1-1 By: Turner of Harris (Senate Sponsor - Whitmire) H.B. No. 2308
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 by
1-5 the following vote: Yeas 10, Nays 0; May 20, 1993, sent to
1-6 printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Armbrister x
1-10 Leedom x
1-11 Carriker x
1-12 Henderson x
1-13 Madla x
1-14 Moncrief x
1-15 Patterson x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 Whitmire x
1-20 A BILL TO BE ENTITLED
1-21 AN ACT
1-22 relating to eligibility for benefits payable by retirement systems
1-23 for police officers in certain municipalities.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 11(a), Chapter 76, Acts of the 50th
1-26 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
1-27 is amended to read as follows:
1-28 (a) A person who becomes a member of the Pension System on
1-29 or after September 1, 1975, and who has been in the service of the
1-30 city police department for the period of twenty (20) years may
1-31 retire on or after July 1, 1993, <1988, at the age of fifty (50)
1-32 years> and shall be entitled to a retirement pension of an amount
1-33 equal to two and one-fourth percent (2.25%) <forty-five percent
1-34 (45%)> of his base salary per month for the first twenty (20) years
1-35 of service, plus an additional amount equal to two percent (2%) of
1-36 his base salary per month for each year of service in the police
1-37 department in excess of twenty (20) years, not to exceed a total
1-38 pension equal to eighty percent (80%) of base salary, such base
1-39 salary to be the base salary provided for the classified position
1-40 in the police department held by the member, provided that if the
1-41 member has not held the same classified position for three (3)
1-42 years prior to the date of retirement, the retirement pension shall
1-43 be based on the average monthly base salary of the member for three
1-44 (3) years preceding retirement. <Except as provided in Subsection
1-45 (a-1) of this section, no retirement pension may be paid to a
1-46 member who has not attained the age of fifty (50) years.>
1-47 SECTION 2. Section 11(a), Article 6243g-3, Revised Statutes,
1-48 is amended to read as follows:
1-49 (a) A member shall become eligible to receive a service
1-50 pension, after he has terminated employment, on or after July 1,
1-51 1993 <1988>, on the day he has 20 years of credited service <and
1-52 has attained age 50>.
1-53 SECTION 3. Section 12(a), Article 6243g-3, Revised Statutes,
1-54 is amended to read as follows:
1-55 (a) A member who has 20 years of credited service shall have
1-56 a vested right to a service pension, computed in accordance with
1-57 the provisions of this article in effect when he ceased to be an
1-58 employee<, payable beginning with the first month after his
1-59 attainment of age 50>.
1-60 SECTION 4. Section 2, Chapter 76, Acts of the 50th
1-61 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
1-62 is amended by adding Subdivisions (i) and (j) to read as follows:
1-63 (i) "Surviving spouse" means a person who was married to a
1-64 deceased active member at the time of the member's death, or to a
1-65 deceased retired member before the member's retirement or for a
1-66 period of at least five years before the member's death, and whose
1-67 marriage was recorded in the records of the recorder's office in
1-68 the county in which the marriage ceremony was performed; or a
2-1 person who has on file with the Pension Board a declaration of
2-2 common-law marriage supported by evidence as required by the Board
2-3 and signed by the member and the member's common-law spouse before
2-4 a notary public.
2-5 (j) "Widow" or "widower" means a deceased member's surviving
2-6 spouse who remains unmarried, never having had another marriage
2-7 certificate recorded in any county's recording office after the
2-8 date of the member's death.
2-9 SECTION 5. Subdivision (1), Subsection (d), Section 4,
2-10 Chapter 76, Acts of the 50th Legislature, 1947 (Article 6243g-1,
2-11 Vernon's Texas Civil Statutes), is amended to read as follows:
2-12 (1) The Board shall elect from its membership,
2-13 annually, a chairman, vice-chairman and secretary. The chairman
2-14 must be a person who has been elected to the Board by the members
2-15 of the police department and the Pension System. Pursuant to the
2-16 powers granted under the charter of such city and except as
2-17 provided by Subdivision (2) of this subsection, the mayor or
2-18 administrative head of the city shall appoint one or more employees
2-19 whose positions and salaries shall be fixed by the governing body
2-20 of the city and who, acting under the direction of the mayor or
2-21 administrative head of the city and treasurer or director of the
2-22 treasury, shall keep all of the records of, and perform all of the
2-23 clerical services for, the Pension System. The salaries of such
2-24 employees shall be paid by the city.
2-25 SECTION 6. Section 4, Chapter 76, Acts of the 50th
2-26 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
2-27 is amended by adding Subsection (j) to read as follows:
2-28 (j) The Pension Board may purchase from an insurer licensed
2-29 to do business in this state one (1) or more policies of insurance
2-30 that provide for reimbursement of a Board member, officer, or
2-31 employee of the Board for liability imposed as damages because of
2-32 an alleged act, error, or omission committed in the individual's
2-33 capacity as fiduciary or co-fiduciary of assets of the Pension Fund
2-34 and for costs and expenses incurred by a fiduciary or co-fiduciary
2-35 in defense of a claim of an alleged act, error, or omission. A
2-36 policy of insurance purchased under this subsection may not provide
2-37 for reimbursement of a Board member, officer, or employee of the
2-38 Board for liability imposed or expenses incurred because of the
2-39 individual's personal dishonesty, fraudulent breach of trust, lack
2-40 of good faith, intentional fraud or deception, or intentional
2-41 failure to act prudently. The cost of insurance coverage purchased
2-42 under this subsection shall be paid from money in the Pension Fund.
2-43 SECTION 7. Subsection (b), Section 6, Chapter 76, Acts of
2-44 the 50th Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil
2-45 Statutes), is amended to read as follows:
2-46 (b) The maximum contribution which may be made to the fund
2-47 by a member shall be limited to a contribution based on the salary
2-48 of the second highest classification within the salary schedule of
2-49 the police department. It is the intent of this section to limit
2-50 both the contribution and retirement benefits of any member to the
2-51 salary level of the second highest rank of the police department
2-52 personnel classification schedule, provided that if the member has
2-53 not held the same classified position for three (3) <five (5)>
2-54 years immediately preceding <prior to> the date of retirement, the
2-55 retirement pension shall be based on the average monthly base
2-56 salary of the member for three (3) <five (5)> years immediately
2-57 preceding the date of retirement.
2-58 SECTION 8. Subsections (a-1), (b), (e), and (h), Section 11,
2-59 Chapter 76, Acts of the 50th Legislature, 1947 (Article 6243g-1,
2-60 Vernon's Texas Civil Statutes), are amended to read as follows:
2-61 <(a-1) A person who was a member of the pension system
2-62 before September 1, 1975, may retire on or after July 1, 1988,
2-63 regardless of age upon completion of twenty (20) years of service
2-64 in the city police department and shall be entitled to a retirement
2-65 pension of an amount equal to forty five percent (45%) of his base
2-66 salary per month, plus an additional amount equal to two percent
2-67 (2%) of his base salary per month for each year of service in the
2-68 police department in excess of twenty (20) years, not to exceed a
2-69 total pension equal to eighty percent (80%) of base salary, such
2-70 base salary to be the base salary provided for the classified
3-1 position in the police department held by the member, provided that
3-2 if the member has not held the same classified position for three
3-3 (3) years prior to the date of retirement, the retirement pension
3-4 shall be based on the average monthly base salary of the member for
3-5 three (3) years preceding retirement.>
3-6 (b) If a member of the Police Pension System is promoted or
3-7 appointed to any classified position above the second highest in
3-8 the police department personnel classification schedule, that
3-9 member's contribution and retirement benefits will be computed on
3-10 the base salary of the second highest classified position in the
3-11 police department personnel classification schedule, provided that
3-12 if the member has not held the same classified position for three
3-13 (3) <five (5)> years immediately preceding <prior to> the date of
3-14 retirement, the retirement pension shall be based on the average
3-15 monthly base salary of the member for three (3) <five (5)> years
3-16 immediately preceding retirement. For the purposes of this Act,
3-17 the position of the Chief of Police shall be considered the highest
3-18 classified position in the personnel classification schedule in the
3-19 police department.
3-20 (e) Upon a member's completion of twenty (20) years of
3-21 service in the police department and thereafter, when such member
3-22 retires, whether such retirement be voluntary or involuntary, such
3-23 monthly payment shall begin forthwith and continue for the
3-24 remainder of the member's life. <However, when such member has
3-25 completed twenty (20) years' service in the police department and
3-26 if the physicians of Pension Board agree that the member is
3-27 physically fit to continue his active duties in the police
3-28 department, they may so certify, and the member may continue in the
3-29 service of the city police department until the member attains the
3-30 age of sixty five (65) years, at which time his retirement pension
3-31 shall be computed as hereinbefore stated.>
3-32 (h) A retiree who receives a service or disability
3-33 retirement pension under this Act is entitled to receive an
3-34 additional amount each month equal to $88.05, beginning on the
3-35 person's retirement date or on the effective date of the 1989
3-36 amendment of this Act, whichever is later, and continuing until the
3-37 end of <person reaches age 65. Thereafter, the payment will be
3-38 reduced to $55.38 each month. Payments of an additional amount
3-39 provided by this subsection end with> the month in which the
3-40 retiree <person> dies. This amount is intended to defray the
3-41 retiree's group medical insurance costs and will be paid directly
3-42 by the Pension Fund <to the insurer providing group coverage, as
3-43 long as the retiree is covered by the insurance. If a retiree
3-44 elects not to obtain the coverage or terminates the coverage, the
3-45 monthly amount will be paid> to the retiree <directly> for the
3-46 person's lifetime.
3-47 SECTION 9. Section 13, Chapter 76, Acts of the 50th
3-48 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil
3-49 Statutes), is amended by amending Subsection (a) and adding
3-50 Subsection (e) to read as follows:
3-51 (a) If any member of the police department who has been
3-52 retired on allowance because of length of service or disability
3-53 thereafter dies on or after July 1, 1986, from any cause whatsoever
3-54 after he has become entitled to an allowance or pension, and leaves
3-55 a surviving <a> spouse <to whom the member was married prior to his
3-56 retirement or for a period of at least five (5) years prior to the
3-57 member's death (hereinafter referred to as the "surviving
3-58 spouse")>, a child or children under the age of eighteen (18) years
3-59 or a dependent parent, the Board shall order paid a monthly
3-60 allowance as follows: (a) to the surviving spouse, so long as he
3-61 or she remains a widow or widower, a sum equal to the allowance
3-62 which was granted to the member upon service or disability pension
3-63 based on his length of service in the police department; (b) to
3-64 the guardian of each child, the sum of twenty-five ($25) Dollars a
3-65 month until the child reaches the age of eighteen (18) years or
3-66 marries; (c) to the guardian of each child, only in case no spouse
3-67 is entitled to an allowance, the sum the spouse would have
3-68 received, to be divided equally among the unmarried children under
3-69 eighteen (18) years; (d) to the dependent parent, only in case no
3-70 spouse or dependent child is entitled to an allowance, the sum the
4-1 spouse would have received, to be paid to but one (1) parent and
4-2 such parent to be determined by the Pension Board.
4-3 (e) On the death of a member, inactive member, retired
4-4 member, or individual receiving a survivor's pension, the Pension
4-5 Fund shall pay to the beneficiary or beneficiaries or, in the
4-6 absence of a beneficiary, to the estate of the member, inactive
4-7 member, retired member, or survivor a lump sum equal to the amount,
4-8 if any, by which the accumulated member contributions, without
4-9 interest, exceed the aggregate of all pension payments made.
4-10 SECTION 10. Section 1, Article 6243g-3, Revised Statutes, is
4-11 amended by amending Subdivision (h) and adding Subdivision (p) to
4-12 read as follows:
4-13 (h) "Inactive member" shall mean a member who:
4-14 (1) has completed 20 years of credited service, has
4-15 not attained age 50 <55>, and has left the classified service;
4-16 (2) is not eligible to begin receiving a service or
4-17 disability pension; and
4-18 (3) has neither applied for nor received a refund of
4-19 his contributions.
4-20 (p) "Surviving spouse" means a person:
4-21 (1) who was married to a deceased active member at the
4-22 time of the member's death, or to a deceased retired member before
4-23 the member's retirement or for a period of at least five years
4-24 before the member's death, whose marriage was recorded in the
4-25 records of the recorder's office in the county in which the
4-26 marriage ceremony was performed, and who remains unmarried, never
4-27 having had another marriage certificate recorded in any county's
4-28 recording office after the date of the member's death; or
4-29 (2) who has on file with the pension board a
4-30 declaration of common-law marriage supported by evidence as
4-31 required by the board and signed by the member and the member's
4-32 common-law spouse before a notary public.
4-33 SECTION 11. Subsections (b) and (c), Section 17, Article
4-34 6243g-3, Revised Statutes, are amended to read as follows:
4-35 (b) Effective July 1, 1991, the amount of the monthly
4-36 service pension payable to a retired member who retires on or after
4-37 July 1, 1988, is an amount equal to 2.25 percent of the member's
4-38 base salary per month for the first 20 years of service <45 percent
4-39 of the member's final compensation per month>, plus an additional
4-40 amount equal to two percent of the member's base salary <final
4-41 compensation> per month multiplied by the number of years in excess
4-42 of 20 years, to the nearest one-twelfth of a year, in the member's
4-43 period of credited service, not to exceed a total pension equal to
4-44 80 percent of final compensation, except that if the member has not
4-45 held the same classified position for three years immediately
4-46 preceding the date of retirement, the retirement pension shall be
4-47 based on the average monthly base salary of the member for three
4-48 years immediately preceding the date of retirement.
4-49 (c) A retiree who receives a service or disability
4-50 retirement pension under this article is entitled to receive an
4-51 additional amount each month equal to $88.05, beginning on the
4-52 person's retirement date or on the effective date of the 1989
4-53 amendment of this article, whichever is later, and continuing until
4-54 the end of <person reaches age 65. Thereafter, the payment will be
4-55 reduced to $55.38 each month. Payments of an additional amount
4-56 provided by this subsection end with> the month in which the
4-57 retiree <person> dies. This amount is intended to defray the
4-58 retiree's group medical insurance costs and will be paid directly
4-59 by the pension fund <to the insurer providing group coverage, as
4-60 long as the retiree is covered by the insurance. If a retiree
4-61 elects not to obtain the coverage or terminates the coverage, the
4-62 monthly amount will be paid> to the retiree <directly> for the
4-63 person's lifetime.
4-64 SECTION 12. Article 6243g-3, Revised Statutes, is amended by
4-65 adding Section 18 to read as follows:
4-66 Sec. 18. MILITARY SERVICE. (a) Beginning July 1, 1990, a
4-67 member of the pension system, while engaged in active military
4-68 service during a national emergency, is not required to make the
4-69 monthly payments into the pension fund provided by this article and
4-70 does not, because of absence as a result of the military service,
5-1 lose any previous years' service with the city. Military service
5-2 described by this section is considered continuous service in the
5-3 police department if, when the member is discharged from the
5-4 military service, the member returns to the city police department
5-5 under provisions of the city charter and the military service does
5-6 not exceed the period of the national emergency.
5-7 (b) The city shall make its regular monthly payments into
5-8 the pension fund for each member who is engaged in military service
5-9 described by this section.
5-10 (c) If a member of the pension system dies, either directly
5-11 or indirectly, as a result of the military service, the member's
5-12 spouse, dependent parent, or other dependents are entitled to
5-13 receive a refund of any contributions the member made to the
5-14 pension system.
5-15 SECTION 13. Subsection (a), Section 25, Article 6243g-3,
5-16 Revised Statutes, is amended to read as follows:
5-17 (a) A service pension, disability pension, survivor's
5-18 pension, death benefit, or withdrawal benefit shall be paid only
5-19 upon the filing of an application in a form prescribed by the
5-20 board. A monthly benefit shall not be payable for any month
5-21 earlier than the second month preceding the date on which the
5-22 application for such benefit is filed. If a retired member
5-23 receives both pension benefits from the fund and a salary as a
5-24 classified officer from the city that cover the same period of
5-25 time, the retired member shall repay pension benefits received
5-26 during the period to the fund. On request of the board, the city
5-27 attorney shall file suit in a court of competent jurisdiction to
5-28 recover pension benefits owed the fund under this subsection.
5-29 SECTION 14. Subsection (a), Section 28, Article 6243g-3,
5-30 Revised Statutes, is amended to read as follows:
5-31 (a) The city shall deduct monthly from the salary or
5-32 compensation of each member participating in the fund a sum equal
5-33 to 8.75 <seven> percent of such salary or compensation, such
5-34 deduction to be paid by the city to the fund.
5-35 SECTION 15. (a) This Act takes effect July 1, 1993, if this
5-36 Act receives the votes required by Article III, Section 39, of the
5-37 Texas Constitution for that effective date. If this Act does not
5-38 receive the votes required by that section for an effective date
5-39 before the 91st day after the last day of the legislative session,
5-40 this Act takes effect September 1, 1993.
5-41 (b) The changes in law made by this Act apply, except as
5-42 otherwise specifically provided by this Act, only to contributions
5-43 that become due and retirements and deaths that occur on or after
5-44 the effective date of this Act.
5-45 (c) The change in law made by this Act in the qualifications
5-46 of the chairmen of pension boards apply only to terms of chairmen
5-47 that begin on or after the effective date of this Act.
5-48 (d) The change in law made by this Act in the payment of
5-49 benefits to defray group insurance costs applies to all payments of
5-50 the benefits that become due on or after the effective date of this
5-51 Act.
5-52 (e) The change in law made by Section 7 of this Act applies
5-53 only to appointments or promotions that are made on or after the
5-54 effective date of this Act. An appointment or promotion made
5-55 before the effective date of this Act is governed by Subsection
5-56 (b), Section 6, Chapter 76, Acts of the 50th Legislature, 1947
5-57 (Article 6243g-1, Vernon's Texas Civil Statutes), as it existed at
5-58 the time the appointment or promotion was made, and the former law
5-59 is continued in effect for this purpose.
5-60 SECTION 16. The importance of this legislation and the
5-61 crowded condition of the calendars in both houses create an
5-62 emergency and an imperative public necessity that the
5-63 constitutional rule requiring bills to be read on three several
5-64 days in each house be suspended, and this rule is hereby suspended,
5-65 and that this Act take effect and be in force according to its
5-66 terms, and it is so enacted.
5-67 * * * * *
5-68 Austin,
5-69 Texas
5-70 May 20, 1993
6-1 Hon. Bob Bullock
6-2 President of the Senate
6-3 Sir:
6-4 We, your Committee on Intergovernmental Relations to which was
6-5 referred H.B. No. 2308, have had the same under consideration, and
6-6 I am instructed to report it back to the Senate with the
6-7 recommendation that it do pass and be printed.
6-8 Armbrister,
6-9 Chairman
6-10 * * * * *
6-11 WITNESSES
6-12 FOR AGAINST ON
6-13 ___________________________________________________________________
6-14 Name: Sabrina Foster x
6-15 Representing: Mayor Bob Lanier, Houston
6-16 City: Houston
6-17 -------------------------------------------------------------------
6-18 Name: T.A. Britt x
6-19 Representing: Houston Police Officers Assc.
6-20 City: Houston
6-21 -------------------------------------------------------------------
6-22 Name: Michael L. Howard x
6-23 Representing: Houston Police Patrolmens
6-24 City: Houston
6-25 -------------------------------------------------------------------
6-26 Name: Carvel L. McNeil, Jr. x
6-27 Representing: Houston Police Patrolmen's
6-28 City: Houston
6-29 -------------------------------------------------------------------