 based on his length of service in the police department; (b) to
7-23 the guardian of each child, the sum of twenty-five ($25) Dollars a
7-24 month until the child reaches the age of eighteen (18) years or
7-25 marries; (c) to the guardian of each child, only in case no spouse
7-26 is entitled to an allowance, the sum the spouse would have
7-27 received, to be divided equally among the unmarried children under
8-1 eighteen (18) years; (d) to the dependent parent, only in case no
8-2 spouse or dependent child is entitled to an allowance, the sum the
8-3 spouse would have received, to be paid to but one (1) parent and
8-4 such parent to be determined by the Pension Board.
8-5 (e) On the death of a member, inactive member, retired
8-6 member, or individual receiving a survivor's pension, the Pension
8-7 Fund shall pay to the beneficiary or beneficiaries or, in the
8-8 absence of a beneficiary, to the estate of the member, inactive
8-9 member, retired member, or survivor a lump sum equal to the amount,
8-10 if any, by which the accumulated member contributions, without
8-11 interest, exceed the aggregate of all pension payments made.
8-12 SECTION 10. Section 1, Article 6243g-3, Revised Statutes, is
8-13 amended by amending Subdivision (h) and adding Subdivision (p) to
8-14 read as follows:
8-15 (h) "Inactive member" shall mean a member who:
8-16 (1) has completed 20 years of credited service, has
8-17 not attained age 50 <55>, and has left the classified service;
8-18 (2) is not eligible to begin receiving a service or
8-19 disability pension; and
8-20 (3) has neither applied for nor received a refund of
8-21 his contributions.
8-22 (p) "Surviving spouse" means a person:
8-23 (1) who was married to a deceased active member at the
8-24 time of the member's death, or to a deceased retired member before
8-25 the member's retirement or for a period of at least five years
8-26 before the member's death, whose marriage was recorded in the
8-27 records of the recorder's office in the county in which the
9-1 marriage ceremony was performed, and who remains unmarried, never
9-2 having had another marriage certificate recorded in any county's
9-3 recording office after the date of the member's death; or
9-4 (2) who has on file with the pension board a
9-5 declaration of common-law marriage supported by evidence as
9-6 required by the board and signed by the member and the member's
9-7 common-law spouse before a notary public.
9-8 SECTION 11. Subsections (b) and (c), Section 17, Article
9-9 6243g-3, Revised Statutes, are amended to read as follows:
9-10 (b) Effective July 1, 1991, the amount of the monthly
9-11 service pension payable to a retired member who retires on or after
9-12 July 1, 1988, is an amount equal to 2.25 percent of the member's
9-13 base salary per month for the first 20 years of service <45 percent
9-14 of the member's final compensation per month>, plus an additional
9-15 amount equal to two percent of the member's base salary <final
9-16 compensation> per month multiplied by the number of years in excess
9-17 of 20 years, to the nearest one-twelfth of a year, in the member's
9-18 period of credited service, not to exceed a total pension equal to
9-19 80 percent of final compensation, except that if the member has not
9-20 held the same classified position for three years immediately
9-21 preceding the date of retirement, the retirement pension shall be
9-22 based on the average monthly base salary of the member for three
9-23 years immediately preceding the date of retirement.
9-24 (c) A retiree who receives a service or disability
9-25 retirement pension under this article is entitled to receive an
9-26 additional amount each month equal to $88.05, beginning on the
9-27 person's retirement date or on the effective date of the 1989
10-1 amendment of this article, whichever is later, and continuing until
10-2 the end of <person reaches age 65. Thereafter, the payment will be
10-3 reduced to $55.38 each month. Payments of an additional amount
10-4 provided by this subsection end with> the month in which the
10-5 retiree <person> dies. This amount is intended to defray the
10-6 retiree's group medical insurance costs and will be paid directly
10-7 by the pension fund <to the insurer providing group coverage, as
10-8 long as the retiree is covered by the insurance. If a retiree
10-9 elects not to obtain the coverage or terminates the coverage, the
10-10 monthly amount will be paid> to the retiree <directly> for the
10-11 person's lifetime.
10-12 SECTION 12. Article 6243g-3, Revised Statutes, is amended by
10-13 adding Section 18 to read as follows:
10-14 Sec. 18. MILITARY SERVICE. (a) Beginning July 1, 1990, a
10-15 member of the pension system, while engaged in active military
10-16 service during a national emergency, is not required to make the
10-17 monthly payments into the pension fund provided by this article and
10-18 does not, because of absence as a result of the military service,
10-19 lose any previous years' service with the city. Military service
10-20 described by this section is considered continuous service in the
10-21 police department if, when the member is discharged from the
10-22 military service, the member returns to the city police department
10-23 under provisions of the city charter and the military service does
10-24 not exceed the period of the national emergency.
10-25 (b) The city shall make its regular monthly payments into
10-26 the pension fund for each member who is engaged in military service
10-27 described by this section.
11-1 (c) If a member of the pension system dies, either directly
11-2 or indirectly, as a result of the military service, the member's
11-3 spouse, dependent parent, or other dependents are entitled to
11-4 receive a refund of any contributions the member made to the
11-5 pension system.
11-6 SECTION 13. Subsection (a), Section 25, Article 6243g-3,
11-7 Revised Statutes, is amended to read as follows:
11-8 (a) A service pension, disability pension, survivor's
11-9 pension, death benefit, or withdrawal benefit shall be paid only
11-10 upon the filing of an application in a form prescribed by the
11-11 board. A monthly benefit shall not be payable for any month
11-12 earlier than the second month preceding the date on which the
11-13 application for such benefit is filed. If a retired member
11-14 receives both pension benefits from the fund and a salary as a
11-15 classified officer from the city that cover the same period of
11-16 time, the retired member shall repay pension benefits received
11-17 during the period to the fund. On request of the board, the city
11-18 attorney shall file suit in a court of competent jurisdiction to
11-19 recover pension benefits owed the fund under this subsection.
11-20 SECTION 14. Subsection (a), Section 28, Article 6243g-3,
11-21 Revised Statutes, is amended to read as follows:
11-22 (a) The city shall deduct monthly from the salary or
11-23 compensation of each member participating in the fund a sum equal
11-24 to 8.75 <seven> percent of such salary or compensation, such
11-25 deduction to be paid by the city to the fund.
11-26 SECTION 15. (a) This Act takes effect July 1, 1993, if this
11-27 Act receives the votes required by Article III, Section 39, of the
12-1 Texas Constitution for that effective date. If this Act does not
12-2 receive the votes required by that section for an effective date
12-3 before the 91st day after the last day of the legislative session,
12-4 this Act takes effect September 1, 1993.
12-5 (b) The changes in law made by this Act apply, except as
12-6 otherwise specifically provided by this Act, only to contributions
12-7 that become due and retirements and deaths that occur on or after
12-8 the effective date of this Act.
12-9 (c) The change in law made by this Act in the qualifications
12-10 of the chairmen of pension boards apply only to terms of chairmen
12-11 that begin on or after the effective date of this Act.
12-12 (d) The change in law made by this Act in the payment of
12-13 benefits to defray group insurance costs applies to all payments of
12-14 the benefits that become due on or after the effective date of this
12-15 Act.
12-16 (e) The change in law made by Section 7 of this Act applies
12-17 only to appointments or promotions that are made on or after the
12-18 effective date of this Act. An appointment or promotion made
12-19 before the effective date of this Act is governed by Subsection
12-20 (b), Section 6, Chapter 76, Acts of the 50th Legislature, 1947
12-21 (Article 6243g-1, Vernon's Texas Civil Statutes), as it existed at
12-22 the time the appointment or promotion was made, and the former law
12-23 is continued in effect for this purpose.
12-24 SECTION 16. The importance of this legislation and the
12-25 crowded condition of the calendars in both houses create an
12-26 emergency and an imperative public necessity that the
12-27 constitutional rule requiring bills to be read on three several
13-1 days in each house be suspended, and this rule is hereby suspended,
13-2 and that this Act take effect and be in force according to its
13-3 terms, and it is so enacted.