74R11803 CAS-F
By Madla S.B. No. 1148
Substitute the following for S.B. No. 1148:
By Berlanga C.S.S.B. No. 1148
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the retirement system for police officers and
1-3 firefighters 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 officer's 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 or as a trainee
1-20 in a fire fighter or police officer training academy of a
1-21 municipality to which this Act applies <in a position or office
1-22 established and classified by municipal ordinance>;
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; and
2-5 (3) has provided an authorization for release of
2-6 medical information for any medical records dated on or after the
2-7 date of initial application for employment or has agreed in writing
2-8 to provide that authorization when requested by the board, or in
2-9 the alternative if required by the board, has submitted to a
2-10 physical examination by a physician selected by the board.
2-11 (b) Notwithstanding Subsection (a) of this section, a person
2-12 duly appointed and enrolled in a classified position in either the
2-13 fire department or police department who was barred from entry in
2-14 the fund solely because the person had attained the age of 36 on
2-15 the date that the person would have otherwise become eligible after
2-16 October 15, 1990, to be a member of the fund and for that reason
2-17 became a member of the Texas Municipal Retirement System and who is
2-18 otherwise eligible for and complies with each requirement for
2-19 membership in the fund shall become a member of the fund as a
2-20 condition of continued employment. The person must make
2-21 application to the fund not later than the 90th day after the date
2-22 on which the person receives notification of this provision.
2-23 (c) A person who becomes a member of the fund under
2-24 Subsection (b) of this section shall be given service credit from
2-25 the date the person would have become eligible to be a member of
2-26 the fund if not for the age requirement and must pay into the fund,
2-27 in accordance with procedures established by the board, pension
3-1 contributions for all service credit allowed based on amounts that
3-2 would have been deducted if the person had been allowed to enter
3-3 the fund on that date.
3-4 (d) A person who became a member of the Texas Municipal
3-5 Retirement System on or before October 15, 1990, may elect to
3-6 become a member of the fund on or before the 90th day after the
3-7 date the person receives notice of this provision. If the person
3-8 does not elect to become a member during that period, the person
3-9 may not become a member of the fund and waives any claim against
3-10 the fund. If the person elects to become a member of the fund, the
3-11 person must comply with each requirement for membership and must
3-12 pay into the fund, in accordance with procedures established by the
3-13 board, a sum of money equal to the amount of money that would have
3-14 been deducted from that person's salary during the period beginning
3-15 October 16, 1990, and ending on the date the person becomes a
3-16 member of the fund. The person also may purchase service credit
3-17 for the period beginning on the date the person would have
3-18 otherwise become eligible to be a member of the fund if not for the
3-19 age prohibition, through October 15, 1990. Service credit may be
3-20 obtained only in increments of full months, with the minimum being
3-21 one month.
3-22 (e) A person who becomes a member of the fund under
3-23 Subsection (b) or (d) of this section must, as a condition of
3-24 employment, provide an authorization for release of medical
3-25 information for any medical records dated on or after the date of
3-26 initial application for employment when requested by the board or
3-27 in the alternative, as required by the board, must submit to a
4-1 physical examination by a physician selected by the board.
4-2 (f) A municipality to which this Act applies shall match an
4-3 amount equal to twice the amount of each payment a member makes to
4-4 the fund under this section.
4-5 (g) <(b)> The drawing of compensation by an officer or
4-6 employee in the fire or police department for service in that
4-7 department does not of itself make that person a member of the
4-8 fund.
4-9 (h) <(c)> The regularity of an appointment as a fire fighter
4-10 or police officer of a municipality to which this Act applies may
4-11 not be presumed from the serving of the full probationary period,
4-12 if any. The service of the probationary period by an officer or
4-13 employee as a fire fighter or police officer of a municipality to
4-14 which this Act applies does not constitute the creation of a
4-15 position or office to which a proper appointment has been made for
4-16 purposes of this Act.
4-17 Sec. 4.02. FAMILY AND MEDICAL LEAVE <REINSTATEMENT>. (a)
4-18 If a member takes unpaid leave as provided by the Family and
4-19 Medical Leave Act (29 U.S.C. Section 2601 et seq.), that member is
4-20 entitled to make voluntary contributions for the leave period in
4-21 the same amount as the member would have paid if the member had not
4-22 taken the leave. Those payments must be made not later than the
4-23 30th day after the date the member returns from that leave. A
4-24 computation of contributions under this section shall be made in
4-25 the same manner as other computations under this Act. A
4-26 municipality to which this Act applies shall match an amount equal
4-27 to twice the amount of each payment a member makes to the fund
5-1 under this subsection.
5-2 (b) If the member does not comply with Subsection (a) of
5-3 this section, the member loses all credit toward the member's
5-4 retirement annuity for the period the member was on leave <A
5-5 former fund member who has reentered the fire or police department
5-6 may not be barred from membership in the fund because of age as
5-7 long as the member can qualify for a 30-year pension on or before
5-8 the member's 65th birthday>.
5-9 SECTION 3. Section 4.03(c), Chapter 824, Acts of the 73rd
5-10 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
5-11 Civil Statutes), is amended to read as follows:
5-12 (c) The member must make the payment described by Subsection
5-13 (b) of this section in full within an amount of time after the
5-14 member's return that is equal to three times <twice> the amount of
5-15 time the member was absent, except that the maximum period for
5-16 payment may not exceed five <four> years.
5-17 SECTION 4. Sections 4.04, 4.07, and 5.01, Chapter 824, Acts
5-18 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
5-19 Vernon's Texas Civil Statutes), are amended to read as follows:
5-20 Sec. 4.04. MEMBER CONTRIBUTIONS. (a) There shall be
5-21 deducted from the wages of each fire fighter and police officer in
5-22 the employment of a municipality to which this Act applies a
5-23 percentage of the member's total salary<, excluding overtime pay,>
5-24 according to the following schedule:
5-25 (1) 11.16 percent for full pay periods after September
5-26 30, 1993, but before October 1, 1994;
5-27 (2) 11.32 percent for full pay periods after September
6-1 30, 1994, but before October 1, 1995;
6-2 (3) 11.50 percent for full pay periods after September
6-3 30, 1995, but before October 1, 1996;
6-4 (4) 11.66 percent for full pay periods after September
6-5 30, 1996, but before October 1, 1997;
6-6 (5) 11.82 percent for full pay periods after September
6-7 30, 1997, but before October 1, 1998;
6-8 (6) 12 percent for full pay periods after September
6-9 30, 1998, but before October 1, 1999;
6-10 (7) 12.16 percent for full pay periods after September
6-11 30, 1999, but before October 1, 2000;
6-12 (8) 12.32 percent for full pay periods after September
6-13 30, 2000, but before October 1, 2001; and
6-14 (9) 12.50 percent for full pay periods after September
6-15 30, 2001.
6-16 (b) The municipality has always picked up and shall continue
6-17 to pick up the member contributions that are required by Subsection
6-18 (a) of this section.
6-19 (c) Contributions picked up by the municipality shall be
6-20 treated as employer contributions in accordance with Section
6-21 414(h)(2) of the Internal Revenue Code of 1986 (26 U.S.C. Section
6-22 414) for the purpose of determining tax treatment of the amounts
6-23 under the Internal Revenue Code of 1986. Those contributions are
6-24 not included in the gross income of the employee until the time
6-25 they are distributed or made available to the employee.
6-26 Sec. 4.07. <NO> REFUND OF CONTRIBUTIONS. (a) During the
6-27 first five years of membership, a <A> member of the fund is not
7-1 entitled to any refund from the fund of any portion of the money
7-2 deducted from the member's pay for the benefit of the fund. That
7-3 money is <public money and> the property of the fund for the
7-4 benefit of the members qualifying for benefits and for their
7-5 beneficiaries.
7-6 (b) A member of the fund who terminates employment before
7-7 the member's right to benefits under the fund has vested but who
7-8 has contributed to the fund for at least five years is entitled to
7-9 a refund of the member's contributions that were picked up by the
7-10 municipality. That refund shall be paid without interest. A
7-11 refund under this section is not available to a member who
7-12 terminates employment to receive a disability pension or to a
7-13 survivor beneficiary under this Act. A person's acceptance of a
7-14 refund under this subsection precludes the person from any other
7-15 right or benefit under this Act.
7-16 Sec. 5.01. Retirement benefits. (a) If a member of the
7-17 fund has contributed a portion of that member's salary as provided
7-18 by this Act and has contributed and served for 20 years or more in
7-19 the fire or police department, the board shall, on the application
7-20 of the member for a retirement annuity, authorize a retirement
7-21 annuity to the member.
7-22 (b) The board shall compute the retirement annuity of a
7-23 member who retires after September 30, 1991, but before October 1,
7-24 1995, on the basis of the average of the member's total salary<,
7-25 excluding overtime pay,> for the highest three years of the last
7-26 five years, computed from the date of retirement, of the member's
7-27 pay at the rate of two percent for each of the first 20 years
8-1 served, plus 3 1/2 percent for each of the next 10 years served,
8-2 plus one percent for each of the next five years served, with
8-3 fractional years prorated based on full months served as a
8-4 contributing member, but the annuity may not exceed, as of the date
8-5 of retirement, 80 percent of the average so determined.
8-6 (c) The board shall compute the retirement annuity of a
8-7 member who retires after September 30, 1995, on the basis of the
8-8 average of the member's total salary for the highest three years of
8-9 the last five years, computed from the date of retirement, of the
8-10 member's pay at the rate of two percent for each of the first 20
8-11 years served, plus four percent for each of the next five years
8-12 served, plus 3 1/2 percent for each of the next five years served,
8-13 plus one percent for each of the next five years served, with
8-14 fractional years prorated based on full months served as a
8-15 contributing member. In making the computation for a year, the
8-16 year is considered to begin on the first day a contribution is
8-17 made. An annuity under this subsection may not exceed, as of the
8-18 date of retirement, 82.5 percent of the average determined under
8-19 this subsection.
8-20 (d) <(c)> A member may not receive an award from the fund
8-21 for service retirement until the member has served at least 20
8-22 years in the fire or police department and has also contributed the
8-23 required amount of money for at least 20 years. In determining the
8-24 number of years of service in a department, the member shall be
8-25 given full credit for the time the member was actively engaged in
8-26 military service in accordance with Section 4.03 of this Act and
8-27 for absences taken under the Family and Medical Leave Act (29
9-1 U.S.C. Section 2601 et seq.), in accordance with Section 4.02 of
9-2 this Act. Disciplinary suspensions of 15 days or less may not be
9-3 subtracted from a member's service credit under this Act if the
9-4 member has paid into the fund within 30 days after the termination
9-5 date of each suspension a sum of money equal to the amount of money
9-6 that would have been deducted from that person's salary during that
9-7 period of suspension if it had not been for that suspension. A
9-8 municipality to which this Act applies shall double-match a payment
9-9 made under this subsection.
9-10 (e) <(d) If a member of the fire or police department has
9-11 served for 30 years or more in either department and has
9-12 contributed a portion of that member's salary as provided by this
9-13 Act for the same period, that member is retired automatically from
9-14 service on the member's 65th birthday.>
9-15 <(e) If, on a member's 65th birthday, the member has served
9-16 less than 30 years in either department and has not contributed a
9-17 portion of that member's salary as provided by this Act for that
9-18 period, the member may continue service and contributions until the
9-19 total service equals and the contributions have been made for 30
9-20 years.>
9-21 <(f)> Except as provided by Subsection (f) <(g)> of this
9-22 section, members of the fund at the time of their retirement shall
9-23 receive service credit for all unused sick leave accumulated by
9-24 them under Chapter 143, Local Government Code, and its subsequent
9-25 amendments, with fractional years prorated based on full months of
9-26 sick leave.
9-27 (f) <(g)> The retirement annuity for a member under
10-1 Subsection (e) <(f)> of this section may not exceed, as of the date
10-2 of retirement, 82.5 <80> percent of the average, determined under
10-3 that subsection and under the ordinances of a municipality to which
10-4 this Act applies, that exceeds 90 days of accumulated sick leave.
10-5 SECTION 5. Article 5, Chapter 824, Acts of the 73rd
10-6 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
10-7 Civil Statutes), is amended by adding Section 5.015 to read as
10-8 follows:
10-9 Sec. 5.015. BACKWARD DEFERRED RETIREMENT OPTION PLAN (BACK
10-10 DROP). (a) At the time a member applies for retirement benefits
10-11 under Section 5.01, the member may elect a Backward Deferred
10-12 Retirement Option Plan (Back DROP) with a lump-sum payment and a
10-13 reduced annuity benefit as provided by this section.
10-14 (b) The Back DROP election:
10-15 (1) results in a lump-sum payment for a number of full
10-16 months of service elected by the member that does not exceed the
10-17 lesser of the number of months of service credit the member has in
10-18 excess of 20 years or 24 months; and
10-19 (2) must be made at the time of application for
10-20 retirement.
10-21 (c) To be eligible to make a Back DROP election under this
10-22 section, a member of the fund must have contributed a portion of
10-23 that member's salary, as provided by this Act, and have contributed
10-24 and served at least 20 years and 1 month in the fire or police
10-25 department.
10-26 (d) The amount of a lump-sum payment to which a member
10-27 making a Back DROP election is entitled shall be computed in the
11-1 manner provided by this subsection. The member's average annual
11-2 salary shall be computed in the manner provided by Section 5.01(c)
11-3 of this Act, except that the retirement date used in making that
11-4 computation is the retirement date computed as provided by this
11-5 subsection. The member's average annual salary shall be divided by
11-6 12 to compute the member's average monthly salary. The member's
11-7 average monthly salary multiplied by the number of full months
11-8 elected by the member under Subsection (b)(1) is the amount of the
11-9 lump-sum payment to which the member is entitled. In computing the
11-10 member's average annual salary under this subsection, the member's
11-11 retirement date is the member's Back DROP retirement date, which is
11-12 the member's actual retirement date less the amount of time for:
11-13 (1) any service in excess of 35 years of service;
11-14 (2) any service credit given for sick leave unused on
11-15 the date of actual retirement; and
11-16 (3) service credit, for service in excess of 20 years
11-17 but not in excess of the amount permitted under Subsection (b)(1),
11-18 the member elects for computing the amount of the lump-sum payment.
11-19 (e) For purposes of computing the monthly annuity of a
11-20 member making a Back DROP election, the member's average annual
11-21 salary shall be computed in the manner provided by Section 5.01(c),
11-22 except that the retirement date used in making that computation is
11-23 the member's actual retirement date, plus time representing any
11-24 service credit given for sick leave unused on the actual retirement
11-25 date, less the amount of time the member elects under Subsection
11-26 (b)(1). The annuity may not exceed the limitation provided by
11-27 Section 5.01(c) of this Act. The member's average annual salary
12-1 shall be divided by 12 to compute the member's monthly annuity.
12-2 (f) A member may defer receiving the lump-sum payment under
12-3 this section for a period of not longer than 12 months after the
12-4 member's retirement date. Interest may not be paid on the deferred
12-5 amount at the time of distribution.
12-6 (g) The board by administrative rule shall implement this
12-7 section in a manner that preserves the eligibility of the tax
12-8 qualification under the Internal Revenue Code of 1986 and may
12-9 revise the program as necessary to retain tax qualification.
12-10 SECTION 6. Sections 5.04(a) and (c), Chapter 824, Acts of
12-11 the 73rd Legislature, Regular Session, 1993 (Article 6243o,
12-12 Vernon's Texas Civil Statutes), are amended to read as follows:
12-13 (a) A member who is eligible to receive a disability
12-14 retirement annuity is entitled to receive from the fund 50 percent
12-15 of the average of the member's total salary<, excluding overtime
12-16 pay,> for the highest three years of the last five years, computed
12-17 from the date of retirement or, if the member has served less than
12-18 three years before the date of retirement, 50 percent of the
12-19 member's average monthly salary, excluding overtime pay, or a
12-20 theoretical monthly average if service is less than a full month.
12-21 (c) The amount of 50 percent of the average total salary<,
12-22 excluding overtime pay,> is the maximum amount of disability
12-23 retirement annuity for total and permanent disability.
12-24 SECTION 7. Section 5.05(c), Chapter 824, Acts of the 73rd
12-25 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
12-26 Civil Statutes), is amended to read as follows:
12-27 (c) For those retired because of disability on or after
13-1 August 30, 1971, the disability retirement annuity may not be
13-2 reduced to less than two percent, for each year that the retiree
13-3 has served and contributed a portion of salary, of the average of
13-4 the member's total salary<, excluding overtime pay,> for the
13-5 highest three years of the last five years, computed from the date
13-6 of retirement, or if the member has served less than three years
13-7 before the date of retirement, 50 percent of the member's average
13-8 monthly salary, excluding overtime pay, or a theoretical monthly
13-9 average if service is less than a full month. All fractional years
13-10 shall be prorated based on full months served on the fire or police
13-11 department as a contributing member of the fund before the date of
13-12 retirement.
13-13 SECTION 8. Section 5.09(a), Chapter 824, Acts of the 73rd
13-14 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
13-15 Civil Statutes), is amended to read as follows:
13-16 (a) At or before its regular meeting in the month of March,
13-17 the board annually shall review the Consumer's Price Index for
13-18 Moderate Income Families in Large Cities--All Items or the nearest
13-19 equivalent published by the United States Bureau of Labor
13-20 Statistics for the preceding calendar year. If that index shows an
13-21 increase during the preceding calendar year in the cost of living
13-22 as compared with that index at the close of the previous year, the
13-23 board shall order an increase of all retirement annuities by the
13-24 number of full percentage points closest to the exact amount of the
13-25 increase of that index, except that any increased retirement
13-26 annuities are payable only at the rate of 75 percent of the
13-27 applicable cost-of-living percentage for those retirees, and the
14-1 beneficiaries of those retirees, who were retired on and after
14-2 August 30, 1971. The annual cost-of-living adjustment for a
14-3 retiree or a beneficiary of a retiree who retired on or after
14-4 September 1, 1971, but before October 1, 1989, shall be computed at
14-5 the rate of 87.5 percent of the consumer price index specified by
14-6 this subsection if the index is eight percent or less, with the
14-7 maximum cost-of-living adjustment capped at the rate of six
14-8 percent, but at the rate of 75 percent of the index if the index is
14-9 greater than eight percent for those retirees, with no cap on the
14-10 rate of the cost-of-living adjustment.
14-11 SECTION 9. Section 5.11, Chapter 824, Acts of the 73rd
14-12 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
14-13 Civil Statutes), is amended by amending Subsection (c) and adding
14-14 Subsection (j) to read as follows:
14-15 (c) Accrued benefits under this Act become 100 percent
14-16 vested for all members on termination of the fund or on occurrence
14-17 of another event described in Section 401(a)(17) of the code and
14-18 become 100 percent vested for a member on the date the member
14-19 <becomes 65 years of age and> has completed 20 years of service.
14-20 (j) To the extent permitted by law, the board may adjust the
14-21 benefits of retired members and beneficiaries by increasing any
14-22 retirement benefit that was reduced as inflationary indexing under
14-23 Section 415 of the Internal Revenue Code of 1986 (26 U.S.C. Section
14-24 415). If the definition of compensation is amended under that
14-25 section to include amounts previously excluded as compensation, the
14-26 board may adjust the benefits of retired members and beneficiaries,
14-27 including the payment of benefits previously excluded. Benefits
15-1 paid under this subsection are not considered as extra compensation
15-2 earned after retirement but as the delayed payment of benefits
15-3 earned before retirement.
15-4 SECTION 10. Sections 6.02(c) and (d), Chapter 824, Acts of
15-5 the 73rd Legislature, Regular Session, 1993 (Article 6243o,
15-6 Vernon's Texas Civil Statutes), are amended to read as follows:
15-7 (c) If there are no children, the surviving spouse is
15-8 entitled to receive an amount not to exceed 60 <57.50> percent of
15-9 the average total salary<, excluding overtime pay,> of the deceased
15-10 member computed as provided under Subsection (a) of this section.
15-11 (d) If there is no surviving spouse, the children are
15-12 entitled to receive not more than 30 <28.75> percent of the average
15-13 total salary computed as provided under Subsection (a) of this
15-14 section, except that if the board determines on investigation that
15-15 the eligible children are destitute, the board may increase the
15-16 death benefit annuity to an amount not to exceed 40 percent of that
15-17 average total salary. The amount awarded under this subsection to
15-18 any child shall be paid by the board to the legal guardian of the
15-19 child.
15-20 SECTION 11. Section 6.03(c), Chapter 824, Acts of the 73rd
15-21 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
15-22 Civil Statutes), is amended to read as follows:
15-23 (c) Notwithstanding the formulas for computing the total
15-24 amounts of annuities otherwise provided by this section, if a
15-25 member is killed in the line of duty, the member's surviving spouse
15-26 and dependent children are entitled to a death benefit annuity
15-27 equal to the total salary<, excluding overtime pay,> of the member
16-1 at the time of death. Rules provided by this section relating to
16-2 qualification and disqualification for and apportionment of
16-3 benefits apply to a death benefit annuity computed under this
16-4 subsection. A death benefit annuity computed under this subsection
16-5 is subject to the same cost-of-living adjustments that apply to
16-6 pensions for service retirement.
16-7 SECTION 12. Section 6.04, Chapter 824, Acts of the 73rd
16-8 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
16-9 Civil Statutes), is amended to read as follows:
16-10 Sec. 6.04. Remarriage; benefits after termination of
16-11 marriage. (a) If a surviving spouse remarries or a dependent
16-12 child marries before October 1, 1995, the <The> right of a
16-13 surviving spouse or dependent child to annuity payments under this
16-14 Act terminates on the remarriage of the surviving spouse<, either
16-15 statutory or common law,> or on the marriage of the child, as
16-16 applicable, under either statutory law or under common law as
16-17 prescribed by Section 6.06 of this Act.
16-18 (b) The right of a <If the remarried> surviving spouse or
16-19 <married> dependent child to annuity payments under this Act is not
16-20 affected by the surviving spouse's remarriage or dependent child's
16-21 marriage under either statutory or common law if the marriage or
16-22 remarriage takes place on or after October 1, 1995 <becomes
16-23 unmarried, that person is entitled, on application, to the greater
16-24 of 75 percent of the annuity that was in effect on the date of
16-25 termination or a minimum annuity of $800 each month for as long as
16-26 that person remains unmarried>.
16-27 (c) If after October 1, 1995, there is a termination of the
17-1 remarriage of a surviving spouse or of the marriage of a dependent
17-2 child, that person is entitled, on application, to 100 percent of
17-3 the annuity that was in effect on the date of termination of
17-4 benefits.
17-5 (d) A surviving spouse or dependent child who is unmarried
17-6 but receiving reduced benefits because of a prior marriage that
17-7 caused the benefits to be terminated is entitled to 100 percent of
17-8 the annuity that was in effect on the original date of termination
17-9 of benefits.
17-10 (e) The benefit provided under Subsections (c) and (d) of
17-11 this section shall be applied prospectively beginning October 1,
17-12 1995, and the surviving spouse or dependent child is not entitled
17-13 to receive any benefits or increases in benefits relating to any
17-14 period before October 1, 1995.
17-15 SECTION 13. Section 6.05(b), Chapter 824, Acts of the 73rd
17-16 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
17-17 Civil Statutes), is amended to read as follows:
17-18 (b) If the <surviving spouse,> dependent beneficiary<,> or
17-19 guardian fails or refuses to file an affidavit required under
17-20 Subsection (a) of this section or if an incomplete, incorrect, or
17-21 false affidavit is filed, the board may suspend annuity payments to
17-22 that person indefinitely until the person complies with the
17-23 requests and orders of the board.
17-24 SECTION 14. Section 6.07, Chapter 824, Acts of the 73rd
17-25 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
17-26 Civil Statutes), is amended to read as follows:
17-27 Sec. 6.07. Surviving spouse's right to single entitlement.
18-1 A <Unless otherwise provided by law, a> surviving spouse who is not
18-2 a member of the fund is not entitled to more than one annuity from
18-3 the fund.
18-4 SECTION 15. Section 6.09(a), Chapter 824, Acts of the 73rd
18-5 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
18-6 Civil Statutes), is amended to read as follows:
18-7 (a) If a contributing member in good standing of the fire or
18-8 police department or a retiree dies before or after retirement and
18-9 leaves no surviving spouse or child but leaves surviving a father
18-10 and mother wholly dependent on that person for support, the
18-11 dependent father and mother are entitled to receive one-third of
18-12 the average total salary<, excluding overtime pay,> of the deceased
18-13 member based on the same number of years of the member's pay as is
18-14 currently provided for computations of retirement annuities under
18-15 Section 5.01(a) of this Act, the annuity to be equally divided
18-16 between the father and mother as long as they are wholly dependent.
18-17 If there is only one dependent, either father or mother, the board
18-18 shall grant the surviving dependent an annuity not to exceed
18-19 one-fourth that average total salary as computed under this
18-20 subsection.
18-21 SECTION 16. Section 6.11(a), Chapter 824, Acts of the 73rd
18-22 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
18-23 Civil Statutes), is amended to read as follows:
18-24 (a) If a member of the fire or police department in active
18-25 service dies and does not leave an eligible surviving spouse, a
18-26 child under 17 years of age, a child under 19 years of age who is
18-27 attending school, a mentally or physically disabled child, or a
19-1 dependent father or mother, the estate of the deceased member is
19-2 entitled to a death benefit payment in the amount of $10,000 from
19-3 the fund or the refund of contributions as provided by Section 4.07
19-4 of this Act, whichever amount is greater.
19-5 SECTION 17. Sections 7.04(a) and (b), Chapter 824, Acts of
19-6 the 73rd Legislature, Regular Session, 1993 (Article 6243o,
19-7 Vernon's Texas Civil Statutes), are amended to read as follows:
19-8 (a) The board shall cause the reserve retirement funds to be
19-9 invested in a manner that a prudent investor would invest,
19-10 considering the purposes, terms, distribution requirements, and
19-11 other circumstances <consistent with the care, skill, and diligence
19-12 under the prevailing circumstances that a prudent person acting in
19-13 a like capacity and familiar with matters of the type would use in
19-14 the conduct> of an enterprise with a like character and like aims.
19-15 (b) The board shall diversify the investment of the fund to
19-16 minimize the risk of large losses unless under the circumstances it
19-17 is clearly prudent not to do so. In determining whether the board
19-18 has exercised prudence concerning an investment decision, the
19-19 investment of all assets of the fund, rather than the prudence of a
19-20 single investment of <investing the assets of the fund, the board
19-21 shall be bound by the documents and instruments governing> the
19-22 fund, shall be considered.
19-23 SECTION 18. Chapter 824, Acts of the 73rd Legislature,
19-24 Regular Session, 1993 (Article 6243o, Vernon's Texas Civil
19-25 Statutes), is amended by adding Article 7A to read as follows:
19-26 ARTICLE 7A. STANDARDS OF CONDUCT AND FINANCIAL
19-27 DISCLOSURE REQUIREMENTS
20-1 Sec. 7.51. POLICY. (a) A member of the board or the
20-2 executive director may not have a direct or indirect interest,
20-3 including a financial interest, engage in a business transaction or
20-4 professional activity, or incur an obligation of any nature that is
20-5 in substantial conflict with the proper discharge of the member's
20-6 or the executive director's fiduciary duties.
20-7 (b) To implement Subsection (a) of this section and to
20-8 strengthen the faith and confidence of the members and
20-9 beneficiaries of the fund, the board shall develop standards of
20-10 conduct and financial disclosure requirements to be observed by
20-11 each member of the board and by the executive director in the
20-12 performance of official duties.
20-13 (c) The standards of conduct and financial disclosure
20-14 requirements must provide for:
20-15 (1) general definitions;
20-16 (2) the manner of determining substantial conflict;
20-17 (3) the manner of determining who is considered a
20-18 dependent child of a board member or the executive director;
20-19 (4) each member of the board and the executive
20-20 director to file a financial disclosure statement;
20-21 (5) a review board to be appointed;
20-22 (6) the composition of the review board;
20-23 (7) a custodian of records to be designated;
20-24 (8) the manner in which records must be retained;
20-25 (9) the information, generally, that must be included
20-26 in a financial statement;
20-27 (10) the time for filing a financial statement;
21-1 (11) the form in which a financial statement must be
21-2 presented;
21-3 (12) compliance with this section;
21-4 (13) public access to financial statements;
21-5 (14) sanctions for a violation of this section that
21-6 must include removal of a member of the board or the executive
21-7 director in the case of a serious violation;
21-8 (15) standards of conduct for board members and the
21-9 executive director; and
21-10 (16) other matters relating to conduct of board
21-11 members and the executive director and financial disclosure the
21-12 board considers appropriate.
21-13 SECTION 19. This Act takes effect October 1, 1995.
21-14 SECTION 20. The importance of this legislation and the
21-15 crowded condition of the calendars in both houses create an
21-16 emergency and an imperative public necessity that the
21-17 constitutional rule requiring bills to be read on three several
21-18 days in each house be suspended, and this rule is hereby suspended.