S.B. No. 1148
AN ACT
1-1 relating to the retirement system for police officers and fire
1-2 fighters in certain municipalities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1.02, Chapter 824, Acts of the 73rd
1-5 Legislature, 1993 (Article 6243o, Vernon's Texas Civil Statutes),
1-6 is amended by adding Subdivision (5) to read as follows:
1-7 (5) "Total salary" means all salary, excluding
1-8 overtime pay, and, for police officers, excluding field training
1-9 officer's pay and standby pay, which includes bomb squad pay, SWAT
1-10 team pay, K-9 pay, and hostage team pay.
1-11 SECTION 2. Sections 4.01 and 4.02, Chapter 824, Acts of the
1-12 73rd Legislature, 1993 (Article 6243o, Vernon's Texas Civil
1-13 Statutes), are amended to read as follows:
1-14 Sec. 4.01. Membership. (a) A person becomes a member of
1-15 the fund as a condition of employment if the person:
1-16 (1) has served eight months <been properly appointed
1-17 and enrolled> as a fire fighter or police officer or as a trainee
1-18 in a fire fighter or police officer training academy of a
1-19 municipality to which this Act applies <in a position or office
1-20 established and classified by municipal ordinance>;
1-21 (2) <has served the probationary period for the
1-22 position;>
1-23 <(3) has served for six months as a fire fighter or
1-24 police officer of the municipality; and>
2-1 <(4)> was not younger than 18 <and had not attained
2-2 the age of 36> at the time of appointment; and
2-3 (3) has provided an authorization for release of
2-4 medical information for any medical records dated on or after the
2-5 date of initial application for employment or has agreed in writing
2-6 to provide that authorization when requested by the board or, in
2-7 the alternative if required by the board, has submitted to a
2-8 physical examination by a physician selected by the board.
2-9 (b) Notwithstanding Subsection (a) of this section, a person
2-10 duly appointed and enrolled in a classified position in either the
2-11 fire department or police department who was barred from entry in
2-12 the fund solely because the person had attained the age of 36 on
2-13 the date that the person would have otherwise become eligible after
2-14 October 15, 1990, to be a member of the fund and for that reason
2-15 became a member of the Texas Municipal Retirement System and who is
2-16 otherwise eligible for and complies with each requirement for
2-17 membership in the fund shall become a member of the fund as a
2-18 condition of continued employment. The person must make
2-19 application to the fund not later than the 90th day after the date
2-20 on which the person receives notification of this provision.
2-21 (c) A person who becomes a member of the fund under
2-22 Subsection (b) of this section shall be given service credit from
2-23 the date the person would have become eligible to be a member of
2-24 the fund if not for the age requirement and must pay into the fund,
2-25 in accordance with procedures established by the board, pension
2-26 contributions for all service credit allowed based on amounts that
2-27 would have been deducted if the person had been allowed to enter
3-1 the fund on that date.
3-2 (d) A person who became a member of the Texas Municipal
3-3 Retirement System on or before October 15, 1990, may elect to
3-4 become a member of the fund on or before the 90th day after the
3-5 date the person receives notice of this provision. If the person
3-6 does not elect to become a member during that period, the person
3-7 may not become a member of the fund and waives any claim against
3-8 the fund. If the person elects to become a member of the fund, the
3-9 person must comply with each requirement for membership and must
3-10 pay into the fund, in accordance with procedures established by the
3-11 board, a sum of money equal to the amount of money that would have
3-12 been deducted from that person's salary during the period beginning
3-13 October 16, 1990, and ending on the date the person becomes a
3-14 member of the fund. The person also may purchase service credit
3-15 for the period beginning on the date the person would have
3-16 otherwise become eligible to be a member of the fund if not for the
3-17 age prohibition, through October 15, 1990. Service credit may be
3-18 obtained only in increments of full months, with the minimum being
3-19 one month.
3-20 (e) A person who becomes a member of the fund under
3-21 Subsection (b) or (d) of this section must, as a condition of
3-22 employment, provide an authorization for release of medical
3-23 information for any medical records dated on or after the date of
3-24 initial application for employment when requested by the board or
3-25 in the alternative, as required by the board, must submit to a
3-26 physical examination by a physician selected by the board.
3-27 (f) A municipality to which this Act applies shall match an
4-1 amount equal to twice the amount of each payment a member makes to
4-2 the fund under this section.
4-3 (g) The drawing of compensation by an officer or employee in
4-4 the fire or police department for service in that department does
4-5 not of itself make that person a member of the fund.
4-6 (h) <(c)> The regularity of an appointment as a fire fighter
4-7 or police officer of a municipality to which this Act applies may
4-8 not be presumed from the serving of the full probationary period,
4-9 if any. The service of the probationary period by an officer or
4-10 employee as a fire fighter or police officer of a municipality to
4-11 which this Act applies does not constitute the creation of a
4-12 position or office to which a proper appointment has been made for
4-13 purposes of this Act.
4-14 Sec. 4.02. FAMILY AND MEDICAL LEAVE <REINSTATEMENT>.
4-15 (a) If a member takes unpaid leave as provided by the Family and
4-16 Medical Leave Act (29 U.S.C. Section 2601 et seq.), that member is
4-17 entitled to make voluntary contributions for the leave period in
4-18 the same amount as the member would have paid if the member had not
4-19 taken the leave. Those payments must be made not later than the
4-20 30th day after the date the member returns from that leave. A
4-21 computation of contributions under this section shall be made in
4-22 the same manner as other computations under this Act. A
4-23 municipality to which this Act applies shall match an amount equal
4-24 to twice the amount of each payment a member makes to the fund
4-25 under this subsection.
4-26 (b) If the member does not comply with Subsection (a) of
4-27 this section, the member loses all credit toward the member's
5-1 retirement annuity for the period the member was on leave <A
5-2 former fund member who has reentered the fire or police department
5-3 may not be barred from membership in the fund because of age as
5-4 long as the member can qualify for a 30-year pension on or before
5-5 the member's 65th birthday>.
5-6 SECTION 3. Subsection (c), Section 4.03, Chapter 824, Acts
5-7 of the 73rd Legislature, 1993 (Article 6243o, Vernon's Texas Civil
5-8 Statutes), is amended to read as follows:
5-9 (c) The member must make the payment described by Subsection
5-10 (b) of this section in full within an amount of time after the
5-11 member's return that is equal to three times <twice> the amount of
5-12 time the member was absent, except that the maximum period for
5-13 payment may not exceed five <four> years.
5-14 SECTION 4. Sections 4.04, 4.07, and 5.01, Chapter 824, Acts
5-15 of the 73rd Legislature, 1993 (Article 6243o, Vernon's Texas Civil
5-16 Statutes), are amended to read as follows:
5-17 Sec. 4.04. MEMBER CONTRIBUTIONS. (a) There shall be
5-18 deducted from the wages of each fire fighter and police officer in
5-19 the employment of a municipality to which this Act applies a
5-20 percentage of the member's total salary<, excluding overtime pay,>
5-21 according to the following schedule:
5-22 (1) 11.16 percent for full pay periods after September
5-23 30, 1993, but before October 1, 1994;
5-24 (2) 11.32 percent for full pay periods after September
5-25 30, 1994, but before October 1, 1995;
5-26 (3) 11.50 percent for full pay periods after September
5-27 30, 1995, but before October 1, 1996;
6-1 (4) 11.66 percent for full pay periods after September
6-2 30, 1996, but before October 1, 1997;
6-3 (5) 11.82 percent for full pay periods after September
6-4 30, 1997, but before October 1, 1998;
6-5 (6) 12 percent for full pay periods after September
6-6 30, 1998, but before October 1, 1999;
6-7 (7) 12.16 percent for full pay periods after September
6-8 30, 1999, but before October 1, 2000;
6-9 (8) 12.32 percent for full pay periods after September
6-10 30, 2000, but before October 1, 2001; and
6-11 (9) 12.50 percent for full pay periods after September
6-12 30, 2001.
6-13 (b) The municipality has always picked up and shall continue
6-14 to pick up the member contributions that are required by Subsection
6-15 (a) of this section.
6-16 (c) Contributions picked up by the municipality shall be
6-17 treated as employer contributions in accordance with Section
6-18 414(h)(2), Internal Revenue Code of 1986 (26 U.S.C. Section 414),
6-19 for the purpose of determining tax treatment of the amounts under
6-20 the Internal Revenue Code of 1986. Those contributions are not
6-21 included in the gross income of the employee until the time they
6-22 are distributed or made available to the employee.
6-23 Sec. 4.07. <NO> REFUND OF CONTRIBUTIONS. (a) During the
6-24 first five years of membership, a <A> member of the fund is not
6-25 entitled to any refund from the fund of any portion of the money
6-26 deducted from the member's pay for the benefit of the fund. That
6-27 money is <public money and> the property of the fund for the
7-1 benefit of the members qualifying for benefits and for their
7-2 beneficiaries.
7-3 (b) A member of the fund who terminates employment before
7-4 the member's right to benefits under the fund has vested but who
7-5 has contributed to the fund for at least five years is entitled to
7-6 a refund of the member's contributions that were picked up by the
7-7 municipality. That refund shall be paid without interest. A
7-8 refund under this section is not available to a member who
7-9 terminates employment to receive a disability pension or to a
7-10 survivor beneficiary under this Act. A person's acceptance of a
7-11 refund under this subsection precludes the person from any other
7-12 right or benefit under this Act.
7-13 Sec. 5.01. Retirement benefits. (a) If a member of the
7-14 fund has contributed a portion of that member's salary as provided
7-15 by this Act and has contributed and served for 20 years or more in
7-16 the fire or police department, the board shall, on the application
7-17 of the member for a retirement annuity, authorize a retirement
7-18 annuity to the member.
7-19 (b) The board shall compute the retirement annuity of a
7-20 member who retires after September 30, 1991, but before October 1,
7-21 1995, on the basis of the average of the member's total salary<,
7-22 excluding overtime pay,> for the highest three years of the last
7-23 five years, computed from the date of retirement, of the member's
7-24 pay at the rate of two percent for each of the first 20 years
7-25 served, plus 3 1/2 percent for each of the next 10 years served,
7-26 plus one percent for each of the next five years served, with
7-27 fractional years prorated based on full months served as a
8-1 contributing member, but the annuity may not exceed, as of the date
8-2 of retirement, 80 percent of the average so determined.
8-3 (c) The board shall compute the retirement annuity of a
8-4 member who retires after September 30, 1995, on the basis of the
8-5 average of the member's total salary for the highest three years of
8-6 the last five years, computed from the date of retirement, of the
8-7 member's pay at the rate of two percent for each of the first 20
8-8 years served, plus four percent for each of the next five years
8-9 served, plus 3 1/2 percent for each of the next five years served,
8-10 plus one percent for each of the next five years served, with
8-11 fractional years prorated based on full months served as a
8-12 contributing member. In making the computation for a year, the
8-13 year is considered to begin on the first day a contribution is
8-14 made. An annuity under this subsection may not exceed, as of the
8-15 date of retirement, 82.5 percent of the average determined under
8-16 this subsection.
8-17 (d) A member may not receive an award from the fund for
8-18 service retirement until the member has served at least 20 years in
8-19 the fire or police department and has also contributed the required
8-20 amount of money for at least 20 years. In determining the number
8-21 of years of service in a department, the member shall be given full
8-22 credit for the time the member was actively engaged in military
8-23 service in accordance with Section 4.03 of this Act and for
8-24 absences taken under the Family and Medical Leave Act (29 U.S.C.
8-25 Section 2601 et seq.), in accordance with Section 4.02 of this Act.
8-26 Disciplinary suspensions of 15 days or less may not be subtracted
8-27 from a member's service credit under this Act if the member has
9-1 paid into the fund within 30 days after the termination date of
9-2 each suspension a sum of money equal to the amount of money that
9-3 would have been deducted from that person's salary during that
9-4 period of suspension if it had not been for that suspension. A
9-5 municipality to which this Act applies shall double-match a payment
9-6 made under this subsection.
9-7 (e) <(d) If a member of the fire or police department has
9-8 served for 30 years or more in either department and has
9-9 contributed a portion of that member's salary as provided by this
9-10 Act for the same period, that member is retired automatically from
9-11 service on the member's 65th birthday.>
9-12 <(e) If, on a member's 65th birthday, the member has served
9-13 less than 30 years in either department and has not contributed a
9-14 portion of that member's salary as provided by this Act for that
9-15 period, the member may continue service and contributions until the
9-16 total service equals and the contributions have been made for 30
9-17 years.>
9-18 <(f)> Except as provided by Subsection (f) <(g)> of this
9-19 section, members of the fund at the time of their retirement shall
9-20 receive service credit for all unused sick leave accumulated by
9-21 them under Chapter 143, Local Government Code, and its subsequent
9-22 amendments, with fractional years prorated based on full months of
9-23 sick leave.
9-24 (f) <(g)> The retirement annuity for a member under
9-25 Subsection (e) <(f)> of this section may not exceed, as of the date
9-26 of retirement, 82.5 <80> percent of the average, determined under
9-27 that subsection and under the ordinances of a municipality to which
10-1 this Act applies, that exceeds 90 days of accumulated sick leave.
10-2 SECTION 5. Article 5, Chapter 824, Acts of the 73rd
10-3 Legislature, 1993 (Article 6243o, Vernon's Texas Civil Statutes),
10-4 is amended by adding Section 5.015 to read as follows:
10-5 Sec. 5.015. BACKWARD DEFERRED RETIREMENT OPTION PLAN (BACK
10-6 DROP). (a) At the time a member applies for retirement benefits
10-7 under Section 5.01 of this Act, the member may elect a Backward
10-8 Deferred Retirement Option Plan (Back DROP) with a lump-sum payment
10-9 and a reduced annuity benefit as provided by this section.
10-10 (b) The Back DROP election:
10-11 (1) results in a lump-sum payment for a number of full
10-12 months of service elected by the member that does not exceed the
10-13 lesser of the number of months of service credit the member has in
10-14 excess of 20 years or 24 months; and
10-15 (2) must be made at the time of application for
10-16 retirement.
10-17 (c) To be eligible to make a Back DROP election under this
10-18 section, a member of the fund must have contributed a portion of
10-19 that member's salary, as provided by this Act, and have contributed
10-20 and served at least 20 years and 1 month in the fire or police
10-21 department.
10-22 (d) The amount of a lump-sum payment to which a member
10-23 making a Back DROP election is entitled shall be computed in the
10-24 manner provided by this subsection. The member's average annual
10-25 salary shall be computed in the manner provided by Section 5.01(c)
10-26 of this Act, except that the retirement date used in making that
10-27 computation is the retirement date computed as provided by this
11-1 subsection. The member's average annual salary shall be divided by
11-2 12 to compute the member's average monthly salary. The member's
11-3 average monthly salary multiplied by the number of full months
11-4 elected by the member under Subsection (b)(1) of this section is
11-5 the amount of the lump-sum payment to which the member is entitled.
11-6 In computing the member's average annual salary under this
11-7 subsection, the member's retirement date is the member's Back DROP
11-8 retirement date, which is the member's actual retirement date less
11-9 the amount of time for:
11-10 (1) any service in excess of 35 years of service;
11-11 (2) any service credit given for sick leave unused on
11-12 the date of actual retirement; and
11-13 (3) service credit, for service in excess of 20 years
11-14 but not in excess of the amount permitted under Subsection (b)(1)
11-15 of this section, the member elects for computing the amount of the
11-16 lump-sum payment.
11-17 (e) For purposes of computing the monthly annuity of a
11-18 member making a Back DROP election, the member's average annual
11-19 salary shall be computed in the manner provided by Section 5.01(c)
11-20 of this Act, except that the retirement date used in making that
11-21 computation is the member's actual retirement date, plus time
11-22 representing any service credit given for sick leave unused on the
11-23 actual retirement date, less the amount of time the member elects
11-24 under Subsection (b)(1) of this section. The annuity may not
11-25 exceed the limitation provided by Section 5.01(c) of this Act. The
11-26 member's average annual salary shall be divided by 12 to compute
11-27 the member's monthly annuity.
12-1 (f) A member may defer receiving the lump-sum payment under
12-2 this section for a period of not longer than 12 months after the
12-3 member's retirement date. Interest may not be paid on the deferred
12-4 amount at the time of distribution.
12-5 (g) The board by administrative rule shall implement this
12-6 section in a manner that preserves the eligibility of the tax
12-7 qualification under the Internal Revenue Code of 1986 and may
12-8 revise the program as necessary to retain tax qualification.
12-9 SECTION 6. Subsections (a) and (c), Section 5.04, Chapter
12-10 824, Acts of the 73rd Legislature, 1993 (Article 6243o, Vernon's
12-11 Texas Civil Statutes), are amended to read as follows:
12-12 (a) A member who is eligible to receive a disability
12-13 retirement annuity is entitled to receive from the fund 50 percent
12-14 of the average of the member's total salary<, excluding overtime
12-15 pay,> for the highest three years of the last five years, computed
12-16 from the date of retirement or, if the member has served less than
12-17 three years before the date of retirement, 50 percent of the
12-18 member's average monthly salary, excluding overtime pay, or a
12-19 theoretical monthly average if service is less than a full month.
12-20 (c) The amount of 50 percent of the average total salary<,
12-21 excluding overtime pay,> is the maximum amount of disability
12-22 retirement annuity for total and permanent disability.
12-23 SECTION 7. Subsection (c), Section 5.05, Chapter 824, Acts
12-24 of the 73rd Legislature, 1993 (Article 6243o, Vernon's Texas Civil
12-25 Statutes), is amended to read as follows:
12-26 (c) For those retired because of disability on or after
12-27 August 30, 1971, the disability retirement annuity may not be
13-1 reduced to less than two percent, for each year that the retiree
13-2 has served and contributed a portion of salary, of the average of
13-3 the member's total salary<, excluding overtime pay,> for the
13-4 highest three years of the last five years, computed from the date
13-5 of retirement, or if the member has served less than three years
13-6 before the date of retirement, 50 percent of the member's average
13-7 monthly salary, excluding overtime pay, or a theoretical monthly
13-8 average if service is less than a full month. All fractional years
13-9 shall be prorated based on full months served on the fire or police
13-10 department as a contributing member of the fund before the date of
13-11 retirement.
13-12 SECTION 8. Subsection (a), Section 5.09, Chapter 824, Acts
13-13 of the 73rd Legislature, 1993 (Article 6243o, Vernon's Texas Civil
13-14 Statutes), is amended to read as follows:
13-15 (a) At or before its regular meeting in the month of March,
13-16 the board annually shall review the Consumer's Price Index for
13-17 Moderate Income Families in Large Cities--All Items or the nearest
13-18 equivalent published by the United States Bureau of Labor
13-19 Statistics for the preceding calendar year. If that index shows an
13-20 increase during the preceding calendar year in the cost of living
13-21 as compared with that index at the close of the previous year, the
13-22 board shall order an increase of all retirement annuities by the
13-23 number of full percentage points closest to the exact amount of the
13-24 increase of that index, except that any increased retirement
13-25 annuities are payable only at the rate of 75 percent of the
13-26 applicable cost-of-living percentage for those retirees, and the
13-27 beneficiaries of those retirees, who were retired on and after
14-1 August 30, 1971. The annual cost-of-living adjustment for a
14-2 retiree or a beneficiary of a retiree who retired on or after
14-3 September 1, 1971, but before October 1, 1989, shall be computed at
14-4 the rate of 87.5 percent of the consumer price index specified by
14-5 this subsection if the index is eight percent or less, with the
14-6 maximum cost-of-living adjustment capped at the rate of six
14-7 percent, but at the rate of 75 percent of the index if the index is
14-8 greater than eight percent for those retirees, with no cap on the
14-9 rate of the cost-of-living adjustment.
14-10 SECTION 9. Section 5.11, Chapter 824, Acts of the 73rd
14-11 Legislature, 1993 (Article 6243o, Vernon's Texas Civil Statutes),
14-12 is amended by amending Subsection (c) and adding Subsection (j) to
14-13 read as follows:
14-14 (c) Accrued benefits under this Act become 100 percent
14-15 vested for all members on termination of the fund or on occurrence
14-16 of another event described in Section 401(a)(17) of the code and
14-17 become 100 percent vested for a member on the date the member
14-18 <becomes 65 years of age and> has completed 20 years of service.
14-19 (j) To the extent permitted by law, the board may adjust the
14-20 benefits of retired members and beneficiaries by increasing any
14-21 retirement benefit that was reduced as inflationary indexing under
14-22 Section 415 of the code. If the definition of compensation is
14-23 amended under that section to include amounts previously excluded
14-24 as compensation, the board may adjust the benefits of retired
14-25 members and beneficiaries, including the payment of benefits
14-26 previously excluded. Benefits paid under this subsection are not
14-27 considered as extra compensation earned after retirement but as the
15-1 delayed payment of benefits earned before retirement.
15-2 SECTION 10. Subsections (c) and (d), Section 6.02, Chapter
15-3 824, Acts of the 73rd Legislature, 1993 (Article 6243o, Vernon's
15-4 Texas Civil Statutes), are amended to read as follows:
15-5 (c) If there are no children, the surviving spouse is
15-6 entitled to receive an amount not to exceed 60 <57.50> percent of
15-7 the average total salary<, excluding overtime pay,> of the deceased
15-8 member computed as provided under Subsection (a) of this section.
15-9 (d) If there is no surviving spouse, the children are
15-10 entitled to receive not more than 30 <28.75> percent of the average
15-11 total salary computed as provided under Subsection (a) of this
15-12 section, except that if the board determines on investigation that
15-13 the eligible children are destitute, the board may increase the
15-14 death benefit annuity to an amount not to exceed 40 percent of that
15-15 average total salary. The amount awarded under this subsection to
15-16 any child shall be paid by the board to the legal guardian of the
15-17 child.
15-18 SECTION 11. Subsection (c), Section 6.03, Chapter 824, Acts
15-19 of the 73rd Legislature, 1993 (Article 6243o, Vernon's Texas Civil
15-20 Statutes), is amended to read as follows:
15-21 (c) Notwithstanding the formulas for computing the total
15-22 amounts of annuities otherwise provided by this section, if a
15-23 member is killed in the line of duty, the member's surviving spouse
15-24 and dependent children are entitled to a death benefit annuity
15-25 equal to the total salary<, excluding overtime pay,> of the member
15-26 at the time of death. Rules provided by this section relating to
15-27 qualification and disqualification for and apportionment of
16-1 benefits apply to a death benefit annuity computed under this
16-2 subsection. A death benefit annuity computed under this subsection
16-3 is subject to the same cost-of-living adjustments that apply to
16-4 pensions for service retirement.
16-5 SECTION 12. Section 6.04, Chapter 824, Acts of the 73rd
16-6 Legislature, 1993 (Article 6243o, Vernon's Texas Civil Statutes),
16-7 is amended to read as follows:
16-8 Sec. 6.04. Remarriage; benefits after termination of
16-9 marriage. (a) If a surviving spouse remarries or a dependent
16-10 child marries before October 1, 1995, the <The> right of a
16-11 surviving spouse or dependent child to annuity payments under this
16-12 Act terminates on the remarriage of the surviving spouse<, either
16-13 statutory or common law,> or on the marriage of the child, as
16-14 applicable, under either statutory law or under common law as
16-15 prescribed by Section 6.06 of this Act.
16-16 (b) The right of a <If the remarried> surviving spouse or
16-17 <married> dependent child to annuity payments under this Act is not
16-18 affected by the surviving spouse's remarriage or dependent child's
16-19 marriage under either statutory or common law if the marriage or
16-20 remarriage takes place on or after October 1, 1995 <becomes
16-21 unmarried, that person is entitled, on application, to the greater
16-22 of 75 percent of the annuity that was in effect on the date of
16-23 termination or a minimum annuity of $800 each month for as long as
16-24 that person remains unmarried>.
16-25 (c) If after October 1, 1995, there is a termination of the
16-26 remarriage of a surviving spouse or of the marriage of a dependent
16-27 child, that person is entitled, on application, to 100 percent of
17-1 the annuity that was in effect on the date of termination of
17-2 benefits.
17-3 (d) A surviving spouse or dependent child who is unmarried
17-4 but receiving reduced benefits because of a prior marriage that
17-5 caused the benefits to be terminated is entitled to 100 percent of
17-6 the annuity that was in effect on the original date of termination
17-7 of benefits.
17-8 (e) The benefit provided under Subsections (c) and (d) of
17-9 this section shall be applied prospectively beginning October 1,
17-10 1995, and the surviving spouse or dependent child is not entitled
17-11 to receive any benefits or increases in benefits relating to any
17-12 period before October 1, 1995.
17-13 SECTION 13. Subsection (b), Section 6.05, Chapter 824, Acts
17-14 of the 73rd Legislature, 1993 (Article 6243o, Vernon's Texas Civil
17-15 Statutes), is amended to read as follows:
17-16 (b) If the <surviving spouse,> dependent beneficiary<,> or
17-17 guardian fails or refuses to file an affidavit required under
17-18 Subsection (a) of this section or if an incomplete, incorrect, or
17-19 false affidavit is filed, the board may suspend annuity payments to
17-20 that person indefinitely until the person complies with the
17-21 requests and orders of the board.
17-22 SECTION 14. Section 6.07, Chapter 824, Acts of the 73rd
17-23 Legislature, 1993 (Article 6243o, Vernon's Texas Civil Statutes),
17-24 is amended to read as follows:
17-25 Sec. 6.07. Surviving spouse's right to single entitlement.
17-26 A <Unless otherwise provided by law, a> surviving spouse who is not
17-27 a member of the fund is not entitled to more than one annuity from
18-1 the fund.
18-2 SECTION 15. Subsection (a), Section 6.09, Chapter 824, Acts
18-3 of the 73rd Legislature, 1993 (Article 6243o, Vernon's Texas Civil
18-4 Statutes), is amended to read as follows:
18-5 (a) If a contributing member in good standing of the fire or
18-6 police department or a retiree dies before or after retirement and
18-7 leaves no surviving spouse or child but leaves surviving a father
18-8 and mother wholly dependent on that person for support, the
18-9 dependent father and mother are entitled to receive one-third of
18-10 the average total salary<, excluding overtime pay,> of the deceased
18-11 member based on the same number of years of the member's pay as is
18-12 currently provided for computations of retirement annuities under
18-13 Section 5.01(a) of this Act, the annuity to be equally divided
18-14 between the father and mother as long as they are wholly dependent.
18-15 If there is only one dependent, either father or mother, the board
18-16 shall grant the surviving dependent an annuity not to exceed
18-17 one-fourth that average total salary as computed under this
18-18 subsection.
18-19 SECTION 16. Subsection (a), Section 6.11, Chapter 824, Acts
18-20 of the 73rd Legislature, 1993 (Article 6243o, Vernon's Texas Civil
18-21 Statutes), is amended to read as follows:
18-22 (a) If a member of the fire or police department in active
18-23 service dies and does not leave an eligible surviving spouse, a
18-24 child under 17 years of age, a child under 19 years of age who is
18-25 attending school, a mentally or physically disabled child, or a
18-26 dependent father or mother, the estate of the deceased member is
18-27 entitled to a death benefit payment in the amount of $10,000 from
19-1 the fund or the refund of contributions as provided by Section 4.07
19-2 of this Act, whichever amount is greater.
19-3 SECTION 17. Subsections (a) and (b), Section 7.04, Chapter
19-4 824, Acts of the 73rd Legislature, 1993 (Article 6243o, Vernon's
19-5 Texas Civil Statutes), are amended to read as follows:
19-6 (a) The board shall cause the reserve retirement funds to be
19-7 invested in a manner that a prudent investor would invest,
19-8 considering the purposes, terms, distribution requirements, and
19-9 other circumstances <consistent with the care, skill, and diligence
19-10 under the prevailing circumstances that a prudent person acting in
19-11 a like capacity and familiar with matters of the type would use in
19-12 the conduct> of an enterprise with a like character and like aims.
19-13 (b) The board shall diversify the investment of the fund to
19-14 minimize the risk of large losses unless under the circumstances it
19-15 is clearly prudent not to do so. In determining whether the board
19-16 has exercised prudence concerning an investment decision, the
19-17 investment of all assets of the fund, rather than the prudence of a
19-18 single investment of <investing the assets of the fund, the board
19-19 shall be bound by the documents and instruments governing> the
19-20 fund, shall be considered.
19-21 SECTION 18. Chapter 824, Acts of the 73rd Legislature, 1993
19-22 (Article 6243o, Vernon's Texas Civil Statutes), is amended by
19-23 adding Article 7A to read as follows:
19-24 ARTICLE 7A. STANDARDS OF CONDUCT AND FINANCIAL
19-25 DISCLOSURE REQUIREMENTS
19-26 Sec. 7.51. POLICY. (a) A member of the board or the
19-27 executive director may not have a direct or indirect interest,
20-1 including a financial interest, engage in a business transaction or
20-2 professional activity, or incur an obligation of any nature that is
20-3 in substantial conflict with the proper discharge of the member's
20-4 or the executive director's fiduciary duties.
20-5 (b) To implement Subsection (a) of this section and to
20-6 strengthen the faith and confidence of the members and
20-7 beneficiaries of the fund, the board shall develop standards of
20-8 conduct and financial disclosure requirements to be observed by
20-9 each member of the board and by the executive director in the
20-10 performance of official duties.
20-11 (c) The standards of conduct and financial disclosure
20-12 requirements must provide for:
20-13 (1) general definitions;
20-14 (2) the manner of determining substantial conflict;
20-15 (3) the manner of determining who is considered a
20-16 dependent child of a board member or the executive director;
20-17 (4) each member of the board and the executive
20-18 director to file a financial disclosure statement;
20-19 (5) a review board to be appointed;
20-20 (6) the composition of the review board;
20-21 (7) a custodian of records to be designated;
20-22 (8) the manner in which records must be retained;
20-23 (9) the information, generally, that must be included
20-24 in a financial statement;
20-25 (10) the time for filing a financial statement;
20-26 (11) the form in which a financial statement must be
20-27 presented;
21-1 (12) compliance with this section;
21-2 (13) public access to financial statements;
21-3 (14) sanctions for a violation of this section that
21-4 must include removal of a member of the board or the executive
21-5 director in the case of a serious violation;
21-6 (15) standards of conduct for board members and the
21-7 executive director; and
21-8 (16) other matters relating to conduct of board
21-9 members and the executive director and financial disclosure the
21-10 board considers appropriate.
21-11 SECTION 19. This Act takes effect October 1, 1995.
21-12 SECTION 20. The importance of this legislation and the
21-13 crowded condition of the calendars in both houses create an
21-14 emergency and an imperative public necessity that the
21-15 constitutional rule requiring bills to be read on three several
21-16 days in each house be suspended, and this rule is hereby suspended.