By Shields H.B. No. 2791
Substitute the following for H.B. No. 2791:
By Averitt C.S.H.B. No. 2791
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the retirement system for police officers and fire
1-3 fighters in certain municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.02, Chapter 824, Acts of the 73rd
1-6 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
1-7 Civil Statutes), is amended by adding Subdivision (5) to read as
1-8 follows:
1-9 (5) "Total salary" means all salary, excluding
1-10 overtime pay, and for police officers, excluding Field Training
1-11 Officers' pay and Standby pay (which includes bomb squad pay, SWAT
1-12 team pay, K-9 pay, and hostage team pay).
1-13 SECTION 2. Sections 4.01 and 4.02, Chapter 824, Acts of the
1-14 73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
1-15 Texas Civil Statutes), are amended to read as follows:
1-16 Sec. 4.01. Membership. (a) A person becomes a member of
1-17 the fund as a condition of employment if the person:
1-18 (1) has served eight months <been properly appointed
1-19 and enrolled> as a fire fighter or police officer of a municipality
1-20 to which this Act applies, including a period as a trainee in the
1-21 appropriate training academy <in a position or office established
1-22 and classified by municipal ordinance>; and
1-23 (2) <has served the probationary period for the
1-24 position;>
2-1 <(3) has served for six months as a fire fighter or
2-2 police officer of the municipality; and>
2-3 <(4)> was not younger than 18 <and had not attained
2-4 the age of 36> at the time of appointment.
2-5 (b) Notwithstanding Subsection (a) of this section, a person
2-6 in a classified position in either the fire department or police
2-7 department who was barred from entry in the fund solely because the
2-8 person had attained the age of 36 at the time that the person would
2-9 have otherwise been eligible to enter the fund and for that reason
2-10 became a member of the Texas Municipal Retirement System and who is
2-11 otherwise eligible for membership in the fund shall become a member
2-12 of the fund as a condition of continued employment. The person
2-13 must make application to the fund not later than the 30th day after
2-14 the date on which the person receives notification of this
2-15 provision.
2-16 (c) A person who becomes a member of the fund under
2-17 Subsection (b) of this section shall be given service credit as
2-18 though the person became a member of the fund October 16, 1990, if
2-19 the person pays into the fund, in accordance with procedures
2-20 established by the board, pension contributions for all service
2-21 credit allowed based on amounts that would have been deducted if
2-22 the person had been allowed to enter the fund on that date.
2-23 (d) A person who was a member of the Texas Municipal
2-24 Retirement System and on October 16, 1990, became a member of the
2-25 fund shall be allowed service credit from the time that the person
2-26 would have otherwise been eligible for membership in the fund but
2-27 for the age prohibition, through October 15, 1990, if the person
3-1 complies with Subsection (b) of this section and pays into the
3-2 fund, in accordance with procedures established by the board, a sum
3-3 of money equal to the amount of money that would have been deducted
3-4 from that person's salary during the period for which service
3-5 credit is sought. Service credit may be obtained only in
3-6 increments of full months, with the minimum being one month and the
3-7 maximum being all of the time during the period for which service
3-8 credit is sought.
3-9 (e) A person who becomes a member of the fund under
3-10 Subsection (a) or (b) of this section or who is allowed service
3-11 credit under Subsection (d) of this section and who, before
3-12 becoming a member of the fund, did not provide an authorization for
3-13 release of medical information for any medical records dated on or
3-14 after the date of initial application for employment must provide
3-15 that authorization when requested by the board or in the
3-16 alternative, as required by the board, must submit to a physical
3-17 examination by a physician selected by the board. A person's
3-18 membership in the fund is terminated if the person fails to comply
3-19 with this subsection within a reasonable period established by the
3-20 board.
3-21 (f) <(b)> The drawing of compensation by an officer or
3-22 employee in the fire or police department for service in that
3-23 department does not of itself make that person a member of the
3-24 fund.
3-25 (g) <(c)> The regularity of an appointment as a fire fighter
3-26 or police officer of a municipality to which this Act applies may
3-27 not be presumed from the serving of the full probationary period,
4-1 if any. The service of the probationary period by an officer or
4-2 employee as a fire fighter or police officer of a municipality to
4-3 which this Act applies does not constitute the creation of a
4-4 position or office to which a proper appointment has been made for
4-5 purposes of this Act.
4-6 Sec. 4.02. FAMILY AND MEDICAL LEAVE <REINSTATEMENT>. (a)
4-7 If a member takes unpaid leave as provided by the Family and
4-8 Medical Leave Act (29 U.S.C. Section 2601 et seq.), that member is
4-9 entitled to make voluntary contributions for the leave period in
4-10 the same amount as the member would have paid if the member had not
4-11 taken the leave. Those payments must be made not later than the
4-12 30th day after the date the member returns from that leave. A
4-13 computation of contributions under this section shall be made in
4-14 the same manner as other computations under this Act. A
4-15 municipality to which this Act applies shall match an amount equal
4-16 to twice the amount of each payment a member makes to the fund
4-17 under this subsection.
4-18 (b) If the member does not comply with Subsection (a) of
4-19 this section, the member loses all credit toward the member's
4-20 retirement annuity for the period the member was on leave <A
4-21 former fund member who has reentered the fire or police department
4-22 may not be barred from membership in the fund because of age as
4-23 long as the member can qualify for a 30-year pension on or before
4-24 the member's 65th birthday>.
4-25 SECTION 3. Section 4.03(c), Chapter 824, Acts of the 73rd
4-26 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
4-27 Civil Statutes), is amended to read as follows:
5-1 (c) The member must make the payment described by Subsection
5-2 (b) of this section in full within an amount of time after the
5-3 member's return that is equal to three times <twice> the amount of
5-4 time the member was absent, except that the maximum period for
5-5 payment may not exceed five <four> years.
5-6 SECTION 4. Sections 4.04, 4.07, and 5.01, Chapter 824, Acts
5-7 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
5-8 Vernon's Texas Civil Statutes), are amended to read as follows:
5-9 Sec. 4.04. MEMBER CONTRIBUTIONS. (a) There shall be
5-10 deducted from the wages of each fire fighter and police officer in
5-11 the employment of a municipality to which this Act applies a
5-12 percentage of the member's total salary<, excluding overtime pay,>
5-13 according to the following schedule:
5-14 (1) 11.16 percent for full pay periods after September
5-15 30, 1993, but before October 1, 1994;
5-16 (2) 11.32 percent for full pay periods after September
5-17 30, 1994, but before October 1, 1995;
5-18 (3) 11.50 percent for full pay periods after September
5-19 30, 1995, but before October 1, 1996;
5-20 (4) 11.66 percent for full pay periods after September
5-21 30, 1996, but before October 1, 1997;
5-22 (5) 11.82 percent for full pay periods after September
5-23 30, 1997, but before October 1, 1998;
5-24 (6) 12 percent for full pay periods after September
5-25 30, 1998, but before October 1, 1999;
5-26 (7) 12.16 percent for full pay periods after September
5-27 30, 1999, but before October 1, 2000;
6-1 (8) 12.32 percent for full pay periods after September
6-2 30, 2000, but before October 1, 2001; and
6-3 (9) 12.50 percent for full pay periods after September
6-4 30, 2001.
6-5 (b) The municipality shall pick up the member contributions
6-6 that are required by Subsection (a) of this section.
6-7 (c) Contributions picked up by the municipality shall be
6-8 treated as employer contributions in accordance with Section
6-9 414(h)(2) of the Internal Revenue Code of 1986 (26 U.S.C. Section
6-10 414) for the purpose of determining tax treatment of the amounts
6-11 under the Internal Revenue Code of 1986. Those contributions are
6-12 not included in the gross income of the employee until the time
6-13 they are distributed or made available to the employee.
6-14 Sec. 4.07. <NO> REFUND OF CONTRIBUTIONS. (a) During the
6-15 first five years of membership, a <A> member of the fund is not
6-16 entitled to any refund from the fund of any portion of the money
6-17 deducted from the member's pay for the benefit of the fund. That
6-18 money is <public money and> the property of the fund for the
6-19 benefit of the members qualifying for benefits and for their
6-20 beneficiaries.
6-21 (b) A member of the fund who terminates employment before
6-22 the member's right to benefits under the fund has vested but who
6-23 has contributed to the fund for at least five years is entitled to
6-24 a refund of the member's contributions that were picked up by the
6-25 municipality. That refund shall be paid without interest. A
6-26 member who terminates employment to receive a disability pension or
6-27 a survivor beneficiary under this Act is not entitled to a refund
7-1 under this subsection. A person's acceptance of a refund under
7-2 this subsection precludes the person from any other right or
7-3 benefit under this Act.
7-4 Sec. 5.01. Retirement benefits. (a) If a member of the
7-5 fund has contributed a portion of that member's salary as provided
7-6 by this Act and has contributed and served for 20 years or more in
7-7 the fire or police department, the board shall, on the application
7-8 of the member for a retirement annuity, authorize a retirement
7-9 annuity to the member.
7-10 (b) The board shall compute the retirement annuity of a
7-11 member who retires after September 30, 1991, but before October 1,
7-12 1995, on the basis of the average of the member's total salary<,
7-13 excluding overtime pay,> for the highest three years of the last
7-14 five years, computed from the date of retirement, of the member's
7-15 pay at the rate of two percent for each of the first 20 years
7-16 served, plus 3 1/2 percent for each of the next 10 years served,
7-17 plus one percent for each of the next five years served, with
7-18 fractional years prorated based on full months served as a
7-19 contributing member, but the annuity may not exceed, as of the date
7-20 of retirement, 80 percent of the average so determined.
7-21 (c) The board shall compute the retirement annuity of a
7-22 member who retires after September 30, 1995, on the basis of the
7-23 average of the member's total salary for the highest three years of
7-24 the last five years, computed from the date of retirement, of the
7-25 member's pay at the rate of two percent for each of the first 20
7-26 years served, plus four percent for each of the next five years
7-27 served, plus 3 1/2 percent for each of the next five years served,
8-1 plus one percent for each of the next five years served, with
8-2 fractional years prorated based on full months served as a
8-3 contributing member. In making the computation for a year, the
8-4 year is considered to begin on the first day a contribution is
8-5 made. An annuity under this subsection may not exceed, as of the
8-6 date of retirement, 82.5 percent of the average determined under
8-7 this subsection.
8-8 (d) <(c)> A member may not receive an award from the fund
8-9 for service retirement until the member has served at least 20
8-10 years in the fire or police department and has also contributed the
8-11 required amount of money for at least 20 years. In determining the
8-12 number of years of service in a department, the member shall be
8-13 given full credit for the time the member was actively engaged in
8-14 military service in accordance with Section 4.03 of this Act and
8-15 for absences taken under the Family and Medical Leave Act (29
8-16 U.S.C. Section 2601 et seq.), in accordance with Section 4.02(a) of
8-17 this Act. Disciplinary suspensions of 15 days or less may not be
8-18 subtracted from a member's service credit under this Act if the
8-19 member has paid into the fund within 30 days after the termination
8-20 date of each suspension a sum of money equal to the amount of money
8-21 that would have been deducted from that person's salary during that
8-22 period of suspension if it had not been for that suspension. A
8-23 municipality to which this Act applies shall double-match a payment
8-24 made under this subsection.
8-25 (e) <(d) If a member of the fire or police department has
8-26 served for 30 years or more in either department and has
8-27 contributed a portion of that member's salary as provided by this
9-1 Act for the same period, that member is retired automatically from
9-2 service on the member's 65th birthday.>
9-3 <(e) If, on a member's 65th birthday, the member has served
9-4 less than 30 years in either department and has not contributed a
9-5 portion of that member's salary as provided by this Act for that
9-6 period, the member may continue service and contributions until the
9-7 total service equals and the contributions have been made for 30
9-8 years.>
9-9 <(f)> Except as provided by Subsection (f) <(g)> of this
9-10 section, members of the fund at the time of their retirement shall
9-11 receive service credit for all unused sick leave accumulated by
9-12 them under Chapter 143, Local Government Code, and its subsequent
9-13 amendments, with fractional years prorated based on full months of
9-14 sick leave.
9-15 (f) <(g)> The retirement annuity for a member under
9-16 Subsection (e) <(f)> of this section may not exceed, as of the date
9-17 of retirement, 82.5 <80> percent of the average, determined under
9-18 that subsection and under the ordinances of a municipality to which
9-19 this Act applies, that exceeds 90 days of accumulated sick leave.
9-20 SECTION 5. Article 5, Chapter 824, Acts of the 73rd
9-21 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
9-22 Civil Statutes), is amended by adding Section 5.015 to read as
9-23 follows:
9-24 Sec. 5.015. LUMP-SUM BENEFIT PAYMENT AND ELECTION. (a) At
9-25 the time a member applies for retirement benefits under Section
9-26 5.01, the member may elect to receive a lump-sum payment, for and
9-27 in consideration of a reduced annuity benefit as provided by this
10-1 section.
10-2 (b) The election of a lump-sum payment with a reduced
10-3 annuity benefit:
10-4 (1) may be made only in increments of full months, not
10-5 to exceed 24 months; and
10-6 (2) must be made at the time of application for
10-7 retirement.
10-8 (c) To be eligible for a lump-sum payment under this
10-9 section, a member of the fund must have contributed a portion of
10-10 that member's salary, as provided by this Act, and have contributed
10-11 and served at least 20 years and 1 month in the fire or police
10-12 department.
10-13 (d) The amounts of the monthly annuity payments shall be
10-14 computed as of the date the member elects the lump-sum payment, but
10-15 the computation may not exceed a monthly annuity payment of 82.5
10-16 percent of the average computed as provided by Section 5.01 of this
10-17 Act. The monthly retirement computed under this subsection shall
10-18 be the monthly annuity amount for future annuity payments.
10-19 (e) For the purposes of computing the lump-sum payment, the
10-20 monthly annuity payment computed under Subsection (d) of this
10-21 section shall be recomputed to exclude service credit for sick
10-22 leave accumulated on the date of retirement. The recomputed
10-23 annuity shall be multiplied by the increments of full months
10-24 elected as provided by Subsection (a) of this section, to compute
10-25 the lump-sum payment.
10-26 (f) A member may defer receiving the lump-sum payment under
10-27 this section for a period of not longer than 12 months after the
11-1 date of the member's effective retirement date. Interest may not
11-2 be paid on the deferred amount at the time of distribution.
11-3 (g) The board by administrative rule shall implement this
11-4 section in a manner that preserves the eligibility of the tax
11-5 qualification under the Internal Revenue Code of 1986 and may
11-6 revise the program as necessary to retain tax qualification.
11-7 SECTION 6. Sections 5.04(a) and (c), Chapter 824, Acts of
11-8 the 73rd Legislature, Regular Session, 1993 (Article 6243o,
11-9 Vernon's Texas Civil Statutes), are amended to read as follows:
11-10 (a) A member who is eligible to receive a disability
11-11 retirement annuity is entitled to receive from the fund 50 percent
11-12 of the average of the member's total salary<, excluding overtime
11-13 pay,> for the highest three years of the last five years, computed
11-14 from the date of retirement or, if the member has served less than
11-15 three years before the date of retirement, 50 percent of the
11-16 member's average monthly salary<, excluding overtime pay,> or a
11-17 theoretical monthly average if service is less than a full month.
11-18 (c) The amount of 50 percent of the average total salary<,
11-19 excluding overtime pay,> is the maximum amount of disability
11-20 retirement annuity for total and permanent disability.
11-21 SECTION 7. Section 5.05(c), Chapter 824, Acts of the 73rd
11-22 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
11-23 Civil Statutes), is amended to read as follows:
11-24 (c) For those retired because of disability on or after
11-25 August 30, 1971, the disability retirement annuity may not be
11-26 reduced to less than two percent, for each year that the retiree
11-27 has served and contributed a portion of salary, of the average of
12-1 the member's total salary<, excluding overtime pay,> for the
12-2 highest three years of the last five years, computed from the date
12-3 of retirement, or if the member has served less than three years
12-4 before the date of retirement, 50 percent of the member's average
12-5 monthly salary, excluding overtime pay, or a theoretical monthly
12-6 average if service is less than a full month. All fractional years
12-7 shall be prorated based on full months served on the fire or police
12-8 department as a contributing member of the fund before the date of
12-9 retirement.
12-10 SECTION 8. Section 5.09(a), Chapter 824, Acts of the 73rd
12-11 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
12-12 Civil Statutes), is amended to read as follows:
12-13 (a) At or before its regular meeting in the month of March,
12-14 the board annually shall review the Consumer's Price Index for
12-15 Moderate Income Families in Large Cities--All Items or the nearest
12-16 equivalent published by the United States Bureau of Labor
12-17 Statistics for the preceding calendar year. If that index shows an
12-18 increase during the preceding calendar year in the cost of living
12-19 as compared with that index at the close of the previous year, the
12-20 board shall order an increase of all retirement annuities by the
12-21 number of full percentage points closest to the exact amount of the
12-22 increase of that index, except that any increased retirement
12-23 annuities are payable:
12-24 (1) only at the rate of 75 percent of the applicable
12-25 cost-of-living percentage for those retirees, and the beneficiaries
12-26 of those retirees, who were retired on and after October 1, 1989;
12-27 and
13-1 (2) at the rate of 87.5 percent of the consumer price
13-2 index specified by this subsection if the index is eight percent or
13-3 less, with the maximum cost-of-living adjustment capped at the rate
13-4 of six percent, and at the rate of 75 percent of the index if the
13-5 index is greater than eight percent for those retirees, and the
13-6 beneficiaries of those retirees, who were retired on or after
13-7 August 30, 1971, but before October 1, 1989 <August 30, 1971>.
13-8 SECTION 9. Section 5.11, Chapter 824, Acts of the 73rd
13-9 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
13-10 Civil Statutes), is amended by amending Subsection (c) and adding
13-11 Subsection (j) to read as follows:
13-12 (c) Accrued benefits under this Act become 100 percent
13-13 vested for all members on termination of the fund or on occurrence
13-14 of another event described in Section 401(a)(17) of the code and
13-15 become 100 percent vested for a member on the date the member
13-16 <becomes 65 years of age and> has completed 20 years of service.
13-17 (j) To the extent permitted by law, the board may adjust the
13-18 benefits of retired members and beneficiaries by increasing any
13-19 retirement benefit that was reduced as inflationary indexing under
13-20 Section 415 of the Internal Revenue Code of 1986 (Section 26 U.S.C.
13-21 Section 415). If the definition of compensation is amended under
13-22 that section to include amounts previously excluded as
13-23 compensation, the board may adjust the benefits of retired members
13-24 and beneficiaries, including the payment of benefits previously
13-25 forfeited. Benefits paid under this subsection are not considered
13-26 as extra compensation earned after retirement but as the delayed
13-27 payment of benefits earned before retirement.
14-1 SECTION 10. Sections 6.02(c) and (d), Chapter 824, Acts of
14-2 the 73rd Legislature, Regular Session, 1993 (Article 6243o,
14-3 Vernon's Texas Civil Statutes), are amended to read as follows:
14-4 (c) If there are no children, the surviving spouse is
14-5 entitled to receive an amount not to exceed 60 <57.50> percent of
14-6 the average total salary<, excluding overtime pay,> of the deceased
14-7 member computed as provided under Subsection (a) of this section.
14-8 (d) If there is no surviving spouse, the children are
14-9 entitled to receive not more than 30 <28.75> percent of the average
14-10 total salary computed as provided under Subsection (a) of this
14-11 section, except that if the board determines on investigation that
14-12 the eligible children are destitute, the board may increase the
14-13 death benefit annuity to an amount not to exceed 40 percent of that
14-14 average total salary. The amount awarded under this subsection to
14-15 any child shall be paid by the board to the legal guardian of the
14-16 child.
14-17 SECTION 11. Section 6.03(c), Chapter 824, Acts of the 73rd
14-18 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
14-19 Civil Statutes), is amended to read as follows:
14-20 (c) Notwithstanding the formulas for computing the total
14-21 amounts of annuities otherwise provided by this section, if a
14-22 member is killed in the line of duty, the member's surviving spouse
14-23 and dependent children are entitled to a death benefit annuity
14-24 equal to the total salary<, excluding overtime pay,> of the member
14-25 at the time of death. Rules provided by this section relating to
14-26 qualification and disqualification for and apportionment of
14-27 benefits apply to a death benefit annuity computed under this
15-1 subsection. A death benefit annuity computed under this
15-2 subsection is subject to the same cost-of-living adjustments that
15-3 apply to pensions for service retirement.
15-4 SECTION 12. Section 6.04, Chapter 824, Acts of the 73rd
15-5 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
15-6 Civil Statutes), is amended to read as follows:
15-7 Sec. 6.04. Remarriage; benefits after termination of
15-8 marriage. (a) If a surviving spouse remarries or a dependent
15-9 child marries before October 1, 1995, the <The> right of a
15-10 surviving spouse or dependent child to annuity payments under this
15-11 Act terminates on the remarriage of the surviving spouse<, either
15-12 statutory or common law,> or on the marriage of the child, as
15-13 applicable, under either statutory law or under common law as
15-14 prescribed by Section 6.06 of this Act.
15-15 (b) The right of a <If the remarried> surviving spouse or
15-16 <married> dependent child to annuity payments under this Act is not
15-17 affected by the surviving spouse's remarriage or dependent child's
15-18 marriage under either statutory or common law if the marriage or
15-19 remarriage takes place on or after October 1, 1995 <becomes
15-20 unmarried, that person is entitled, on application, to the greater
15-21 of 75 percent of the annuity that was in effect on the date of
15-22 termination or a minimum annuity of $800 each month for as long as
15-23 that person remains unmarried>.
15-24 (c) If after October 1, 1995, there is a termination of the
15-25 remarriage of a surviving spouse or the marriage of a dependent
15-26 child, that person is entitled, on application, to 100 percent of
15-27 the annuity that was in effect on the date of termination.
16-1 (d) A surviving spouse or dependent child who is unmarried
16-2 but receiving reduced benefits because of a prior marriage that
16-3 caused the benefits to be terminated is entitled to 100 percent of
16-4 the annuity that was in effect on the original date of termination.
16-5 (e) The benefit provided under Subsections (c) and (d) of
16-6 this section shall be applied prospectively beginning October 1,
16-7 1995, and the surviving spouse or dependent child is not entitled
16-8 to receive any benefits or increases in benefits relating to any
16-9 period before October 1, 1995.
16-10 SECTION 13. Section 6.05(b), Chapter 824, Acts of the 73rd
16-11 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
16-12 Civil Statutes), is amended to read as follows:
16-13 (b) If the <surviving spouse,> dependent beneficiary<,> or
16-14 guardian fails or refuses to file an affidavit required under
16-15 Subsection (a) of this section or if an incomplete, incorrect, or
16-16 false affidavit is filed, the board may suspend annuity payments to
16-17 that person indefinitely until the person complies with the
16-18 requests and orders of the board.
16-19 SECTION 14. Section 6.07, Chapter 824, Acts of the 73rd
16-20 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
16-21 Civil Statutes), is amended to read as follows:
16-22 Sec. 6.07. Surviving spouse's right to single entitlement.
16-23 A <Unless otherwise provided by law, a> surviving spouse who is not
16-24 a member of the fund is not entitled to more than one annuity from
16-25 the fund.
16-26 SECTION 15. Section 6.09(a), Chapter 824, Acts of the 73rd
16-27 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
17-1 Civil Statutes), is amended to read as follows:
17-2 (a) If a contributing member in good standing of the fire or
17-3 police department or a retiree dies before or after retirement and
17-4 leaves no surviving spouse or child but leaves surviving a father
17-5 and mother wholly dependent on that person for support, the
17-6 dependent father and mother are entitled to receive one-third of
17-7 the average total salary<, excluding overtime pay,> of the deceased
17-8 member based on the same number of years of the member's pay as is
17-9 currently provided for computations of retirement annuities under
17-10 Section 5.01(a) of this Act, the annuity to be equally divided
17-11 between the father and mother as long as they are wholly dependent.
17-12 If there is only one dependent, either father or mother, the board
17-13 shall grant the surviving dependent an annuity not to exceed
17-14 one-fourth that average total salary as computed under this
17-15 subsection.
17-16 SECTION 16. Section 6.11(a), Chapter 824, Acts of the 73rd
17-17 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
17-18 Civil Statutes), is amended to read as follows:
17-19 (a) If a member of the fire or police department in active
17-20 service dies and does not leave an eligible surviving spouse, a
17-21 child under 17 years of age, a child under 19 years of age who is
17-22 attending school, a mentally or physically disabled child, or a
17-23 dependent father or mother, the estate of the deceased member is
17-24 entitled to a death benefit payment in the amount of $10,000 from
17-25 the fund or the refund of contributions as provided by Section 4.07
17-26 of this Act, whichever amount is greater.
17-27 SECTION 17. Sections 7.04(a) and (b), Chapter 824, Acts of
18-1 the 73rd Legislature, Regular Session, 1993 (Article 6243o,
18-2 Vernon's Texas Civil Statutes), are amended to read as follows:
18-3 (a) The board shall cause the reserve retirement funds to be
18-4 invested in a manner that a prudent investor would invest,
18-5 considering the purposes, terms, distribution requirements, and
18-6 other circumstances <consistent with the care, skill, and diligence
18-7 under the prevailing circumstances that a prudent person acting in
18-8 a like capacity and familiar with matters of the type would use in
18-9 the conduct> of an enterprise with a like character and like aims.
18-10 (b) The board shall diversify the investment of the fund to
18-11 minimize the risk of large losses unless under the circumstances it
18-12 is clearly prudent not to do so. In determining whether the board
18-13 has exercised prudence concerning an investment decision, the
18-14 investment of all assets of the fund, rather than the prudence of a
18-15 single investment of <investing the assets of the fund, the board
18-16 shall be bound by the documents and instruments governing> the
18-17 fund, shall be considered.
18-18 SECTION 18. This Act takes effect October 1, 1995.
18-19 SECTION 19. The importance of this legislation and the
18-20 crowded condition of the calendars in both houses create an
18-21 emergency and an imperative public necessity that the
18-22 constitutional rule requiring bills to be read on three several
18-23 days in each house be suspended, and this rule is hereby suspended.