By Turner of Harris H.B. No. 1204
75R3209 GCH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to credit in and benefits from certain municipal
1-3 retirement systems for police officers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 11, Chapter 76, Acts of the 50th
1-6 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
1-7 is amended by adding Subsection (i) to read as follows:
1-8 (i) The Pension System shall recompute the retirement
1-9 benefit of each person who retired before September 1, 1997, with a
1-10 benefit of less than fifty percent (50%) of base salary for the
1-11 first twenty (20) years of service. The recomputation consists of
1-12 multiplying the difference between fifty percent (50%) and the
1-13 percentage used in computing the retiree's benefit for the first
1-14 twenty (20) years of service at the time of retirement by the base
1-15 salary of the retiree at the time of retirement and adding the
1-16 product of the multiplication to the retiree's current retirement
1-17 benefit. A recomputation under this subsection may not result,
1-18 however, in a benefit that would exceed the benefit to which an
1-19 active member would be entitled at retirement with the same amount
1-20 of service and base salary or in a benefit less than the benefit
1-21 the retiree is receiving at the time of the recomputation. The
1-22 resulting benefit is the retiree's benefit for all payments and
1-23 cost-of-living adjustments made after August 31, 1997, but the
1-24 retiree is not entitled to recomputation of any benefits paid
2-1 before September 1, 1997.
2-2 SECTION 2. Section 13, Chapter 76, Acts of the 50th
2-3 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
2-4 is amended by adding Subsection (f) to read as follows:
2-5 (f) The Pension System shall recompute the benefit of each
2-6 person who on September 1, 1997, is entitled to a survivor's
2-7 benefit under Subsection (a) of this section and whose original
2-8 benefit was computed at a rate less than the rate that would be
2-9 used to compute the benefit of the survivor of a member who dies on
2-10 September 1, 1997. The recomputation consists of multiplying the
2-11 difference between the rate that would be used to compute the
2-12 benefit of the survivor of a member who dies on September 1, 1997,
2-13 and the rate used in computing the survivor's benefit at the time
2-14 of the deceased member's death and adding the product of the
2-15 multiplication to the survivor's current benefit. A recomputation
2-16 under this subsection may not result, however, in a benefit that
2-17 would exceed the benefit to which the survivor of a member who dies
2-18 on September 1, 1997, with the same amount of service and base
2-19 salary would be entitled or in a benefit less than the benefit the
2-20 survivor is receiving at the time of the recomputation. The
2-21 resulting benefit is the survivor's benefit for all payments and
2-22 cost-of-living adjustments made after August 31, 1997, but the
2-23 survivor is not entitled to recomputation of any benefits paid
2-24 before September 1, 1997.
2-25 SECTION 3. Section 15, Chapter 76, Acts of the 50th
2-26 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
2-27 is amended by amending Subsection (g) and adding Subsection (h) to
3-1 read as follows:
3-2 (g) A person who is reemployed by the city police department
3-3 within twenty-four (24) months from the date the person's
3-4 employment is terminated is required to pay the Pension Fund an
3-5 amount equal to any contributions previously refunded to the member
3-6 under Subsection (b) of this section. The person may execute a
3-7 promissory obligation to pay the Pension Fund within two (2) years
3-8 of the date of reemployment the full amount of the contributions
3-9 previously refunded to the member. A member who dies or retires
3-10 before a promissory obligation executed by the member and payable
3-11 to the Pension Fund is fully paid is not eligible, nor are the
3-12 member's beneficiaries eligible, for any benefits from the Pension
3-13 Fund until the promissory obligation is paid in full. A member who
3-14 has not repaid withdrawn contributions with interest at the time of
3-15 the member's retirement is entitled to receive credit for the
3-16 service attributable to the withdrawn contributions if, before the
3-17 end of the third month after the date the member ceases to be an
3-18 employee, the retiring member assigns to the Pension Fund any
3-19 accumulated sick and vacation pay from the City, and the amounts
3-20 assigned, combined with any cash payments by the retiring member,
3-21 are sufficient to repay the withdrawn contributions with interest
3-22 as determined by the Board.
3-23 (h) A person who voluntarily or involuntarily left the
3-24 employment of the police department other than as provided by
3-25 Section 12 or 22 and did not receive a refund of the person's total
3-26 contributions to the Pension System is entitled to have the service
3-27 for which the unrefunded contributions were made credited to the
4-1 person's retirement benefit, if the person:
4-2 (1) was reemployed before September 1, 1981, by the
4-3 police department of the city at least twenty-four (24) months
4-4 after the date of employment termination; and
4-5 (2) is employed by the department on September 1,
4-6 1997, and remains or remained employed continuously for five (5)
4-7 years after the date of reemployment.
4-8 SECTION 4. Section 12(b), Article 6243g-3, Revised Statutes,
4-9 is amended to read as follows:
4-10 (b) If a member who has less than 20 years of credited
4-11 service ceases to be an employee, his service credits to the date
4-12 of termination shall be canceled unless [(i)] he again becomes an
4-13 employee within two years after such cessation of employment[;] or
4-14 [(ii)] he subsequently acquires five years of credited service;
4-15 and, except as otherwise provided by this subsection, the member
4-16 [provided that if he has withdrawn his contributions he] repays,
4-17 before the member retires and ceases to be an employee, any
4-18 withdrawn contributions [them] with interest at a rate determined
4-19 by the board. The member may execute a promissory note rather than
4-20 repay the contributions in cash, if the note obligates the member
4-21 to repay the contributions in full within two years after the date
4-22 of reemployment. A member who dies or retires before the
4-23 promissory note is fully paid is not eligible, nor are the member's
4-24 beneficiaries eligible, for any benefits from the Pension Fund
4-25 until the promissory note is paid in full. A member who has not
4-26 repaid withdrawn contributions with interest at the time of the
4-27 member's retirement is entitled to receive credit for the service
5-1 attributable to the withdrawn contributions if, before the end of
5-2 the third month after the date the member ceases to be an employee,
5-3 the retiring member assigns to the Pension Fund any accumulated
5-4 sick and vacation pay from the city, and the amounts assigned,
5-5 combined with any cash payments by the retiring member, are
5-6 sufficient to repay the withdrawn contributions with interest as
5-7 determined by the board.
5-8 SECTION 5. Section 17, Article 6243g-3, Revised Statutes, is
5-9 amended by adding Subsection (d) to read as follows:
5-10 (d) The pension system shall recompute the retirement
5-11 benefit of each person who retired before September 1, 1997, with a
5-12 benefit of less than 50 percent of base salary for the first 20
5-13 years of service. The recomputation consists of multiplying the
5-14 difference between 50 percent and the percentage used in computing
5-15 the retiree's benefit for the first 20 years of service at the time
5-16 of retirement by the base salary of the retiree at the time of
5-17 retirement and adding the product of the multiplication to the
5-18 retiree's current retirement benefit. A recomputation under this
5-19 subsection may not result, however, in a benefit that would exceed
5-20 the benefit to which an active member would be entitled at
5-21 retirement with the same amount of service and base salary or in a
5-22 benefit less than the benefit the retiree is receiving at the time
5-23 of the recomputation. The resulting benefit is the retiree's
5-24 benefit for all payments and cost-of-living adjustments made after
5-25 August 31, 1997, but the retiree is not entitled to recomputation
5-26 of any benefits paid before September 1, 1997.
5-27 SECTION 6. Section 18(c), Article 6243g-3, Revised Statutes,
6-1 as added by Chapter 852, Acts of the 73rd Legislature, Regular
6-2 Session, 1993, is amended to read as follows:
6-3 (c) If a non-retired member of the pension system who has
6-4 less than 20 years of credited service dies, either directly or
6-5 indirectly, as a result of the military service, the member's
6-6 spouse, dependent parent, or other dependents are entitled to
6-7 receive a refund of any contributions the member made to the
6-8 pension system.
6-9 SECTION 7. Section 21, Article 6243g-3, Revised Statutes, is
6-10 amended by adding Subsection (d) to read as follows:
6-11 (d) The pension system shall recompute the benefit of each
6-12 person who on September 1, 1997, is entitled to a survivor's
6-13 benefit under Subsection (b) of this section and whose original
6-14 benefit was computed at a rate less than the rate that would be
6-15 used to compute the benefit of the survivor of a member who dies on
6-16 September 1, 1997. The recomputation consists of multiplying the
6-17 difference between the rate that would be used to compute the
6-18 benefit of the survivor of a member who dies on September 1, 1997,
6-19 and the rate used in computing the survivor's benefit at the time
6-20 of the deceased member's death and adding the product of the
6-21 multiplication to the survivor's current benefit. A recomputation
6-22 under this subsection may not result, however, in a benefit that
6-23 would exceed the benefit to which the survivor of a member who dies
6-24 on September 1, 1997, with the same amount of service and base
6-25 salary would be entitled or in a benefit less than the benefit the
6-26 survivor is receiving at the time of the recomputation. The
6-27 resulting benefit is the survivor's benefit for all payments and
7-1 cost-of-living adjustments made after August 31, 1997, but the
7-2 survivor is not entitled to recomputation of any benefits paid
7-3 before September 1, 1997.
7-4 SECTION 8. This Act takes effect September 1, 1997.
7-5 SECTION 9. The importance of this legislation and the
7-6 crowded condition of the calendars in both houses create an
7-7 emergency and an imperative public necessity that the
7-8 constitutional rule requiring bills to be read on three several
7-9 days in each house be suspended, and this rule is hereby suspended.