By: Whitmire S.B. No. 989
73R6519 GCH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to credit in, contributions to, and benefits and
1-3 administration of retirement systems for police officers in certain
1-4 municipalities.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 2, Chapter 76, Acts of the 50th
1-7 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
1-8 is amended by adding Subdivisions (i) and (j) to read as follows:
1-9 (i) "Surviving spouse" means a person who was married to a
1-10 deceased active member at the time of the member's death, or to a
1-11 deceased retired member before the member's retirement or for a
1-12 period of at least five years before the member's death, and whose
1-13 marriage was recorded in the records of the recorder's office in
1-14 the county in which the marriage ceremony was performed; or a
1-15 person who has on file with the Pension Board a declaration of
1-16 common-law marriage supported by evidence as required by the Board
1-17 and signed by the member and the member's common-law spouse before
1-18 a notary public.
1-19 (j) "Widow" or "widower" means a deceased member's surviving
1-20 spouse who remains unmarried, never having had another marriage
1-21 certificate recorded in any county's recording office after the
1-22 date of the member's death.
1-23 SECTION 2. Subdivision (1), Subsection (d), Section 4,
1-24 Chapter 76, Acts of the 50th Legislature, 1947 (Article 6243g-1,
2-1 Vernon's Texas Civil Statutes), is amended to read as follows:
2-2 (1) The Board shall elect from its membership,
2-3 annually, a chairman, vice-chairman and secretary. The chairman
2-4 must be a person who has been elected to the Board by the members
2-5 of the police department and the Pension System. Pursuant to the
2-6 powers granted under the charter of such city and except as
2-7 provided by Subdivision (2) of this subsection, the mayor or
2-8 administrative head of the city shall appoint one or more employees
2-9 whose positions and salaries shall be fixed by the governing body
2-10 of the city and who, acting under the direction of the mayor or
2-11 administrative head of the city and treasurer or director of the
2-12 treasury, shall keep all of the records of, and perform all of the
2-13 clerical services for, the Pension System. The salaries of such
2-14 employees shall be paid by the city.
2-15 SECTION 3. Section 4, Chapter 76, Acts of the 50th
2-16 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
2-17 is amended by adding Subsections (j) and (k) to read as follows:
2-18 (j) The Pension Board may purchase from an insurer licensed
2-19 to do business in this state one (1) or more policies of insurance
2-20 that provide for reimbursement of a Board member, officer, or
2-21 employee of the Board for liability imposed as damages because of
2-22 an alleged act, error, or omission committed in the individual's
2-23 capacity as fiduciary or co-fiduciary of assets of the Pension Fund
2-24 and for costs and expenses incurred by a fiduciary or co-fiduciary
2-25 in defense of a claim of an alleged act, error, or omission. A
2-26 policy of insurance purchased under this subsection may not provide
2-27 for reimbursement of a Board member, officer, or employee of the
3-1 Board for liability imposed or expenses incurred because of the
3-2 individual's personal dishonesty, fraudulent breach of trust, lack
3-3 of good faith, intentional fraud or deception, or intentional
3-4 failure to act prudently. The cost of insurance coverage purchased
3-5 under this subsection shall be paid from money in the Pension Fund.
3-6 (k)(1) If insurance as described by Subsection (j) of this
3-7 section is unavailable, insufficient, inadequate, or otherwise not
3-8 in effect, the Pension Board may indemnify a Board member, officer,
3-9 or employee of the Board for liability imposed as damages because
3-10 of an alleged act, error, or omission committed in the individual's
3-11 capacity as fiduciary or co-fiduciary of assets of the Pension Fund
3-12 and for reasonable costs and expenses incurred by a fiduciary or a
3-13 co-fiduciary in defense of a claim of an alleged act, error, or
3-14 omission. Indemnification may not extend to liability imposed or
3-15 expenses incurred by a Board member, officer, or employee of the
3-16 Board because of the individual's personal dishonesty, fraudulent
3-17 breach of trust, lack of good faith, intentional fraud or
3-18 deception, or intentional failure to act prudently.
3-19 (2) A determination of indemnification shall be made
3-20 by a majority vote of Board members. If a proposed indemnification
3-21 is of a Board member, that Board member may not vote on the matter.
3-22 (3) The Board may adopt a policy establishing a method
3-23 for presentation, approval, and payment of claims for
3-24 indemnification.
3-25 (4) Indemnification approved under this subsection
3-26 extends to acts, errors, and omissions of former Board members,
3-27 officers, or employees as long as the alleged act, error, or
4-1 omission occurs after the effective date of the 1991 amendment of
4-2 this Act.
4-3 SECTION 4. Subsection (b), Section 6, Chapter 76, Acts of
4-4 the 50th Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil
4-5 Statutes), is amended to read as follows:
4-6 (b) The maximum contribution which may be made to the fund
4-7 by a member shall be limited to a contribution based on the salary
4-8 of the <second> highest rank the member has obtained by civil
4-9 service examination <classification> within the salary schedule of
4-10 the police department. It is the intent of this section to limit
4-11 both the contribution and retirement benefits of any member to the
4-12 salary level of the <second> highest rank the member obtains by
4-13 civil service examination <of the police department personnel
4-14 classification schedule>, provided that if the member has not held
4-15 the same classified position for three (3) <five (5)> years
4-16 immediately preceding <prior to> the date of retirement, the
4-17 retirement pension shall be based on the average monthly base
4-18 salary of the member for three (3) <five (5)> years immediately
4-19 preceding the date of retirement.
4-20 SECTION 5. Subsections (a), (a-1), (b), (e), and (h),
4-21 Section 11, Chapter 76, Acts of the 50th Legislature, 1947 (Article
4-22 6243g-1, Vernon's Texas Civil Statutes), are amended to read as
4-23 follows:
4-24 (a) A person who becomes a member of the Pension System on
4-25 or after September 1, 1975, and who has been in the service of the
4-26 city police department for the period of twenty (20) years may
4-27 retire on or after July 1, 1988, at the age of fifty (50) years and
5-1 shall be entitled to a retirement pension of an amount equal to two
5-2 and one-fourth percent (2.25%) <forty-five percent (45%)> of his
5-3 base salary per month for the first twenty (20) years of service,
5-4 plus an additional amount equal to two percent (2%) of his base
5-5 salary per month for each year of service in the police department
5-6 in excess of twenty (20) years, not to exceed a total pension equal
5-7 to eighty percent (80%) of base salary, such base salary to be the
5-8 base salary provided for the classified position in the police
5-9 department held by the member, provided that if the member has not
5-10 held the same classified position for three (3) years prior to the
5-11 date of retirement, the retirement pension shall be based on the
5-12 average monthly base salary of the member for three (3) years
5-13 preceding retirement. Except as provided in Subsection (a-1) of
5-14 this section, no retirement pension may be paid to a member who has
5-15 not attained the age of fifty (50) years.
5-16 (a-1) A person who was a member of the pension system before
5-17 September 1, 1975, may retire on or after July 1, 1988, regardless
5-18 of age upon completion of twenty (20) years of service in the city
5-19 police department and shall be entitled to a retirement pension of
5-20 an amount equal to two and one-fourth percent (2.25%) <forty-five
5-21 percent (45%)> of his base salary per month for the first twenty
5-22 (20) years of service, plus an additional amount equal to two
5-23 percent (2%) of his base salary per month for each year of service
5-24 in the police department in excess of twenty (20) years, not to
5-25 exceed a total pension equal to eighty percent (80%) of base
5-26 salary, such base salary to be the base salary provided for the
5-27 classified position in the police department held by the member,
6-1 provided that if the member has not held the same classified
6-2 position for three (3) years prior to the date of retirement, the
6-3 retirement pension shall be based on the average monthly base
6-4 salary of the member for three (3) years preceding retirement.
6-5 (b) If a member of the Police Pension System is promoted or
6-6 appointed to any classified position above a classified position
6-7 obtainable by civil service examination <the second highest> in the
6-8 police department personnel classification schedule, that member's
6-9 contribution and retirement benefits will be computed on the base
6-10 salary of the <second> highest rank the person has obtained by
6-11 civil service examination within the salary schedule of <classified
6-12 position in> the police department <personnel classification
6-13 schedule>, provided that if the member has not held the same
6-14 classified position for three (3) <five (5)> years immediately
6-15 preceding <prior to> the date of retirement, the retirement pension
6-16 shall be based on the average monthly base salary of the member for
6-17 three (3) <five (5)> years immediately preceding retirement. <For
6-18 the purposes of this Act, the position of the Chief of Police shall
6-19 be considered the highest classified position in the personnel
6-20 classification schedule in the police department.>
6-21 (e) Upon a member's completion of twenty (20) years of
6-22 service in the police department and thereafter, when such member
6-23 retires, whether such retirement be voluntary or involuntary, such
6-24 monthly payment shall begin forthwith and continue for the
6-25 remainder of the member's life. <However, when such member has
6-26 completed twenty (20) years' service in the police department and
6-27 if the physicians of Pension Board agree that the member is
7-1 physically fit to continue his active duties in the police
7-2 department, they may so certify, and the member may continue in the
7-3 service of the city police department until the member attains the
7-4 age of sixty-five (65) years, at which time his retirement pension
7-5 shall be computed as hereinbefore stated.>
7-6 (h) A retiree who receives a service or disability
7-7 retirement pension under this Act is entitled to receive an
7-8 additional amount each month equal to $88.05, beginning on the
7-9 person's retirement date or on the effective date of the 1989
7-10 amendment of this Act, whichever is later, and continuing until the
7-11 end of <person reaches age 65. Thereafter, the payment will be
7-12 reduced to $55.38 each month. Payments of an additional amount
7-13 provided by this subsection end with> the month in which the
7-14 retiree <person> dies. This amount is intended to defray the
7-15 retiree's group medical insurance costs and will be paid directly
7-16 by the Pension Fund <to the insurer providing group coverage, as
7-17 long as the retiree is covered by the insurance. If a retiree
7-18 elects not to obtain the coverage or terminates the coverage, the
7-19 monthly amount will be paid> to the retiree <directly> for the
7-20 person's lifetime.
7-21 SECTION 6. Section 13, Chapter 76, Acts of the 50th
7-22 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
7-23 is amended by amending Subsection (a) and adding Subsection (e) to
7-24 read as follows:
7-25 (a) If any member of the police department who has been
7-26 retired on allowance because of length of service or disability
7-27 thereafter dies on or after July 1, 1986, from any cause whatsoever
8-1 after he has become entitled to an allowance or pension, and leaves
8-2 a surviving <a> spouse <to whom the member was married prior to his
8-3 retirement or for a period of at least five (5) years prior to the
8-4 member's death (hereinafter referred to as the "surviving
8-5 spouse")>, a child or children under the age of eighteen (18) years
8-6 or a dependent parent, the Board shall order paid a monthly
8-7 allowance as follows: (a) to the surviving spouse, so long as he
8-8 or she remains a widow or widower, a sum equal to the allowance
8-9 which was granted to the member upon service or disability pension
8-10 based on his length of service in the police department; (b) to the
8-11 guardian of each child, the sum of twenty-five ($25) Dollars a
8-12 month until the child reaches the age of eighteen (18) years or
8-13 marries; (c) to the guardian of each child, only in case no spouse
8-14 is entitled to an allowance, the sum the spouse would have
8-15 received, to be divided equally among the unmarried children under
8-16 eighteen (18) years; (d) to the dependent parent, only in case no
8-17 spouse or dependent child is entitled to an allowance, the sum the
8-18 spouse would have received, to be paid to but one (1) parent and
8-19 such parent to be determined by the Pension Board.
8-20 (e) On the death of a member, inactive member, retired
8-21 member, or individual receiving a survivor's pension, the Pension
8-22 Fund shall pay to the beneficiary or beneficiaries or, in the
8-23 absence of a beneficiary, to the estate of the member, inactive
8-24 member, retired member, or survivor a lump sum equal to the amount,
8-25 if any, by which the accumulated member contributions, without
8-26 interest, exceed the aggregate of all pension payments made.
8-27 SECTION 7. Section 1, Article 6243g-3, Revised Statutes, is
9-1 amended by amending Subdivision (h) and adding Subdivision (p) to
9-2 read as follows:
9-3 (h) "Inactive member" shall mean a member who:
9-4 (1) has completed 20 years of credited service, has
9-5 not attained age 50 <55>, and has left the classified service;
9-6 (2) is not eligible to begin receiving a service or
9-7 disability pension; and
9-8 (3) has neither applied for nor received a refund of
9-9 his contributions.
9-10 (p) "Surviving spouse" means a person:
9-11 (1) who was married to a deceased active member at the
9-12 time of the member's death, or to a deceased retired member before
9-13 the member's retirement or for a period of at least five years
9-14 before the member's death, whose marriage was recorded in the
9-15 records of the recorder's office in the county in which the
9-16 marriage ceremony was performed, and who remains unmarried, never
9-17 having had another marriage certificate recorded in any county's
9-18 recording office after the date of the member's death; or
9-19 (2) who has on file with the pension board a
9-20 declaration of common-law marriage supported by evidence as
9-21 required by the board and signed by the member and the member's
9-22 common-law spouse before a notary public.
9-23 SECTION 8. Subsections (b) and (c), Section 17, Article
9-24 6243g-3, Revised Statutes, are amended to read as follows:
9-25 (b) Effective July 1, 1991, the amount of the monthly
9-26 service pension payable to a retired member who retires on or after
9-27 July 1, 1988, is an amount equal to 2.25 percent of the member's
10-1 base salary per month for the first 20 years of service <45 percent
10-2 of the member's final compensation per month>, plus an additional
10-3 amount equal to two percent of the member's base salary <final
10-4 compensation> per month multiplied by the number of years in excess
10-5 of 20 years, to the nearest one-twelfth of a year, in the member's
10-6 period of credited service, not to exceed a total pension equal to
10-7 80 percent of final compensation, except that if the member has not
10-8 held the same classified position for three years immediately
10-9 preceding the date of retirement, the retirement pension shall be
10-10 based on the average monthly base salary of the member for three
10-11 years immediately preceding the date of retirement.
10-12 (c) A retiree who receives a service or disability
10-13 retirement pension under this article is entitled to receive an
10-14 additional amount each month equal to $88.05, beginning on the
10-15 person's retirement date or on the effective date of the 1989
10-16 amendment of this article, whichever is later, and continuing until
10-17 the end of <person reaches age 65. Thereafter, the payment will be
10-18 reduced to $55.38 each month. Payments of an additional amount
10-19 provided by this subsection end with> the month in which the
10-20 retiree <person> dies. This amount is intended to defray the
10-21 retiree's group medical insurance costs and will be paid directly
10-22 by the pension fund <to the insurer providing group coverage, as
10-23 long as the retiree is covered by the insurance. If a retiree
10-24 elects not to obtain the coverage or terminates the coverage, the
10-25 monthly amount will be paid> to the retiree <directly> for the
10-26 person's lifetime.
10-27 SECTION 9. Article 6243g-3, Revised Statutes, is amended by
11-1 adding Section 18 to read as follows:
11-2 Sec. 18. MILITARY SERVICE. (a) Beginning July 1, 1990, a
11-3 member of the pension system, while engaged in active military
11-4 service during a national emergency, is not required to make the
11-5 monthly payments into the pension fund provided by this article and
11-6 does not, because of absence as a result of the military service,
11-7 lose any previous years' service with the city. Military service
11-8 described by this section is considered continuous service in the
11-9 police department if, when the member is discharged from the
11-10 military service, the member returns to the city police department
11-11 under provisions of the city charter and the military service does
11-12 not exceed the period of the national emergency.
11-13 (b) The city shall make its regular monthly payments into
11-14 the pension fund for each member who is engaged in military service
11-15 described by this section.
11-16 (c) If a member of the pension system dies, either directly
11-17 or indirectly, as a result of the military service, the member's
11-18 spouse, dependent parent, or other dependents are entitled to
11-19 receive a refund of any contributions the member made to the
11-20 pension system.
11-21 SECTION 10. Section 24, Article 6243g-3, Revised Statutes,
11-22 is amended to read as follows:
11-23 Sec. 24. Adjustment of Benefits. Beginning July 1, 1993
11-24 <January 1, 1987>, a pension payable under this article may be
11-25 adjusted annually on April 1, beginning in the year the member
11-26 attains age 50 <55>, or in the case of disability and survivor's
11-27 pensions, beginning in the year next following 12 months of
12-1 payments, in accordance with two-thirds (2/3) of the percentage
12-2 changes in the Consumer Price Index for All Urban Consumers, but
12-3 not below the original pension amount. The annual adjustment under
12-4 this section shall never be less than two and one-half percent
12-5 (2.5%) and shall never be more than eight percent (8%) <not>
12-6 compounded, notwithstanding a greater or lesser increase in the
12-7 consumer price index.
12-8 SECTION 11. Subsection (a), Section 25, Article 6243g-3,
12-9 Revised Statutes, is amended to read as follows:
12-10 (a) A service pension, disability pension, survivor's
12-11 pension, death benefit, or withdrawal benefit shall be paid only
12-12 upon the filing of an application in a form prescribed by the
12-13 board. A monthly benefit shall not be payable for any month
12-14 earlier than the second month preceding the date on which the
12-15 application for such benefit is filed. If a retired member
12-16 receives both pension benefits from the fund and a salary as a
12-17 classified officer from the city that cover the same period of
12-18 time, the retired member shall repay pension benefits received
12-19 during the period to the fund. On request of the board, the city
12-20 attorney shall file suit in a court of competent jurisdiction to
12-21 recover pension benefits owed the fund under this subsection.
12-22 SECTION 12. Subsection (a), Section 28, Article 6243g-3,
12-23 Revised Statutes, is amended to read as follows:
12-24 (a) Each member of the pension fund shall pay into the
12-25 pension system 8.75 percent of the base salary provided for the
12-26 classified position in the police department held by the member, or
12-27 of the base salary for the highest classified position the member
13-1 has obtained by civil service examination, if the member does not
13-2 currently hold a classified position. The payments shall be
13-3 deducted by the city from the salary paid each member and shall be
13-4 paid to the treasurer of the pension fund. <The city shall deduct
13-5 monthly from the salary or compensation of each member
13-6 participating in the fund a sum equal to seven percent of such
13-7 salary or compensation, such deduction to be paid by the city to
13-8 the fund.>
13-9 SECTION 13. (a) This Act takes effect July 1, 1993, if this
13-10 Act receives the votes required by Article III, Section 39, of the
13-11 Texas Constitution for that effective date. If this Act does not
13-12 receive the votes required by that section for an effective date
13-13 before the 91st day after the last day of the legislative session,
13-14 this Act takes effect September 1, 1993.
13-15 (b) The changes in law made by this Act apply, except as
13-16 otherwise specifically provided by this Act, only to contributions
13-17 that become due and retirements and deaths that occur on or after
13-18 the effective date of this Act.
13-19 (c) The change in law made by this Act in the qualifications
13-20 of the chairmen of pension boards apply only to terms of chairmen
13-21 that begin on or after the effective date of this Act.
13-22 (d) The change in law made by this Act in the payment of
13-23 benefits to defray group insurance costs applies to all payments of
13-24 the benefits that become due on or after the effective date of this
13-25 Act.
13-26 (e) The change in law made by Section 4 of this Act applies
13-27 only to appointments or promotions that are made on or after the
14-1 effective date of this Act. An appointment or promotion made
14-2 before the effective date of this Act is governed by Subsection
14-3 (b), Section 6, Chapter 76, Acts of the 50th Legislature, 1947
14-4 (Article 6243g-1, Vernon's Texas Civil Statutes), as it existed at
14-5 the time the appointment or promotion was made, and the former law
14-6 is continued in effect for this purpose.
14-7 SECTION 14. The importance of this legislation and the
14-8 crowded condition of the calendars in both houses create an
14-9 emergency and an imperative public necessity that the
14-10 constitutional rule requiring bills to be read on three several
14-11 days in each house be suspended, and this rule is hereby suspended,
14-12 and that this Act take effect and be in force according to its
14-13 terms, and it is so enacted.