BILL ANALYSIS



C.S.H.B. 1270
By: Bosse
May 4, 1995
Committee Report (Substituted)


BACKGROUND

Chapter 76, Acts of the 50th Legislature, 1947, creates a special
fund known as the Police Officer's Pension Fund in each Texas city
with a population of 1.2 million or more.  Current law limits both
the contribution and retirement benefits of any member of the
Police Pension System based on the salary level of the second
highest classified position in the police department personnel
classification schedule.  In some instances, those who are fifth
highest in rank are appointed to the second highest ranking
position, thereby skipping 2 levels.  In these cases, the member
appointed to the second highest ranking position stands to receive
a windfall upon retirement, placing a financial strain on the
pension fund to the detriment of other contributors. Critics charge
that such a system is inequitable.

PURPOSE

H.B. 1270 would create a more equitable system for determining
maximum contributions to and benefits from police officer
retirement systems by basing the maximum contribution to the police
pension fund on the base salary of the highest rank the member has
obtained by civil service examination within the salary schedule of
the police department.  Since police captain is the highest
position obtainable by civil service examination, contributions to
the police pension fund for police captains are based on the salary
of the second highest classification within that salary schedule.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1: Amends Section 6(b), Chapter 76, Acts of the 50th
Legislature, 1947, Article 6243g-1, V.T.C.S., to limit the maximum
contribution a member may make to and receive benefits from the
Police Officer's Pension Fund based on the base salary of the
highest rank the member has obtained by civil service examination,
unless the member is a police captain, in which case the
contribution is based on the salary level of the second highest
classified position in the police department personnel classified
schedule.

SECTION 2: Amends Section 11(b), Chapter 76, Acts of the 50th
Legislature, 1947, Article 6243g-1, V.T.C.S., to limit the maximum
contribution to and benefits received from the police officer's
pension fund by a member promoted or appointed to any classified
position above a classified position obtainable by civil service
examination based on the base salary of the highest rank the person
has obtained by civil service examination, unless the member is a
police captain, in which case the contribution is based on the
salary level of the second highest classified position in the
police department personnel classified schedule.

SECTION 3: Amends Section 28(b), Article 6243g-3, Revised Statutes,
to limit both the contributions and retirement benefits of members
of the Police Officer's Pension Fund, including those of the
highest classified position in the police department, to the salary
level of the highest rank the member obtains by civil service
examination, unless the member is a police captain, in which case
the contribution is based on the salary level of the second highest
classified position in the police department personnel classified
schedule.  If the member has not held the same classified position
for three years prior to the retirement date, the retirement
pension is based on the average monthly base salary of the member
during those three years.

SECTION 4: Effective date

SECTION 5: Emergency clause

COMPARISON OF ORIGINAL TO SUBSTITUTE

Under C.S.H.B. 1270, the maximum contribution to the police pension
fund for members of the fund will be based on the salary of the
highest rank the member has obtained by civil service examination
within the salary schedule of the police department, unless the
member is a police captain, in which case the contribution is based
on the salary level of the second highest classified position in
the police department personnel classified schedule.  

SUMMARY OF COMMITTEE ACTION

HB 1270 was considered by the committee in a public hearing on
April 3, 1995.

Carvel McNeil, Jr. representing the Houston Police Patrolmen's
Union testified for the bill.
Lt. John Silva representing the Houston Police Dept./City of
Houston testified against the bill.

The bill was referred to a subcommittee consisting of
Representatives Haggerty, Averitt & Johnson.

HB 1270 was recalled from subcommittee on May 3, 1995.  

The committee considered a complete committee substitute for the
bill.  The substitute was adopted without objection.  

The bill was reported favorably as substituted with the
recommendation that it do pass and be printed, by a record vote of
5 ayes, 0 nay, 0 pnv & 4 absent.