1-1 By: Turner of Harris (Senate Sponsor - Gallegos) H.B. No. 1204
1-2 (In the Senate - Received from the House April 23, 1997;
1-3 April 24, 1997, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 7, 1997, reported favorably, as
1-5 amended, by the following vote: Yeas 9, Nays 0; May 7, 1997, sent
1-6 to printer.)
1-7 COMMITTEE AMENDMENT NO. 1 By: Gallegos
1-8 Amend H.B. No. 1204 as follows:
1-9 (1) In SECTION 2 of the bill, added Section 13(f), Chapter
1-10 76, Acts of the 50th Legislature, 1947 (Article 6243g-1, Vernon's
1-11 Texas Civil Statutes), strike the second sentence, "The
1-12 recomputation consists of multiplying the difference between the
1-13 rate that would be used to compute the benefit of the survivor of a
1-14 member who dies on September 1, 1997, and the rate used in
1-15 computing the survivor's benefit at the time of the deceased
1-16 member's death and adding the product of the multiplication to the
1-17 survivor's current benefit." (House Engrossment, page 2, lines
1-18 11-16), and substitute "The recomputation consists of multiplying
1-19 the base salary of the member that was used in the original
1-20 computation by the difference between the rate that would be used
1-21 to compute the benefit of the survivor of a member who dies on
1-22 September 1, 1997, and the rate used in computing the survivor's
1-23 benefit at the time of the deceased member's death and adding the
1-24 product of the multiplication to the survivor's current benefit."
1-25 (2) In SECTION 7 of the bill, added Section 21(d), Article
1-26 6243g-3, Revised Statutes, strike the second sentence, "The
1-27 recomputation consists of multiplying the difference between the
1-28 rate that would be used to compute the benefit of the survivor of a
1-29 member who dies on September 1, 1997, and the rate used in
1-30 computing the survivor's benefit at the time of the deceased
1-31 member's death and adding the product of the multiplication to the
1-32 survivor's current benefit." (House Engrossment, page 3, lines
1-33 56-61), and substitute "The recomputation consists of multiplying
1-34 the base salary of the member that was used in the original
1-35 computation by the difference between the rate that would be used
1-36 to compute the benefit of the survivor of a member who dies on
1-37 September 1, 1997, and the rate used in computing the survivor's
1-38 benefit at the time of the deceased member's death and adding the
1-39 product of the multiplication to the survivor's current benefit."
1-40 A BILL TO BE ENTITLED
1-41 AN ACT
1-42 relating to credit in and benefits from certain municipal
1-43 retirement systems for police officers.
1-44 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-45 SECTION 1. Section 11, Chapter 76, Acts of the 50th
1-46 Legislature, 1947 (Article 6243g-1, Vernon's Texas Civil Statutes),
1-47 is amended by adding Subsection (i) to read as follows:
1-48 (i) The Pension System shall recompute the retirement
1-49 benefit of each person who retired before September 1, 1997, with a
1-50 benefit of less than fifty percent (50%) of base salary for the
1-51 first twenty (20) years of service. The recomputation consists of
1-52 multiplying the difference between fifty percent (50%) and the
1-53 percentage used in computing the retiree's benefit for the first
1-54 twenty (20) years of service at the time of retirement by the base
1-55 salary of the retiree at the time of retirement and adding the
1-56 product of the multiplication to the retiree's current retirement
1-57 benefit. A recomputation under this subsection may not result,
1-58 however, in a benefit that would exceed the benefit to which an
1-59 active member would be entitled at retirement with the same amount
1-60 of service and base salary or in a benefit less than the benefit
1-61 the retiree is receiving at the time of the recomputation. The
1-62 resulting benefit is the retiree's benefit for all payments and
1-63 cost-of-living adjustments made after August 31, 1997, but the
1-64 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
2-28 read as follows:
2-29 (g) A person who is reemployed by the city police department
2-30 within twenty-four (24) months from the date the person's
2-31 employment is terminated is required to pay the Pension Fund an
2-32 amount equal to any contributions previously refunded to the member
2-33 under Subsection (b) of this section. The person may execute a
2-34 promissory obligation to pay the Pension Fund within two (2) years
2-35 of the date of reemployment the full amount of the contributions
2-36 previously refunded to the member. A member who dies or retires
2-37 before a promissory obligation executed by the member and payable
2-38 to the Pension Fund is fully paid is not eligible, nor are the
2-39 member's beneficiaries eligible, for any benefits from the Pension
2-40 Fund until the promissory obligation is paid in full. A member who
2-41 has not repaid withdrawn contributions with interest at the time of
2-42 the member's retirement is entitled to receive credit for the
2-43 service attributable to the withdrawn contributions if, before the
2-44 end of the third month after the date the member ceases to be an
2-45 employee, the retiring member assigns to the Pension Fund any
2-46 accumulated sick and vacation pay from the City, and the amounts
2-47 assigned, combined with any cash payments by the retiring member,
2-48 are sufficient to repay the withdrawn contributions with interest
2-49 as determined by the Board.
2-50 (h) A person who voluntarily or involuntarily left the
2-51 employment of the police department other than as provided by
2-52 Section 12 or 22 and did not receive a refund of the person's total
2-53 contributions to the Pension System is entitled to have the service
2-54 for which the unrefunded contributions were made credited to the
2-55 person's retirement benefit, if the person:
2-56 (1) was reemployed before September 1, 1981, by the
2-57 police department of the city at least twenty-four (24) months
2-58 after the date of employment termination; and
2-59 (2) is employed by the department on September 1,
2-60 1997, and remains or remained employed continuously for five (5)
2-61 years after the date of reemployment.
2-62 SECTION 4. Section 12(b), Article 6243g-3, Revised Statutes,
2-63 is amended to read as follows:
2-64 (b) If a member who has less than 20 years of credited
2-65 service ceases to be an employee, his service credits to the date
2-66 of termination shall be canceled unless [(i)] he again becomes an
2-67 employee within two years after such cessation of employment[;] or
2-68 [(ii)] he subsequently acquires five years of credited service;
2-69 and, except as otherwise provided by this subsection, the member
3-1 [provided that if he has withdrawn his contributions he] repays,
3-2 before the member retires and ceases to be an employee, any
3-3 withdrawn contributions [them] with interest at a rate determined
3-4 by the board. The member may execute a promissory note rather than
3-5 repay the contributions in cash, if the note obligates the member
3-6 to repay the contributions in full within two years after the date
3-7 of reemployment. A member who dies or retires before the
3-8 promissory note is fully paid is not eligible, nor are the member's
3-9 beneficiaries eligible, for any benefits from the Pension Fund
3-10 until the promissory note is paid in full. A member who has not
3-11 repaid withdrawn contributions with interest at the time of the
3-12 member's retirement is entitled to receive credit for the service
3-13 attributable to the withdrawn contributions if, before the end of
3-14 the third month after the date the member ceases to be an employee,
3-15 the retiring member assigns to the Pension Fund any accumulated
3-16 sick and vacation pay from the city, and the amounts assigned,
3-17 combined with any cash payments by the retiring member, are
3-18 sufficient to repay the withdrawn contributions with interest as
3-19 determined by the board.
3-20 SECTION 5. Section 17, Article 6243g-3, Revised Statutes, is
3-21 amended by adding Subsection (d) to read as follows:
3-22 (d) The pension system shall recompute the retirement
3-23 benefit of each person who retired before September 1, 1997, with a
3-24 benefit of less than 50 percent of base salary for the first 20
3-25 years of service. The recomputation consists of multiplying the
3-26 difference between 50 percent and the percentage used in computing
3-27 the retiree's benefit for the first 20 years of service at the time
3-28 of retirement by the base salary of the retiree at the time of
3-29 retirement and adding the product of the multiplication to the
3-30 retiree's current retirement benefit. A recomputation under this
3-31 subsection may not result, however, in a benefit that would exceed
3-32 the benefit to which an active member would be entitled at
3-33 retirement with the same amount of service and base salary or in a
3-34 benefit less than the benefit the retiree is receiving at the time
3-35 of the recomputation. The resulting benefit is the retiree's
3-36 benefit for all payments and cost-of-living adjustments made after
3-37 August 31, 1997, but the retiree is not entitled to recomputation
3-38 of any benefits paid before September 1, 1997.
3-39 SECTION 6. Section 18(c), Article 6243g-3, Revised Statutes,
3-40 as added by Chapter 852, Acts of the 73rd Legislature, Regular
3-41 Session, 1993, is amended to read as follows:
3-42 (c) If a non-retired member of the pension system who has
3-43 less than 20 years of credited service dies, either directly or
3-44 indirectly, as a result of the military service, the member's
3-45 spouse, dependent parent, or other dependents are entitled to
3-46 receive a refund of any contributions the member made to the
3-47 pension system.
3-48 SECTION 7. Section 21, Article 6243g-3, Revised Statutes, is
3-49 amended by adding Subsection (d) to read as follows:
3-50 (d) The pension system shall recompute the benefit of each
3-51 person who on September 1, 1997, is entitled to a survivor's
3-52 benefit under Subsection (b) of this section and whose original
3-53 benefit was computed at a rate less than the rate that would be
3-54 used to compute the benefit of the survivor of a member who dies on
3-55 September 1, 1997. The recomputation consists of multiplying the
3-56 difference between the rate that would be used to compute the
3-57 benefit of the survivor of a member who dies on September 1, 1997,
3-58 and the rate used in computing the survivor's benefit at the time
3-59 of the deceased member's death and adding the product of the
3-60 multiplication to the survivor's current benefit. A recomputation
3-61 under this subsection may not result, however, in a benefit that
3-62 would exceed the benefit to which the survivor of a member who dies
3-63 on September 1, 1997, with the same amount of service and base
3-64 salary would be entitled or in a benefit less than the benefit the
3-65 survivor is receiving at the time of the recomputation. The
3-66 resulting benefit is the survivor's benefit for all payments and
3-67 cost-of-living adjustments made after August 31, 1997, but the
3-68 survivor is not entitled to recomputation of any benefits paid
3-69 before September 1, 1997.
4-1 SECTION 8. This Act takes effect September 1, 1997.
4-2 SECTION 9. The importance of this legislation and the
4-3 crowded condition of the calendars in both houses create an
4-4 emergency and an imperative public necessity that the
4-5 constitutional rule requiring bills to be read on three several
4-6 days in each house be suspended, and this rule is hereby suspended.
4-7 * * * * *