By Barrientos S.B. No. 588
75R6064 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to participation in and benefits and administration of
1-3 retirement systems for police officers in certain municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.02, Chapter 452, Acts of the 72nd
1-6 Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's Texas
1-7 Civil Statutes), is amended to read as follows:
1-8 Sec. 1.02. DEFINITIONS. The following words and phrases
1-9 have the meanings assigned by this section unless a different
1-10 meaning is plainly required by the context:
1-11 (1) "Accumulated deposits" means the amount standing
1-12 to the credit of a member derived from the deposits required to be
1-13 made by the member to the police retirement system or to the
1-14 predecessor system improved annually by interest credited at a rate
1-15 of 5%, unless changed by the board, [determined by the board] which
1-16 is credited as of December 31 to amounts standing to the credit of
1-17 the member on January 1 of the same calendar year.
1-18 (2) "Actuarial equivalent" means any benefit of equal
1-19 present value to a standard benefit when computed as specified by
1-20 this Act.
1-21 (3) "Actuary" means a technical advisor of the police
1-22 retirement board regarding the operations which are based on
1-23 mortality, service, and compensation experience who makes periodic
1-24 valuations of the assets and liabilities of the funds and other
2-1 evaluations as requested by the board.
2-2 (4) "Average final compensation" means the monthly
2-3 average of basic hourly earnings of a member during, as applicable:
2-4 (A) if the member has 120 months or more of
2-5 service during which the member made contributions to the [police]
2-6 system or the predecessor system, the 36 months which yielded the
2-7 highest average during the last 120 months of membership service
2-8 during which the member contributed to the [police] system or the
2-9 predecessor system;
2-10 (B) if the member has less than 120 months of
2-11 membership service during which the member contributed to the
2-12 [police] system or the predecessor system, but has at least 36
2-13 months of membership service during which the member made
2-14 contributions to the [police] system or the predecessor system, the
2-15 average of the 36 months which yielded the highest average; or
2-16 (C) if the member does not have 36 months of
2-17 membership service during which the member contributed to the
2-18 [police] system or the predecessor system, the average of the
2-19 member's months of membership service during which the member made
2-20 contributions to the [police] system or the predecessor system.
2-21 (5) "Basic hourly earnings" means the hourly rate of
2-22 the sum of base pay plus longevity pay and excludes any other type
2-23 of pay.
2-24 (6) [(5)] "Beneficiary" means any person, trust, or
2-25 estate properly designated by a member or retired member to receive
2-26 benefits from the system.
2-27 (7) [(6)] "Creditable service" means the number of
3-1 months during which a member pays into and keeps on deposit the
3-2 amounts of money prescribed by this Act to be paid by the member
3-3 into the system or into the predecessor system, including certain
3-4 military service and certain probationary service in excess of six
3-5 months for which a member has purchased creditable service in
3-6 accordance with Article V of this Act, and excluding a month in
3-7 which service amounted to fewer than 15 days. The months beyond
3-8 attained age 62 are included within the meaning of creditable
3-9 service, regardless of payments into this system or into the
3-10 predecessor system if the police officer is otherwise eligible for
3-11 membership in the system, is a [an active] police officer employed
3-12 by the city, and did not contribute for the months only if they
3-13 occurred before September 1, 1995.
3-14 (8) "Death benefit" means a single sum payable as a
3-15 result of the death of a member before retirement or of a retired
3-16 member.
3-17 (9) [(7)] "Deposits" means the amount required to be
3-18 paid by members in accordance with the provisions of this Act.
3-19 (10) [(8)] "Disability retirement" means the
3-20 employment termination [withdrawal] of a member from [active]
3-21 service with a disability retirement benefit [allowance] as
3-22 provided under this Act.
3-23 (11) "Employment termination" means the voluntary
3-24 termination of employment with the city or the system or the
3-25 involuntary termination of employment with the city or the system
3-26 of a member who does not appeal the termination through arbitration
3-27 or through the civil service commission or whose appeal has been
4-1 denied by arbitration or by the civil service commission.
4-2 (12) [(9), (10) Repealed by Acts 1995, 74th Leg., ch.
4-3 40, Sec. 18, eff. Sept. 1, 1995.]
4-4 [(11)] "Fund No. 1" means the part of the trust assets
4-5 [fund] in which shall be kept all accumulated deposits of members
4-6 who have not withdrawn from the [police] system.
4-7 (13) [(12)] "Fund No. 2" means the part of the trust
4-8 assets [fund] in which shall be kept all money contributed by the
4-9 city, interest earned thereon, and all accumulations and earnings
4-10 of the system except those of Fund No. 1.
4-11 (14) [(13)] "Investment consultant" means a person
4-12 who monitors the investment performance of the system and
4-13 provides other services as requested by the board [of the police
4-14 retirement system].
4-15 (15) [(14)] "Investment manager" means a person or
4-16 persons who monitor and manage any portion of the investment
4-17 portfolio for the system [fund] making specified investment
4-18 decisions on behalf of the [police retirement] system.
4-19 (16) [(15)] "Life annuity" or "retirement annuity" or
4-20 "annuity" means a series of equal monthly payments, payable for
4-21 life after retirement.
4-22 (17) [(16)] "Life annuity (modified cash refund)"
4-23 means a series of equal monthly payments, payable for life after
4-24 retirement. In the event of death of the retired member before
4-25 that member has received monthly payments equal to the amount of
4-26 that member's accumulated deposits at the date of retirement, the
4-27 excess, if any, of such accumulated deposits over the monthly
5-1 payments shall be refunded in one sum to the member's [designated]
5-2 beneficiary.
5-3 (18) [(17)] "Member" means any police officer or
5-4 employee of the police retirement system [system's administrative
5-5 staff] included in the system under this Act and approved for
5-6 membership by the police retirement board. In any case of doubt
5-7 regarding the eligibility of an employee to become or remain a
5-8 member of the system, the decision of the police retirement board
5-9 shall be final.
5-10 (19) [(18)] "Normal retirement date" means the last
5-11 day of the earliest month in which the member:
5-12 (A) has attained the age of 55 and completed at
5-13 least 20 years of creditable service;
5-14 (B) has completed 25 years of creditable service
5-15 at any age; or
5-16 (C) has reached the age of 62.
5-17 (20) [19)] "Predecessor system" means the retirement
5-18 system for police officers in effect before January 1, 1980.
5-19 (21) [(20)] "Police officer" means any full-time
5-20 [regular and permanent] commissioned police officer employed by the
5-21 police department of the city [certain cities] pursuant to Chapter
5-22 143, Local Government Code.
5-23 (22) [(21)] "Police retirement board" or "board" means
5-24 the board of trustees of the police retirement system created by
5-25 Section 3.01 of this Act for the purpose of administering the
5-26 [retirement] system.
5-27 (23) [(22)] "Police retirement system" or "[police]
6-1 system" means a retirement and pensioning system for police
6-2 officers of certain cities established by Section 2.01 of this Act
6-3 and for employees of the system.
6-4 (24) "Retired member" means a member who is receiving
6-5 a service or disability retirement benefit.
6-6 (25) [(23) Repealed by Acts 1995, 74th Leg., ch. 40,
6-7 Sec. 18, eff. Sept. 1, 1995.]
6-8 [(24)] "Retirement" means employment termination
6-9 [separation of a member from active service] in order to receive an
6-10 annuity in accordance with the provisions of the police retirement
6-11 system under this Act.
6-12 (26) [(25)] "Retirement date" means the last day of
6-13 the month of the retirement of the member.
6-14 (27) [(26)] "Service" or "active service" means
6-15 service as a police officer of the city paid for by the city or
6-16 service as a member of the police retirement system's
6-17 administrative staff paid for by the system.
6-18 (28) "Spouse" means a spouse as recognized under the
6-19 laws of the State of Texas.
6-20 (29) "Survivor benefit" means a series of equal
6-21 monthly payments payable as a result of the death of a member after
6-22 becoming eligible for service retirement but before retirement and
6-23 calculated as if the member had retired on the last day of the
6-24 calendar month of death.
6-25 (30) "Vested" means a member has a right to leave his
6-26 accumulated deposits standing to his credit with the system and
6-27 receive a service retirement benefit upon attaining the age at
7-1 which service retirement benefits become payable. A member is
7-2 vested upon attaining 10 years of creditable service.
7-3 (31) [(27)] "Vested interest" means the amount of
7-4 benefit to which a member has a nonforfeitable right in accordance
7-5 with the provisions of this Act.
7-6 (32) [(28)] "Withdrawal" means employment termination
7-7 [the separation of any member from active service] for any cause
7-8 whatsoever prior to retirement date and the subsequent receipt or
7-9 direct rollover of the accumulated deposits standing to the
7-10 member's credit [withdrawal from membership] in the police
7-11 retirement system.
7-12 (33) [(29)] "Withdrawal benefit" [allowance"] means
7-13 the accumulated deposits of a member upon withdrawal [withdrawing
7-14 from active service and membership in the system] which have been
7-15 made in one lump sum unless specifically provided otherwise in this
7-16 Act.
7-17 SECTION 2. Articles II through XIII, Chapter 452, Acts of
7-18 the 72nd Legislature, Regular Session, 1991 (Article 6243n-1,
7-19 Vernon's Texas Civil Statutes), are amended to read as follows:
7-20 ARTICLE II
7-21 Sec. 2.01. ESTABLISHMENT AND APPLICABILITY. The retirement
7-22 system for police officers of the city and the trust forming the
7-23 part hereof are [is] hereby established on the passage of this Act
7-24 by the Legislature of the State of Texas. The police retirement
7-25 system and the related trust are [is] placed under the management
7-26 of the police retirement board for the purpose of providing certain
7-27 benefits on retirement for police officers, as defined in this Act.
8-1 Sec. 2.02. SUCCESSOR. This system is the successor system
8-2 to the one applicable to police officers immediately prior to the
8-3 effective date of this Act.
8-4 Sec. 2.03. PURPOSE. It is the express purpose of this Act
8-5 to have no duplication of benefits provided by the police
8-6 retirement system and the retirement system for other employees of
8-7 the city for a common period of service to the city. Any change in
8-8 employment status which results in transferring membership between
8-9 the police retirement system and the retirement system for other
8-10 employees of the city shall be handled in a policy determined to be
8-11 satisfactory by the police retirement board and by the board for
8-12 the retirement system for other employees of the city. Such policy
8-13 may include the transfer of member service and appropriate transfer
8-14 of Fund No. 1 and Fund No. 2 assets as determined by the retirement
8-15 boards.
8-16 ARTICLE III
8-17 Sec. 3.01. ADMINISTRATION. There is hereby created a police
8-18 retirement board of the police retirement system, in which is
8-19 hereby invested the general administration, management, and
8-20 responsibility for the proper and effective operation of the police
8-21 retirement system. The board shall be organized immediately after
8-22 its members have qualified and taken the oath of office. All
8-23 members of the board on January 1, 1991, shall become members of
8-24 the board on the effective date of this Act and continue to serve
8-25 for the remainder of the terms of office in effect on the day prior
8-26 to the effective date of this Act.
8-27 Sec. 3.02. COMPOSITION OF BOARD. The police retirement
9-1 board shall be composed of 11 members as follows:
9-2 (1) one council member designated by the city council;
9-3 (2) the city manager or the city manager's designee;
9-4 (3) the director of finance or the director's
9-5 designee;
9-6 (4) four [active] police officer members elected by
9-7 the police officer members of the system, each to serve for a term
9-8 of four years. Vacancies occurring by death, resignation,
9-9 disability retirement, removal, or any other reason except
9-10 retirement shall be filled for the remainder of the term by a [an
9-11 active] police officer member appointed by the board; a police
9-12 officer [an active employee] member who retires, except for
9-13 disability retirement, will be eligible to complete the remainder
9-14 of the member's term;
9-15 (5) three legally qualified voters of the city,
9-16 resident for the preceding five years, to be appointed by the
9-17 police retirement board. The term of office of citizen members
9-18 shall be four years, and each member shall continue to serve until
9-19 the member's successor is duly selected and qualified. Vacancies
9-20 occurring by death, resignation, or removal shall be filled by
9-21 appointment by the remaining members of the police retirement
9-22 board; and
9-23 (6) one [police officer] retired member to be elected
9-24 by the retired members. The term of office of such member shall be
9-25 four years. Such member shall continue to serve until the member's
9-26 successor is duly elected and qualified. Vacancies occurring by
9-27 death, resignation, or removal of such retired [retiree] member
10-1 shall be filled by election by the retired members.
10-2 Sec. 3.03. ELECTION OF POLICE OFFICER MEMBERS. The [elected
10-3 active] police officer members of the board shall be elected in
10-4 accordance with the following provisions:
10-5 (1) Any [active] police officer member [officers of
10-6 the city] shall be eligible to run in the election for a position
10-7 on the board.
10-8 (2) Terms of office shall be four years. Members
10-9 shall serve during the term for which they are elected and until
10-10 their successors are elected and qualified, unless they are removed
10-11 or their active service as police officers with the city is
10-12 terminated for any reason other than retirement. If a [an active]
10-13 police officer member should elect service retirement under Article
10-14 VI of this Act while serving the term for which the member is
10-15 elected, the member shall continue to serve for the remainder of
10-16 the term.
10-17 (3) A vacancy occurring by reason of removal,
10-18 resignation, death, or any other reason except retirement shall be
10-19 filled for the remainder of the term by a [an active] police
10-20 officer member appointed by the remaining members of the police
10-21 retirement board.
10-22 (4) No later than the first day of November of each
10-23 odd-numbered year, the board shall appoint an election committee.
10-24 The election committee shall prepare the ballot containing the
10-25 names of all eligible candidates.
10-26 (5) The election committee shall publish a notice at
10-27 least two weeks prior to the election date, informing all [active]
11-1 police officer members of the election and the names of the police
11-2 officer members who have been certified as candidates.
11-3 (6) Elections for police officer members shall be held
11-4 on the first payday in December of each odd-numbered year. The
11-5 police officers receiving the highest number of votes shall be
11-6 deemed elected. In case of a tie vote, selection shall be by lot.
11-7 (7) The election committee shall canvass the returns,
11-8 certify the results, and announce the official results of the
11-9 election.
11-10 (8) The police retirement board shall approve written
11-11 procedures for the conduct of the election no later than August 1
11-12 of each odd-numbered year.
11-13 Sec. 3.04. OATH; COMPENSATION. (a) At the first regularly
11-14 scheduled police retirement board meeting after appointment and
11-15 election, each member of the police retirement board shall take an
11-16 oath of office that, so far as it devolves upon him, the member
11-17 will diligently and honestly administer the affairs of the police
11-18 retirement system and that the member will not knowingly violate or
11-19 willingly permit to be violated any of the provisions of this Act
11-20 applicable to the police retirement system.
11-21 (b) All members of the board shall serve without
11-22 compensation.
11-23 Sec. 3.05. CHAIR; VICE-CHAIR. (a) The board shall elect
11-24 from its membership a chair and a vice-chair to serve two years.
11-25 (b) The board shall appoint a pension officer. The
11-26 pension officer shall appoint other necessary staff members with
11-27 approval of the board. The pension officer, acting under the
12-1 direction of the board, shall keep all of the records of the police
12-2 retirement system and a record of the proceedings of the board.
12-3 The pension officer and other employees of the system [each staff
12-4 member] shall receive such compensation as the board may fix in
12-5 each annual budget or amendments thereto.
12-6 Sec. 3.06. RULES; QUORUM; REMOVAL. Subject to the
12-7 limitations of this Act the police retirement board shall from time
12-8 to time establish rules and regulations for the administration of
12-9 the police retirement system [fund or funds] authorized to be
12-10 created by this Act and for the transaction of the board's
12-11 business. Each member of the board shall be entitled to one vote.
12-12 Six members shall constitute a quorum. A majority vote of members
12-13 attending a meeting shall be necessary for a decision of the board.
12-14 Any member who is absent from five consecutive board meetings shall
12-15 be removed from the [police] board, and the member shall be
12-16 replaced in accordance with Section 3.02 of this Act.
12-17 Sec. 3.07. BOARD RECORDS. The board shall keep or cause to
12-18 be kept in convenient form data necessary for actuarial valuation
12-19 of various funds of the police retirement system and for checking
12-20 the experience of the system. The board shall keep a record of all
12-21 its proceedings, which shall be open to public inspection, and
12-22 shall publish annually a report showing the fiscal transactions of
12-23 the police retirement system for the preceding year and the amount
12-24 of its accumulated cash and securities as disclosed by the most
12-25 recent actuarial valuation of assets and liabilities.
12-26 Sec. 3.08. ADMINISTRATION OF POLICE RETIREMENT SYSTEM.
12-27 [FUNDS.] The board shall have charge of and administer the police
13-1 retirement system [funds] and shall order payments therefrom under
13-2 the provisions of this Act. The board shall obtain from the city
13-3 all records necessary to administer the system. Individual
13-4 accounts shall be maintained with each member of the police
13-5 retirement system, showing the amount of the member's accumulated
13-6 deposits [and the accumulated interest allocated and standing to
13-7 the credit of the member] as provided under the [police] system.
13-8 Annually a statement shall be given each member showing the total
13-9 accumulation of the member's credit. The board shall engage and
13-10 employ a certified public accountant or firm of certified public
13-11 accountants to perform an audit of the accounts of the board and
13-12 the police retirement system at least annually.
13-13 Sec. 3.09. ACTUARY; DUTIES. (a) The police retirement
13-14 board shall designate an actuary that shall be the technical
13-15 advisor to the board regarding the funds authorized by provisions
13-16 of this Act and shall perform such other duties as may be required
13-17 in connection therewith. As soon as practicable after the
13-18 establishment of the police retirement system, the actuary shall
13-19 recommend for adoption by the board tables and rates required by
13-20 the [police] system. The board shall adopt the tables and rates
13-21 and as soon as practicable thereafter the actuary shall make a
13-22 valuation, based on the tables and rates, of the assets and
13-23 liabilities of the [police] system.
13-24 (b) From time to time on the advice of the actuary and at
13-25 the direction of the board, the actuary shall make an actuarial
13-26 investigation of the mortality, service, and compensation
13-27 experience of members, retired members, [surviving spouses,] and
14-1 beneficiaries of the [police] system and shall recommend for
14-2 adoption by the board the tables and rates required by the
14-3 [police] system. The [police] board shall adopt the tables and
14-4 rates to be used by the [police] system.
14-5 (c) The actuary shall make valuations of the assets and
14-6 liabilities of the [police] system based on tables and rates
14-7 adopted by the board at least every two years.
14-8 Sec. 3.10. INVESTMENT MANAGERS. The police retirement
14-9 board may hire an investment manager or investment managers who
14-10 shall have full authority to invest the assets and manage any
14-11 portion of the portfolio of the system, [fund,] as specified by the
14-12 manager's employment contract.
14-13 Sec. 3.11. INVESTMENT CONSULTANT. The board may hire an
14-14 investment consultant to monitor the investment performance of the
14-15 system's [fund's] investment manager or managers and provide other
14-16 investment advice requested by the board.
14-17 Sec. 3.12. LEGAL COUNSEL. The board may retain legal
14-18 counsel to advise, assist, or represent the board in any legal
14-19 matters affecting the operation of the system. [fund.] In
14-20 elaboration of the foregoing, the board has the authority to
14-21 litigate all matters for and on behalf of the police retirement
14-22 system.
14-23 ARTICLE IV
14-24 Sec. 4.01. MEMBERSHIP. (a) Any person who is a police
14-25 officer of the city on the date the police retirement system
14-26 becomes effective and was a member of the predecessor system on
14-27 December 31, 1979, shall become a member as a condition of
15-1 employment.
15-2 (b) Any person who is a police officer of the city on the
15-3 date the police retirement system becomes effective but was not a
15-4 member of the predecessor system, if eligible for membership, shall
15-5 become a member as a condition of employment and shall make the
15-6 required deposits commencing with the first pay period following a
15-7 probationary period of six continuous months from date of
15-8 employment or eligibility, if later.
15-9 (c) Any person who becomes an employee of the city or
15-10 becomes an employee of the system [a member of the police system's
15-11 administrative staff] after the date of establishment of the police
15-12 retirement system, if eligible for membership, shall become a
15-13 member as a condition of employment and shall make the required
15-14 deposits commencing with the first pay period following a
15-15 probationary period of six continuous months from date of
15-16 employment or eligibility, if later.
15-17 (d) Police officers of the city and employees [staff
15-18 members] of the [police] system [who] may not become members of
15-19 the police retirement system if they are [shall include all]
15-20 part-time police officers or employees [and staff members] of the
15-21 [police] system who are expected to work less than [75 percent of]
15-22 a normal work week or if they are [and all] seasonal or [and]
15-23 temporary police officers or employees [and staff members] of the
15-24 [police] system. A [regular] full-time police officer of the city
15-25 or employee of the system eligible for membership in the system
15-26 [who is not included in this excepted classification] is one whose
15-27 position is classified in the annual budget, who is expected to be
16-1 employed throughout the full calendar year, and whose employment
16-2 is expected to continue [continues] from year to year. [If regular
16-3 police officers and staff members of the police system work at
16-4 least 75 percent of a normal work week but less than full-time, the
16-5 members shall make deposits as though they were working a normal
16-6 full-time work week (even though their rate of contribution may
16-7 thereby exceed six percent of actual, regular compensation), and
16-8 their average final compensation shall be computed on the basis of
16-9 the compensation for a normal work week. No deposits shall be made
16-10 nor membership service credit received for periods during which the
16-11 authorized normal work week is less than 75 percent of a normal
16-12 work week for a police officer or staff member of the retirement
16-13 system.]
16-14 (e)(1) Membership in the police retirement system shall
16-15 consist of the following groups:
16-16 (A) Active--Contributory: the member who is
16-17 in a status which allows payroll contributions to the police
16-18 retirement system (working [75 percent of] a normal work week [or
16-19 more per week, permanent] , holding a full-time position, and
16-20 having completed a continuous period of six months of service
16-21 initially, to attain membership).
16-22 (B) Active--Noncontributory: the member whose
16-23 current employment status does not allow contributions to the
16-24 [police] system (working less than a normal work week or on a leave
16-25 of absence under Subsection (f)(6)(A)) and upon return to working a
16-26 normal work week, [is thereby deactivated with the privilege of
16-27 immediate reentry, on appropriate change of status, to a period for
17-1 which] the member will again be given creditable service, with
17-2 contributions resumed at time of status change.
17-3 (C) Inactive--Contributory: the member who is
17-4 on a uniformed service leave of absence under Subsection (f)(6)(B)
17-5 of this section, who is allowed to make deposits to the [police]
17-6 system during the member's absence.
17-7 (D) Vested--Noncontributory: the terminated
17-8 member who, being [fully] vested, leaves [retains] the member's
17-9 accumulated deposits [contributions] in the [police] system.
17-10 (E) Retired: the member who is receiving a
17-11 service or disability retirement annuity.
17-12 (2) It shall be the duty of the police retirement
17-13 board to determine the membership group to which each police
17-14 officer or employee [staff member] of the [police] system who
17-15 becomes a member of the police retirement system properly belongs.
17-16 (f)(1) A member shall cease to be a member of the police
17-17 retirement system and shall forfeit creditable [lose membership]
17-18 service if, after employment termination through [death,]
17-19 dismissal, resignation, or from any other cause, the member shall
17-20 [sever the member's service connection and] withdraw the member's
17-21 accumulated deposits as provided under the withdrawal benefit
17-22 [allowance] provisions of this Act; provided, however, that any
17-23 eligible member who has not previously received credit for one-half
17-24 of the member's previously forfeited creditable [membership]
17-25 service shall be entitled to reinstatement of previously forfeited
17-26 creditable [membership] service if such eligible member or eligible
17-27 surviving spouse shall have deposited in the system the accumulated
18-1 deposits withdrawn and an interest charge based on the amount
18-2 withdrawn times an interest factor. The factor is derived by
18-3 adjusting and compounding the [based on the compounded net] annual
18-4 rates [rate] of interest that were credited to the [member's]
18-5 accumulated deposits of members, where each annual rate is
18-6 adjusted by dividing it by 0.75. The period for compounding the
18-7 interest factor begins [contributions divided by 0.75, beginning]
18-8 with the beginning of the month and year in which the member
18-9 withdrew the member's accumulated deposits [contributions] and
18-10 ends [ending] with the beginning of the month and year payment is
18-11 made to the system to reinstate the service. The annual rate of
18-12 interest applicable for the year when payment is made is considered
18-13 to be equal to the prior year's rate of interest for the purpose of
18-14 making the determination.
18-15 (2) For purposes of this subsection, an [An] eligible
18-16 member is a police officer who has been reemployed by the city or a
18-17 staff member reemployed by the [police] system, has completed at
18-18 least 24 consecutive months of service as a member since the member
18-19 was reemployed, and is not separated from active service. For
18-20 purposes of this subsection, an eligible surviving spouse is the
18-21 surviving spouse of a member who was an eligible member immediately
18-22 before the time of death if the member dies before making payment
18-23 to the system of the amount required by this subsection.
18-24 (3) In order to be eligible to reinstate previously
18-25 forfeited creditable [membership] service, an eligible member or
18-26 eligible surviving spouse must deposit the amount described in
18-27 Subdivision (1) of this subsection as a lump sum in the system. An
19-1 eligible surviving spouse may reinstate previously forfeited
19-2 creditable [membership] service not later than the date that is six
19-3 months after the date of the member's death and only if the lump
19-4 sum benefit described by Section 6.05(a) or 6.06(a)(3) of this Act
19-5 is not paid.
19-6 (4) Any such member who has previously received credit
19-7 for one-half of previously forfeited creditable [membership]
19-8 service shall be entitled to reinstate the remaining one-half of
19-9 the member's previously forfeited creditable [membership] service
19-10 by payment of one-half of the amount previously withdrawn and an
19-11 interest charge as described in Subdivision (1) of this subsection.
19-12 (5) The method of determining the amount of the
19-13 required payment described by Subdivision (1) of this subsection
19-14 may be changed if:
19-15 (A) the effect of the change is disclosed by the
19-16 board's actuary;
19-17 (B) the change is adopted by the board as a
19-18 board rule; and
19-19 (C) the change applies to all payments for
19-20 reinstating previously forfeited creditable [membership] service
19-21 under this subsection made to the [retirement] system after the
19-22 effective date of the change.
19-23 (6)(A) A member granted a leave of absence or
19-24 withdrawing from service for a stated period of time, not to
19-25 exceed two years, who allows the member's accumulated deposits
19-26 [contributions] to the police retirement system to remain in the
19-27 system, [fund,] shall be eligible for continued membership on being
20-1 reemployed by the city as a police officer or by the system as a
20-2 staff member of [reentering the service of the city or] the
20-3 [police] system. During that period the employee shall not receive
20-4 creditable service. [service credit.]
20-5 (B) Uniformed service [Military] leave of
20-6 absence shall not be included in the two-year period if the member
20-7 returns to active service with the city as a police officer or with
20-8 the system as a staff member of the system within 90 days after the
20-9 expiration of the uniformed service [military] leave of absence.
20-10 A member of the [police] system on uniformed service [military]
20-11 leave of absence may make deposits to the [police] system during
20-12 the [military] leave of absence, in an amount each biweekly pay
20-13 period that is equal to the amount of the member's deposit for the
20-14 last complete biweekly pay period that the member was paid by the
20-15 city or the [police] system. If a member on a uniformed service
20-16 leave of absence makes these biweekly deposits during the leave of
20-17 absence, then the employer, the [The] city or the system, shall
20-18 make a contribution to the system [retirement fund] for the member
20-19 [employed by the city] each biweekly pay period in an amount the
20-20 employer [city] would have made if the member's biweekly pay had
20-21 continued to be the biweekly pay the member received for the last
20-22 complete biweekly pay period that the member was paid by the
20-23 employer. [city.] If the member does not make deposits during a
20-24 uniformed service [military] leave of absence, the member may make
20-25 payment within five years after the member has returned to the
20-26 employment of the city or the system, equal to the deposits the
20-27 member would have made if the member had continued to be paid by
21-1 the city or the system during the member's [military] leave of
21-2 absence at the same rate of pay the member was receiving at the
21-3 time the member's leave of absence began. The payment may be a
21-4 single payment or may be in installments as long as each individual
21-5 installment is not less than 20 percent of the total amount to be
21-6 paid. A member who otherwise would be eligible to make payment
21-7 under this subdivision but who has not made payment and for whom it
21-8 has been more than five years since the member returned to the
21-9 employment of the city may make payment during the period beginning
21-10 October 1, 1995, and ending September 30, 1996. If a member makes
21-11 payment of the deposits after returning to the employment of the
21-12 city or the system, then the employer [The city] will make a single
21-13 contribution for the member [employed by the city] equal to the
21-14 deposits it would have made on the member's behalf if the member
21-15 had made deposits to the system [fund] during the period of the
21-16 member's [military] leave.
21-17 (g) Repealed by Acts 1995, 74th Leg., ch. 40, Sec. 18, eff.
21-18 Sept. 1, 1995.
21-19 ARTICLE V
21-20 Sec. 5.01. CREDITABLE SERVICE. The board shall determine by
21-21 appropriate rules and regulations, subject to the provisions of
21-22 this Act, in case of a member's absence, illness, or other
21-23 temporary separation from service, the portion of each calendar
21-24 year to be allowed as creditable service. No credit shall be
21-25 allowed as service for any period exceeding one month during which
21-26 a member was absent continuously without pay, except as provided in
21-27 Subsection (f) of Section 4.01 of this Act, with respect to
22-1 uniformed service [military] leave; as provided in Section 5.02 of
22-2 this Act, with respect to military service performed prior to
22-3 [retirement] system membership; or as provided in Section 5.03 of
22-4 this Act, with respect to probationary service in excess of six
22-5 months. The board shall verify the records for service claims
22-6 filed by the members of the police retirement system, in accordance
22-7 with such administrative rules and regulations as the board may
22-8 from time to time adopt.
22-9 Sec. 5.02. MILITARY SERVICE CREDIT. (a) An eligible member
22-10 or eligible surviving spouse may establish creditable service for
22-11 military service performed [that is creditable] as provided under
22-12 this section according to the following conditions, limitations and
22-13 restrictions:
22-14 (1) Military service creditable in the [retirement]
22-15 system is active federal duty service in the Armed Forces of the
22-16 United States, other than as a student at a service academy, as a
22-17 member of the reserves, or any continuous active military service
22-18 lasting less than 90 days, and such military service must have been
22-19 performed prior to becoming a member of the police retirement
22-20 system or its predecessor system.
22-21 (2) For purposes of this section, an [An] eligible
22-22 member must:
22-23 (A) have been released from military duty under
22-24 conditions not dishonorable; and
22-25 (B) be a police officer employed by the city or
22-26 a staff member employed by the [police] system, who is not
22-27 separated from active [police system] service.
23-1 (3) An eligible member or eligible surviving spouse
23-2 may not establish more than 24 months of creditable service in the
23-3 [retirement] system for military service.
23-4 (4) An eligible member or eligible surviving spouse
23-5 may establish creditable service under this section by contributing
23-6 to the [retirement] system a single payment equal to 25 percent of
23-7 the estimated cost of the additional projected retirement benefits
23-8 the member or surviving spouse will be entitled to receive. The
23-9 system will determine the required contribution based on a
23-10 procedure recommended by the actuary and approved by the board.
23-11 (5) After the eligible member or eligible surviving
23-12 spouse makes the deposit required by this section, the [retirement]
23-13 system shall grant the member one month of creditable service for
23-14 each month of military service established by this section.
23-15 (6) For purposes of this section, an eligible
23-16 surviving spouse is the surviving spouse of a member who was an
23-17 eligible member immediately before the time of death if the member
23-18 dies before making payment to the system of the amount required by
23-19 this section. An eligible surviving spouse may establish
23-20 creditable service for military service not later than the date
23-21 that is six months after the date of the member's death and only if
23-22 the lump sum death benefit described by Section 6.05(a) or
23-23 6.06(a)(3) of this Act is not paid.
23-24 (b) The percent used to calculate the amount of the required
23-25 payment described by Subsection (a)(4) of this section may be
23-26 changed if:
23-27 (1) the effect of the change is disclosed by the
24-1 board's actuary;
24-2 (2) the change is adopted by the board [of trustees]
24-3 as a board rule; and
24-4 (3) the change applies to all payments for
24-5 establishing creditable service under this section made to the
24-6 [retirement] system after the effective date of the change.
24-7 Sec. 5.03. PROBATIONARY SERVICE CREDIT. (a) An eligible
24-8 member or eligible surviving spouse may establish creditable
24-9 service for probationary service performed [that is creditable] as
24-10 provided under this section according to the following conditions,
24-11 limitations, and restrictions:
24-12 (1) Probationary service creditable in the
24-13 [retirement] system is any probationary [nonmembership] service
24-14 following commission date for which the member does not have
24-15 creditable service. [date.]
24-16 (2) An eligible member or eligible surviving spouse
24-17 may establish creditable service under this section by contributing
24-18 to the [retirement] system a single payment equal to the
24-19 contribution the member would have made to the system for that
24-20 service at the time the service was performed and an interest
24-21 charge based on the contribution amount to be repaid times an
24-22 interest factor. The factor is derived by adjusting and
24-23 compounding the [based on the compounded] annual rates of interest
24-24 that were [which are equal to the rates which have been] credited
24-25 to the [member's] accumulated deposits of members, where each
24-26 annual rate is adjusted by dividing it by 0.75. The period for
24-27 compounding the interest factor begins [divided by 0.75, beginning]
25-1 with the beginning of the month and year at the end of the
25-2 probationary period for which creditable service is being
25-3 established to the beginning of the month and year [later time]
25-4 payment is made to the system [fund] for the purpose of
25-5 establishing said service. The annual rate of interest applicable
25-6 for the year when payment is made is considered to be equal to the
25-7 prior year's rate of interest for the purpose of making the
25-8 determination.
25-9 (3) After the eligible member or eligible surviving
25-10 spouse makes the deposit required by Subdivision (2) of this
25-11 subsection, the [retirement] system shall grant the member one
25-12 month of creditable service for each month of probationary service
25-13 established under this section.
25-14 (b) For purposes of this section, an eligible member is a
25-15 police officer employed by the city who is not separated from
25-16 active service.
25-17 (c) For purposes of this section, an eligible surviving
25-18 spouse is the surviving spouse of a member who was an eligible
25-19 member immediately before the time of death if the member dies
25-20 before making payment to the system of the amount required by this
25-21 section. An eligible surviving spouse may establish creditable
25-22 service for probationary service not later than the date that is
25-23 six months after the date of the member's death and only if the
25-24 lump sum death benefit described by Section 6.05(a) or 6.06(a)(3)
25-25 of this Act is not paid.
25-26 (d) Notwithstanding Subsection (c) of this section, if an
25-27 eligible member dies on or after December 1, 1994, but not later
26-1 than August 31, 1995, and has not made payment to the system of the
26-2 amount required by this section, an eligible surviving spouse may
26-3 establish creditable service for probationary service on or before
26-4 February 29, 1996.
26-5 (e) The method of determining the amount of the required
26-6 payment described by Subsection (a)(2) of this section may be
26-7 changed if:
26-8 (1) the effect of the change is disclosed by the
26-9 board's actuary;
26-10 (2) the change is adopted by the board [of trustees]
26-11 as a board rule; and
26-12 (3) the change applies to all payments for
26-13 establishing creditable service under this section made to the
26-14 [retirement] system after the effective date of the change.
26-15 Sec. 5.04. CADET SERVICE CREDIT. (a) In order for this
26-16 section to become operative, the city council must irrevocably
26-17 authorize the city to begin making contributions to the police
26-18 retirement system in accordance with Subsection (a) of Section 8.01
26-19 for police cadets during their employment as cadets while a member
26-20 of a cadet class. For police cadets whose cadet class commences
26-21 after the city council makes the irrevocable authorization,
26-22 deposits shall be made by the cadets to the police retirement
26-23 system in accordance with Subsection (a) of Section 8.01, and those
26-24 cadets shall be members of the police retirement system and shall
26-25 receive creditable service for employment as a cadet while a member
26-26 of a cadet class, notwithstanding Subsections (7), (18) and (21) of
26-27 Section 1.02.
27-1 (b) The operative date for Subsections (c), (d), (e), and
27-2 (f) of this section is the date on which the changes made by those
27-3 subsections are approved by the board's actuary. The operative
27-4 date cannot be before the date the city council makes the
27-5 irrevocable authorization described in Subsection (a) of this
27-6 section.
27-7 (c) An eligible member or eligible surviving spouse may
27-8 establish creditable service for cadet service performed as
27-9 provided under this section according to the following conditions,
27-10 limitations, and restrictions:
27-11 (1) Cadet service creditable in the system is any
27-12 service while a member of a cadet class for which the member does
27-13 not have creditable service.
27-14 (2) An eligible member or eligible surviving spouse
27-15 may establish creditable service under this section by contributing
27-16 to the system a single payment equal to the contribution the member
27-17 would have made to the system for that service at the time the
27-18 service was performed and an interest charge based on the
27-19 contribution amount to be repaid times an interest factor. The
27-20 factor is derived by adjusting and compounding the annual rates of
27-21 interest that were credited to the accumulated deposits of members,
27-22 where each annual rate is adjusted by dividing it by 0.75. The
27-23 period for compounding the interest factor begins with the
27-24 beginning of the month and year at the end of the cadet class for
27-25 which creditable service is being established to the beginning of
27-26 the month and year payment is made to the system for the purpose of
27-27 establishing said service. The annual rate of interest applicable
28-1 for the year when payment is made is considered to be equal to the
28-2 prior year's rate of interest for the purpose of making the
28-3 determination.
28-4 (3) After the eligible member or eligible surviving
28-5 spouse makes the deposit required by Subsection (b)(2) of this
28-6 section, the system shall grant the member one month of creditable
28-7 service for each month of cadet service established under this
28-8 section.
28-9 (d) For purposes of this section, an eligible member is a
28-10 police officer employed by the city who is not separated from
28-11 active service.
28-12 (e) For purposes of this section, an eligible surviving
28-13 spouse is the surviving spouse of a member who was an eligible
28-14 member immediately before the time of death if the member dies
28-15 before making payment to the system of the amount required by this
28-16 section. An eligible surviving spouse may establish creditable
28-17 service for cadet service not later than the date that is six
28-18 months after the date of the member's death and only if the death
28-19 benefit described by Section 6.05(a) or 6.06(a)(3) of this Act is
28-20 not paid.
28-21 (f) The method of determining the amount of the required
28-22 payment described by Subsection (c)(2) of this section may be
28-23 changed if:
28-24 (1) the effect of the change is disclosed by the
28-25 board's actuary;
28-26 (2) the change is adopted by the board as a board
28-27 rule; and
29-1 (3) the change applies to all payments for
29-2 establishing creditable service under this section made to the
29-3 system after the effective date of the change.
29-4 ARTICLE VI
29-5 Sec. 6.01. SERVICE RETIREMENT BENEFITS AND INCREASES IN
29-6 [WITHDRAWAL] BENEFITS. (a) On retirement [from service] after
29-7 having reached the member's normal retirement date, members
29-8 entitled thereto shall receive a service [normal] retirement
29-9 benefit in the form of a life annuity (modified cash refund). Each
29-10 monthly payment of the life annuity (modified cash refund) shall be
29-11 equal to one-twelfth of the product of 2.88 [2.8] percent of a
29-12 member's average final compensation multiplied by the number of
29-13 months of creditable service. [If payments commence after the
29-14 member becomes 62 years of age and after completion of 120 months
29-15 of contributions, the amount of monthly payments shall be increased
29-16 at the rate of five-twelfths of one percent for each month after
29-17 age 62 for which the member earned creditable service but made no
29-18 contributions on the basis of the law in effect before September 1,
29-19 1995. The increased benefit shall not exceed 15 percent of the
29-20 amount which would otherwise have been paid if payments had
29-21 commenced at the member's retirement date. For a retirement date
29-22 after December 31, 1996, the amount of monthly payments may not be
29-23 increased for payments that commence after the member becomes 62
29-24 years of age.] The retirement benefit percent specified by this
29-25 section to calculate the amount of the monthly payment of the life
29-26 annuity (modified cash refund) may be changed after 1997 [1995] if:
29-27 (1) the change is approved by the board's actuary;
30-1 (2) the change is adopted by the board [of trustees]
30-2 as a board rule;
30-3 (3) the change applies to all present members, all
30-4 retired members, and all who become members after the effective
30-5 date of the change in the retirement benefit percent;
30-6 (4) a member's vested interest [accrued benefit] as of
30-7 the last day of the month immediately preceding the effective date
30-8 of the change in the retirement benefit percent is not reduced; and
30-9 (5) a retirement annuity being paid by the police
30-10 retirement system to members or to the surviving spouses or
30-11 beneficiaries of members who retired before the effective date of
30-12 the change in the retirement benefit percent is changed as
30-13 prescribed by Subsection (d)(8) of this section, except that a
30-14 reduction in annuities may not cause the member's, surviving
30-15 spouse's, or beneficiary's annuity payment to be reduced below the
30-16 base retirement amount calculated under this Act.
30-17 (b) An annuity shall be considered as a life annuity
30-18 (modified cash refund) with the first monthly payment due at the
30-19 end of the month immediately following [from] the member's
30-20 retirement date, but the amounts of these and all other benefits
30-21 payable under this Act shall be subject at all times to such
30-22 adjustments as may be required to ensure actuarial soundness as may
30-23 be approved by the actuary and adopted by the board, except that
30-24 annuities already granted may not be reduced below the base
30-25 retirement amount [figure] granted at time of retirement.
30-26 (c) Subject to the conditions, limitations, and restrictions
30-27 set forth in this subsection, as well as all other pertinent
31-1 conditions, limitations, and restrictions set forth elsewhere in
31-2 this Act, the board shall have the power to authorize an annual
31-3 cost of living adjustment (hereinafter referred to as "adjustment")
31-4 payment which, once authorized, shall be paid out [in 12 equal]
31-5 monthly [installments] which shall be added to the current monthly
31-6 payment of all retirement annuities of each and every member of the
31-7 police retirement system who has retired or those of the members'
31-8 surviving spouses or beneficiaries who have become entitled to
31-9 benefits on or before December 31 of any preceding year. Before
31-10 January 1 of each year, the board shall make a separate
31-11 determination of whether to authorize the payment of an annual
31-12 adjustment and the amount of the adjustment, if any. These
31-13 adjustments shall be paid [in 12] monthly [installments] beginning
31-14 January 31 of the succeeding calendar year.
31-15 (d) In determining whether to authorize the payment and the
31-16 amount of any annual adjustment, the board shall be governed by the
31-17 following conditions, considerations, limitations, and
31-18 restrictions:
31-19 (1) Any and all determinations to authorize the
31-20 payment of any amount must be based on the ability of the system
31-21 [fund] to pay such an amount and shall not be based upon the
31-22 individual needs of any particular retired members, surviving
31-23 spouses, or beneficiaries.
31-24 (2) Prior to the board's authorizing the payment of an
31-25 annual adjustment, the actuary must approve and recommend such an
31-26 adjustment to the board and certify in writing to the board that
31-27 based on the sound application of actuarial assumptions and methods
32-1 consistent with sound actuarial principles and standards, it is
32-2 demonstrable that the system [fund] has and will continue to have
32-3 the ability to pay such an amount out of its realized income after
32-4 all other obligations of the system [fund] have been paid.
32-5 (3) The amount of the adjustment payment to the
32-6 retirement benefit [allowance] for each retired member, surviving
32-7 spouse, or beneficiary shall be increased or decreased by an
32-8 amount, not to exceed six percent, determined by the board and the
32-9 actuary based on the consumer price index, actuarial experience of
32-10 the system, [fund,] investment experience of the system, [fund,]
32-11 and cost-of-living increases granted in the past. Such increases
32-12 shall be prorated for a member who retired during the year in the
32-13 ratio that the number of the member's completed months after the
32-14 member's retirement in that year bears to 12. The cost-of-living
32-15 increase presented for approval by the board must be approved by
32-16 the system's [fund's] actuary.
32-17 (4) The board shall have the authority and the duty,
32-18 at any and all times and without notice to anyone, to decrease the
32-19 amount of the adjustment payment as much as is necessary to protect
32-20 the continuity of the police retirement system and to protect the
32-21 corpus of the system [fund] should the ability of the system [fund]
32-22 to continue to pay the adjustment be threatened by a change in the
32-23 economic situation of the United States, the State of Texas, the
32-24 city, or the system [fund] itself such as would dictate that a
32-25 prudent trustee should authorize such a decrease; provided that if
32-26 the threatened change should prove not to have had the predicted
32-27 harmful effect on the system, [fund,] then the board shall have the
33-1 authority to reinstate the payment of all or any portion of the
33-2 amount of the previously decreased adjustment payments. If at any
33-3 time the actuary in the actuary's discretion shall deem the
33-4 continuity of the system [fund] to be threatened by whatever cause,
33-5 the actuary shall have the power and authority to order the board
33-6 to make no further adjustment payments and the board shall have the
33-7 power and authority to see to it that no further adjustment
33-8 payments are made unless and until the actuary shall order either
33-9 that the same adjustment payments which were discontinued by the
33-10 actuary's order be reinstated retroactively, or that the adjustment
33-11 payments (of the same amount as those which were discontinued) be
33-12 reinstated prospectively from the date of the actuary's order to
33-13 reinstate or the actuary may recommend to the board that the
33-14 adjustment payments be decreased by whatever amount the actuary may
33-15 deem to be sufficient to protect the continuity of the system.
33-16 [fund.] The board shall not have the power or authority to
33-17 authorize or permit the payment of any adjustment payments in
33-18 excess of that recommended by the actuary.
33-19 (5) All monthly retirement annuities being paid by the
33-20 system to members where payments began prior to January 1, 1980,
33-21 shall be increased retroactive to March 1, 1985, with the first
33-22 increased amounts being paid March 31, 1985, in accordance with the
33-23 following schedule:
34-1 Year of
34-2 Percentage
34-3 Retirement
34-4 1970 and earlier 160
34-5 1971 105
34-6 1972 100
34-7 1973 65
34-8 1974 55
34-9 1975 50
34-10 1976 45
34-11 1977 40
34-12 1978 35
34-13 1979 25
34-14 (6) Provided that the adjustment payments, if any,
34-15 shall be in addition to the benefits to which a retired member,
34-16 surviving spouse, or beneficiary is otherwise entitled under this
34-17 Act, and in no event shall a reduction in the adjustment payments
34-18 cause the retired member's, surviving spouse's, or beneficiary's
34-19 benefits to be reduced below the actual base retirement amount
34-20 calculated under the provisions of this Act.
34-21 (7) Service [Retirement] and disability retirement
34-22 annuities and survivor benefits being paid by the police
34-23 retirement system to members or to the surviving spouses or
34-24 beneficiaries of members who retired before September 1, 1995, are
34-25 increased beginning with the payments due at the end of September
34-26 in 1995. The amount of the increase for a member or the surviving
34-27 spouse or beneficiary of the member is equal to a percentage
35-1 multiplied by the annuity payment otherwise due. The percentage is
35-2 equal to 2.8 percent divided by the retirement benefit percentage
35-3 in effect on the date of the member's retirement, minus one, and
35-4 multiplied by 100.
35-5 (8) Service [Retirement] and disability retirement
35-6 annuities and survivor benefits being paid by the police
35-7 retirement system to members or to the surviving spouses or
35-8 beneficiaries of members who retire before the effective date of
35-9 any change in the retirement benefit percent under this section
35-10 that occurs after 1995 shall be changed beginning with the first
35-11 payment due after the effective date of the change in the
35-12 retirement benefit percent. The amount of the change for a member
35-13 or the surviving spouse or beneficiary of the member is equal to a
35-14 percentage multiplied by the annuity payment otherwise due. The
35-15 percentage is equal to the new retirement benefit percentage
35-16 divided by the retirement benefit percent in effect immediately
35-17 before the effective date of the new retirement benefit percent,
35-18 minus one, and multiplied by 100.
35-19 (e) The following terms and definitions shall be used in
35-20 construing the meaning of this section:
35-21 (1) "Base retirement amount" means that monthly
35-22 retirement amount calculated under this Act at the time of actual
35-23 retirement, reduced for the optional form selected under Section
35-24 6.03(a) of this Act, and further reduced, if appropriate for the
35-25 optional form selected, if the member or the member's [designated]
35-26 beneficiary has died.
35-27 (2) "Consumer price index" means the Consumer Price
36-1 Index for All Urban Consumers published monthly by the Bureau of
36-2 Labor Statistics, United States Department of Labor, or its
36-3 successor in function.
36-4 (3) ["Fund" means for the purposes of this subsection
36-5 a combination of both Fund No. 1 and Fund No. 2 as defined in this
36-6 Act unless otherwise indicated.]
36-7 [(4)] "Continuity of the system" [fund"] means the
36-8 ability of the police retirement system [system's fund] to
36-9 continue to meet all of its purposes, to continue to thrive and
36-10 grow along with the economy of the United States, the State of
36-11 Texas, and the city, or to be able to sustain itself and its
36-12 beneficiaries during and throughout periods of deflation or
36-13 recession in that economy.
36-14 (f) For purposes of this section, compensation of each
36-15 noneligible member taken into account under this Act [the plan] may
36-16 not exceed $150,000 per calendar year, indexed pursuant to Section
36-17 401(a)(17) of the Internal Revenue Code of 1986 (26 U.S.C. Section
36-18 401). The $150,000 limit does not apply to an eligible member.
36-19 For purposes of this subsection, an eligible member is any
36-20 individual who first became a member before January 1, 1996. For
36-21 purposes of this subsection, a noneligible member is any other
36-22 member. [For purposes of this subsection, in determining the
36-23 compensation of a member Section 414(q)(6) of the Internal Revenue
36-24 Code of 1986 (26 U.S.C. Section 414) applies, except the term
36-25 "family member" includes only the spouse of the member and any
36-26 lineal descendants of the member who have not attained the age of
36-27 19 before the close of the year. Compensation in excess of the
37-1 limit shall be prorated among the family members in accordance with
37-2 Section 401(a)(17) of the Internal Revenue Code of 1986 (26 U.S.C.
37-3 Section 401).]
37-4 Sec. 6.02. ELIGIBILITY FOR SERVICE RETIREMENT. (a) Any
37-5 member shall be eligible for service [normal] retirement if the
37-6 member has attained the age of 55 years and completed at least 20
37-7 years of creditable service with the city, completed 25 years of
37-8 creditable service, or attained age 62.
37-9 (b) Any member, irrespective of the number of years of
37-10 creditable service, shall be eligible for service retirement at age
37-11 62. [After age 62, the member may continue in the employment of
37-12 the city as a police officer.] No member shall be paid any
37-13 benefits by the [police] system so long as the member is
37-14 [permanently] employed by the city as a police officer or by the
37-15 system as a member of the system's administrative staff.
37-16 Sec. 6.03. ANNUITY OPTIONS. (a) In lieu of the life
37-17 annuity (modified cash refund) defined in Section 6.01 of this Act,
37-18 a member attaining eligibility for service [retirement, except for
37-19 disability] retirement, may file a duly acknowledged written
37-20 designation which, if approved by the board, shall entitle the
37-21 member to receive the actuarial equivalent of the life annuity by
37-22 electing [or elect] one of the following options:
37-23 OPTION I. Joint and 100 Percent Survivor Annuity. A reduced
37-24 annuity payable to the member but with the provision that on the
37-25 member's death, the annuity shall be continued throughout the life
37-26 of and be paid to such person that the member shall irrevocably
37-27 designate before the member's retirement date.
38-1 OPTION II. Joint and 50 Percent Survivor Annuity. A reduced
38-2 annuity payable to the member but with the provision that on the
38-3 member's death, one-half of the annuity shall be continued
38-4 throughout the life of and be paid to the person that the member
38-5 shall irrevocably designate before the member's retirement date.
38-6 OPTION III. Joint and 66-2/3 Percent Survivor Annuity. A
38-7 reduced annuity payable to the member but with the provision that
38-8 on the member's death, two-thirds of the annuity shall be continued
38-9 throughout the life of and be paid to the person that the member
38-10 shall irrevocably designate before the member's retirement date.
38-11 OPTION IV. Joint and 66-2/3 Percent Last Survivor Annuity.
38-12 A reduced annuity payable to the member but with the provision that
38-13 two-thirds of the annuity to which the member would be entitled
38-14 shall be continued throughout the life of and be paid to the
38-15 survivor after the death of either the member or the person that
38-16 the member shall irrevocably designate before the member's
38-17 retirement date.
38-18 OPTION V. Repealed effective September 1, 1997. [Level
38-19 Income Option. If payment of a retirement benefit commences prior
38-20 to the earliest age at which the member will become eligible for an
38-21 old age insurance benefit under the Social Security Act, the member
38-22 may elect that the amount of the payments be adjusted so that an
38-23 increased amount will be paid prior to such age and a reduced
38-24 amount, if any, will be paid for life after such age. The purpose
38-25 of this adjustment is to enable the member to receive from this
38-26 plan and under the Social Security Act an aggregate income in
38-27 approximately a level amount for life. Such adjusted payments
39-1 shall be the actuarial equivalent of the pension otherwise payable
39-2 to such member.]
39-3 OPTION VI. Repealed effective September 1, 1997. [Joint and
39-4 66-2/3 Percent to Survivor/Level Income Option. If payment of a
39-5 retirement benefit commences prior to the earliest age at which the
39-6 member could become eligible for an old age insurance benefit under
39-7 the Social Security Act, the member may elect that the amount of
39-8 the payments be adjusted so that an increased amount will be paid
39-9 prior to such age and a reduced amount will be paid for life after
39-10 such age. The purpose of this adjustment is to enable the member
39-11 to receive from this plan and under the Social Security Act an
39-12 aggregate income in approximately a level amount for life. If the
39-13 member's death occurs after age 62, two-thirds of the monthly
39-14 annuity the member was receiving at the time of the member's death
39-15 shall be continued throughout the life of and be paid to the person
39-16 that the member shall irrevocably designate before the member's
39-17 retirement date. If the member's death occurs before age 62,
39-18 two-thirds of the monthly annuity the member was receiving at the
39-19 time of the member's death shall be paid to the person that the
39-20 member shall irrevocably designate before the member's retirement
39-21 date through the end of the month when the member would have
39-22 reached age 62. The monthly annuity being paid to the person that
39-23 the member shall irrevocably designate before the member's
39-24 retirement date will be reduced at the end of the month following
39-25 the month when the member would have reached age 62 to two-thirds
39-26 of the reduced benefit the member would have begun to receive at
39-27 age 62.]
40-1 OPTION VII. 15-Year Certain and Life Annuity. A reduced
40-2 annuity shall be payable to the member for life. In the event of
40-3 the member's death before 180 monthly payments have been made, the
40-4 remainder of the 180 payments are payable to the member's
40-5 beneficiary or, if one does not exist, to the member's estate.
40-6 OPTION VIII. Repealed effective September 1, 1997. [Any
40-7 other form of benefit or benefits may be paid either to the member
40-8 or to the person or persons that the member shall designate in
40-9 writing, provided that the benefit plan shall be certified by the
40-10 actuary for the system to be the actuarial equivalent of the life
40-11 annuity with guaranteed refund of the retired member's accumulated
40-12 deposits.]
40-13 (b) The amount of the annuity payment in Options I, II, III,
40-14 IV, V, VI, VII, and VIII shall be determined without considering
40-15 the minimum cumulative payment of the retired member's [police
40-16 officer's] accumulated deposits since that refund feature will stay
40-17 in effect as indicated in Subsection (b), Section 6.06 of this
40-18 Act.
40-19 (c) In computing the actuarial equivalent for optional forms
40-20 of annuity payment for retirement and death benefits under this
40-21 section, the UP-1984 Table shall be used with no age setback for
40-22 members and an age setback of seven years for beneficiaries, and
40-23 interest shall be computed at a rate of 8.5 percent.
40-24 Sec. 6.04. TERMINATION PRIOR TO RETIREMENT; TREATMENT OF
40-25 ACCUMULATED DEPOSITS. (a) On employment termination [separation
40-26 from service] by resignation or dismissal before retirement, the
40-27 member shall receive the amount of the accumulated deposits
41-1 standing to the member's credit in one lump sum, except that if
41-2 such member has had at least 10 years of creditable service at the
41-3 time the member separates from service, [employee's service is
41-4 terminated,] the member shall have a [vested] right to elect to
41-5 leave the member's accumulated deposits with the police retirement
41-6 system until such time as the member shall have applied in writing
41-7 for service retirement [benefit payments] and shall have attained
41-8 an age at which the member shall have become entitled to receive a
41-9 service [monthly] retirement benefit [payments] under this Act, at
41-10 which time the member shall be entitled to a service retirement
41-11 benefit calculated under the formula in Subsection (a) of Section
41-12 6.01 in effect on the last day of the month immediately preceding
41-13 the month of the first benefit payment. [allowance equal to that
41-14 which the member would have received if the member had attained the
41-15 age at the time of termination of the member's service which the
41-16 member had attained at the time of making such application.]
41-17 (b) If a member who has attained age 70 1/2 separates or has
41-18 separated from service without applying for retirement or a refund
41-19 of accumulated deposits, the police retirement system shall attempt
41-20 to send to that member a written notice as soon as practicable
41-21 after the later of the date the member attains age 70 1/2 or the
41-22 date the member separates from service. The written notice must
41-23 advise the member of the requirement under Section 401(a)(9) of the
41-24 Internal Revenue Code of 1986 (26 U.S.C. Section 401) to retire and
41-25 begin receiving a monthly retirement benefit. If, before the 91st
41-26 day after the date the police retirement system sends the notice,
41-27 the member has not filed an application for retirement or a refund,
42-1 the member is considered to have retired on the last day of the
42-2 third month following the later of the two dates specified by this
42-3 subsection. If applicable, the retirement option shall be
42-4 determined in accordance with the member's written selection of
42-5 optional benefit and designation of beneficiary under Section
42-6 6.06(a)(1) of this Act. Otherwise, the member shall receive the
42-7 life annuity under Section 6.01 of this Act.
42-8 Sec. 6.05. DEATH OF A MEMBER; TREATMENT OF ACCUMULATED
42-9 DEPOSITS. (a) In the event of death of a member who is ineligible
42-10 for retirement, the accumulated deposits standing to the member's
42-11 credit in Fund No. 1 and an equivalent amount from Fund No. 2 shall
42-12 be payable in a lump sum to the member's beneficiary or, if no
42-13 beneficiary, to the member's estate, unless the member shall have
42-14 directed otherwise in writing duly acknowledged and filed with the
42-15 board. The lump sum shall not be less than $7,500. When the
42-16 $7,500 minimum is payable, the amount payable from Fund No. 2 shall
42-17 be $7,500 minus the accumulated deposits standing to the member's
42-18 credit in Fund No. 1.
42-19 (b) Seven years after [cessation of service of] a member
42-20 separates from service with less than 10 years' service, if no
42-21 previous demand has been made, any accumulated deposits standing
42-22 to the member's credit shall be returned to the member or to the
42-23 member's estate, but if the contributor or the member's personal
42-24 representative cannot be found or if the member dies without
42-25 leaving heirs or legatees, the member's accumulated deposits shall
42-26 thereafter become a part of Fund No. 2.
42-27 (c) In the event of death of a member receiving a retirement
43-1 benefit, [allowance,] the sum of $7,500 [$5,000] shall be payable
43-2 in a lump sum to the member's beneficiary or, if no beneficiary, to
43-3 the member's estate, unless the member shall have directed
43-4 otherwise in writing, duly acknowledged and filed with the board.
43-5 Sec. 6.06. SELECTING OPTIONS; DESIGNATING BENEFICIARIES.
43-6 (a)(1) Within one year prior to the date on which a member becomes
43-7 eligible for service retirement under any provision of this
43-8 article, the member may file with the board the member's written
43-9 statement either selecting one of the optional benefits authorized
43-10 by this Act and designating the beneficiary of the option if one is
43-11 selected or stating that the member has been afforded an
43-12 opportunity to select an option but does not desire to do so. An
43-13 option selection shall become effective at the member's date of
43-14 eligibility for service retirement. The member shall retain the
43-15 right to make a final selection until the date of retirement. The
43-16 final selection shall be binding on all parties.
43-17 (2) After filing the written statement selecting one
43-18 of the optional benefits, the member may continue in service and
43-19 thereafter retire any time after eligibility by filing a written
43-20 application for service retirement. If the member dies before
43-21 retirement but after becoming eligible for service retirement, the
43-22 [effective date of the] member's [retirement is the last day of the
43-23 calendar month of death, and the] survivor benefit is calculated
43-24 as if the member had retired on the last day of the calendar month
43-25 of death [that date] under the optional benefit selected.
43-26 (3) In the event a member who is eligible for service
43-27 retirement dies without making a written selection of one of the
44-1 options listed in Section 6.03 of this Act and if the member leaves
44-2 a [lawfully married] spouse surviving, then the surviving spouse of
44-3 such member may select the optional form of the survivor benefit
44-4 [annuity] in the same manner as if the member had made the
44-5 selection or may select a lump-sum payment equal to the accumulated
44-6 deposits standing to the member's credit in Fund No. 1 plus an
44-7 equivalent amount from Fund No. 2. If the member leaves no
44-8 [lawfully married] spouse surviving, then the member's [designated]
44-9 beneficiary, or if no beneficiary exists, the executor or
44-10 administrator of the estate of the member, is entitled to elect
44-11 either an Option VII survivor benefit (15-Year Certain and Life
44-12 Annuity), effective the last day of the calendar month in which the
44-13 death of the member occurs or a lump-sum payment equal to the
44-14 accumulated deposits standing to the member's credit in Fund No. 1
44-15 plus an equivalent amount from Fund No. 2. In the event of the
44-16 death of the [lawfully married] surviving spouse before having
44-17 received survivor benefits [retirement allowances] equal to the
44-18 amount of the member's accumulated deposits at date of the member's
44-19 death, the excess of such accumulated deposits over the survivor
44-20 benefits [retirement allowances] paid shall be refunded in one sum
44-21 to the member's estate.
44-22 (4) When monthly survivor benefits are payable as a
44-23 result of the death of a member before retirement, an additional
44-24 sum of $7,500 [$5,000.00] shall be payable as a death benefit to
44-25 the member's [designated] beneficiary or, if no beneficiary
44-26 exists, to the member's estate.
44-27 (b) In the event of death of the retired member under any
45-1 retirement option and the death of the person irrevocably
45-2 designated by the retired member when Option I, Option II, Option
45-3 III, Option IV, or Option VI as described in Section 6.03 of this
45-4 Act is in effect, before monthly retirement benefits [allowances]
45-5 have been received that are equal to or greater than the retired
45-6 member's accumulated deposits, then the member's estate will
45-7 receive the excess of the retired member's accumulated deposits
45-8 over the retirement benefits [allowance] paid.
45-9 Sec. 6.07. RETROACTIVE DEFERRED RETIREMENT OPTION PLAN.
45-10 (a) The Retroactive Deferred Retirement Option Plan, referred to
45-11 as RETRO DROP, is an option a member eligible for service
45-12 retirement as defined in Section 6.02 may elect at retirement
45-13 subject to the conditions of this section. A member who elects
45-14 RETRO DROP shall receive a lump sum and a monthly retirement
45-15 benefit.
45-16 (b) The RETRO DROP benefit calculation date shall be
45-17 selected by the member and:
45-18 (1) shall be the last day of the month used for the
45-19 purpose of determining the monthly retirement benefit;
45-20 (2) shall not precede the normal retirement date as
45-21 defined in Subsection (18) of Section 1.02 but excluding from
45-22 creditable service any military service credit established under
45-23 Section 5.02; and
45-24 (3) shall not precede the date of retirement by more
45-25 than 36 months.
45-26 (c) Upon the election of RETRO DROP and the selection of the
45-27 RETRO DROP benefit calculation date, the member's monthly life
46-1 annuity (modified cash refund) shall be calculated according to
46-2 Section 6.01 as if the member had retired on the RETRO DROP benefit
46-3 calculation date but including any creditable service established
46-4 after that date under Section 5.02, Section 5.03, or Section 5.04.
46-5 In lieu of the life annuity (modified cash refund) defined in
46-6 Section 6.01, the member may file a duly acknowledged written
46-7 designation to elect one of the annuity options described in
46-8 Section 6.03 in effect at retirement which are actuarially
46-9 equivalent at the RETRO DROP benefit calculation date.
46-10 (d) The RETRO DROP lump sum accumulation period shall
46-11 include each month from the month following the RETRO DROP benefit
46-12 calculation date through the month of retirement. The RETRO DROP
46-13 lump sum shall be accumulated month by month during the
46-14 accumulation period as the sum of:
46-15 (1) the monthly annuity amounts that would have been
46-16 paid during the RETRO DROP lump sum accumulation period;
46-17 (2) deposits made by the member to the police
46-18 retirement system as a percent of the basic hourly earnings of the
46-19 member during the RETRO DROP lump sum accumulation period; and
46-20 (3) interest credited on the RETRO DROP lump sum
46-21 during the RETRO DROP lump sum accumulation period.
46-22 (e) The first monthly annuity amount that would have been
46-23 paid during the RETRO DROP lump sum accumulation period shall be
46-24 the amount defined by Subsection (c) of this section. Subsequent
46-25 monthly annuity amounts that would have been paid during the RETRO
46-26 DROP lump sum accumulation period shall reflect any cost-of-living
46-27 increases or special ad hoc increases in annuity amounts granted in
47-1 accordance with Subsections (c) and (d) of Section 6.01.
47-2 (f) The interest credited to the RETRO DROP lump sum shall
47-3 be credited at each December 31 in the RETRO DROP lump sum
47-4 accumulation period in an amount equal to 5% of the amount of the
47-5 RETRO DROP lump sum as of the January 1 of the same calendar year.
47-6 If the month of retirement is other than December, then the
47-7 interest shall be credited for the partial year at the end of the
47-8 month of retirement in an amount equal to 5/12% of the amount of
47-9 the RETRO DROP lump sum as of the January 1 of the same calendar
47-10 year multiplied by the number of complete months of service in the
47-11 same calendar year. Complete months shall exclude a month in which
47-12 service amounted to fewer than 15 days.
47-13 (g) The first monthly annuity payment shall be on the last
47-14 day of the month immediately following the month of retirement.
47-15 The lump sum shall be due and payable to the member on the business
47-16 day selected by the member during the two-year period beginning on
47-17 the last day of the month immediately following the month of
47-18 retirement and ending exactly two years later. In the event of
47-19 death of the member before the date the member selected to receive
47-20 the lump sum, the lump sum shall be payable to the member's
47-21 beneficiary or, if no beneficiary exists, to the member's estate,
47-22 unless the member shall have directed otherwise in writing, duly
47-23 acknowledged and filed with the board.
47-24 (h) The board may modify or eliminate the RETRO DROP
47-25 provisions of this section by the adoption of board rules until
47-26 August 31, 2002. At that time, the effects of the RETRO DROP
47-27 provisions of this section shall be studied by the board's actuary
48-1 and reported to the board. Based on the report, the board may
48-2 decide to continue with, to modify, or to eliminate the RETRO DROP
48-3 provisions by the adoption of board rules.
48-4 ARTICLE VII
48-5 Sec. 7.01. DISABILITY RETIREMENT. (a) Only members who are
48-6 classified as Active-Contributory, Active-Noncontributory,
48-7 [Active-Noncontributory I,] or Inactive-Contributory, pursuant to
48-8 Subsection (e) of Section 4.01 of this Act, are eligible for
48-9 consideration for disability retirement pursuant to this article.
48-10 (b)(1) If a member with less than 10 years of creditable
48-11 service has become mentally or physically incapacitated for the
48-12 performance of the [member's former] employment duties the member
48-13 had immediately before incapacitation as a direct result of
48-14 injuries sustained subsequent to the member's effective date of
48-15 membership in the police retirement system, the member may apply
48-16 for disability retirement. Such application made for or on behalf
48-17 of the injured member shall show that the injury sustained was as a
48-18 direct or proximate result of the performance of the member's
48-19 employment duties with the city or with the system and that it is
48-20 likely to result in the member's inability to perform the duties of
48-21 a position offered to the member in the system, the police
48-22 department or any other department in the city that pays as much or
48-23 more than the current pay of the position the member was holding on
48-24 the date of the member's disability.
48-25 (2) On recommendation of physicians or vocational
48-26 rehabilitation experts appointed or selected by the board that the
48-27 member's incapacity is likely to result in the member's inability
49-1 to perform the duties of a position offered to the member in the
49-2 system, the police department or any other department in the city
49-3 that pays as much or more than the current pay of the position the
49-4 member was holding at the date of the member's disability and after
49-5 considering any additional evidence which the board deems relevant,
49-6 the board may award such member disability retirement benefits.
49-7 The decision of the board is final.
49-8 (c) If a member with more than 10 years of creditable
49-9 service has become mentally or physically incapacitated for the
49-10 performance of the [member's former] employment duties the member
49-11 had immediately before incapacitation, [duties,] the member may
49-12 apply for disability retirement. Such application made for or on
49-13 behalf of the disabled member shall show that the incapacity is
49-14 likely to result in the member's inability to perform the duties
49-15 of a position offered to such member in the system, the police
49-16 department or any other department in the city that pays as much or
49-17 more than the current pay of the position the member was holding on
49-18 the date of the member's disability. On recommendation of
49-19 physicians or vocational rehabilitation experts appointed or
49-20 selected by the board that the member's incapacity is likely to
49-21 result in the member's inability to perform the duties of a
49-22 position offered to the member in the system, the police department
49-23 or any other department in the city that pays as much or more than
49-24 the current pay of the position the member was holding on the date
49-25 of the member's disability and after considering any additional
49-26 evidence which the board deems relevant, the board may award such
49-27 member disability retirement benefits. The decision of the board
50-1 is final.
50-2 Sec. 7.02. COMPUTATION OF DISABILITY BENEFIT. (a) On award
50-3 of disability retirement benefits, the member shall receive a
50-4 disability retirement benefit [allowance] computed in the same
50-5 manner that a service retirement benefit [allowance] would be
50-6 computed at the member's normal retirement date, based on average
50-7 final compensation and creditable service at date of disability
50-8 retirement without reduction for early retirement. If the
50-9 disability is a direct or proximate result of the performance of
50-10 the member's employment duties with the system or the city, then
50-11 the disability retirement benefit [allowance] will be subject to a
50-12 minimum benefit based on average final compensation at date of
50-13 disability retirement and 20 years of creditable service. The
50-14 options allowed are life annuity or its actuarial equivalent
50-15 payable in the form described as Option I, Option II, Option III,
50-16 Option IV, or Option VII in Section 6.03 of this Act. The
50-17 disability benefits paid to the member will be paid from Fund No.
50-18 1 until the amount received equals the member's accumulated
50-19 deposits; thereafter the benefits will be paid from Fund No. 2.
50-20 (b) For purposes of this section, in computing the actuarial
50-21 equivalent for optional forms of annuity payment for disability
50-22 benefits under this section, 82.5 percent of the 1965 Railroad
50-23 Retirement Board Disabled Annuitants Mortality Table shall be used
50-24 for members, the UP-1984 Table with an age setback of six years
50-25 shall be used for beneficiaries, and interest shall be computed at
50-26 a rate of 8.5 percent.
50-27 Sec. 7.03. DISABILITY BENEFIT REPORTS. (a)(1) A member
51-1 receiving a disability retirement benefit [allowance] is required
51-2 to file a report to the board concerning continued proof of
51-3 disability one year after the date on which the board originally
51-4 awarded the member disability retirement. The report shall
51-5 include:
51-6 (A) a current statement of the member's physical
51-7 and/or mental condition, signed by the member's attending
51-8 physician; and
51-9 (B) a statement of all employment activities
51-10 pursued in the preceding one-year period and a copy of federal
51-11 income tax returns applicable to the one-year period.
51-12 (2) The board may verify all information submitted in
51-13 this report. A disabled member shall file an annual report
51-14 containing this same type of information every year thereafter on
51-15 the anniversary date of the member's disability retirement; the
51-16 annual report shall be filed no later than 60 days following the
51-17 due date.
51-18 (b) The pension officer is responsible for a yearly report
51-19 to the board listing those disabled members who should be examined.
51-20 The board shall have the right to order an examination of any
51-21 person on disability retirement after the member has received a
51-22 disability retirement benefit [allowance] for a one-year period and
51-23 continuing on an annual basis thereafter until the member reaches
51-24 the age of 62 years. If the member refuses to submit to an
51-25 examination by physicians or vocational rehabilitation experts
51-26 appointed or selected by the board or if the member refuses to
51-27 submit an annual report concerning continued proof of disability,
52-1 the disability retirement benefit [allowance] shall be discontinued
52-2 until such refusal is withdrawn.
52-3 (c)(1) If during the first 2-1/2 years the annual medical
52-4 examination shows that the member is able to perform the duties of
52-5 a position offered to the member in the system, the police
52-6 department or any other department in the city that pays as much or
52-7 more than the current pay of the position the member was holding on
52-8 the date of the member's disability, the board may discontinue the
52-9 disability retirement allowance. If after the disabled member has
52-10 received disability benefits from the system [fund] for at least
52-11 2-1/2 years, the member is able to perform the duties of any
52-12 occupation for which the member is reasonably suited by education,
52-13 training, or experience, the board shall review and modify the
52-14 disability benefit according to the following provisions:
52-15 (A) if the member is able to earn at least as
52-16 much money in the member's new job as the member would have in the
52-17 member's most recent [former] position with the police department,
52-18 the board may terminate the member's benefit;
52-19 (B) if the member is able to earn between
52-20 one-half as much money and as much money in the member's new job as
52-21 the member would have in the member's most recent [former] position
52-22 with the police department, the board may reduce the monthly
52-23 disability benefit to one-half of its original amount; or
52-24 (C) if the member is not able to earn at least
52-25 one-half as much money in the member's new job as the member would
52-26 have in the member's most recent [former] position with the police
52-27 department, the board may continue the benefit unchanged.
53-1 (2) If the member who received a disability benefit
53-2 [allowance] pursuant to Subsection (b) of Section 7.01 of this Act
53-3 has the member's benefit [allowance] discontinued pursuant to this
53-4 provision and does not return to the employ of the system or the
53-5 police department, any remaining balance of Fund No. 1 benefits
53-6 will be refunded to the member. If the member who received a
53-7 disability benefit [allowance] pursuant to Subsection (c) of
53-8 Section 7.01 of this Act has the member's benefit [allowance]
53-9 discontinued, pursuant to this provision and does not return to the
53-10 employ of the system or the police department, the member's
53-11 accumulated deposits [contributions] shall remain in the system and
53-12 the member shall be considered a vested noncontributory member
53-13 unless the member elects a refund of the remaining accumulated
53-14 deposits.
53-15 (d) If a disabled member returns to [active] employment with
53-16 the city [service] as a police officer or to employment with the
53-17 system, [with the city,] the disability retirement benefit
53-18 [allowance] shall cease. Such person shall be reinstated as an
53-19 active member of the system and shall comply with all requirements.
53-20 Creditable service accumulated prior to disability shall be
53-21 restored to the full amount standing to the member's credit as of
53-22 the date the board found the member eligible for disability
53-23 retirement.
53-24 (e) The board may reinstate any disability benefit that has
53-25 been previously terminated or reduced if the disabled member's
53-26 condition has worsened due to the same cause for which the member
53-27 was originally disabled.
54-1 ARTICLE VIII
54-2 Sec. 8.01. METHOD OF FINANCING. (a) Deposits by the
54-3 members to the police retirement system shall be made at a rate of
54-4 at least six percent of the basic hourly earnings of each member.
54-5 Deposits required to be made by members shall be deducted from
54-6 payroll. Upon recommendation of the board, the [The]
54-7 Active--Contributory members may [members,] by a majority of those
54-8 voting [vote in favor of an increase in contributions above six
54-9 percent, shall] increase the rate of member deposits [each
54-10 member's contribution] above six percent to [in] whatever amount
54-11 the board has recommended. [recommends.] If the deposit rate for
54-12 members has been increased to a rate above six percent, the rate
54-13 may be decreased if the board recommends the decrease, the board's
54-14 actuary approves the decrease, and a majority of the
54-15 Active--Contributory members who vote on the matter approve the
54-16 decrease. [approve the decrease by majority vote.] The city shall
54-17 contribute amounts equal to a percentage, as specified by this
54-18 subsection, of the basic hourly earnings of each member employed by
54-19 the city. That percentage shall be 14 percent for the fiscal year
54-20 ending in 1995, 16 percent for the fiscal year ending in 1996, and
54-21 18 percent for each subsequent fiscal year. The city council may
54-22 authorize the city to make additional contributions to the police
54-23 retirement system in whatever amount the city council may
54-24 determine. Contributions by the city shall be made each pay
54-25 period.
54-26 (b) Any change of the rates of deposit and the rates of
54-27 contribution shall be published when approved by the board.
55-1 (c) Contributions by the city shall be paid to the system
55-2 [retirement fund] after appropriation by the city council.
55-3 (d) Expenses involved in administration and operation of the
55-4 police retirement system shall be paid from the assets of the
55-5 police retirement system subject to approval by the board. Such
55-6 expenses shall include actuarial valuations of the system no less
55-7 frequently than on a biennial basis, annual audits and/or actuarial
55-8 studies, preparation of annual reports, and staff assistance.
55-9 Additional consulting may be authorized by the board and paid for
55-10 from the assets of the police retirement system as deemed necessary
55-11 from time to time by the board.
55-12 (e) Expenses incurred from investment advice, counsel, and
55-13 management shall be paid from the assets of the police retirement
55-14 system.
55-15 (f) The city shall make the police officer contributions to
55-16 the system [fund] required by Subsection (a) of this section. The
55-17 system shall make the administrative staff's contributions to the
55-18 system. [fund.] Member contributions will be made by a reduction
55-19 in their monetary compensation. Contributions made shall be
55-20 treated as employer contributions in accordance with Section
55-21 414(h)(2), Internal Revenue Code (26 U.S.C. Section 414(h)(2)), for
55-22 the purpose of determining tax treatment of the amounts under the
55-23 Federal Internal Revenue Code. These contributions are not
55-24 includible [includable] in the gross income of the member until
55-25 such time as they are distributed or made available to the member.
55-26 Member contributions made as provided by this subsection shall be
55-27 deposited to the individual account of each affected member and
56-1 shall be treated as compensation of members for all other purposes
56-2 of this Act and for the purpose of determining contributions to the
56-3 federal Old-Age, Survivors, and Disability Insurance System (Social
56-4 Security). The provisions of this subsection shall remain in
56-5 effect as long as the plan covering members is a qualified
56-6 retirement plan under Section 401(a), Internal Revenue Code (26
56-7 U.S.C. Section 401(a)), and its related trust is tax exempt under
56-8 Section 501(a), Internal Revenue Code (26 U.S.C. Section 501(a)).
56-9 (g) If the police retirement system is terminated, further
56-10 contributions may not be made by the city, and further deposits may
56-11 not be made by the members for service after the date of
56-12 termination. Members do not accrue any additional benefits after
56-13 the date of termination. The benefit accrued by each member on the
56-14 termination of the plan or the complete discontinuance of
56-15 contributions under the plan and the benefit of any affected member
56-16 on the partial termination of the plan, to the extent funded,
56-17 become nonforfeitable notwithstanding the length of a member's
56-18 service. The benefit accrued by a member also becomes
56-19 nonforfeitable, if not already nonforfeitable, at the normal
56-20 retirement date.
56-21 (h) A forfeiture from a member terminating employment and
56-22 withdrawing the member's accumulated deposits may not be applied to
56-23 increase the benefit that any other member would receive from the
56-24 system. The actuary shall anticipate the effect of forfeitures in
56-25 determining the costs under the system.
56-26 (i) The assets of the police retirement system shall be held
56-27 in trust for the exclusive benefit of the members and their
57-1 beneficiaries. The corpus or income may not be used for or
57-2 diverted to a purpose other than the exclusive benefit of members
57-3 or their beneficiaries, whether by operation or natural termination
57-4 of the system, by power of revocation or amendment, by the
57-5 happening of a contingency, by collateral arrangement, or by other
57-6 means.
57-7 ARTICLE IX
57-8 Sec. 9.01. INVESTMENTS OF THE [POLICE] BOARD. (a) The
57-9 police retirement board shall be the trustee of the funds of the
57-10 police retirement system and shall have full power in its sole
57-11 discretion to invest and reinvest, alter, and change such funds.
57-12 The board shall invest the funds in whatever instruments or
57-13 investments the board considers prudent. In making investments for
57-14 the system, [fund,] the board shall discharge its duties:
57-15 (1) for the exclusive purposes of:
57-16 (A) providing benefits to members and their
57-17 beneficiaries; and
57-18 (B) defraying reasonable expenses of
57-19 administering the system; [fund;]
57-20 (2) with the care, skill, prudence, and diligence
57-21 under the circumstances then prevailing that a prudent person
57-22 acting in a like capacity and familiar with such matters would use
57-23 in the conduct of an enterprise of a like character and with like
57-24 aims;
57-25 (3) by diversifying the investments of the system
57-26 [fund] to minimize the risk of large losses, unless under the
57-27 circumstances it is clearly prudent not to do so; and
58-1 (4) in accordance with the laws, documents, and
58-2 instruments governing the system. [fund.]
58-3 (b) No member of the [board and no employee of the] board,
58-4 except as herein provided, shall have any interest in, directly or
58-5 indirectly, or receive any pay or emolument for the member's
58-6 services. No member of the board [or employee thereof] shall,
58-7 directly or indirectly, for himself or as an agent in any manner
58-8 use the funds or deposits of the police retirement system except to
58-9 make the current and necessary payments authorized by the board;
58-10 nor shall any member [or employee] of the board become an endorser
58-11 or surety or in any manner an obligor for money loaned by or
58-12 borrowed from the board.
58-13 (c) None of the funds or money mentioned in this Act shall
58-14 be assignable. None of the funds or money mentioned in this Act
58-15 shall be subject to execution, levy, attachment, garnishment, or
58-16 other legal process.
58-17 (d) The right of a member to a [pension, an annuity, or a]
58-18 retirement benefit, [allowance to] the return of accumulated
58-19 deposits, the payment of a RETRO DROP lump sum, or [contributions,
58-20 the pension, annuity, or retirement allowance itself, any optional
58-21 benefit or death benefits,] any other right accrued or accruing to
58-22 any person under the provisions of this Act, and the money in the
58-23 trust created by this Act shall be unassignable except as
58-24 specifically provided in this Act and shall not be subject to
58-25 execution, levy, attachment, garnishment, the operation of
58-26 bankruptcy or insolvency law, or any other process of law
58-27 whatsoever.
59-1 (e) Service retirement benefits, disability retirement
59-2 benefits, survivor benefits, death benefits, and withdrawal
59-3 benefits may be paid to a former spouse or other alternate payee
59-4 under the terms of a domestic relations order, but only if the
59-5 board determines that the order constitutes a qualified domestic
59-6 relations order within the meaning of Chapter 804 of the Texas
59-7 Government Code (referred to here as a "QDRO"). Benefit payments
59-8 shall be made to alternate payees only when and to the extent
59-9 permitted by the QDRO. The amount of any benefit payment under
59-10 this Act made to an alternate payee under a QDRO shall reduce and
59-11 offset the amount otherwise payable to the member or other
59-12 beneficiary under the provisions of this Act. Upon the death of an
59-13 alternate payee under a QDRO, the interest of the alternate payee
59-14 in the benefits under this Act shall cease, and thereafter,
59-15 remaining benefits shall be paid as if the QDRO had not existed.
59-16 ARTICLE X
59-17 Sec. 10.01. FALSE REPORT OR STATEMENT. Whoever with intent
59-18 to deceive shall make any statement or report required under this
59-19 Act which is untrue or shall falsify or permit to be falsified any
59-20 record or records of the police retirement system shall forfeit any
59-21 office or rights held by the person under the [police] system, and
59-22 such deception, falsification, or acquiescence in falsification
59-23 shall be deemed a misdemeanor and the violation thereof shall be
59-24 punishable by a fine not to exceed $1,000.
59-25 Sec. 10.02. CORRECTION OF ERRORS. If any change or error in
59-26 the records of the police retirement system should be discovered or
59-27 should result in any member, retired member, surviving spouse, or
60-1 beneficiary receiving from the police retirement system more or
60-2 less than such member, retired member, surviving spouse, or
60-3 beneficiary would have been entitled to receive had the records
60-4 been correct, the police retirement board shall have the power to
60-5 correct such error and as far as possible to adjust the payments so
60-6 that the actuarial equivalent of the benefits to which the member,
60-7 retired member, surviving spouse, or beneficiary was correctly
60-8 entitled shall be paid.
60-9 ARTICLE XI
60-10 Sec. 11.01. LIMITATION ON PAYMENT OF BENEFITS. (a) In this
60-11 section:
60-12 (1) "Annual benefit" means the total of all service
60-13 retirement annuity payments by the police retirement system on
60-14 behalf of a retired member during a calendar year.
60-15 (2) "Compensation" has the meaning assigned by Section
60-16 415 of the Internal Revenue Code of 1986 (26 U.S.C. Section 415),
60-17 and the regulations adopted under that section, not exceeding the
60-18 limitations prescribed by Section 401(a)(17) of that code.
60-19 (3) "Highest average annual compensation" means the
60-20 average compensation for the three consecutive calendar years of
60-21 service that produces the highest average.
60-22 (4) "Qualified joint and survivor annuity" means an
60-23 annuity for the life of a member with a survivor annuity for the
60-24 life of the member's spouse that is not less than 50 percent and
60-25 not more than 100 percent of the amount of the annuity payable
60-26 during the joint lives of the member and spouse and is the
60-27 actuarial equivalent of a life annuity for the member.
61-1 (b) If the amount of any benefit payment under this Act
61-2 would exceed the limitations provided by this section, the police
61-3 retirement system shall reduce the amount of the benefit in
61-4 accordance with this section.
61-5 (c) Except as otherwise provided by this section, a benefit
61-6 is adjusted to the actuarial equivalent of a life annuity for the
61-7 purpose of determining limitations under this section. An
61-8 actuarial adjustment to a benefit is not required to establish the
61-9 value of a qualified joint and survivor annuity and the value of
61-10 postretirement cost-of-living increases made in accordance with
61-11 Section 415 of the Internal Revenue Code of 1986 (26 U.S.C. Section
61-12 415).
61-13 (d) Except as provided by Subsections (f), (h), and (i) of
61-14 this section, an annual benefit payable by the [retirement] system
61-15 may not exceed [the lesser of:]
61-16 [(1)] $118,800, or another amount as adjusted each
61-17 January 1 by the secretary of the treasury under Section 415 of the
61-18 Internal Revenue Code of 1986 (26 U.S.C. Section 415) for
61-19 cost-of-living increases after January 1, 1994. [1994; or]
61-20 [(2) 100 percent of the former member's highest
61-21 average annual compensation, including annual cost-of-living
61-22 increases after separation from service.]
61-23 (e) If payment of a benefit begins before a member attains
61-24 age 62, the dollar limitation is the actuarial equivalent of an
61-25 annual benefit beginning at age 62 as described by Subsection
61-26 (d)[(1)] of this section for a person at age 62. A reduction under
61-27 this subsection may not reduce the dollar limitation below $75,000
62-1 if the benefit begins at or after age 55 or, if the benefit begins
62-2 before age 55, the actuarial equivalent of a $75,000 limitation
62-3 beginning at age 55. A reduction under this section may not reduce
62-4 the dollar limitation of any qualified participant below $66,000 or
62-5 another amount as determined for the applicable calendar year by
62-6 the secretary of the treasury under Section 415 of the Internal
62-7 Revenue Code of 1986 (26 U.S.C. Section 415) for cost-of-living
62-8 increases after January 1, 1994. For purposes of this subsection,
62-9 a qualified participant is a member whose creditable service
62-10 includes at least 15 years of service as a full-time employee of
62-11 the police department of the city or as a member of the Armed
62-12 Forces of the United States.
62-13 (f) If payment of a benefit begins after the member attains
62-14 age 65, the dollar limitation is the actuarial equivalent of an
62-15 annual benefit beginning at age 65 as described by Subsection
62-16 (d)[(1)] of this section.
62-17 (g) For purposes of this section, actuarial equivalence
62-18 shall be computed in the manner prescribed by Section 6.03 [or
62-19 7.02] of this Act except that the interest rate assumption under
62-20 Subsection (c) or (e) of this section is the greater of the rate
62-21 specified by Section 6.03 [or 7.02] or five percent, and the
62-22 interest rate assumption under Subsection (f) of this section is
62-23 the lesser of those rates.
62-24 (h) The limitations prescribed by Subsections (d), (e), and
62-25 (f) of this section do not apply to any portion of an annual
62-26 benefit payable by the [retirement] system that is attributable to
62-27 the balance in the member's individual account in Fund No. 1 as of
63-1 December 31, 1985, or from interest credited to the member's
63-2 account after December 31, 1985, as a result of deposits before
63-3 that date.
63-4 (i) The limitations prescribed by this section apply to the
63-5 aggregate of the benefits attributable to city contributions under
63-6 the police retirement system and any other defined benefit plan
63-7 maintained by the city. All member contributions to the police
63-8 retirement system that are not picked up, within the meaning of
63-9 Section 414(h) of the Internal Revenue Code of 1986 (26 U.S.C.
63-10 Section 414), when aggregated with all other annual additions made
63-11 under any defined contribution plan maintained by the city shall
63-12 satisfy the limitations prescribed by Section 415(c) of the
63-13 Internal Revenue Code of 1986 (26 U.S.C. Section 415). All
63-14 benefits described by the first sentence of this subsection and all
63-15 annual additions, as described by the second sentence of this
63-16 subsection, shall satisfy the combined limitation prescribed by
63-17 Section 415(e) of the Internal Revenue Code of 1986 (26 U.S.C.
63-18 Section 415).
63-19 (j) If the Internal Revenue Code of 1986 (Title 26, United
63-20 States Code) is amended in a manner that limitations similar to
63-21 those provided by this section are not required of governmental
63-22 retirement plans to remain qualified plans, the board by rule may
63-23 eliminate all or any portion of the limitations provided by this
63-24 section.
63-25 (k) The annual benefit payable by the police retirement
63-26 system that is otherwise limited by this section may be increased
63-27 each year in accordance with cost-of-living adjustments by the
64-1 secretary of the treasury as long as it does not exceed the amount
64-2 that would be payable without limitation under Section 415 of the
64-3 Internal Revenue Code of 1986 (26 U.S.C. Section 415).
64-4 ARTICLE XII
64-5 Sec. 12.01. DISTRIBUTION RULES FOR SERVICE RETIREMENT AND
64-6 DEATH ANNUITY PAYMENTS. (a) If a member selects, or if a member's
64-7 death before retirement results in the payment of, an optional
64-8 annuity providing for payment of a fixed number of monthly payments
64-9 to the member's beneficiary or estate if the member dies before the
64-10 total number of payments has been completed, the option is limited
64-11 as provided by Subsections (b), (c), (d), and (e) of this section.
64-12 (b) If, according to mortality tables adopted by the
64-13 Internal Revenue Service, at the time of the member's retirement
64-14 the joint life expectancy of the member making the selection and of
64-15 the [designated] beneficiary is less than the minimum period that
64-16 monthly payments would be required under the option selected, the
64-17 member must select another option so that the minimum period that
64-18 monthly payments would be required does not exceed the joint life
64-19 expectancy of the person making the selection and of the
64-20 [designated] beneficiary.
64-21 (c) If, according to mortality tables adopted by the
64-22 Internal Revenue Service, the life expectancy of a person to whom a
64-23 benefit will be paid as the result of a member's death before
64-24 retirement is less at the time of the member's death than the
64-25 minimum period that monthly payments would be required under the
64-26 option selected, the [retirement] system shall adjust the minimum
64-27 period that monthly payments will be required to a period that is
65-1 not less than 60 months and that is the greatest multiple of 12
65-2 months that does not exceed the life expectancy of the person to
65-3 whom the benefit will be paid. The amount of the monthly payment
65-4 shall be adjusted to the actuarial equivalent of the payments that
65-5 would be made for the greater number of months.
65-6 (d) If the member making the selection designates the
65-7 member's estate as beneficiary and if, according to mortality
65-8 tables adopted by the Internal Revenue Service, the life expectancy
65-9 of that member is less than the minimum period that monthly
65-10 payments would be required under the option selected, the member
65-11 must select another option so that the minimum period that monthly
65-12 payments would be required does not exceed the member's life
65-13 expectancy at the time of the member's retirement.
65-14 (e) If an estate will be paid monthly benefits as the result
65-15 of a member's death before retirement for a period that would
65-16 exceed 60 months, the period for which the payments will be made
65-17 shall be reduced to 60 months, and the amount of the monthly
65-18 payment to the estate is the actuarial equivalent of the payments
65-19 that would have been made for the greater number of months.
65-20 (f) If a member selects an optional annuity that is payable
65-21 after the retiree's death throughout the life of a beneficiary who
65-22 is not the retiree's spouse, payments to the beneficiary after the
65-23 retiree's death may not exceed the applicable percentage of the
65-24 annuity payment that would have been payable to the retiree using
65-25 the following table:
65-26 Excess of age of member Applicable
65-27 over age of beneficiary: percentage:
66-1 10 years or less 100 percent
66-2 more than 10 years but less than 25 67 percent
66-3 years
66-4 25 years or more 50 percent
66-5 (g) Unless the member's spouse is the [designated]
66-6 beneficiary of an optional annuity that guarantees a fixed number
66-7 of monthly payments, the guaranteed number of payments may not
66-8 exceed the applicable period using the following table:
66-9 Maximum number
66-10 of guaranteed
66-11 Age of member at retirement: monthly payments:
66-12 less than 84 180
66-13 at least 84 but less than 91 120
66-14 91 or more 60
66-15 Sec. 12.02. DISTRIBUTION RULES FOR DISABILITY ANNUITY
66-16 PAYMENTS. (a) If a member selects an optional annuity providing
66-17 for payment of a fixed number of monthly annuity payments to the
66-18 member's beneficiary or estate if the member dies before the total
66-19 number of payments has been completed, the option is limited as
66-20 provided by Subsections (b) and (c) of this section.
66-21 (b) If, according to mortality tables adopted by the
66-22 Internal Revenue Service, at the time of the member's retirement
66-23 the joint life expectancy of the member making the selection and of
66-24 the [designated] beneficiary is less than the minimum period that
66-25 monthly payments would be required under the option selected, the
66-26 member must select another option so that the minimum period that
66-27 monthly payments would be required does not exceed the joint life
67-1 expectancy of the person making the selection and of the
67-2 [designated] beneficiary.
67-3 (c) If the member making the selection designates the
67-4 member's estate as beneficiary and if, according to mortality
67-5 tables adopted by the Internal Revenue Service, the life expectancy
67-6 of that member is less than the minimum period that monthly
67-7 payments would be required under the option selected, the member
67-8 must select another option so that the minimum period that monthly
67-9 payments would be required does not exceed the member's life
67-10 expectancy at the time of the member's retirement.
67-11 (d) If a member selects an optional annuity that is payable
67-12 after the retiree's death throughout the life of a beneficiary who
67-13 is not the retiree's spouse, payments to the beneficiary after the
67-14 retiree's death may not exceed the applicable percentage of the
67-15 annuity payment that would have been payable to the retiree using
67-16 the following table:
67-17 Excess of age of member Applicable
67-18 over age of beneficiary: percentage:
67-19 10 years or less 100 percent
67-20 more than 10 but less than 25 years 67 percent
67-21 25 years or more 50 percent
67-22 (e) Unless the member's spouse is the [designated]
67-23 beneficiary of an optional annuity that guarantees a fixed number
67-24 of monthly payments, the guaranteed number of payments may not
67-25 exceed the applicable period using the following table:
67-26 Maximum number
67-27 of guaranteed
68-1 Age of member at retirement: monthly payments:
68-2 less than 84 180
68-3 at least 84 but less than 91 120
68-4 91 or more 60
68-5 ARTICLE XIII
68-6 Sec. 13.01. TRANSFER OF ELIGIBLE ROLLOVER DISTRIBUTIONS.
68-7 (a) This section applies to distributions made on or after
68-8 January 1, 1993. Notwithstanding any provision of this Act [the
68-9 plan] to the contrary that would otherwise limit a distributee's
68-10 election under this section, a distributee may elect, at the time
68-11 and in the manner prescribed by the board, [plan administrator,] to
68-12 have any portion of an eligible rollover distribution paid directly
68-13 to an eligible retirement plan specified by the distributee in a
68-14 direct rollover.
68-15 (b) In this section:
68-16 (1) "Eligible rollover distribution" means any
68-17 distribution of all or any portion of the balance to the credit of
68-18 the distributee, except that an eligible rollover distribution does
68-19 not include:
68-20 (A) any distribution that is one of a series of
68-21 substantially equal periodic payments made at least annually for
68-22 the life or life expectancy of the distributee or the joint lives
68-23 or joint life expectancies of the distributee and distributee's
68-24 [designated] beneficiary, or for a specified period of 10 years or
68-25 more;
68-26 (B) any distribution to the extent the
68-27 distribution is required under Section 401(a)(9) of the Internal
69-1 Revenue Code of 1986 (26 U.S.C. Section 401); or
69-2 (C) the portion of any distribution that is not
69-3 includible in gross income.
69-4 (2) "Eligible retirement plan" means:
69-5 (A) an individual retirement account described
69-6 by Section 408(a) of the Internal Revenue Code of 1986 (26 U.S.C.
69-7 Section 408), an individual retirement annuity described in Section
69-8 408(b) of the Internal Revenue Code of 1986 (26 U.S.C. Section
69-9 408), an annuity plan described in Section 403(a) of the Internal
69-10 Revenue Code of 1986 (26 U.S.C. Section 403), or a qualified trust
69-11 described in Section 401(a) of the Internal Revenue Code of 1986
69-12 (26 U.S.C. Section 401), that accepts the distributee's eligible
69-13 rollover distribution; or
69-14 (B) an individual retirement account or
69-15 individual retirement annuity, in the case of an eligible rollover
69-16 distribution to a surviving spouse.
69-17 (3) "Distributee" means a member or former member, the
69-18 member's or former member's surviving spouse, or the member's or
69-19 former member's spouse or former spouse who is the alternate payee
69-20 under a qualified domestic relations order, as prescribed by
69-21 Section 804.003, Government Code.
69-22 (4) "Direct rollover" means a payment by this system
69-23 [the plan] to the eligible retirement plan specified by the
69-24 distributee.
69-25 SECTION 3. This Act takes effect September 1, 1997.
69-26 SECTION 4. The importance of this legislation and the
69-27 crowded condition of the calendars in both houses create an
70-1 emergency and an imperative public necessity that the
70-2 constitutional rule requiring bills to be read on three several
70-3 days in each house be suspended, and this rule is hereby suspended.