75R8592 GCH-F
By Telford, et al. H.B. No. 337
Substitute the following for H.B. No. 337:
By Telford C.S.H.B. No. 337
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to participation in and benefits from a statewide
1-3 retirement system for volunteer firefighters and other emergency
1-4 services personnel.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 1, Texas Statewide Volunteer Fire
1-7 Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
1-8 Statutes), is amended by amending Subdivisions (1), (7), (9), (10),
1-9 (11), and (13) and adding Subdivisions (14)-(17) to read as
1-10 follows:
1-11 (1) "Qualified service" means [fire-fighting] service
1-12 for a participating department that is recognized as an emergency
1-13 services department by its governing body and that conducts at
1-14 least 48 hours of drills in a calendar year performed by a member
1-15 who is in good standing in a participating department that has not
1-16 fewer than 10 active members and who either attends at least
1-17 [rendered without monetary remuneration while a member in good
1-18 standing of a fire-fighting unit that has no fewer than 10 active
1-19 members, and a minimum of two drills each month, each drill two
1-20 hours long, and each active member present at] 40 percent of the
1-21 minimum number of hours of annual drills and at least 25 percent of
1-22 the department's emergencies in a calendar year or is absent
1-23 because of [fires. Absence caused by] military duty [does not
1-24 affect qualified service].
2-1 (7) "Fund" means the Texas statewide emergency
2-2 services personnel retirement fund [Fire Fighters' Relief and
2-3 Retirement Fund] created by this Act.
2-4 (9) "Member [fire fighter]" means a volunteer or
2-5 partly paid employee [fire fighter] who participates in the pension
2-6 system under this Act.
2-7 (10) "Participating [Member fire] department" means a
2-8 public entity that performs fire, rescue, or emergency medical
2-9 services and [fire department that] participates in the pension
2-10 system under this Act.
2-11 (11) "Current pension plan" means a pension plan in
2-12 which a participating [fire] department is participating when it
2-13 elects to join the pension system created by this Act.
2-14 (13) "Governing body" means the governing body of any
2-15 political subdivision of the state [within which a rural fire
2-16 prevention district created pursuant to the provisions of Chapter
2-17 794, Health and Safety Code, is situated or the governing body of
2-18 any city or town within which a fire department subject to the
2-19 provisions of this Act is situated].
2-20 (14) "Volunteer" means a person who performs emergency
2-21 services for civic, charitable, or humanitarian reasons, receives
2-22 no monetary remuneration from a participating department, and is
2-23 not subject to the compensation requirements provided by the Fair
2-24 Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) for
2-25 employees.
2-26 (15) "Auxiliary employee" means a person who receives
2-27 compensation from a political subdivision of this state and is
3-1 certified by the political subdivision as being regularly engaged
3-2 in the performance of duties for a participating department in an
3-3 appointive office or position that normally requires services from
3-4 the person for less than 1,000 hours a year at a rate that does not
3-5 exceed the federal minimum wage by more than $2 per hour, as
3-6 established in the Fair Labor Standards Act of 1938 (29 U.S.C.
3-7 Section 201 et seq.), but excludes a person who is eligible to
3-8 receive credit for the same service in either the Texas County and
3-9 District Retirement System or the Texas Municipal Retirement
3-10 System.
3-11 (16) "Emergency services" means only those services
3-12 relating to fire, rescue, and emergency medical services performed
3-13 by a volunteer or auxiliary employee of a participating department.
3-14 (17) "Emergency services personnel" means persons who
3-15 perform emergency services.
3-16 SECTION 2. Section 1A, Texas Statewide Volunteer Fire
3-17 Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
3-18 Statutes), is amended to read as follows:
3-19 Sec. 1A. SHORT TITLE. This Act may be cited as the Texas
3-20 Statewide Emergency Services [Volunteer Fire Fighters] Retirement
3-21 Act.
3-22 SECTION 3. Sections 2(a), (c), and (f), Texas Statewide
3-23 Volunteer Fire Fighters Retirement Act (Article 6243e.3, Vernon's
3-24 Texas Civil Statutes), are amended to read as follows:
3-25 (a) The Texas statewide emergency services personnel
3-26 retirement fund [Fire Fighters' Relief and Retirement Fund] is a
3-27 trust fund in the state treasury.
4-1 (c) Every governing body of a department that is eligible to
4-2 participate in the pension system and that is not currently exempt
4-3 under Subsection (b) of this section shall contribute for each
4-4 member [fire fighter] at least $12 for each month of service
4-5 beginning on the date the member [fire fighter] enters the pension
4-6 system. Contributions must be paid at least every 12 months. If
4-7 the participating [member fire] department is situated in more than
4-8 one political subdivision, the governing bodies of such political
4-9 subdivisions shall contribute equally towards a total of at least
4-10 $12 for each member [fire fighter] for each month of service.
4-11 (f) Any contribution made and any benefits provided pursuant
4-12 to this Act shall not be considered compensation, and members who
4-13 are volunteers [member fire fighters] shall not be deemed to be in
4-14 the paid service of any governing body.
4-15 SECTION 4. Sections 2A, 3, 4, 5, 8, 9, and 10, Texas
4-16 Statewide Volunteer Fire Fighters Retirement Act (Article 6243e.3,
4-17 Vernon's Texas Civil Statutes), are amended to read as follows:
4-18 Sec. 2A. MEMBERSHIP. (a) Except as otherwise provided by
4-19 this section, each person [fire fighter] who performs service as
4-20 [for] a volunteer or auxiliary employee of a participating [fire]
4-21 department is a member of the pension system.
4-22 (b) A person is not a member of the pension system:
4-23 (1) if the governing body [of the fire department] is
4-24 exempt from this Act under Section 2(b) of this Act;
4-25 (2) if the person is less than 18 years of age [a
4-26 minor];
4-27 (3) during a probationary period of service before
5-1 becoming a regular member of a participating [fire] department, if
5-2 the governing body of the [fire] department is not making
5-3 contributions for the probationary service; [or]
5-4 (4) if the person does not receive a certification of
5-5 physical fitness or assignment to support duties under Section 8 of
5-6 this Act; or
5-7 (5) if the person is retired under this Act, whether
5-8 or not the person continues to participate in emergency
5-9 service-related [fire-related] functions for a department from
5-10 which the person retired.
5-11 (c) A member who performs qualified service for more than
5-12 one participating [fire] department under this Act may become
5-13 eligible to receive service retirement benefits for service for
5-14 each department, but, if the person dies while a member, the
5-15 member's beneficiary must choose between an on-duty and off-duty
5-16 death benefit.
5-17 Sec. 3. RETIREMENT BENEFITS. (a) A member [fire fighter]
5-18 shall receive a retirement annuity payable in monthly installments
5-19 on reaching retirement age, subject to the vesting provisions in
5-20 Section 6 of this Act.
5-21 (b) The monthly retirement annuity is equal to six times the
5-22 governing body's average monthly contribution over the member's
5-23 [member fire fighters's] term of qualified service under this Act.
5-24 (c) For each year of additional qualified service in excess
5-25 of 15 years, a member [fire fighter] is entitled to receive an
5-26 additional seven percent of the member's [his] monthly pension
5-27 compounded annually. A member [fire fighter] may receive a
6-1 proportional credit for days or months of qualified service that
6-2 make up less than a year.
6-3 Sec. 4. DISABILITY BENEFITS. (a) A member [fire fighter]
6-4 must, at the time of disability, elect between retirement or
6-5 disability benefits if eligible for both.
6-6 (b) A member [fire fighter] who is disabled during the
6-7 performance of emergency service duties [as a fire fighter] is
6-8 automatically vested 100 percent as of the date of disability, if
6-9 the disability occurs before the member has completed 15 years of
6-10 qualified service. Benefits under this subsection are payable if
6-11 the member [fire fighter] is unable to perform the person's duties
6-12 for the member's participating department [as a fire fighter] or
6-13 the duties of any other occupation for which the person is
6-14 reasonably suited by education, training, and experience.
6-15 (c) A member [fire fighter] whose disability results from
6-16 performing emergency service duties [as a fire fighter] is
6-17 guaranteed a disability benefit of $300 a month.
6-18 Sec. 5. DEATH BENEFITS. (a) The beneficiary of a deceased
6-19 member [fire fighter] whose death did not result from the
6-20 performance of emergency service duties [as a member of the fire
6-21 department] shall receive a lump-sum benefit that is the greater
6-22 of:
6-23 (1) the sum contributed to the fund on the decedent's
6-24 behalf; or
6-25 (2) the sum which would have been contributed on the
6-26 decedent's behalf from whatever source at the end of 15 years of
6-27 qualified service.
7-1 (b) The beneficiary of a member whose death results from
7-2 performing emergency service duties [as a fire fighter] is
7-3 guaranteed a lump-sum benefit of at least $5,000.
7-4 (c) [(1)] If the death of a member [fire fighter] results
7-5 from the performance of emergency service duties [as a member of
7-6 the fire department], in addition to the lump-sum death benefit,
7-7 the deceased member's spouse and dependents are entitled to receive
7-8 in equal shares a survivor's benefit equal to two-thirds of the
7-9 monthly retirement annuity the decedent would have been entitled to
7-10 receive if the decedent had been able to retire, vested at 100
7-11 percent, under Section 3 of this Act on the date of the decedent's
7-12 death. As long as both spouse and one or more dependents survive,
7-13 an additional one-third of that monthly retirement annuity shall be
7-14 paid to the dependents in equal shares.
7-15 (d) If a person [member fire fighter] dies after retirement,
7-16 the surviving spouse shall receive two-thirds of the monthly
7-17 pension the decedent was receiving at the time of death. If a
7-18 member [fire fighter] dies before retirement but after meeting the
7-19 minimum age and service requirements for service retirement, the
7-20 surviving spouse is entitled to receive two-thirds of the monthly
7-21 pension the decedent would have received if the decedent had
7-22 retired on the date of death.
7-23 (e) The spouse is eligible to receive benefits as long as
7-24 the spouse remains alive.
7-25 (f) Lump-sum death benefits are subject to the laws of
7-26 descent and distribution if the decedent has not provided for
7-27 testamentary disposition.
8-1 (g) When a member [fire fighter] names more than one
8-2 beneficiary for the lump-sum death benefit, the benefit shall be
8-3 divided equally among the named beneficiaries unless the member
8-4 [fire fighter] designates a proportional division. If the member
8-5 [fire fighter] designates a proportional division, each beneficiary
8-6 shall receive the proportion of the lump-sum benefit designated by
8-7 the member [fire fighter].
8-8 (h) The surviving spouse of a deceased member who dies after
8-9 terminating service with all participating departments and meeting
8-10 a vesting requirement under Section 6 of this Act but before
8-11 attaining the age of 55 is entitled to a monthly pension, beginning
8-12 on the date the decedent would have attained that age, that is
8-13 two-thirds of the monthly pension to which the decedent would have
8-14 been entitled on that date.
8-15 Sec. 8. CERTIFICATION OF PHYSICAL FITNESS. A prospective
8-16 member [fire fighter entering service in a member fire department
8-17 after the effective date of this Act] shall present to the local
8-18 board of trustees a certification of physical fitness by a
8-19 qualified physician. If the local board accepts the certification,
8-20 the person [fire fighter] becomes a member of the pension system.
8-21 If the local board does not accept the certification or if the
8-22 person [fire fighter] does not present a certification, the person
8-23 [fire fighter] becomes a member of the pension system only if the
8-24 local board assigns the person [fire fighter] to support duties
8-25 [other than fighting fires].
8-26 Sec. 9. TRANSFER OF ACCRUED BENEFITS. A member [fire
8-27 fighter] who terminates service and later resumes service with the
9-1 same participating [fire] department or transfers to another
9-2 participating [member] department may transfer all accrued benefits
9-3 to the new or resumed service.
9-4 Sec. 10. ENTERING THE PENSION SYSTEM; REQUIRED ELECTION.
9-5 (a) An election must be held within a [the local fire] department
9-6 to merge its current pension plan with the pension system.
9-7 (b) The election must be held within 14 days after:
9-8 (1) a petition calling for an election and signed by
9-9 50 percent of the active emergency services personnel [fire
9-10 fighters] in the department is filed at the local department; and
9-11 (2) the disclosure required by Section 16 of this Act
9-12 is made to the emergency services personnel [fire fighters] in the
9-13 local department.
9-14 (c) If the current pension plan of the [fire] department is
9-15 not solvent, the election to enter the pension system in this Act
9-16 must be decided by a majority of the votes cast by qualified
9-17 emergency services personnel [fire fighters] in the department.
9-18 (d) If the current pension plan of the [fire] department is
9-19 solvent, the election to enter the pension system in this Act must
9-20 be decided by at least 60 percent of all votes cast.
9-21 (e) In the election required in this section, a person's
9-22 [fire fighter's] vote must be multiplied by the number of years of
9-23 participation in the current pension plan.
9-24 SECTION 5. Sections 11(a), (d), (e), and (f), Texas
9-25 Statewide Volunteer Fire Fighters Retirement Act (Article 6243e.3,
9-26 Vernon's Texas Civil Statutes), are amended to read as follows:
9-27 (a) When a [fire] department under a current pension plan
10-1 elects to participate in the pension system in this Act, the
10-2 current pension plan is merged with the pension system.
10-3 (d) Following merger, a member's retirement benefits in the
10-4 pension system are determined by either the future-service method
10-5 or the buy-back method. [The options are available only to fire
10-6 fighters participating in the current pension plan.]
10-7 (e)(1) In the future-service method, the qualified service
10-8 required to earn retirement benefits in the pension system begins
10-9 as of the date of merger. For determining a person's retirement
10-10 benefits in the pension system, a department [fire fighter] may
10-11 choose the formula for benefits used in the current pension plan or
10-12 the formula for benefits as outlined in this Act. Any retirement
10-13 benefits accrued prior to the date of merger will also be paid on
10-14 retirement according to the formula for benefits under the current
10-15 pension plan.
10-16 (2) In the buy-back method in determining the member's
10-17 [fire fighters'] retirement benefits in the pension system, a
10-18 department [fire fighter] may choose the formula for benefits used
10-19 in the current pension plan or the formula for benefits as outlined
10-20 in this Act. A member [The fire fighter] who has less than 15
10-21 years of service remaining before retirement as of the date of
10-22 merger may count time served under the current pension plan before
10-23 the date of merger as qualified service if the service complies
10-24 with the [minimum drill and fire] attendance requirements provided
10-25 for qualified service. The time period necessary to make 15 years
10-26 of service before retirement may be used.
10-27 (f) A person [fire fighter] who terminates service prior to
11-1 the date of merger of the person's [his fire] department's current
11-2 pension plan with the pension system is entitled to receive at
11-3 retirement age the retirement benefits vested under the pension
11-4 plan in effect during the person's [his] service. The pension
11-5 system pays the person's [his] benefits.
11-6 SECTION 6. Sections 11A, 12, 12A, 15, and 16, Texas
11-7 Statewide Volunteer Fire Fighters Retirement Act (Article 6243e.3,
11-8 Vernon's Texas Civil Statutes), are amended to read as follows:
11-9 Sec. 11A. PRIOR SERVICE OF MEMBERS WITHOUT A PENSION PLAN
11-10 BEFORE PARTICIPATION. A governing body that wishes to participate
11-11 [is participating] in the fund and whose [fire] department did not
11-12 have a pension plan in effect immediately before the date of
11-13 participation may purchase, on terms acceptable to the
11-14 commissioner, credit for prior service by its emergency services
11-15 personnel [member fire fighters]. The commissioner, after
11-16 consultation with a qualified actuary, shall determine the amount
11-17 required to purchase prior-service credit under this section. The
11-18 requirements of Section 11 of this Act apply to the purchase of
11-19 prior-service credit under this section to the extent that they are
11-20 applicable. The value of prior service purchased under this
11-21 section is the same as if it had been performed as a member of the
11-22 fund.
11-23 Sec. 12. WITHDRAWING FROM THE PENSION SYSTEM. (a) A current
11-24 pension plan that merges with the pension system may withdraw from
11-25 the pension system within five years after the date of merger on a
11-26 majority vote of the emergency services personnel [fire fighters]
11-27 in the department voting in the same manner as provided in Section
12-1 10 of this Act.
12-2 (b) On withdrawal from the pension system, the allocated
12-3 assets and liabilities as apportioned by an actuary retained by the
12-4 pension system must be transferred to the plan chosen to replace
12-5 the pension system.
12-6 (c) If a member [fire fighter] terminates service before
12-7 retirement, vested retirement benefits must be paid to the member
12-8 [fire fighter] at retirement age. There is no penalty for
12-9 nonconsecutive years of service.
12-10 Sec. 12A. BENEFITS FOR MEMBER OF DEPARTMENT THAT CEASES TO
12-11 EXIST. (a) The commissioner shall continue to administer benefits
12-12 of the pension system for members and retirees who performed
12-13 service for a former [member fire] department that has not
12-14 withdrawn from the pension system under Section 12 of this Act and
12-15 has ceased to exist.
12-16 (b) The governing body of a political subdivision in which a
12-17 former [member fire] department described by Subsection (a) of this
12-18 section was located shall perform the duties provided by Section 23
12-19 of this Act for the members and retirees who performed service for
12-20 the former [member fire] department.
12-21 Sec. 15. Pension plans required to be solvent. (a) Every
12-22 person who performs emergency service duties as a fire fighter in
12-23 the state and who serves without monetary remuneration must be a
12-24 member of a solvent pension plan.
12-25 (b) After the effective date of this Act, an insolvent
12-26 pension plan for emergency services personnel [fire fighters] who
12-27 serve without monetary remuneration must become actuarially sound
13-1 within three years. An insolvent pension plan must demonstrate to
13-2 the commissioner within six months after becoming insolvent that
13-3 steps are being taken to become actuarially sound.
13-4 Sec. 16. DISCLOSURE OF PENSION PLAN INFORMATION REQUIRED.
13-5 (a) The governing body shall disclose to each person [fire
13-6 fighter] who [serves without monetary remuneration and who] is
13-7 eligible for participation in the pension system the information
13-8 required by this section.
13-9 (b) The commissioner shall distribute to each emergency
13-10 services [fire] department and each governing body the following
13-11 information:
13-12 (1) all benefits that are available in the pension
13-13 system in this Act;
13-14 (2) the contributions required by the pension system;
13-15 (3) the expected return on the investment for [of] a
13-16 member [fire fighter];
13-17 (4) when benefits vest;
13-18 (5) the transferability of benefits;
13-19 (6) rights of withdrawing members;
13-20 (7) procedures for filing claims and appeals; and
13-21 (8) [tax consequences; and]
13-22 [(9)] changes in the law.
13-23 (c) Each [The local fire] department shall disclose to all
13-24 personnel who are eligible to participate in the fund [each fire
13-25 fighter in the department and to each new fire fighter on his
13-26 commissioning] the information in Subsection (b) of this section.
13-27 (d) After a petition for an election as required in Section
14-1 10 of this Act has been filed and before the election occurs, the
14-2 directors of a current pension plan must disclose to its members
14-3 the information required in Subsection (b) of this section about
14-4 the current pension plan.
14-5 SECTION 7. Section 19(a), Texas Statewide Volunteer Fire
14-6 Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
14-7 Statutes), is amended to read as follows:
14-8 (a) The commissioner may not administer any [fire fighters']
14-9 pension plan other than the pension system created by this Act and
14-10 the system created by Chapter 125, Acts of the 45th Legislature,
14-11 Regular Session, 1937, as amended (Article 6243e, Vernon's Texas
14-12 Civil Statutes).
14-13 SECTION 8. Section 21(b), Texas Statewide Volunteer Fire
14-14 Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
14-15 Statutes), is amended to read as follows:
14-16 (b) The board shall establish rules [and regulations]
14-17 necessary for the administration of the fund. The board shall
14-18 adopt rules to provide a proration of the requirements for
14-19 qualified service for a member who performs service for only a
14-20 portion of a calendar year and may provide by rule for the manner
14-21 in which member attendance or drill hours are to be computed.
14-22 SECTION 9. Sections 22(a) and (d), Texas Statewide Volunteer
14-23 Fire Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
14-24 Statutes), are amended to read as follows:
14-25 (a) The local board of trustees is composed of the
14-26 following:
14-27 (1) one representative selected by the governing body;
15-1 (2) five members representing a participating [of the
15-2 local fire] department chosen by a majority of the emergency
15-3 services personnel in the department who are eligible to
15-4 participate in the pension system [fire fighters in qualified
15-5 service]; and
15-6 (3) two residents of a participating political
15-7 subdivision [tax-paying voters] who are chosen by the other members
15-8 of the board.
15-9 (d) On the first local board, the [fire department]
15-10 representatives of the participating department shall serve
15-11 staggered terms. These [The fire department] representatives shall
15-12 draw by lot at the first board meeting to determine the length of
15-13 term to be served. Three representatives shall serve two-year
15-14 terms, and two representatives shall serve one-year terms. The
15-15 first appointments of the [tax-paying or citizen] representatives
15-16 appointed by other members of the board shall be one appointed for
15-17 a two-year term and one appointed for a one-year term. Thereafter,
15-18 all appointments are for two-year terms.
15-19 SECTION 10. Sections 23(a) and (e), Texas Statewide
15-20 Volunteer Fire Fighters Retirement Act (Article 6243e.3, Vernon's
15-21 Texas Civil Statutes), are amended to read as follows:
15-22 (a) The local board of trustees shall monitor the timely
15-23 submission of required [collect all governing body contributions at
15-24 least annually and send the] contributions to the commissioner.
15-25 (e) The local board shall require a member [fire fighter]
15-26 who is receiving temporary disability benefits to file a disability
15-27 rating report from a physician every three months. The board may
16-1 choose the physician. When the reports indicate a significant
16-2 change of condition, the local board, after notice and a hearing,
16-3 may enter an order to terminate benefit payments or place the
16-4 member [fire fighter] on permanent disability. The order is sent
16-5 to the commissioner. If the board terminates benefits, the member
16-6 [fire fighter] is presumed able to perform the person's duties for
16-7 a participating department [as a fire fighter] or perform the
16-8 duties of another occupation for which the person is reasonably
16-9 suited by education, training, and experience.
16-10 SECTION 11. Section 25, Texas Statewide Volunteer Fire
16-11 Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
16-12 Statutes), is amended to read as follows:
16-13 Sec. 25. ACT NOT TO REPEAL STATUTORY AUTHORITY. This Act
16-14 does not repeal the statutory authority for any existing or current
16-15 pension plan. This Act is intended to provide a pension system and
16-16 death and disability benefits for emergency services personnel who
16-17 are volunteers or auxiliary employees [fire fighters who serve
16-18 without monetary remuneration]. The provisions of this Act are not
16-19 to be interpreted to affect fully paid emergency services personnel
16-20 [fire fighters] or their pension systems in any way.
16-21 SECTION 12. (a) This Act takes effect September 1, 1997,
16-22 except that the definition of "qualified service" in Section 1,
16-23 Texas Statewide Emergency Services Retirement Act (Article 6243e.3,
16-24 Vernon's Texas Civil Statutes), as amended by this Act, takes
16-25 effect January 1, 1998.
16-26 (b) A governing body that elected to provide coverage for
16-27 volunteer firefighters under the Texas Statewide Volunteer Fire
17-1 Fighters Retirement Act as it was enacted by Chapter 269, Acts of
17-2 the 65th Legislature, Regular Session, 1977, may elect to exempt
17-3 itself from providing additional coverage to other volunteer or
17-4 auxiliary emergency service personnel who were not eligible for
17-5 coverage under the original provisions of the Texas Statewide
17-6 Volunteer Fire Fighters Retirement Act. This exemption must be
17-7 exercised within 60 days after the general effective date of this
17-8 Act.
17-9 SECTION 13. The importance of this legislation and the
17-10 crowded condition of the calendars in both houses create an
17-11 emergency and an imperative public necessity that the
17-12 constitutional rule requiring bills to be read on three several
17-13 days in each house be suspended, and this rule is hereby suspended.