By Gray H.B. No. 2259
75R8457 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the establishment of and administration of a retirement
1-3 fund for police officers in certain municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE I
1-6 SECTION 1.01. CREATION OF POLICE PENSION FUND. A police
1-7 pension fund is hereby authorized for employees of each
1-8 municipality having a population of more than 50,000, according to
1-9 the most recent federal census. Once such a pension fund is
1-10 adopted in any city under the provisions of Section 1.02, any right
1-11 or privilege accruing to any member thereunder shall be a vested
1-12 right according to the terms of this Act and shall not be denied or
1-13 abridged thereafter through any change in population of any such
1-14 city which would take such city out of the population bracket
1-15 prescribed. The pension fund shall continue to operate and
1-16 function regardless of whether or not any future population exceeds
1-17 or falls below such population bracket.
1-18 SECTION 1.02. ADOPTION OF POLICE PENSION FUND. A city may
1-19 adopt this Act by a majority vote of the city's governing body.
1-20 SECTION 1.03. DEFINITIONS. (1) "Accumulated Contribution"
1-21 means a member's aggregate contributions made to the pension fund,
1-22 including interest, if any, as determined by the board.
1-23 (2) "Average Monthly Compensation" shall mean the
1-24 result obtained by dividing the total Compensation paid to a member
2-1 during a considered period by the product of 12 times the number of
2-2 years in the considered period. The considered period shall be the
2-3 last 60 consecutive completed calendar months of employment with
2-4 the city, or if the member was employed by the city for fewer than
2-5 60 calendar months, the considered period shall be all completed
2-6 months of employment with the city.
2-7 (3) "Board of trustees" or "board" means the board of
2-8 trustees of the policemen's pension fund.
2-9 (4) "Compensation" means the total cash remuneration
2-10 paid to a member for personal services rendered to the city as a
2-11 policeman including longevity pay, overtime, deferred compensation,
2-12 worker's compensation, unused vacation, unused sick leave, and
2-13 picked-up contributions paid by the city to the fund.
2-14 (5) "Disability" means the existence of a physical or
2-15 mental condition which, in the judgment of the board, totally and
2-16 permanently prevents the member from engaging in any work for pay
2-17 for the city, any other employer, or in such member's own
2-18 employment or business. A disability which exists for a period of
2-19 six months is presumed to be permanent.
2-20 (6) "Member" means a duly appointed and enrolled
2-21 policeman of a city that has adopted this Act, who is a
2-22 contributing member of the pension fund, excluding part-time
2-23 policemen, temporary policemen performing emergency services, and
2-24 policemen compensated on a fee basis.
2-25 (7) "Pension fund" or "fund" means the policemen's
2-26 pension fund created by this Act.
3-1 ARTICLE II
3-2 SECTION 2.01. ADMINISTRATION. There is hereby created a
3-3 board of trustees of the policeman's pension fund, in which is
3-4 invested the general administration, management, and responsibility
3-5 for the proper and effective operation of the policemen's pension
3-6 fund. The board shall be organized immediately after its members
3-7 have qualified and taken the oath of office, and shall have all
3-8 necessary powers to discharge its duties, including the authority
3-9 to adopt necessary rules for the administration of the fund and to
3-10 correct any defect, supply any omission and reconcile any
3-11 inconsistency that may appear in this Act in a manner and to the
3-12 extent that the board considers expedient for the administration of
3-13 this Act for the greatest benefit of all members of the fund.
3-14 SECTION 2.02. COMPOSITION OF BOARD. The board of trustees
3-15 of the policemen's pension fund shall be composed of seven members
3-16 as follows:
3-17 (1) the current president of the city's municipal
3-18 police association. The president shall serve during his term of
3-19 office unless otherwise prevented by the constitution or bylaws of
3-20 the association and provided he is a member of the fund. If the
3-21 president is not a member of the fund, then the member of the fund
3-22 who holds the next highest ranking office in the association will
3-23 serve on the board;
3-24 (2) one city financial staff member designated by the
3-25 city manager;
3-26 (3) one legally qualified voter designated by the
3-27 mayor, to serve a two year term. This member shall continue to
4-1 serve until the member's successor is duly selected and qualified.
4-2 Vacancies occurring by death, resignation, or removal shall be
4-3 filled by appointment by the mayor;
4-4 (4) one legally qualified voter designated by the city
4-5 council, to serve a two year term. This member shall continue to
4-6 serve until the member's successor is duly selected and qualified.
4-7 Vacancies occurring by death, resignation, or removal shall be
4-8 filled by appointment by the city council; and
4-9 (5) three members of the police pension fund elected
4-10 by the members of the fund enumerated in subdivisions (1)-(4) of
4-11 this section, each to serve a three year term.
4-12 SECTION 2.03. ELECTED MEMBERS. The board shall provide by
4-13 rule for the procedure for electing members under subdivision (5)
4-14 of Section 2.02.
4-15 SECTION 2.04. ADMINISTRATIVE STAFF. The board may appoint a
4-16 plan administrator and any other persons necessary to perform
4-17 administrative services for the board. The board may fix and pay
4-18 any necessary compensation for persons performing administrative
4-19 services for the plan and fund.
4-20 SECTION 2.05. INVESTMENT MANAGERS. The board may hire an
4-21 investment manager or managers who shall have full authority to
4-22 invest the assets and manage the portfolio of the fund, as
4-23 specified by the manager's employment contract.
4-24 SECTION 2.06. INVESTMENT CONSULTANT. The board may hire an
4-25 investment consultant to monitor the investment performance of the
4-26 fund's investment manager or managers and provide other investment
4-27 advice requested by the board.
5-1 SECTION 2.07. LEGAL COUNSEL. The board may retain legal
5-2 counsel to advise, assist, or represent the board in any legal
5-3 matters affecting the operation of the fund.
5-4 SECTION 2.08. INVESTMENTS OF THE BOARD. (a) The board
5-5 shall be the trustee of the funds of the police pension fund and
5-6 shall have full power in its sole discretion to invest and
5-7 reinvest, alter, and change such funds. The board shall invest the
5-8 funds in whatever instruments or investments the board considers
5-9 prudent. In making investments for the fund, the board shall
5-10 discharge its duties:
5-11 (1) for the exclusive purposes of:
5-12 (A) providing benefits to members and their
5-13 beneficiaries; and
5-14 (B) defraying reasonable expenses of
5-15 administering the fund;
5-16 (2) with the care, skill, prudence, and diligence
5-17 under the circumstances then prevailing that a prudent person
5-18 acting in a like capacity and familiar with such matters would use
5-19 in the conduct of an enterprise of a like character and with like
5-20 aims;
5-21 (3) by diversifying the investments of the fund to
5-22 minimize the risk of large losses, unless under the circumstances
5-23 it is clearly prudent not to do so; and
5-24 (4) in accordance with the laws, documents, and
5-25 instruments governing the fund.
5-26 (b) None of the funds or money covered by this Act shall be
5-27 assignable. None of the funds or money covered by this Act shall
6-1 be subject to execution, levy, attachment, garnishment, or other
6-2 legal process.
6-3 (c) The right of a member to a pension, to the return of
6-4 contributions, the pension, or retirement allowance itself, any
6-5 optional benefit or death benefits, any other right accrued or
6-6 accruing to any person under the provisions of this Act, and the
6-7 money in the trust created by this Act shall be unassignable except
6-8 as specifically provided in this Act or as provided under the terms
6-9 of a qualified domestic relations order, as defined in Section 804
6-10 of the Texas Government Code, and shall not be subject to
6-11 execution, levy, attachment, garnishment, the operation of
6-12 bankruptcy or insolvency law, or any other process of law
6-13 whatsoever.
6-14 SECTION 2.08. INSURANCE. (a) The board may purchase from
6-15 an insurer licensed to do business in this state one or more
6-16 insurance policies that provide for the reimbursement of a member,
6-17 officer, or employee of the board for liability imposed as damages
6-18 caused by, and for costs and expenses incurred by the individual in
6-19 defense of, an alleged act, error, or omission committed in the
6-20 individual's capacity as fiduciary or co-fiduciary of assets of the
6-21 pension fund. The board may not purchase an insurance policy that
6-22 provides for the reimbursement of a member, officer, or employee of
6-23 the board for liability imposed or costs and expenses incurred
6-24 because of the member's, officer's, or employee's personal
6-25 dishonesty, fraudulent breach of trust, lack of good faith,
6-26 intentional fraud or deception, or intentional failure to act
6-27 prudently. The board of trustees shall use money in the pension
7-1 fund to purchase an insurance policy under this subsection.
7-2 (b)(1) If an insurance policy described by Subsection (a) is
7-3 unavailable, insufficient, inadequate, or otherwise not in effect,
7-4 the board may indemnify a member, officer, or employee of the board
7-5 for liability imposed as damages caused by, and for reasonable
7-6 costs and expenses incurred by the individual in defense of, an
7-7 alleged act, error, or omission committed in the individual's
7-8 fiduciary or co-fiduciary capacity. The board may not indemnify a
7-9 member, officer, or employee of the board for liability imposed or
7-10 costs and expenses incurred because of the member's, officer's, or
7-11 employee's personal dishonesty, fraudulent breach of trust, lack of
7-12 good faith, intentional fraud or deception, or intentional failure
7-13 to act prudently.
7-14 (2) A decision to indemnify under this subsection
7-15 shall be made by a majority of the board. If a proposed
7-16 indemnification is of a board member, the member may not vote on
7-17 the matter.
7-18 (3) The board may adopt a rule establishing a method
7-19 for presentation, approval, and payment of claims for
7-20 indemnification under this subsection.
7-21 ARTICLE III
7-22 SECTION 3.01. TAX QUALIFICATION. It is intended that the
7-23 provisions of this Act be construed and administered in a manner
7-24 that the pension fund's benefit plan will be a qualified plan under
7-25 Section 401(a) of the Internal Revenue Code. The board may adopt
7-26 rules to qualify the plan if necessary, and such rules shall be
7-27 considered part of the plan.
8-1 ARTICLE IV
8-2 SECTION 4.01. MEMBERSHIP IN PENSION FUND; ELIGIBILITY. (a)
8-3 Any person who has been duly appointed and enrolled as a policeman
8-4 in a city electing to be covered by this Act shall automatically
8-5 become a member of the pension fund of such city upon expiration of
8-6 ninety days from the date such city adopts the pension fund created
8-7 by this Act, except as provided under Section 14.01. In all
8-8 instances where a person is already a member of and contributor to
8-9 a city police pension fund, he shall retain and be entitled to all
8-10 rights and privileges due him by virtue of having been such a
8-11 member and contributor.
8-12 (b) Any person not a member of the pension fund when this
8-13 Act becomes effective, who thereafter is duly appointed and
8-14 enrolled as a policeman of a city adopting the fund created by this
8-15 Act shall automatically become a member of the pension fund as a
8-16 condition of his employment, except as provided under Section
8-17 13.01.
8-18 ARTICLE V
8-19 SECTION 5.01 SERVICE. Except as provided below in Section
8-20 5.02, a member shall receive credit for service during all periods
8-21 of employment by the city as a policeman. Such service credit
8-22 shall be used in determining the eligibility for benefits and the
8-23 amount of benefits to which the member is entitled under this Act.
8-24 SECTION 5.02 VESTING. No right to retirement benefits
8-25 provided under this Act vests until a member completes five years
8-26 of service.
8-27 SECTION 5.03 BREAK IN SERVICE. (a) A member has a break in
9-1 service if his employment with the city is terminated by reason of
9-2 his quitting, retiring or being discharged and is thereafter
9-3 rehired. An authorized leave of absence, as described below, shall
9-4 not constitute a break in service provided the member returns to
9-5 work at the end of such leave.
9-6 (b) A member who is granted a leave of absence for military
9-7 service shall receive service credit for the period of such
9-8 military service, provided that the member: (i) is honorably
9-9 discharged, (ii) returns to active employment with the city within
9-10 90 days thereafter, and (iii) remains in the city's employ for at
9-11 least one full year after the member's return.
9-12 (c) A member who is granted a leave of absence for reasons
9-13 other than military service will receive service credit for such
9-14 leave, as follows: if the member is granted a leave of absence by
9-15 the city for a period of three months or less, the member shall
9-16 receive service credit for such period if the member returns to
9-17 active employment with the city before the expiration of the
9-18 period. If the leave of absence exceeds three months, no service
9-19 credit shall be given for the period in excess of such three
9-20 months.
9-21 (d) A determination as to whether or not a member was absent
9-22 or at work shall be made by the board on the basis of whether or
9-23 not the member received compensation from the city for the period
9-24 in question. The decision of the board based on the city's payroll
9-25 records shall be final and binding upon such member and his
9-26 beneficiaries.
9-27 (e) If a member has a break in service, the member shall
10-1 lose credit for all his prior service unless the board makes a
10-2 determination that the member should make a contribution to the
10-3 plan in an amount to be determined by the board and certified by
10-4 the plan actuary. Members shall not be given credit for time not
10-5 employed in the police department.
10-6 ARTICLE VI
10-7 SECTION 6.01 PARTICIPATION IN FUND; WAGE DEDUCTIONS. Each
10-8 member policeman in a city which adopts the pension fund created by
10-9 this Act is required to participate in the fund, except in a time
10-10 of national emergency, and the city shall be authorized to deduct a
10-11 sum of not less than one percent nor more than ten percent of the
10-12 member's monthly wages for participation in the fund. The percent
10-13 deducted from monthly wages is to be determined by the board as
10-14 provided in Section 2.01 within the minimum and maximum deductions
10-15 herein provided or as otherwise provided under the provisions of
10-16 Section 14.01.
10-17 ARTICLE VII
10-18 SECTION. 7.01. CITY PICK UP OF MEMBER CONTRIBUTIONS. (a)
10-19 Under the provisions of Section 414(h)(2) of the Internal Revenue
10-20 Code, the city shall pick up and pay a member's required
10-21 contribution. Although the contributions so picked up are
10-22 designated as member contributions, such contributions shall be
10-23 treated as contributions being paid by the city in lieu of
10-24 contributions by the member for determining tax liability under the
10-25 Internal Revenue Code, and such picked up contributions shall not
10-26 be included in the gross income of the member until such amounts
10-27 are distributed or made available to the member or member's
11-1 beneficiary. The member shall not have the option to choose to
11-2 receive the contributions so picked up directly, and the picked up
11-3 contributions must be paid by the city to the fund.
11-4 (b) Member contributions so picked up shall be included in
11-5 the compensation of the member for purposes of determining benefits
11-6 and contributions under the fund.
11-7 (c) The city shall pay the member contributions from the
11-8 same source of funds used in paying compensation to the member by
11-9 effecting an equal cash reduction in gross compensation of the
11-10 member.
11-11 ARTICLE VIII
11-12 SECTION 8.01.(a) CONTRIBUTIONS BY CITY. The city, acting
11-13 under the advice of the actuary for the fund, shall contribute to
11-14 the fund contributions expressed as a percentage of payroll or
11-15 compensation for each member, in such amounts and at such times as
11-16 are required to pay the city's normal cost and interest on any
11-17 unfunded actuarial requirement at the rate of interest assumed in
11-18 the actuarial valuation. The city shall also cause to be included
11-19 in the contribution to the fund sufficient funds to pay the costs
11-20 of administration of the fund, including periodic actuarial
11-21 evaluations and annual statements to the members of the fund. (b)
11-22 CITY'S LIABILITY. Notwithstanding anything herein to the contrary,
11-23 the city shall not be held liable or responsible for any claim or
11-24 asserted claim for benefits under the fund, but all claims shall be
11-25 paid from the funds for which provisions have been made under the
11-26 terms of the plan and fund.
12-1 ARTICLE IX
12-2 SECTION 9.01. LOANS TO MEMBERS. A member may borrow from
12-3 such member's contributions to the fund as approved by the board
12-4 based on the rules adopted by the board in compliance with the
12-5 Internal Revenue Code. The rules must be applied in a
12-6 nondiscriminatory manner.
12-7 ARTICLE X
12-8 SECTION 10.01. NORMAL AND LATE PENSION. A member who
12-9 retires on or after his 65th birthday shall receive a monthly
12-10 amount equal to the following:
12-11 (a) 1.35% of the member's Average Monthly Compensation
12-12 multiplied by the number of years of service, limited to 15 years;
12-13 plus
12-14 (b) 1.65% of the member's Average Monthly Compensation
12-15 multiplied by the number of years of service in excess of 15 years,
12-16 limited to 15 additional years (for a total of 30 years).
12-17 SECTION 10.02. EARLY PENSION. (a) A member who terminates
12-18 service on or after his 55th birthday but before his 65th birthday
12-19 and has ten years of service with the city shall receive a monthly
12-20 amount equal to a benefit determined as a fraction of the following
12-21 amount:
12-22 (1) 1.35% of the member's Average Monthly
12-23 Compensation, multiplied by the sum of the number of full and
12-24 fractional years of service plus the number of years and full
12-25 months from the date of termination of employment to his 65th
12-26 birthday, the sum not to exceed 15 years, plus
12-27 (2) 1.65% of the member's Average Monthly Compensation
13-1 multiplied by the sum of the number of full and fractional years of
13-2 service plus the number of years and full months from date of
13-3 termination of employment to his 65th birthday in excess of 15
13-4 years, the sum not to exceed 15 additional years (for a total of 30
13-5 years).
13-6 The fraction shall be (1) divided by (2) where
13-7 (1) is the number of full and fractional years of
13-8 service, and
13-9 (2) is the sum of the number of full and fractional
13-10 years of service plus the number of years and full months from date
13-11 of termination to the member's 65th birthday.
13-12 (b) If payment of an Early Pension commences prior to the
13-13 member's 65th birthday, the amount determined above shall be
13-14 reduced by 1/180th for each of the first 60 months and 1/360th for
13-15 each of the next 60 months by which the starting date of pension
13-16 payments precedes such birthday.
13-17 SECTION 10.03. SPECIAL EARLY PENSION. (a) A member who
13-18 terminates service with the city on or after such member has
13-19 completed 20 years of service with the city shall receive a monthly
13-20 amount commencing the first day of the month next following the
13-21 date such member attains age 45 (or the date of retirement if
13-22 later). If the member retires prior to reaching age 62, such
13-23 member's pension shall be determined by formulas 1 and 2 below:
13-24 (1) pension benefit payable up to age of 62 equals the
13-25 following:
13-26 (i) 1.35% of the member's Average Monthly
13-27 Compensation, multiplied by the number of years of service, limited
14-1 to 15 years, plus
14-2 (ii) 1.65% of the member's Average Monthly
14-3 Compensation multiplied by the number of years of service in excess
14-4 of 15 years but not greater than an additional 10 years (for a
14-5 total of 25 years), plus
14-6 (iii) 1.0% of the member's Average Monthly
14-7 Compensation multiplied by the number of years of service in excess
14-8 of 25 years but not greater than an additional 5 years (for a total
14-9 of 30 years), plus
14-10 (iv) 1.075% of the member's Average
14-11 Monthly Compensation multiplied by the number of years of service
14-12 limited to 20 years, plus
14-13 (v) 3.35% of his Average Monthly
14-14 Compensation multiplied by the number of years of service in excess
14-15 of 20 years but not greater than an additional five years.
14-16 (2) pension benefit payable after member reaches age
14-17 62 is equal to the following:
14-18 (i) 1.35% of the member's Average Monthly
14-19 Compensation multiplied by the number of years of service, limited
14-20 to 15 years, plus
14-21 (ii) 1.65% of the member's Average Monthly
14-22 Compensation multiplied by the number of years of service in excess
14-23 of 15 years but not greater than an additional 15 years (for a
14-24 total of 30 years).
14-25 (b) A member who terminates service with the city on or
14-26 after the member has completed 20 years of service with the city
14-27 and who retires on or after age 62 shall receive a monthly amount
15-1 equal to the following:
15-2 (1) 1.35% of the member's Average Monthly Compensation
15-3 multiplied by the number of years of service, limited to 15 years,
15-4 plus
15-5 (2) 1.65% of the member's Average Monthly Compensation
15-6 multiplied by the number of years of service in excess of 15 years
15-7 but not greater than an additional 15 years (for a total of 30
15-8 years).
15-9 SECTION 10.04. EXTRA-SPECIAL EARLY PENSION. (a) A member
15-10 who terminates service after completing 25 years of service with
15-11 the city and who retires prior to the age of 62 shall receive a
15-12 monthly amount determined by formulas 1 and 2 below:
15-13 (1) pension benefit payable up to the age of 62 equals
15-14 the following:
15-15 (i) 1.35% of the member's Average Monthly
15-16 Compensation, multiplied by the number of years of service, limited
15-17 to 15 years, plus
15-18 (ii) 1.65% of the member's Average Monthly
15-19 Compensation, multiplied by the number of years of service in
15-20 excess of 15 years but not greater than an additional 10 years (for
15-21 a total of 25 years), plus
15-22 (iii) 1.0% of the member's Average Monthly
15-23 Compensation, multiplied by the number of years of service in
15-24 excess of 25 years but not greater than an additional five years
15-25 (for a total of 30 years), plus
15-26 (iv) 1.075% of the member's Average
15-27 Monthly Compensation, multiplied by the number of years of service,
16-1 limited to 20 years, plus
16-2 (v) 3.35% of the member's Average Monthly
16-3 Compensation, multiplied by the number of years of service in
16-4 excess of 20 years but not greater than an additional five years.
16-5 (2) pension benefit payable after member reaches age
16-6 62 is equal to the following:
16-7 (i) 1.35% of the member's Average Monthly
16-8 Compensation multiplied by the number of years of service, limited
16-9 to 15 years, plus
16-10 (ii) 1.65% of the member's Average Monthly
16-11 Compensation multiplied by the number of years of service in excess
16-12 of 15 years but not greater than an additional 15 years (for a
16-13 total of 30 years).
16-14 (b) A member who meets the requirements for an Extra-Special
16-15 Early Pension and who retires on or after age 62 shall receive a
16-16 monthly amount equal to the following:
16-17 (1) 1.35% of the member's Average Monthly Compensation
16-18 multiplied by the number of years of service, limited to 15 years,
16-19 plus
16-20 (2) 1.65% of the member's Average Monthly Compensation
16-21 multiplied by the number of years of service, in excess of 15 years
16-22 but not greater than an additional 15 years (for a total of 30
16-23 years).
16-24 SECTION 10.05 REEMPLOYMENT OF RETIRED MEMBERS ELIGIBLE TO
16-25 RECEIVE NORMAL, LATE, EARLY, SPECIAL EARLY OR DEFERRED VESTED
16-26 PENSIONS: If a retired member eligible to receive a Normal, Late,
16-27 Early, Special Early, or Deferred Vested Pension is reemployed by
17-1 the city, payment of any pension, whether or not such payment has
17-2 commenced, to which such retired member is entitled from the plan
17-3 shall not be suspended, whether or not he again becomes a member.
17-4 Such retired member shall be treated as a new employee for purposes
17-5 of determining his membership in this plan and for purposes of
17-6 determining his service after such reemployment. However, for
17-7 purposes of computing any death benefit hereunder, the previous
17-8 period of service shall be used if it produces a greater amount of
17-9 death benefit than his last period of service.
17-10 SECTION 10.06. MODIFICATION. The pensions referenced in
17-11 Sections 10.01 through 10.04 are subject to modification under the
17-12 provisions of Section 14.01.
17-13 TITLE XI
17-14 SECTION 11.01. DEFERRED VESTED PENSION. (a) A member shall
17-15 be eligible for a Deferred Vested Pension if the member's
17-16 employment is terminated, for reasons other than death or Normal,
17-17 Late, Early, Special Early, Extra-Special Early, or Disability
17-18 Pension, on or after the completion of five or more years of
17-19 service.
17-20 (b) Payment of a Deferred Vested Pension shall commence as
17-21 of the first day of the month next following the member's 65th
17-22 birthday, if such member is then living. If the member has
17-23 completed 10 years of service, such member may request the Deferred
17-24 Vested Pension to commence as of the first day of the month next
17-25 following such member's 55th birthday, or as of the first day of
17-26 any subsequent month which precedes such member's 65th birthday.
17-27 (c) If payment of such pension commences prior to the
18-1 member's 65th birthday, the amount shall be reduced by 1/180th for
18-2 each of the first 60 months and 1/360th for each of the next 60
18-3 months by which the starting date of the pension payment precedes
18-4 the member's 65th birthday. The provisions of this Section are
18-5 subject to change under the provisions of Section 14.01.
18-6 TITLE XII
18-7 SECTION 12.01. DISABILITY PENSIONS. (a) A member shall be
18-8 eligible for a Disability Pension if such member's employment is
18-9 terminated by a reason of total and permanent disability prior to
18-10 the member's 65th birthday. Payment of a Disability Pension shall
18-11 commence following a 12-month waiting period following the member's
18-12 retirement based on disability. If disability is presumed to be
18-13 permanent prior to the completion of a 12-month period, disability
18-14 payments shall commence following certification of the disability.
18-15 In no case shall such payments commence until disability has been
18-16 certified to be continuous for a period of 90 days. Such payments
18-17 shall cease on the member's death or the cessation of the member's
18-18 disability. If disability ceases on or after the member's 65th
18-19 birthday, such member's disability shall be continued in the same
18-20 manner as if the disability had continued.
18-21 (b) If a member, who has received any Disability Pension
18-22 payments, recovers and is reemployed by the city as a policeman
18-23 within 30 days following certification that such disability has
18-24 ceased, membership in the fund shall be reinstated as of the date
18-25 the employee returns to active employment and such employee shall
18-26 receive credit for all prior service with the city credited to him
18-27 at the inception date of his disability. The board may extend the
19-1 30-day period when, in its sole discretion, reasonable cause exists
19-2 for so doing.
19-3 (c) If a member's disability ceases prior to the member's
19-4 65th birthday, and the member is not reemployed by the city, the
19-5 member shall be treated as a terminated member and shall be
19-6 entitled to no further benefits except the excess, if any, of his
19-7 accumulated contribution, over the total amount of all disability
19-8 benefits received. However, if the member meets the requirements
19-9 for Early, Special Early, Extra-Special Early, or Deferred Vested
19-10 Pension on the date of termination for disability, such member
19-11 shall be entitled to receive a pension equal in amount to the
19-12 Early, Special Early, Extra-Special Early, or Deferred Vested
19-13 Pension such member would have been entitled to as of the date of
19-14 his disability.
19-15 (d) No member shall qualify for a Disability Pension if the
19-16 board determines that the disability results from: (i) addiction to
19-17 narcotics or hallucinogenic drugs; (ii) an injury suffered while
19-18 engaged in a felonious or criminal act or enterprise; (iii)
19-19 self-inflicted injury; (iv) voluntary or involuntary service in the
19-20 armed forces; (v) service in the armed forces of any foreign
19-21 country; or (vi) an absence in excess of three months for which he
19-22 received no earnings from the city, unless such absence was due to
19-23 sickness or accident which resulted in disability.
19-24 (e) The board may establish such rules and regulations as
19-25 appropriate to certify a member's disability and to verify the
19-26 continued existence of such disability.
19-27 (f) Subject to Section 14.01, a member who meets the
20-1 requirements for a Disability Pension shall receive a monthly
20-2 amount which shall be determined in accordance with (1) and (2)
20-3 below:
20-4 (1) Prior to Age 65: Sixty percent of the employee's
20-5 monthly rate of pay at the time of the disability minus any primary
20-6 Social Security benefit actually paid to the member. If the member
20-7 is entitled to receive payments from worker's compensation or any
20-8 other disability plan, the member's disability benefit payable
20-9 hereunder shall be reduced by the amount of such other payments.
20-10 In no event shall a member's Disability Pension hereunder exceed
20-11 $1,500 per month.
20-12 (2) On and After Age 65: An amount computed in the
20-13 same manner as for a Normal Pension considering the employee's
20-14 compensation and service as if such employee continued employment
20-15 with the city up to the member's 65th birthday. The rate of pay
20-16 will be deemed to have remained constant from time of disability
20-17 until the member's 65th birthday.
20-18 TITLE XIII
20-19 SECTION 13.01. SEVERANCE AND DEATH BENEFITS. (a) If a
20-20 member's employment with the city is terminated before the member
20-21 qualifies for a benefit, the member is entitled to receive a refund
20-22 of accumulated contributions, payable in a lump sum or in
20-23 installments without interest. The payment shall result in a
20-24 forfeiture of any further rights or benefits from the fund.
20-25 (b) In lieu of any other benefit to which a retired member
20-26 may be entitled, such member may elect to receive a refund of
20-27 accumulated contributions, payable in a lump sum or in installments
21-1 without interest. Such payment shall result in a forfeiture of any
21-2 further rights or benefits from the fund.
21-3 (c) If a member dies while actively employed by the city,
21-4 leaving a spouse or a dependent child under the age of 18 years of
21-5 age, the board shall order the following monthly allowances:
21-6 (1) The surviving spouse of an active member who, on
21-7 the date of the member's death, had completed five or more years of
21-8 service, shall be eligible for a Spouse's Pension, payable monthly
21-9 in an amount equal to 50% of an amount calculated under the formula
21-10 for a Normal Pension but using the member's compensation and
21-11 service earned as of the date of death. Payment of such pension
21-12 shall continue until the death or remarriage of said spouse.
21-13 (2) In the event there is no spouse surviving to
21-14 receive the Spouse's Pension, each surviving dependent child of the
21-15 deceased member under the age of 18 years shall be eligible for a
21-16 Dependent Child's Pension, payable monthly in an amount equal to
21-17 50% of an amount calculated under the formula for a Normal Pension,
21-18 but using the member's compensation and service earned as of the
21-19 date of death. If there is more than one such child under the age
21-20 of 18, said monthly amount shall be divided equally among such
21-21 children at the time such amount is paid. Payment of said pension
21-22 shall be payable until each such child attains the age of 18 or
21-23 until each such child's death, whichever occurs first.
21-24 (3) If a surviving spouse, receiving a Spouse's
21-25 Pension, dies leaving a surviving child under the age of 18, said
21-26 Spouse's Pension shall be continued to said child or children in
21-27 under the terms of this section.
22-1 (d) If a member dies while actively employed by the city
22-2 after having completed five or more years of service with the city
22-3 and leaving no surviving spouse or dependent children, the member's
22-4 beneficiaries shall be eligible for a death benefit equal to the
22-5 member's total accumulated contribution or $2,500, whichever is
22-6 greater.
22-7 (e) If a member dies while actively employed by the city
22-8 after having completed less than five years of service with the
22-9 city, the beneficiaries of such member shall be eligible for a
22-10 death benefit equal to the member's accumulated contribution.
22-11 (f) The total amount of death benefit payments payable under
22-12 Subsection (e) shall not be less than $2,500 or the total amount of
22-13 the member's accumulated contribution, whichever is greater. If a
22-14 spouse or dependent child dies before receiving the minimum amount,
22-15 the balance of such amount shall be payable in a lump sum to the
22-16 estate of the spouse or dependent child, whichever last survived.
22-17 If the spouse remarries before receiving such amount and there are
22-18 no surviving dependent children to receive payment, the balance of
22-19 the death benefit shall be payable in a lump sum to the
22-20 beneficiaries of the member.
22-21 (g) If a member dies after commencement of a Normal, Early,
22-22 Special Early, Extra-Special Early, or Disability Pension, or
22-23 retires under an Early, Special Early, Extra-Special Early, or
22-24 Disability Pension, but dies prior to the commencement of the
22-25 pension and the member is survived by a spouse, the spouse shall be
22-26 eligible for a monthly pension if the spouse were married to the
22-27 member prior to the member's retirement from the city's police
23-1 department. The pension shall be equal to 50% of the pension which
23-2 the member was receiving on the date of his death. If: (1) the
23-3 retired member retired and commenced receipt of a pension prior to
23-4 attaining age 62, the monthly amount of such pension payable to the
23-5 member's surviving spouse from and after the date upon which the
23-6 retired member would have attained age 62, shall be reduced to 50%
23-7 of the pension which the retired member would have received had he
23-8 attained age 62, and (2) a retired member who is receiving
23-9 disability Retirement benefits dies prior to the age of 65, the
23-10 monthly amount of the pension shall be equal to 50% of the pension
23-11 the member would have received had he worked until the date of his
23-12 death at the rate of pay in effect at the inception of his
23-13 disability. Payment of the pension shall continue until the date
23-14 of death or remarriage of the spouse, whichever occurs first.
23-15 (h) The total benefit payments payable under this Section
23-16 shall not be less than the retired member's total accumulated
23-17 contribution, or $2,500.00, whichever is greater (less any previous
23-18 payments made to the retired member). If the spouse dies before
23-19 receiving such minimum amount, the balance of the minimum amount of
23-20 death benefit may be payable in a lump sum to the spouse's estate.
23-21 If the spouse remarries before receiving such minimum amount or the
23-22 retired member and spouse are divorced on the retired member's date
23-23 of death, the balance of such minimum amount of death benefit shall
23-24 be payable in a lump sum to the beneficiaries of the retired
23-25 member.
23-26 (i) If a member dies after commencement of a Normal, Early,
23-27 Special Early, Extra-Special Early, or Disability Pension, or
24-1 retires under an Early, Special Early, Extra-Special Early, or
24-2 Disability Pension, but dies prior to the commencement of such
24-3 pension and leaves no surviving spouse, the beneficiaries of such
24-4 retired member shall be eligible for a death benefit equal to the
24-5 greater of the member's accumulated contribution or $2,500,
24-6 whichever is greater, less any payments previously made to such
24-7 deceased member.
24-8 (j) If a member dies before or after commencement of a
24-9 Deferred Vested Pension, the beneficiaries of such member who, on
24-10 the date of the member's death were receiving or entitled to
24-11 receive a Deferred Vested Pension, shall be eligible for a death
24-12 benefit, payable in a lump sum, equal to the deceased member's
24-13 total accumulated contribution, less any pension payments
24-14 previously received.
24-15 (k) If a member dies without having designated a beneficiary
24-16 or beneficiaries, then the board is empowered to designate a
24-17 beneficiary under rules duly adopted by the board as provided in
24-18 Section 2.01.
24-19 (l) The provisions of this Section shall be subject to any
24-20 modifications made under the provisions of Section 14.01.
24-21 ARTICLE XIV
24-22 SECTION 14.01. MODIFICATION OF BENEFITS, MEMBERSHIP
24-23 QUALIFICATIONS, ELIGIBILITY REQUIREMENTS, AND CONTRIBUTIONS. (a)
24-24 Notwithstanding any other provision of this Act, the board, with
24-25 the approval of at least four board members, may modify any of the
24-26 following:
24-27 (1) benefits provided by this Act; provided, however,
25-1 that any increase in benefits is subject to the provisions of
25-2 subsection 14.01(b);
25-3 (2) future membership qualifications; or
25-4 (3) eligibility requirements for pensions or benefits;
25-5 or
25-6 (4) the percentage of wage deductions provided in
25-7 Section 5.01; provided that any increase in such deduction is
25-8 subject to the provisions of subsection 14.01(b).
25-9 (b) Notwithstanding any other provision of this Act and,
25-10 except as provided below, the board, with the approval of a
25-11 majority of the members of the fund, may increase either of the
25-12 following:
25-13 (1) benefits provided by this Act; or
25-14 (2) the percentage of wage deductions provided in
25-15 Section 5.01; provided however that, in the event that the plan
25-16 actuary certifies that an increase would be necessary to maintain
25-17 an actuarially sound plan, the board may, with the approval of at
25-18 least four board members, increase such percentage of wage
25-19 deductions.
25-20 (c) Notwithstanding any other provision of this Act, the
25-21 board, with the approval of at least four board members, may
25-22 provide for refunds, in whole or in part, with or without interest,
25-23 of accumulated contributions made to the fund by members who leave
25-24 the city service before qualifying for a pension.
25-25 (d) Actions authorized under Subsections (a) of (b) shall
25-26 not be made unless first reviewed by a qualified actuary selected
25-27 by at least four board members. To qualify, an actuary, if an
26-1 individual, must be a Fellow of the Society of Actuaries, or a
26-2 Fellow of the Conference of Actuaries in Public Practice, or a
26-3 member of the American Academy of Actuaries. The basis for the
26-4 actuary's approval or disapproval of a board action is not subject
26-5 to judicial review.
26-6 ARTICLE XV
26-7 SECTION 15.01. TRANSFER OF PENSION ASSETS. Upon adoption of
26-8 this Act, a city may transfer the assets and membership of a
26-9 predecessor police pension fund into the fund created by the city's
26-10 adoption of this Act. Members of the prior plan shall retain and
26-11 be entitled to all rights and privileges accrued by virtue of
26-12 contributing to such plan.
26-13 SECTION 15.02 EMERGENCY. The importance of this legislation
26-14 and the crowded condition of the calendars in both houses create an
26-15 emergency and an imperative public necessity that the
26-16 Constitutional rule requiring bills to be read on three several
26-17 days in each house be suspended, and this rule is hereby suspended,
26-18 and that this Act take effect and be in force from and after its
26-19 passage, and it is so enacted.