1-1 By: Whitmire S.B. No. 264 1-2 (In the Senate - Filed February 4, 1993; February 8, 1993, 1-3 read first time and referred to Committee on Intergovernmental 1-4 Relations; April 22, 1993, reported adversely, with favorable 1-5 Committee Substitute by the following vote: Yeas 9, Nays 0; 1-6 April 22, 1993, sent 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 SUBSTITUTE FOR S.B. No. 264 By: Armbrister 1-21 A BILL TO BE ENTITLED 1-22 AN ACT 1-23 relating to the administration of police officer retirement systems 1-24 in certain municipalities. 1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-26 SECTION 1. Section 2, Chapter 76, Acts of the 50th 1-27 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes), 1-28 is amended by adding Subdivision (i) to read as follows: 1-29 (i) "Retired member" means a member who has terminated 1-30 service, other than an inactive member, and who is eligible to 1-31 receive a service or disability pension under this Act. 1-32 SECTION 2. Chapter 76, Acts of the 50th Legislature, 1947 1-33 (Article 6243g-1, Vernon's Texas Civil Statutes), is amended by 1-34 adding Section 2A to read as follows: 1-35 Sec. 2A. A person is ineligible to receive a pension based 1-36 on the person's service credited in the Pension System while the 1-37 person holds a classified position in the police department of the 1-38 city. 1-39 SECTION 3. Chapter 76, Acts of the 50th Legislature, 1947 1-40 (Article 6243g-1, Vernon's Texas Civil Statutes), is amended by 1-41 adding Section 11A to read as follows: 1-42 Sec. 11A. (a) The Pension System shall suspend all pension 1-43 payments to a person who has retired under this Act and is 1-44 subsequently appointed as the department head of the police 1-45 department. The suspension of payments begins on the effective 1-46 date of the person's appointment. 1-47 (b) Pension benefits based on the person's previous period 1-48 of service do not accrue during the period of pension payment 1-49 suspension, but the person again becomes an active member during 1-50 this period, and contributions of the city and the department head 1-51 for the subsequent service are payable during the period. The 1-52 department head retains credit for all previous service and 1-53 acquires credit for the subsequent service. 1-54 (c) The department head is eligible to retire at the end of 1-55 the subsequent service and receive pension benefits under this Act 1-56 based on both periods of service. 1-57 SECTION 4. Chapter 76, Acts of the 50th Legislature, 1947 1-58 (Article 6243g-1, Vernon's Texas Civil Statutes), is amended by 1-59 adding Section 16A to read as follows: 1-60 Sec. 16A. (a) An employee of the city who has retired under 1-61 this Act, was not eligible to become a member of a pension system 1-62 governed by Chapter 358, Acts of the 48th Legislature, 1943 1-63 (Article 6243g, Vernon's Texas Civil Statutes), under Section 4(d) 1-64 of that Act, and is or has been transferred by action of the city 1-65 to a classified position in a police department included in the 1-66 Pension System becomes or became as of the effective date of the 1-67 transfer an active member of the plan under this Act from which the 1-68 person earlier retired. 2-1 (b) A person who rejoins the Pension System under this 2-2 section is entitled to receive service credit for each day of 2-3 service and work performed by the person in a classified position 2-4 in the police department. The Pension Board shall add service 2-5 performed after the transfer to the prior service the member 2-6 accrued in a classified position in the police department. The 2-7 member may not receive service credit under this Act for service 2-8 performed for the city other than in a classified position in the 2-9 police department. 2-10 (c) After a transfer described by this section, 2-11 contributions of the city and the member become payable as for 2-12 other members of the same pension plan. 2-13 (d) When a member who has transferred as described by this 2-14 section subsequently retires, the person is entitled to a pension 2-15 computed on the basis of the combined service described by 2-16 Subsection (b) of this section, after deducting any period in which 2-17 the member was suspended from duty without pay, on leave of absence 2-18 without pay, on separation from service, or employed by the city in 2-19 a capacity other than in a classified position in the police 2-20 department. 2-21 (e) If a retired member receives both pension benefits from 2-22 the fund and a salary from the city as a classified officer that 2-23 cover the same period, the retired member shall repay to the fund 2-24 the pension benefits received during that period. The Pension 2-25 Board shall withhold payment of pension benefits under this Act if 2-26 it is determined that a retired member is receiving both pension 2-27 benefits from the fund and a salary from the city as a classified 2-28 officer that cover the same period. On request of the Pension 2-29 Board, the city attorney or a private attorney chosen by the board 2-30 shall file suit in a court of competent jurisdiction to recover 2-31 pension benefits owed to the fund under this subsection. 2-32 (f) This Act does not authorize the return to service with a 2-33 police department or the resumption of membership in the Pension 2-34 System by a retired member except as specifically provided by 2-35 Section 11A of this Act or this section. 2-36 SECTION 5. Chapter 76, Acts of the 50th Legislature, 1947 2-37 (Article 6243g-1, Vernon's Texas Civil Statutes), is amended by 2-38 adding Section 18 to read as follows: 2-39 Sec. 18. The Pension Board may require any active member, 2-40 inactive member, retired member, eligible survivor, or other person 2-41 or entity to furnish information the Board requires for the 2-42 determination of benefits under this Act. If a person or entity 2-43 does not cooperate in the furnishing or obtaining of information 2-44 required as provided by this section, the Board may withhold 2-45 payment of the pension or other benefits dependent on the 2-46 information. 2-47 SECTION 6. Article 6243g-3, Revised Statutes, is amended by 2-48 adding Section 18 to read as follows: 2-49 Sec. 18. RESUMPTION OF SERVICE AS DEPARTMENT HEAD AFTER 2-50 RETIREMENT. (a) The pension system shall suspend all pension 2-51 payments to a person who has retired under this article and is 2-52 subsequently appointed as the department head of the police 2-53 department. The suspension of payments begins on the effective 2-54 date of the person's appointment. 2-55 (b) Pension benefits based on the person's previous period 2-56 of service do not accrue during the period of pension payment 2-57 suspension, but the person again becomes an active member during 2-58 this period, and contributions of the city and the department head 2-59 for the subsequent service are payable during the period. The 2-60 department head retains credit for all previous service and 2-61 acquires credit for the subsequent service. 2-62 (c) The department head is eligible to retire at the end of 2-63 the subsequent service and receive pension benefits under this 2-64 article based on both periods of service. 2-65 SECTION 7. Article 6243g-3, Revised Statutes, is amended by 2-66 adding Section 25A to read as follows: 2-67 Sec. 25A. (a) An employee of the city who has retired under 2-68 this article, was not eligible to become a member of a pension 2-69 system governed by Chapter 358, Acts of the 48th Legislature, 1943 2-70 (Article 6243g, Vernon's Texas Civil Statutes), under Section 4(d) 3-1 of that Act, and is or has been transferred by action of the city 3-2 to a classified position in a police department included in the 3-3 pension system becomes or became as of the effective date of the 3-4 transfer an active member of the plan under this article from which 3-5 the person earlier retired. 3-6 (b) A person who rejoins the pension system under this 3-7 section is entitled to receive service credit for each day of 3-8 service and work performed by the person in a classified position 3-9 in the police department. The pension board shall add service 3-10 performed after the transfer to the prior service the member 3-11 accrued in a classified position in the police department. The 3-12 member may not receive service credit under this article for 3-13 service performed for the city other than in a classified position 3-14 in the police department. 3-15 (c) After a transfer described by this section, 3-16 contributions of the city and the member become payable as for 3-17 other members of the same pension plan. 3-18 (d) When a member who has transferred as described by this 3-19 section subsequently retires, the person is entitled to a pension 3-20 computed on the basis of the combined service described by 3-21 Subsection (b) of this section, after deducting any period in which 3-22 the member was suspended from duty without pay, on leave of absence 3-23 without pay, on separation from service, or employed by the city in 3-24 a capacity other than in a classified position in the police 3-25 department. 3-26 (e) If a retired member receives both pension benefits from 3-27 the fund and a salary from the city as a classified officer that 3-28 cover the same period, the retired member shall repay to the fund 3-29 the pension benefits received during that period. The pension 3-30 board shall withhold payment of pension benefits under this article 3-31 if it is determined that a retired member is receiving both pension 3-32 benefits from the fund and a salary from the city as a classified 3-33 officer that cover the same period. On request of the pension 3-34 board, the city attorney or a private attorney chosen by the board 3-35 shall file suit in a court of competent jurisdiction to recover 3-36 pension benefits owed to the fund under this subsection. 3-37 (f) This article does not authorize the return to service 3-38 with a police department or the resumption of membership in the 3-39 pension system by a retired member except as specifically provided 3-40 by Section 18 of this article or this section. 3-41 SECTION 8. If a person retired and was appointed before the 3-42 effective date of this Act as the department head of a police 3-43 department the employees of which are covered by a retirement 3-44 system to which the changes in law made by this Act apply, the 3-45 changes apply to the department head as if the effective date of 3-46 this Act were the effective date of the appointment. 3-47 SECTION 9. The importance of this legislation and the 3-48 crowded condition of the calendars in both houses create an 3-49 emergency and an imperative public necessity that the 3-50 constitutional rule requiring bills to be read on three several 3-51 days in each house be suspended, and this rule is hereby suspended, 3-52 and that this Act take effect and be in force from and after its 3-53 passage, and it is so enacted. 3-54 * * * * * 3-55 Austin, 3-56 Texas 3-57 April 22, 1993 3-58 Hon. Bob Bullock 3-59 President of the Senate 3-60 Sir: 3-61 We, your Committee on Intergovernmental Relations to which was 3-62 referred S.B. No. 264, have had the same under consideration, and I 3-63 am instructed to report it back to the Senate with the 3-64 recommendation that it do not pass, but that the Committee 3-65 Substitute adopted in lieu thereof do pass and be printed. 3-66 Armbrister, 3-67 Chairman 3-68 * * * * * 3-69 WITNESSES 3-70 FOR AGAINST ON 4-1 ___________________________________________________________________ 4-2 Name: Sabrina Foster x 4-3 Representing: Mayor and City Council 4-4 City: Houston 4-5 -------------------------------------------------------------------