By Turner S.B. No. 1072
74R6573 GCH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to participation and credit in, contributions to, and
1-3 benefits and administration of the Texas Municipal Retirement
1-4 System.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 851.001(6), Government Code, is amended
1-7 to read as follows:
1-8 (6) "Compensation" means the sum of payments made to
1-9 an employee for performance of personal services, as certified on a
1-10 written payroll of an employing department, that does not exceed
1-11 any rate of compensation fixed by a governing body as the maximum
1-12 salary on which member contributions to the retirement system may
1-13 be based and does not exceed $150,000 for a calendar year, indexed
1-14 in the same manner and for the same periods as provided by Section
1-15 401(a)(17) of the Internal Revenue Code of 1986 (26 U.S.C. Section
1-16 401), and includes amounts by which payment for earnings is reduced
1-17 by reason of:
1-18 (A) employer pick-up of employee contributions
1-19 to the retirement system under Section 855.402(j);
1-20 (B) deferral of compensation under benefit plans
1-21 adopted by the employer pursuant to Section 401(k) or 457 of the
1-22 Internal Revenue Code of 1986 (26 U.S.C. Sections 401, 457);
1-23 (C) cost of benefits furnished under qualified
1-24 cafeteria plans adopted by the employer pursuant to Section 125 of
2-1 the Internal Revenue Code of 1986 (26 U.S.C. Section 125);
2-2 (D) cost of tax-sheltered annuities acquired for
2-3 the employee under Section 403(b) of the Internal Revenue Code of
2-4 1986 (26 U.S.C. Section 403); and
2-5 (E) deductions for Federal Insurance
2-6 Contribution Act taxes, federal income taxes, or other obligations
2-7 of the employee.
2-8 SECTION 2. Section 852.004(c), Government Code, is amended
2-9 to read as follows:
2-10 (c) Before a municipality that has fewer than 10 employees
2-11 who are members of the retirement system is permitted to
2-12 participate in the fund, the board of trustees may require the
2-13 municipality to provide evidence that is satisfactory to the board
2-14 that the members are in good health. The board of trustees may
2-15 allow participation in the fund by those municipal employees who
2-16 are in good health on the effective date of participation and
2-17 exclude those municipal employees who are not in good health at
2-18 that time.
2-19 SECTION 3. Section 852.108, Government Code, is amended to
2-20 read as follows:
2-21 Sec. 852.108. RESUMPTION OF SERVICE WITH SAME EMPLOYER BY
2-22 RETIREE. (a) In this section and Section 852.109, a person's
2-23 reemploying municipality is the municipality for which the person
2-24 was performing creditable service at the time of the person's
2-25 retirement under this subtitle.
2-26 (b) A person who has retired with a service retirement
2-27 benefit under this subtitle and later becomes an employee of the
3-1 person's reemploying municipality also becomes a member of the
3-2 system on the date of employment, but credits and benefits
3-3 allowable to the person under this subtitle are limited as provided
3-4 by this section. <Except as provided by this section, a retiree is
3-5 not entitled to be paid a service retirement benefit for any month
3-6 in which the retiree is regularly employed by any participating
3-7 municipality. If a retiree is paid a retirement benefit for any
3-8 month during which the retiree is ineligible as provided by this
3-9 section, the benefit otherwise payable to the retiree for
3-10 subsequent months shall be suspended for an equivalent period.
3-11 Loss of benefits pursuant to this section does not extend any
3-12 period of guaranteed benefits elected pursuant to any provision of
3-13 this subtitle.>
3-14 (c) <(b)> The retirement system shall discontinue and
3-15 suspend payments of each service retirement annuity that is allowed
3-16 because of the person's previous service with the reemploying
3-17 municipality beginning with the month the retirement system
3-18 determines that the person has again become an employee of the
3-19 reemploying municipality. After the suspension, the retirement
3-20 system may not make payments of the annuity for any month during
3-21 which the person remains an employee of the reemploying
3-22 municipality. The suspension of a benefit under this section does
3-23 not suspend payment of a benefit to an alternate payee under a
3-24 qualified domestic relations order. <For purposes of this section,
3-25 a retiree is not considered regularly employed by a participating
3-26 municipality if the retiree is employed for 700 hours or less
3-27 during any calendar year.>
4-1 (d) <(c)> Member contributions under Section 855.402 shall
4-2 be made on all compensation paid to the employee by the reemploying
4-3 municipality at the same rate as is required of other employees of
4-4 the department. The retirement system shall deposit the
4-5 contributions on receipt in an individual account for the member in
4-6 the employees saving fund and shall credit the account with
4-7 interest annually at the same rate and manner as the accounts of
4-8 other members are credited. The compensation paid to the employee
4-9 by the reemploying municipality shall be included in computing the
4-10 monthly contributions the municipality makes to the municipality
4-11 accumulation fund. <Each participating municipality that employs a
4-12 retiree shall report the fact and terms of employment and payment
4-13 of the retiree on a form prescribed by the board.>
4-14 (e) <(d)> After termination of employment with the
4-15 reemploying municipality and after filing of an application for
4-16 resumption of retirement with the board of trustees, a person
4-17 described by Subsection (b) is entitled to receive future payments
4-18 of the suspended annuity, as provided by Subsection (f), and to the
4-19 additional benefits as provided by Subsections (g), (h), and (i).
4-20 <A person who has retired under this subtitle because of service
4-21 may not rejoin the retirement system.>
4-22 (f) Monthly payments of a suspended annuity shall be resumed
4-23 in the month following the month in which employment is terminated
4-24 with the reemploying municipality, without change in the amount
4-25 except for any increase allowed under Section 854.203 or the
4-26 duration of or another condition pertaining to the suspended
4-27 benefit. Payment of the resumed benefit may not be made for any
5-1 month during which the payment was suspended under this section.
5-2 (g) If a person with credited service under this section
5-3 dies before a payment under Subsection (i) is made, the person's
5-4 beneficiary, or if there is no beneficiary surviving, the executor
5-5 or administrator of the person's estate, may elect payment as
5-6 provided by Section 854.105(c).
5-7 (h) The additional service retirement benefit allowable to a
5-8 person to whom this section applies is, at the option of that
5-9 person, either:
5-10 (1) a refund of accumulated contributions made since
5-11 reemployment plus any accrued interest on the accumulated
5-12 contributions allowed by the retirement system; or
5-13 (2) a benefit consisting of:
5-14 (A) a basic annuity actuarially determined from
5-15 the sum of the member's deposits made and accumulated since the
5-16 date the person last became a member, together with interest
5-17 accumulated on that amount since the person last became a member;
5-18 or
5-19 (B) a greater amount authorized by the
5-20 municipality under Section 855.501.
5-21 (i) The additional benefit described by Subsection (h) is
5-22 payable as a standard service retirement benefit or, at the
5-23 election of the member, any optional benefit authorized under this
5-24 subtitle that is the actuarial equivalent of the standard
5-25 retirement benefit. The first benefit payment date under this
5-26 subsection is the later of the end of the month following the last
5-27 month of employment or the end of the month following the month in
6-1 which the person files an application for payment. The first
6-2 payment may not be made if the person has resumed employment with
6-3 the reemploying municipality in a position that would make the
6-4 person an employee.
6-5 SECTION 4. Subchapter B, Chapter 852, Government Code, is
6-6 amended by adding Section 852.109 to read as follows:
6-7 Sec. 852.109. RESUMPTION OF SERVICE WITH DIFFERENT EMPLOYER
6-8 BY RETIREE. (a) If a person becomes an employee of a municipality
6-9 after beginning to receive a retirement benefit, and the
6-10 municipality is not the person's reemploying municipality, the
6-11 person again becomes a member of the retirement system, and the
6-12 person's retirement annuity is not suspended.
6-13 (b) Member contributions under Section 855.402 shall be made
6-14 on all compensation paid to the employee by the municipality at the
6-15 same rate as is required of other employees of the department. The
6-16 retirement system shall deposit the contributions on receipt in an
6-17 individual account for the member in the employees saving fund and
6-18 shall credit the account with interest at the same rate and in the
6-19 same manner as the accounts of other members are credited. The
6-20 compensation paid to the employee by the municipality shall be
6-21 included in computing the monthly contributions the municipality
6-22 makes to the municipality accumulation fund.
6-23 (c) If a person with credited service under this section
6-24 dies before a payment under Subsection (e) is made, the person's
6-25 beneficiary, or if there is no beneficiary surviving, the executor
6-26 or administrator of the person's estate, may elect payment as
6-27 provided by Section 854.105(c).
7-1 (d) The additional service retirement benefit allowable to a
7-2 person to whom this section applies is, at the option of that
7-3 person, either:
7-4 (1) a refund of accumulated contributions made since
7-5 reemployment plus any accrued interest on the accumulated
7-6 contributions allowed by the retirement system; or
7-7 (2) a benefit consisting of:
7-8 (A) a basic annuity actuarially determined from
7-9 the sum of the member's deposits made and accumulated since the
7-10 date the person last became a member together with interest
7-11 accumulated on that amount since the person last became a member
7-12 and an amount from the municipality accumulation fund equal to the
7-13 amount of the deposits credited to the member's individual account
7-14 since the person last became a member together with interest
7-15 accumulated on that amount since the person last became a member;
7-16 or
7-17 (B) a greater amount authorized by the
7-18 municipality under Section 855.501.
7-19 (e) The additional benefit described by Subsection (d) is
7-20 payable as a standard service retirement benefit or, at the
7-21 election of the member, any optional benefit authorized under this
7-22 subtitle that is the actuarial equivalent of the standard
7-23 retirement benefit. The first benefit payment date under this
7-24 subsection is the later of the end of the month following the last
7-25 month of employment or the end of the month following the month in
7-26 which the person files an application for payment. The first
7-27 payment may not be made if the person has resumed employment that
8-1 would result in suspension of a benefit.
8-2 (f) If a person became an employee of a municipality other
8-3 than the person's reemploying municipality after beginning to
8-4 receive a retirement benefit, and the person's service retirement
8-5 annuity was suspended under Section 852.108 as it existed at the
8-6 time of reemployment, the person may, on written application to the
8-7 retirement system, resume receiving the suspended annuity.
8-8 SECTION 5. The section heading to Section 853.305,
8-9 Government Code, is amended to read as follows:
8-10 Sec. 853.305. CREDIT FOR SERVICE WITH NONPARTICIPATING
8-11 MUNICIPALITY, AIRPORT AUTHORITY, OR COUNCIL OF GOVERNMENTS, OR
8-12 CERTAIN SERVICE PREVIOUSLY CANCELED <MUNICIPALITY OR WITH COUNCIL
8-13 OF GOVERNMENTS>.
8-14 SECTION 6. Sections 853.305(a), (c), and (e), Government
8-15 Code, are amended to read as follows:
8-16 (a) The governing body of a participating municipality by
8-17 ordinance may authorize the granting of restricted prior service
8-18 credit to an employee who is a member of the retirement system for
8-19 service previously performed:
8-20 (1) as an employee of any incorporated city or town in
8-21 the United States, <or of> any council of governments in this
8-22 state, or an airport board or authority governing an airport for
8-23 two cities having a combined population greater than 1,000,000, and
8-24 for which the person has not otherwise received credited service in
8-25 this system, including combined service credit under Chapter 803;
8-26 or
8-27 (2) as an employee of the state or any branch, agency,
9-1 or subdivision of the state for which the person received credited
9-2 service under the Employees Retirement System of Texas, the Teacher
9-3 Retirement System of Texas, the Judicial Retirement System of Texas
9-4 Plan One, the Judicial Retirement System of Texas Plan Two, the
9-5 Texas County and District Retirement System, or this retirement
9-6 system, and the credit for which was canceled because of withdrawal
9-7 of contributions and has not been reinstated.
9-8 (c) A member seeking to establish restricted prior service
9-9 credit under Subsection (a)(1) <this section> must obtain from the
9-10 clerk or secretary of the city or town, or from the similar
9-11 official of a council of governments or airport board or authority,
9-12 <governments,> for which the previous service was performed a
9-13 detailed statement of the service, verified by that official, and
9-14 file the statement with the clerk or secretary of the participating
9-15 municipality by which the member is employed. A member seeking to
9-16 establish restricted prior service credit under Subsection (a)(2)
9-17 must obtain from the public retirement system in which the canceled
9-18 service was credited a detailed statement of the service, verified
9-19 by an official of that retirement system, and file that statement
9-20 with the clerk or secretary of the participating municipality by
9-21 which the member is employed.
9-22 (e) On receipt of a certified copy of an approved claim, the
9-23 retirement system, if satisfied that credit for <the> service
9-24 claimed under Subsection (a)(1) has not previously been granted the
9-25 member, or that credit claimed under Subsection (a)(2) previously
9-26 existed but has been canceled and not reinstated, shall enter the
9-27 credit in the member's records.
10-1 SECTION 7. Section 853.404(d), Government Code, is amended
10-2 to read as follows:
10-3 (d) Except as provided by Subsection (e), an ordinance under
10-4 this section continues in effect for each year that the actuary
10-5 determines that all obligations charged against the municipality's
10-6 account in the municipality accumulation fund, including the
10-7 obligations to become effective the next January 1, can be funded
10-8 by the municipality within its maximum contribution rate before the
10-9 25th anniversary of the next January 1. An ordinance under this
10-10 section will cease to be in effect for future years if the actuary
10-11 cannot make that determination, but shall again take effect for
10-12 future years beginning January 1 of the first year after the
10-13 actuary can make that determination.
10-14 SECTION 8. Section 854.003, Government Code, is amended by
10-15 amending Subsections (a), (c), and (d) and adding Subsections (e),
10-16 (f), and (g) to read as follows:
10-17 (a) Except as provided by Subsections (b) and (e) <(d)>, the
10-18 effective date of a member's service retirement is the date the
10-19 member designates at the time the member applies for retirement
10-20 under Section 854.101, but the date must be the last day of a
10-21 calendar month and may not precede the date the member terminates
10-22 employment with all participating municipalities.
10-23 (c) Except as provided by Subsections (b) and (e), the <The>
10-24 effective date of a member's disability retirement is the date
10-25 designated on the application for retirement filed by or for the
10-26 member as provided by Section 854.301, but the date may not precede
10-27 the date the member terminates employment with all participating
11-1 municipalities.
11-2 (d) If a person who has attained age 70-1/2 terminates or
11-3 has terminated covered employment without applying for retirement
11-4 or a refund of accumulated contributions, the retirement system
11-5 shall attempt to send to that person the written notice described
11-6 by Subsection (e) as soon as is practical after the last to occur
11-7 of:
11-8 (1) the date the person attains age 70-1/2;
11-9 (2) the date the person terminates all covered
11-10 employment; or
11-11 (3) the date the person first becomes eligible for
11-12 retirement under this chapter. <If a person who has attained age
11-13 70-1/2 terminates covered employment without applying for
11-14 retirement, the retirement system shall attempt to notify that
11-15 person in writing and advise the person that the person is required
11-16 to retire. If, before the 91st day after the date the retirement
11-17 system sends the notice, the person has not filed an application
11-18 with the board for retirement, the person is considered to have
11-19 retired on the last day of the month in which the person terminated
11-20 employment with all participating municipalities and:>
11-21 <(1) to have elected to receive an annuity under
11-22 Section 854.103, if the person did not have a spouse on the date of
11-23 employment termination; or>
11-24 <(2) if the person had a spouse on the date of
11-25 employment termination, to have elected to receive an annuity under
11-26 Section 854.104(c)(1) and to have designated the person's spouse as
11-27 the beneficiary under the annuity.>
12-1 (e) The written notice shall advise the person that the
12-2 person is required to retire. If, before the 91st day after the
12-3 date the retirement system sends the notice, the person has not
12-4 filed an application for refund or retirement with the board of
12-5 trustees, the person is considered to have retired on the last day
12-6 of the month following the last to occur of the three dates listed
12-7 in Subsection (d).
12-8 (f) If a person is considered by the retirement system to
12-9 have retired as a result of Subsection (e), the person also shall
12-10 be considered:
12-11 (1) to have elected to receive an annuity under
12-12 Section 854.103, if the person did not have a spouse on the date of
12-13 employment termination; or
12-14 (2) if the person had a spouse on the date of
12-15 employment termination, to have elected to receive an annuity under
12-16 Section 854.104(c)(1) and to have designated the person's spouse as
12-17 the beneficiary under the annuity.
12-18 (g) If a person who has less than 10 years of creditable
12-19 service and who has attained age 70-1/2 has terminated covered
12-20 employment without applying for a refund of accumulated
12-21 contributions and is not eligible to retire without additional
12-22 service or age, the retirement system shall attempt to send that
12-23 person written notice in accordance with this subsection as soon as
12-24 is practical after the person has been absent from covered
12-25 employment for five consecutive years. The written notice shall
12-26 advise the person that the person is required to receive a refund
12-27 of accumulated contributions in order to avoid a tax penalty
13-1 according to the Internal Revenue Code of 1986 (Title 26, United
13-2 States Code). If, before the 91st day after the date the
13-3 retirement system sends the notice, the person has not filed an
13-4 application for refund with the board of trustees, the person is
13-5 considered to have filed an application for refund and to have
13-6 elected to have withholding taxes withheld on that refund.
13-7 SECTION 9. Section 854.004, Government Code, is amended to
13-8 read as follows:
13-9 Sec. 854.004. WHEN ANNUITY IS PAYABLE; CHANGES BEFORE FIRST
13-10 PAYMENT. (a) A retiree may change the retiree's choice of
13-11 retirement annuity payment plans or the designation of beneficiary
13-12 after the retiree's effective date of retirement by filing written
13-13 notice with the board of trustees before the later of the date on
13-14 which the retirement system makes the first payment or the date the
13-15 first annuity payment becomes due. After the first payment has
13-16 been made by the retirement system or has become due, a retiree may
13-17 not change the annuity payment plan selected and may not change the
13-18 designated beneficiary except under Section 854.006.
13-19 (b) For purposes of this section, the term "makes payment"
13-20 includes the depositing in the mail of a payment or the crediting
13-21 of an account with payment through electronic funds transfer.
13-22 (c) An annuity under this subtitle is payable for a period
13-23 beginning on the last day of the first month following the month in
13-24 which retirement occurs and ending, except as otherwise provided by
13-25 this subtitle, on the last day of the month immediately preceding
13-26 the month in which death occurs.
13-27 SECTION 10. Section 854.005(a), Government Code, is amended
14-1 to read as follows:
14-2 (a) An annuitant by written request may authorize the
14-3 retirement system to cease the annuitant's monthly payment or
14-4 reduce the annuitant's monthly payment to an amount specified in
14-5 the request. In writing, the annuitant may subsequently request
14-6 the retirement system to reinitiate or increase the annuitant's
14-7 monthly payment at or to any specified amount that does not exceed
14-8 the amount originally payable.
14-9 SECTION 11. Section 854.007(a)(1), Government Code, is
14-10 amended to read as follows:
14-11 (1) "Annual benefit" means the total of all annuity
14-12 payments by the retirement system on behalf of a person who has
14-13 retired under this Subtitle <to an annuitant> during a calendar
14-14 year, including any distributive benefit payments.
14-15 SECTION 12. Section 854.007(d), Government Code, is amended
14-16 to read as follows:
14-17 (d) Except as provided by Subsections (f), (h), and (i), an
14-18 annual benefit payable by the retirement system may not exceed the
14-19 lesser of:
14-20 (1) $115,641, or another amount as adjusted each
14-21 January 1 by the secretary of the treasury under Section 415 of the
14-22 Internal Revenue Code of 1986 (26 U.S.C. Section 415) for
14-23 cost-of-living increases after January 1, 1993; or
14-24 (2) 100 percent of the former member's highest average
14-25 annual compensation, including annual cost-of-living increases
14-26 after separation from service.
14-27 SECTION 13. Section 854.007, Government Code, is amended by
15-1 adding Subsections (l) and (m) to read as follows:
15-2 (l) The annual benefit payable by the retirement system that
15-3 is otherwise limited by Subsection (d) may be increased each year
15-4 in accordance with cost-of-living adjustments by the secretary of
15-5 the treasury of the dollar limitation or the compensation
15-6 limitation, as long as the benefit does not exceed the amount that
15-7 would be payable without the limitation of Section 415 of the
15-8 Internal Revenue Code of 1986 (26 U.S.C. Section 415).
15-9 (m) The limitations provided by this section may not be
15-10 applied to reduce the benefit of any person whose retirement
15-11 benefits payable under this and all other defined benefit plans of
15-12 the member's employer do not exceed $10,000, plus the benefit
15-13 provided under Subsection (h), for the plan year or for any
15-14 previous plan year and who has not at any time participated in a
15-15 defined contribution plan maintained by the person's employer.
15-16 SECTION 14. Subchapter B, Chapter 854, Government Code, is
15-17 amended by adding Section 854.106 to read as follows:
15-18 Sec. 854.106. NO SURVIVING SPOUSE, EXECUTOR, OR
15-19 ADMINISTRATOR. (a) If a surviving spouse, or the executor or
15-20 administrator of a member's estate, would be entitled to make an
15-21 election under Section 854.105(c) because of the death of the
15-22 member, the heirs of the deceased member may make that election if:
15-23 (1) no surviving spouse exists;
15-24 (2) no petition for the appointment of a personal
15-25 representative of the member is pending or has been granted;
15-26 (3) 30 days have elapsed since the death of the
15-27 member;
16-1 (4) the value of the entire assets of the member's
16-2 estate, excluding homestead and exempt property, does not exceed
16-3 $50,000;
16-4 (5) there are not more than three heirs; and
16-5 (6) on file with the retirement system is a certified
16-6 copy of a small estates affidavit that has been approved and filed
16-7 in accordance with Section 137, Texas Probate Code, or an original
16-8 affidavit as described by Subsection (b).
16-9 (b) If no affidavit has been filed with the clerk of the
16-10 court having jurisdiction and venue as provided by Section 137 of
16-11 the Texas Probate Code, the retirement system may accept instead an
16-12 affidavit sworn to by two disinterested witnesses, by the heirs who
16-13 have legal capacity, and, if the facts warrant, by the natural
16-14 guardian or next of kin of any minor or incompetent who is also an
16-15 heir. The affidavit shall include the names and addresses of the
16-16 heirs and witnesses, establish the facts listed in Subsection (a),
16-17 include a list of the assets and liabilities of the estate, show
16-18 the facts that constitute the basis for the right of the heirs to
16-19 receive the estate, and show the fractional interests of the heirs
16-20 in the estate as a result of those facts.
16-21 (c) If the retirement system, acting through the director or
16-22 a person designated by the director, approves the affidavit, the
16-23 heirs can make the election if each heir agrees to the election.
16-24 (d) In this section, "heirs" has the meaning assigned by
16-25 Section 3, Texas Probate Code, except that the term excludes any
16-26 persons who have filed with the retirement system a proper
16-27 disclaimer or renunciation.
17-1 SECTION 15. Subchapter F, Chapter 854, Government Code, is
17-2 amended by adding Section 854.503 to read as follows:
17-3 Sec. 854.503. TRUST AS BENEFICIARY. (a) Except as provided
17-4 by Subsection (b), a member or retiree may designate a trust as
17-5 beneficiary for the payment of benefits from the retirement system.
17-6 If a trust is designated beneficiary, the beneficiary of the trust
17-7 is considered the designated beneficiary for the purpose of
17-8 determining eligibility for and the amount and duration of
17-9 benefits. The trustee is entitled to exercise any rights to elect
17-10 benefit options and name subsequent beneficiaries.
17-11 (b) A trust having more than one beneficiary may not receive
17-12 benefits to which multiple designated beneficiaries are not
17-13 eligible under this chapter.
17-14 SECTION 16. Subchapter F, Chapter 854, Government Code, is
17-15 amended by adding Section 854.504 to read as follows:
17-16 Sec. 854.504. PERSON CAUSING DEATH OF MEMBER OR ANNUITANT.
17-17 (a) A benefit payable on the death of a member or annuitant may
17-18 not be paid to a person convicted of causing that death but instead
17-19 is payable to a person who would be entitled to the benefit had the
17-20 convicted person predeceased the decedent. If no person would be
17-21 entitled to the benefit, the benefit is payable to the decedent's
17-22 estate.
17-23 (b) The retirement system is not required to pay a benefit
17-24 under Subsection (a) of this section unless it receives actual
17-25 notice of the conviction of the person who would have been entitled
17-26 to the benefits. However, the retirement system may delay payment
17-27 of a benefit payable on the death of a member or annuitant pending
18-1 the results of a criminal investigation and of legal proceedings
18-2 relating to the cause of death.
18-3 (c) The retirement system shall convert the remainder of any
18-4 annuity that would otherwise have been payable throughout the life
18-5 of the convicted person to an actuarially equivalent annuity
18-6 payable to the decedent's estate in 60 monthly annuity payments.
18-7 The time of the actuarial equivalence is the earlier of the time
18-8 the retirement system receives the notice of the conviction under
18-9 Subsection (b) or the time the retirement system begins the delay
18-10 in payment of a benefit according to Subsection (b).
18-11 (d) For the purposes of this section, a person has been
18-12 convicted of causing the death of a member or annuitant if the
18-13 person:
18-14 (1) has pleaded guilty or nolo contendere to or has
18-15 been found guilty by a court of an offense at the trial of which it
18-16 is established that the person's intentional, knowing, or reckless
18-17 act or omission resulted in the death of a person who was a member
18-18 or annuitant, regardless of whether sentence is imposed or
18-19 probated; and
18-20 (2) has no appeal of the conviction pending and the
18-21 time provided for appeal has expired.
18-22 SECTION 17. Subchapter F, Chapter 854, Government Code, is
18-23 amended by adding Section 854.505 to read as follows:
18-24 Sec. 854.505. SIMULTANEOUS DEATH OF MEMBER AND BENEFICIARY.
18-25 When a member or retiree and the spouse or beneficiary of the
18-26 member or retiree have died within a period of less than 120 hours
18-27 of each other, the member or retiree is considered to have survived
19-1 the spouse or beneficiary for the purpose of determining the rights
19-2 to amounts payable under this subtitle on the death of the member
19-3 or retiree.
19-4 SECTION 18. Section 854.602, Government Code, is amended by
19-5 adding Subsection (f) to read as follows:
19-6 (f) If a member included in the coverage of the supplemental
19-7 death benefit program becomes eligible to apply for the extended
19-8 coverage but fails to comply with Subsections (b) and (c) before
19-9 the member's death, the member will be considered to have had the
19-10 extended coverage if proof is furnished that the member could have
19-11 qualified for extended coverage if application for the coverage had
19-12 been made according to Subsections (b) and (c) and that the death
19-13 occurred within six months after the date the coverage of the
19-14 supplemental death benefit program was discontinued under Section
19-15 854.601.
19-16 SECTION 19. Section 855.301, Government Code, is amended to
19-17 read as follows:
19-18 Sec. 855.301. INVESTMENT OF ASSETS. (a) The board of
19-19 trustees shall invest and reinvest the assets of the retirement
19-20 system without distinction as to their source in:
19-21 (1) interest-bearing bonds or other evidences of
19-22 indebtedness of this state, a county, school district, city, or
19-23 other municipal corporation of this state, the United States, or an
19-24 authority or agency of the United States;
19-25 (2) securities on which the United States or any
19-26 authority or agency of the United States guarantees the payment of
19-27 principal and interest;
20-1 (3) corporate bonds or debentures that are issued by a
20-2 company:
20-3 (A) incorporated in the United States and that
20-4 are rated "A" or better by one or more nationally recognized rating
20-5 agencies approved by the board; or
20-6 (B) in whose stock the retirement system may
20-7 invest as provided by Subdivision (4);
20-8 (4) common or preferred stocks of a company
20-9 incorporated in the United States that has paid cash dividends on
20-10 its stock for 10 consecutive years immediately before the date of
20-11 purchase and, unless the stocks are bank or insurance stocks, that
20-12 is listed on an exchange registered with the Securities and
20-13 Exchange Commission or its successor;
20-14 (5) obligations issued, assumed, or guaranteed by the
20-15 Inter-American Development Bank, the International Bank for
20-16 Reconstruction and Development (the World Bank), the African
20-17 Development Bank, the Asian Development Bank, and the International
20-18 Finance Corporation; or
20-19 (6) bonds issued, assumed, or guaranteed by the State
20-20 of Israel.
20-21 (b) The assets of the retirement system may be held in the
20-22 name of agents, nominees, depository trust companies, or other
20-23 entities designated by the board of trustees. The records and all
20-24 relevant reports or accounts of the retirement system must show the
20-25 ownership interests of the retirement system in these assets and
20-26 the facts regarding the system's holdings.
20-27 SECTION 20. Section 855.501, Government Code, is amended by
21-1 adding Subsections (i) and (j) to read as follows:
21-2 (i) A participating municipality electing to provide an
21-3 increased service annuity reserve and electing a contribution rate
21-4 of 150 percent for a year may, by ordinance, agree to be liable for
21-5 total contributions at a rate that does not exceed a rate equal to
21-6 the maximum rate prescribed for the municipality by Section 855.407
21-7 plus two and one-half percent if the contribution rate for its
21-8 employees is six percent, or a rate that does not exceed a rate
21-9 equal to the maximum rate prescribed for the municipality by
21-10 Section 855.407 plus three percent if the contribution rate for its
21-11 employees is seven percent.
21-12 (j) A participating municipality electing to provide an
21-13 increased service annuity reserve and electing a contribution rate
21-14 of 200 percent for a year may, by ordinance, agree to be liable for
21-15 total contributions at a rate that does not exceed a rate equal to
21-16 the maximum rate prescribed for the municipality by Section 855.407
21-17 plus five percent if the contribution rate for its employees is six
21-18 percent, or a rate that does not exceed a rate equal to the maximum
21-19 rate prescribed for the municipality by Section 855.407 plus six
21-20 percent if the contribution rate for its employees is seven
21-21 percent.
21-22 SECTION 21. This Act takes effect September 1, 1995.
21-23 SECTION 22. The importance of this legislation and the
21-24 crowded condition of the calendars in both houses create an
21-25 emergency and an imperative public necessity that the
21-26 constitutional rule requiring bills to be read on three several
21-27 days in each house be suspended, and this rule is hereby suspended.