By Bivins S.B. No. 529
75R423 GCH-D
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) and (15) 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 and either attends at least [rendered
1-16 without monetary remuneration while a member in good standing of a
1-17 fire-fighting unit that has no fewer than 10 active members, and a
1-18 minimum of two drills each month, each drill two hours long, and
1-19 each active member present at] 40 percent of the minimum number of
1-20 hours of annual drills and at least 25 percent of the department's
1-21 emergencies in a calendar year or is absent because of [fires.
1-22 Absence caused by] military duty [does not affect qualified
1-23 service].
1-24 (7) "Fund" means the Texas statewide emergency
2-1 services personnel retirement fund [Fire Fighters' Relief and
2-2 Retirement Fund] created by this Act.
2-3 (9) "Member [fire fighter]" means a volunteer or
2-4 partly paid employee [fire fighter] who participates in the pension
2-5 system under this Act.
2-6 (10) "Participating [Member fire] department" means a
2-7 public entity that performs fire, rescue, or emergency medical
2-8 services and [fire department that] participates in the pension
2-9 system under this Act.
2-10 (11) "Current pension plan" means a pension plan in
2-11 which a participating [fire] department is participating when it
2-12 elects to join the pension system created by this Act.
2-13 (13) "Governing body" means the governing body of any
2-14 political subdivision of the state [within which a rural fire
2-15 prevention district created pursuant to the provisions of Chapter
2-16 794, Health and Safety Code, is situated or the governing body of
2-17 any city or town within which a fire department subject to the
2-18 provisions of this Act is situated].
2-19 (14) "Volunteer" means a person who performs service
2-20 for a participating department for civic, charitable, or
2-21 humanitarian reasons and is not subject to the compensation
2-22 requirements provided by the Fair Labor Standards Act of 1938 (29
2-23 U.S.C. Section 201 et seq.) for employees.
2-24 (15) "Partly paid employee" means a person who
2-25 receives compensation from a political subdivision of this state
2-26 and is certified by the political subdivision as being regularly
2-27 engaged in the performance of duties for a participating department
3-1 in an appointive office or position that normally requires services
3-2 from the person for less than 1,000 hours a year.
3-3 SECTION 2. Section 1A, Texas Statewide Volunteer Fire
3-4 Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
3-5 Statutes), is amended to read as follows:
3-6 Sec. 1A. SHORT TITLE. This Act may be cited as the Texas
3-7 Statewide Emergency Services [Volunteer Fire Fighters] Retirement
3-8 Act.
3-9 SECTION 3. Sections 2(a), (c), and (f), Texas Statewide
3-10 Volunteer Fire Fighters Retirement Act (Article 6243e.3, Vernon's
3-11 Texas Civil Statutes), are amended to read as follows:
3-12 (a) The Texas statewide emergency services personnel
3-13 retirement fund [Fire Fighters' Relief and Retirement Fund] is a
3-14 trust fund in the state treasury.
3-15 (c) Every governing body of a department that is eligible to
3-16 participate in the pension system and that is not currently exempt
3-17 under Subsection (b) of this section shall contribute for each
3-18 member [fire fighter] at least $12 for each month of service
3-19 beginning on the date the member [fire fighter] enters the pension
3-20 system. Contributions must be paid at least every 12 months. If
3-21 the participating [member fire] department is situated in more than
3-22 one political subdivision, the governing bodies of such political
3-23 subdivisions shall contribute equally towards a total of at least
3-24 $12 for each member [fire fighter] for each month of service.
3-25 (f) Any contribution made and any benefits provided pursuant
3-26 to this Act shall not be considered compensation, and members who
3-27 are volunteers [member fire fighters] shall not be deemed to be in
4-1 the paid service of any governing body.
4-2 SECTION 4. Sections 2A, 3, 4, 5, 8, 9, and 10, Texas
4-3 Statewide Volunteer Fire Fighters Retirement Act (Article 6243e.3,
4-4 Vernon's Texas Civil Statutes), are amended to read as follows:
4-5 Sec. 2A. MEMBERSHIP. (a) Except as otherwise provided by
4-6 this section, each person [fire fighter] who performs service for a
4-7 participating [fire] department is a member of the pension system.
4-8 (b) A person is not a member of the pension system:
4-9 (1) if the governing body [of the fire department] is
4-10 exempt from this Act under Section 2(b) of this Act;
4-11 (2) if the person is less than 18 years of age [a
4-12 minor];
4-13 (3) during a probationary period of service before
4-14 becoming a regular member of a participating [fire] department, if
4-15 the governing body of the [fire] department is not making
4-16 contributions for the probationary service; [or]
4-17 (4) if the person does not receive a certification of
4-18 physical fitness or assignment to support duties under Section 8 of
4-19 this Act; or
4-20 (5) if the person is retired under this Act, whether
4-21 or not the person continues to participate in emergency
4-22 service-related [fire-related] functions for a department from
4-23 which the person retired.
4-24 (c) A member who performs qualified service for more than
4-25 one participating [fire] department under this Act may become
4-26 eligible to receive service retirement benefits for service for
4-27 each department, but, if the person dies while a member, the
5-1 member's beneficiary must choose between an on-duty and off-duty
5-2 death benefit.
5-3 Sec. 3. RETIREMENT BENEFITS. (a) A member [fire fighter]
5-4 shall receive a retirement annuity payable in monthly installments
5-5 on reaching retirement age, subject to the vesting provisions in
5-6 Section 6 of this Act.
5-7 (b) The monthly retirement annuity is equal to six times the
5-8 governing body's average monthly contribution over the member's
5-9 [member fire fighters's] term of qualified service under this Act.
5-10 (c) For each year of additional qualified service in excess
5-11 of 15 years, a member [fire fighter] is entitled to receive an
5-12 additional seven percent of the member's [his] monthly pension
5-13 compounded annually. A member [fire fighter] may receive a
5-14 proportional credit for days or months of qualified service that
5-15 make up less than a year.
5-16 Sec. 4. DISABILITY BENEFITS. (a) A member [fire fighter]
5-17 must, at the time of disability, elect between retirement or
5-18 disability benefits if eligible for both.
5-19 (b) A member [fire fighter] who is disabled during the
5-20 performance of emergency service duties [as a fire fighter] is
5-21 automatically vested 100 percent as of the date of disability, if
5-22 the disability occurs before the member has completed 15 years of
5-23 qualified service. Benefits under this subsection are payable if
5-24 the member [fire fighter] is unable to perform the person's duties
5-25 for the member's participating department [as a fire fighter] or
5-26 the duties of any other occupation for which the person is
5-27 reasonably suited by education, training, and experience.
6-1 (c) A member [fire fighter] whose disability results from
6-2 performing emergency service duties [as a fire fighter] is
6-3 guaranteed a disability benefit of $300 a month.
6-4 [(d) A member fire fighter whose disability results from
6-5 performing duties as a fire fighter is guaranteed a disability
6-6 benefit of $300 a month.]
6-7 Sec. 5. DEATH BENEFITS. (a) The beneficiary of a deceased
6-8 member [fire fighter] whose death did not result from the
6-9 performance of emergency service duties [as a member of the fire
6-10 department] shall receive a lump-sum benefit that is the greater
6-11 of:
6-12 (1) the sum contributed to the fund on the decedent's
6-13 behalf; or
6-14 (2) the sum which would have been contributed on the
6-15 decedent's behalf from whatever source at the end of 15 years of
6-16 qualified service.
6-17 (b) The beneficiary of a member whose death results from
6-18 performing emergency service duties [as a fire fighter] is
6-19 guaranteed a lump-sum benefit of at least $5,000.
6-20 (c) [(1)] If the death of a member [fire fighter] results
6-21 from the performance of emergency service duties [as a member of
6-22 the fire department], in addition to the lump-sum death benefit,
6-23 the deceased member's spouse and dependents are entitled to receive
6-24 in equal shares a survivor's benefit equal to two-thirds of the
6-25 monthly retirement annuity the decedent would have been entitled to
6-26 receive if the decedent had been able to retire, vested at 100
6-27 percent, under Section 3 of this Act on the date of the decedent's
7-1 death. As long as both spouse and one or more dependents survive,
7-2 an additional one-third of that monthly retirement annuity shall be
7-3 paid to the dependents in equal shares.
7-4 (d) If a person [member fire fighter] dies after retirement,
7-5 the surviving spouse shall receive two-thirds of the monthly
7-6 pension the decedent was receiving at the time of death. If a
7-7 member [fire fighter] dies before retirement but after meeting the
7-8 minimum age and service requirements for service retirement, the
7-9 surviving spouse is entitled to receive two-thirds of the monthly
7-10 pension the decedent would have received if the decedent had
7-11 retired on the date of death.
7-12 (e) The spouse is eligible to receive benefits as long as
7-13 the spouse remains alive.
7-14 (f) Lump-sum death benefits are subject to the laws of
7-15 descent and distribution if the decedent has not provided for
7-16 testamentary disposition.
7-17 (g) When a member [fire fighter] names more than one
7-18 beneficiary for the lump-sum death benefit, the benefit shall be
7-19 divided equally among the named beneficiaries unless the member
7-20 [fire fighter] designates a proportional division. If the member
7-21 [fire fighter] designates a proportional division, each beneficiary
7-22 shall receive the proportion of the lump-sum benefit designated by
7-23 the member [fire fighter].
7-24 (h) The surviving spouse of a deceased member who dies after
7-25 terminating service with all participating departments and meeting
7-26 a vesting requirement under Section 6 of this Act but before
7-27 attaining the age of 55 is entitled to a monthly pension, beginning
8-1 on the date the decedent would have attained that age, that is
8-2 two-thirds of the monthly pension to which the decedent would have
8-3 been entitled on that date.
8-4 Sec. 8. CERTIFICATION OF PHYSICAL FITNESS. A prospective
8-5 member [fire fighter entering service in a member fire department
8-6 after the effective date of this Act] shall present to the local
8-7 board of trustees a certification of physical fitness by a
8-8 qualified physician. If the local board accepts the certification,
8-9 the person [fire fighter] becomes a member of the pension system.
8-10 If the local board does not accept the certification or if the
8-11 person [fire fighter] does not present a certification, the person
8-12 [fire fighter] becomes a member of the pension system only if the
8-13 local board assigns the person [fire fighter] to support duties
8-14 [other than fighting fires].
8-15 Sec. 9. TRANSFER OF ACCRUED BENEFITS. A member [fire
8-16 fighter] who terminates service and later resumes service with the
8-17 same participating [fire] department or transfers to another
8-18 participating [member] department may transfer all accrued benefits
8-19 to the new or resumed service.
8-20 Sec. 10. ENTERING THE PENSION SYSTEM; REQUIRED ELECTION.
8-21 (a) An election must be held within a [the local fire] department
8-22 to merge its current pension plan with the pension system.
8-23 (b) The election must be held within 14 days after:
8-24 (1) a petition calling for an election and signed by
8-25 50 percent of the active emergency services personnel [fire
8-26 fighters] in the department is filed at the local department; and
8-27 (2) the disclosure required by Section 16 of this Act
9-1 is made to the emergency services personnel [fire fighters] in the
9-2 local department.
9-3 (c) If the current pension plan of the [fire] department is
9-4 not solvent, the election to enter the pension system in this Act
9-5 must be decided by a majority of the votes cast by qualified
9-6 emergency services personnel [fire fighters] in the department.
9-7 (d) If the current pension plan of the [fire] department is
9-8 solvent, the election to enter the pension system in this Act must
9-9 be decided by at least 60 percent of all votes cast.
9-10 (e) In the election required in this section, a person's
9-11 [fire fighter's] vote must be multiplied by the number of years of
9-12 participation in the current pension plan.
9-13 SECTION 5. Sections 11(a), (d), (e), and (f), Texas
9-14 Statewide Volunteer Fire Fighters Retirement Act (Article 6243e.3,
9-15 Vernon's Texas Civil Statutes), are amended to read as follows:
9-16 (a) When a [fire] department under a current pension plan
9-17 elects to participate in the pension system in this Act, the
9-18 current pension plan is merged with the pension system.
9-19 (d) Following merger, a member's retirement benefits in the
9-20 pension system are determined by either the future-service method
9-21 or the buy-back method. [The options are available only to fire
9-22 fighters participating in the current pension plan.]
9-23 (e)(1) In the future-service method, the qualified service
9-24 required to earn retirement benefits in the pension system begins
9-25 as of the date of merger. For determining a person's retirement
9-26 benefits in the pension system, a department [fire fighter] may
9-27 choose the formula for benefits used in the current pension plan or
10-1 the formula for benefits as outlined in this Act. Any retirement
10-2 benefits accrued prior to the date of merger will also be paid on
10-3 retirement according to the formula for benefits under the current
10-4 pension plan.
10-5 (2) In the buy-back method in determining the member's
10-6 [fire fighters'] retirement benefits in the pension system, a
10-7 department [fire fighter] may choose the formula for benefits used
10-8 in the current pension plan or the formula for benefits as outlined
10-9 in this Act. A member [The fire fighter] who has less than 15
10-10 years of service remaining before retirement as of the date of
10-11 merger may count time served under the current pension plan before
10-12 the date of merger as qualified service if the service complies
10-13 with the [minimum drill and fire] attendance requirements provided
10-14 for qualified service. The time period necessary to make 15 years
10-15 of service before retirement may be used.
10-16 (f) A person [fire fighter] who terminates service prior to
10-17 the date of merger of the person's [his fire] department's current
10-18 pension plan with the pension system is entitled to receive at
10-19 retirement age the retirement benefits vested under the pension
10-20 plan in effect during the person's [his] service. The pension
10-21 system pays the person's [his] benefits.
10-22 SECTION 6. Sections 11A, 12, 12A, 15, and 16, Texas
10-23 Statewide Volunteer Fire Fighters Retirement Act (Article 6243e.3,
10-24 Vernon's Texas Civil Statutes), are amended to read as follows:
10-25 Sec. 11A. PRIOR SERVICE OF MEMBERS WITHOUT A PENSION PLAN
10-26 BEFORE PARTICIPATION. A governing body that wishes to participate
10-27 [is participating] in the fund and whose [fire] department did not
11-1 have a pension plan in effect immediately before the date of
11-2 participation may purchase, on terms acceptable to the
11-3 commissioner, credit for prior service by its emergency services
11-4 personnel [member fire fighters]. The commissioner, after
11-5 consultation with a qualified actuary, shall determine the amount
11-6 required to purchase prior-service credit under this section. The
11-7 requirements of Section 11 of this Act apply to the purchase of
11-8 prior-service credit under this section to the extent that they are
11-9 applicable. The value of prior service purchased under this
11-10 section is the same as if it had been performed as a member of the
11-11 fund.
11-12 Sec. 12. WITHDRAWING FROM THE PENSION SYSTEM. (a) A current
11-13 pension plan that merges with the pension system may withdraw from
11-14 the pension system within five years after the date of merger on a
11-15 majority vote of the emergency services personnel [fire fighters]
11-16 in the department voting in the same manner as provided in Section
11-17 10 of this Act.
11-18 (b) On withdrawal from the pension system, the allocated
11-19 assets and liabilities as apportioned by an actuary retained by the
11-20 pension system must be transferred to the plan chosen to replace
11-21 the pension system.
11-22 (c) If a member [fire fighter] terminates service before
11-23 retirement, vested retirement benefits must be paid to the member
11-24 [fire fighter] at retirement age. There is no penalty for
11-25 nonconsecutive years of service.
11-26 Sec. 12A. BENEFITS FOR MEMBER OF DEPARTMENT THAT CEASES TO
11-27 EXIST. (a) The commissioner shall continue to administer benefits
12-1 of the pension system for members and retirees who performed
12-2 service for a former [member fire] department that has not
12-3 withdrawn from the pension system under Section 12 of this Act and
12-4 has ceased to exist.
12-5 (b) The governing body of a political subdivision in which a
12-6 former [member fire] department described by Subsection (a) of this
12-7 section was located shall perform the duties provided by Section 23
12-8 of this Act for the members and retirees who performed service for
12-9 the former [member fire] department.
12-10 Sec. 15. Pension plans required to be solvent. (a) Every
12-11 person who performs emergency service duties [fire fighter] in the
12-12 state and who serves without monetary remuneration must be a member
12-13 of a solvent pension plan.
12-14 (b) After the effective date of this Act, an insolvent
12-15 pension plan for emergency services personnel [fire fighters] who
12-16 serve without monetary remuneration must become actuarially sound
12-17 within three years. An insolvent pension plan must demonstrate to
12-18 the commissioner within six months after becoming insolvent that
12-19 steps are being taken to become actuarially sound.
12-20 Sec. 16. DISCLOSURE OF PENSION PLAN INFORMATION REQUIRED.
12-21 (a) The governing body shall disclose to each person [fire fighter]
12-22 who [serves without monetary remuneration and who] is eligible for
12-23 participation in the pension system the information required by
12-24 this section.
12-25 (b) The commissioner shall distribute to each emergency
12-26 services [fire] department and each governing body the following
12-27 information:
13-1 (1) all benefits that are available in the pension
13-2 system in this Act;
13-3 (2) the contributions required by the pension system;
13-4 (3) the expected return on the investment for [of] a
13-5 member [fire fighter];
13-6 (4) when benefits vest;
13-7 (5) the transferability of benefits;
13-8 (6) rights of withdrawing members;
13-9 (7) procedures for filing claims and appeals; and
13-10 (8) [tax consequences; and]
13-11 [(9)] changes in the law.
13-12 (c) Each [The local fire] department shall disclose to all
13-13 personnel [each fire fighter in the department and to each new fire
13-14 fighter on his commissioning] the information in Subsection (b) of
13-15 this section.
13-16 (d) After a petition for an election as required in Section
13-17 10 of this Act has been filed and before the election occurs, the
13-18 directors of a current pension plan must disclose to its members
13-19 the information required in Subsection (b) of this section about
13-20 the current pension plan.
13-21 SECTION 7. Section 19(a), Texas Statewide Volunteer Fire
13-22 Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
13-23 Statutes), is amended to read as follows:
13-24 (a) The commissioner may not administer any [fire fighters']
13-25 pension plan other than the pension system created by this Act and
13-26 the system created by Chapter 125, Acts of the 45th Legislature,
13-27 Regular Session, 1937, as amended (Article 6243e, Vernon's Texas
14-1 Civil Statutes).
14-2 SECTION 8. Section 21(b), Texas Statewide Volunteer Fire
14-3 Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
14-4 Statutes), is amended to read as follows:
14-5 (b) The board shall establish rules [and regulations]
14-6 necessary for the administration of the fund. The board shall
14-7 adopt rules to provide a proration of the requirements for
14-8 qualified service for a member who performs service for only a
14-9 portion of a calendar year and may provide by rule for the manner
14-10 in which member attendance or drill hours are to be computed.
14-11 SECTION 9. Sections 22(a) and (d), Texas Statewide Volunteer
14-12 Fire Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
14-13 Statutes), are amended to read as follows:
14-14 (a) The local board of trustees is composed of the
14-15 following:
14-16 (1) one representative selected by the governing body;
14-17 (2) five members representing a participating [of the
14-18 local fire] department chosen by a majority of the emergency
14-19 services personnel in the department who are eligible to
14-20 participate in the pension system [fire fighters in qualified
14-21 service]; and
14-22 (3) two persons [tax-paying voters] who are chosen by
14-23 the other members of the board.
14-24 (d) On the first local board, the [fire department]
14-25 representatives of the participating department shall serve
14-26 staggered terms. These [The fire department] representatives shall
14-27 draw by lot at the first board meeting to determine the length of
15-1 term to be served. Three representatives shall serve two-year
15-2 terms, and two representatives shall serve one-year terms. The
15-3 first appointments of the [tax-paying or citizen] representatives
15-4 appointed by other members of the board shall be one appointed for
15-5 a two-year term and one appointed for a one-year term. Thereafter,
15-6 all appointments are for two-year terms.
15-7 SECTION 10. Sections 23(a) and (e), Texas Statewide
15-8 Volunteer Fire Fighters Retirement Act (Article 6243e.3, Vernon's
15-9 Texas Civil Statutes), are amended to read as follows:
15-10 (a) The local board of trustees shall monitor the timely
15-11 submission of required [collect all governing body contributions at
15-12 least annually and send the] contributions to the commissioner.
15-13 (e) The local board shall require a member [fire fighter]
15-14 who is receiving temporary disability benefits to file a disability
15-15 rating report from a physician every three months. The board may
15-16 choose the physician. When the reports indicate a significant
15-17 change of condition, the local board, after notice and a hearing,
15-18 may enter an order to terminate benefit payments or place the
15-19 member [fire fighter] on permanent disability. The order is sent
15-20 to the commissioner. If the board terminates benefits, the member
15-21 [fire fighter] is presumed able to perform the person's duties for
15-22 a participating department [as a fire fighter] or perform the
15-23 duties of another occupation for which the person is reasonably
15-24 suited by education, training, and experience.
15-25 SECTION 11. Section 25, Texas Statewide Volunteer Fire
15-26 Fighters Retirement Act (Article 6243e.3, Vernon's Texas Civil
15-27 Statutes), is amended to read as follows:
16-1 Sec. 25. ACT NOT TO REPEAL STATUTORY AUTHORITY. This Act
16-2 does not repeal the statutory authority for any existing or current
16-3 pension plan. This Act is intended to provide a pension system and
16-4 death and disability benefits for emergency services personnel who
16-5 are volunteers or partly paid employees [fire fighters who serve
16-6 without monetary remuneration]. The provisions of this Act are not
16-7 to be interpreted to affect fully paid emergency services personnel
16-8 [fire fighters] or their pension systems in any way.
16-9 SECTION 12. This Act takes effect September 1, 1997, except
16-10 that the definition of "qualified service" in Section 1, Texas
16-11 Statewide Emergency Services Retirement Act (Article 6243e.3,
16-12 Vernon's Texas Civil Statutes), as amended by this Act, takes
16-13 effect January 1, 1998.
16-14 SECTION 13. The importance of this legislation and the
16-15 crowded condition of the calendars in both houses create an
16-16 emergency and an imperative public necessity that the
16-17 constitutional rule requiring bills to be read on three several
16-18 days in each house be suspended, and this rule is hereby suspended.