By Gallego                                       H.B. No. 788

      75R52 CAS-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to service retirement and death benefits for certain peace

 1-3     officers under the Teacher Retirement System of Texas.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 821.001, Government Code, is amended by

 1-6     adding Subdivision (20) to read as follows:

 1-7                 (20)  "Peace officer" means a member of the retirement

 1-8     system who has been commissioned as a peace officer by a state

 1-9     institution of higher education or public technical institute under

1-10     Section 51.203, Education Code.

1-11           SECTION 2.  Subchapter C, Chapter 824, Government Code, is

1-12     amended by adding Section 824.2032 to read as follows:

1-13           Sec. 824.2032.  SERVICE RETIREMENT BENEFITS FOR CERTAIN PEACE

1-14     OFFICERS.  (a)  A member who has at least 20 years of service

1-15     credit as a peace officer is eligible to retire regardless of age

1-16     and receive a standard service retirement annuity in an amount

1-17     provided by this section.

1-18           (b)  The standard service retirement annuity payable for at

1-19     least 20 years of service credit as a peace officer is an amount

1-20     computed on the basis of the member's average monthly compensation

1-21     for that service for the 36 highest months of compensation, times

1-22     the sum of the percentage factor used in the computation of a

1-23     standard service retirement annuity under Section 824.203 plus .5

1-24     percent.

 2-1           (c)  The standard service retirement annuity that is payable

 2-2     under this section is based on retirement at the age of 50 or

 2-3     older.  A peace officer who retires before attaining the age of 50

 2-4     is entitled to an annuity that is actuarially reduced from the

 2-5     annuity available at the age of 50 to the earlier retirement age.

 2-6           (d)  The standard service retirement annuity payable for at

 2-7     least 20 years of service credit as a peace officer may not exceed

 2-8     100 percent of the higher of the average compensation computed

 2-9     under Section 824.203 or the average compensation computed under

2-10     Subsection (b).

2-11           (e)  For purposes of this section, service as a peace officer

2-12     is creditable as provided by rule of the board of trustees or on a

2-13     month-to-month basis, whichever is greater.

2-14           SECTION 3.  Section 824.204(a), Government Code, is amended

2-15     to read as follows:

2-16           (a)  Instead of the standard service retirement annuity

2-17     payable under Section 824.203, the service retirement annuity for

2-18     certain peace officers payable under Section 824.2032, or an

2-19     annuity reduced because of age under Section 824.202, a retiring

2-20     member may elect to receive an optional service retirement annuity,

2-21     reduced for early retirement if applicable, under this section.  An

2-22     election to receive an optional service retirement annuity must be

2-23     filed with the board of trustees not later than the effective date

2-24     of retirement.

2-25           SECTION 4.  Section 824.402(a), Government Code, is amended

2-26     to read as follows:

2-27           (a)  Except as provided by Section 824.401 or Section

 3-1     824.4061, the designated beneficiary of a member who dies during a

 3-2     school year in which the member has performed service is eligible

 3-3     to receive at the beneficiary's election the greatest of the

 3-4     following amounts:

 3-5                 (1)  an amount equal to twice the member's annual

 3-6     compensation for the school year immediately preceding the school

 3-7     year in which the member dies, or $80,000, whichever is less;

 3-8                 (2)  an amount equal to twice the member's rate of

 3-9     annual compensation for the school year in which the member dies,

3-10     or $80,000, whichever is less;

3-11                 (3)  60 monthly payments of a standard service

3-12     retirement annuity, computed as provided by Section 824.203;

3-13                 (4)  an optional retirement annuity for the designated

3-14     beneficiary's life in an amount computed as provided by Section

3-15     824.204(c)(1) as if the member had retired on the last day of the

3-16     month immediately preceding the month in which the member dies; or

3-17                 (5)  an amount equal to the amount of accumulated

3-18     contributions in the member's individual account in the member

3-19     savings account.

3-20           SECTION 5.  Subchapter E, Chapter 824, Government Code, is

3-21     amended by adding Section 824.4061 to read as follows:

3-22           Sec. 824.4061.  ANNUITY FOR SURVIVOR OF PEACE OFFICER.  If a

3-23     member who has at least 20 years of service credit as a peace

3-24     officer dies, the amount of the death benefit annuity payable for

3-25     the member's service as a peace officer is an amount computed and

3-26     funded as provided by Section 824.2032, including any applicable

3-27     reduction factors.

 4-1           SECTION 6.  (a)  This Act takes effect September 1, 1997.

 4-2           (b)  This Act applies to a peace officer who retires on or

 4-3     after the effective date of this Act regardless of the period

 4-4     during which the service as a peace officer was performed.

 4-5           SECTION 7.  The importance of this legislation and the

 4-6     crowded condition of the calendars in both houses create an

 4-7     emergency and an imperative public necessity that the

 4-8     constitutional rule requiring bills to be read on three several

 4-9     days in each house be suspended, and this rule is hereby suspended.