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.