SRC-PNG S.B. 431 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 431
76R3557 GCH-FBy: Barrientos
Intergovernmental Relations
4/19/1999
As Filed


DIGEST 

Currently, a Deferred Retirement Option Plan (DROP) is available to certain
firefighters in certain municipalities, but if a firefighter dies before
retirement, there is no provision to allow a surviving spouse or child to
take advantage of the DROP program. This bill establishes certain
provisions to allow a surviving spouse or child to take advantage of the
DROP program. 

PURPOSE

As proposed, S.B. 431 establishes certain provisions to allow a surviving
spouse or child to take advantage of the Deferred Retirement Option Plan in
certain municipalities. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article 6243e.1, V.T.C.S., by adding Section 1.05, as
follows: 

Sec.  1.05.  AGREEMENT MAY NOT SUPERSEDE THIS ACT.  Prohibits an agreement
between a public employer and an association under Chapter 143I, Local
Government Code, from superseding or preempting any provision of this Act,
and prohibits the increase, diminishment, or qualification of any right,
benefit, privilege, or obligation under this Act. 

SECTION 2.  Amends Section 8.04, Article 6243e.1, V.T.C.S., to require,
rather than prohibit, the amount credited monthly to the member's Deferred
Retirement Option Plan (DROP) account to be increased as a result of any
increase in the formula used in computing  service retirement benefits of
this Act that occurs after the effective date of the member's election to
participate in the DROP but before the effective date of the member's
retirement. 

SECTION 3.  Amends Section 8.06, Article 6243e.1, V.T.C.S., by adding
Subsections (d) and (e), as follows: 

(d) Authorizes a surviving spouse of a member who did not establish a DROP
account but was eligible to do so and dies before retirement to elect to
participate in the DROP if the surviving spouse has not received any
benefit payments under Section 7.01 of this Act.  Sets forth certain
payments to be made to a surviving spouse who makes an election under this
subsection. 

(e) Authorizes the surviving dependent children, if there is no surviving
spouse of a member who did not establish a DROP account but was eligible to
do so and who dies before retirement, to elect to participate in the DROP
if the surviving dependent children have not received any benefit payments
under Section 7.05 of this Act.  Requires an election under this subsection
to be made by all of the surviving dependent children, except that the
guardian of any child who is younger than 18 years of age at the time of
the election makes a binding election for the child.  Sets forth certain
payments to be made to surviving dependent children who make an election
under this subsection. 

 SECTION 4. Amends Section 9.04(b), Article 6243e.1, V.T.C.S., to prohibit
payment of the portion of the adjustment under Subsection (a) of this
section that exceeds one-half of one percent of the benefit unless the
board's actuary has advised the board of trustees that the adjustment would
not impair the financial stability of the fund and the adjustment has been
approved by the affirmative vote of a majority of the board of trustees. 

SECTION 5. Effective date: September 1, 1999.

SECTION 6. Emergency clause.