1-1 By: Yarbrough (Senate Sponsor - Brown) H.B. No. 1173
1-2 (In the Senate - Received from the House April 9, 1999;
1-3 April 12, 1999, read first time and referred to Committee on
1-4 Intergovernmental Relations; April 29, 1999, reported favorably by
1-5 the following vote: Yeas 4, Nays 0; April 29, 1999, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to a firefighters' relief and retirement fund in certain
1-10 municipalities.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 1(11), Article 6243e.2(1), Revised
1-13 Statutes, is amended to read as follows:
1-14 (11) "Firefighter" means a full-time, fully paid,
1-15 active, classified member of a regularly organized fire department
1-16 of an incorporated municipality with a fund established under this
1-17 article, including a member who has made a DROP election, but is
1-18 otherwise described in this definition.
1-19 SECTION 2. Section 2(l), Article 6243e.2(1), Revised
1-20 Statutes, is amended to read as follows:
1-21 (l) The board shall hold regular monthly meetings at a time
1-22 and place as the board by resolution designates and may hold
1-23 special meetings on call of the chair as the chair determines is
1-24 necessary, keep accurate minutes of board meetings and records of
1-25 board proceedings, keep separate from all other municipal funds all
1-26 money for the use and benefit of the fund, and keep a record of
1-27 claims, receipts, and disbursements. A disbursement from the fund
1-28 may be made in accordance with procedures established by the board.
1-29 The municipality shall allow municipal employees who are board
1-30 trustees to promptly attend all board and committee meetings.
1-31 Each board trustee who is an employee of the municipality shall
1-32 provide the municipality with reasonable notice of the trustee's
1-33 required attendance at regularly scheduled board and committee
1-34 meetings. The municipality shall allow board trustees the time
1-35 required to travel to and attend educational workshops and
1-36 legislative hearings and meetings regarding proposed amendments to
1-37 this article if attendance is consistent with a board trustee's
1-38 duty to the board. The municipality may not use the trustee's
1-39 attendance or travel related to attendance described by this
1-40 subsection to reduce or withhold the wages that the trustee would
1-41 otherwise earn. The board may reimburse from the fund the
1-42 municipality for costs incurred by the municipality for allowing a
1-43 trustee's attendance under this subsection.
1-44 SECTION 3. Section 3, Article 6243e.2(1), Revised Statutes,
1-45 is amended by adding Subsections (h) and (i) to read as follows:
1-46 (h) The board may purchase with board funds a life insurance
1-47 policy from an insurer licensed to do business in this state to
1-48 cover the amount of lump-sum death benefits that may become payable
1-49 to a member's eligible survivor or estate. The amount payable
1-50 under a policy under this subsection on the death of one member may
1-51 not exceed the amount of the lump-sum death benefits payable under
1-52 this article. The board shall be the policyholder of any life
1-53 insurance purchased under this subsection and shall use any
1-54 proceeds received from the insurer to satisfy any lump-sum death
1-55 benefits owed under this article.
1-56 (i) The board may pay with fund assets the reasonable
1-57 expenses incurred in providing annual or semiannual meetings of
1-58 retired members, spouses of retired members, and eligible survivors
1-59 that facilitate communication regarding benefits paid under this
1-60 article if the expenses do not materially affect the total assets
1-61 of the fund. Reasonable expenses may include the purchase of items
1-62 or services necessary to promote and facilitate these meetings.
1-63 SECTION 4. Section 4, Article 6243e.2(1), Revised Statutes,
1-64 is amended to read as follows:
2-1 Sec. 4. SERVICE PENSION BENEFITS. (a) A member with at
2-2 least 20 years of participation who terminates active service for
2-3 any reason other than death is entitled to receive a service
2-4 pension provided by this section.
2-5 (b) A member who terminates active service on or after
2-6 November 1, 1997, and who has completed at least 20 years of
2-7 participation in the fund on the effective date of termination of
2-8 service is entitled to a monthly service pension, beginning on the
2-9 effective date of termination of active service, in an amount equal
2-10 to 50 percent of the member's average monthly salary, plus three
2-11 percent of the member's average monthly salary for each year of
2-12 participation in excess of 20 years, but not in excess of 30 years
2-13 of participation, for a maximum total benefit of 80 percent of the
2-14 member's average monthly salary.
2-15 (c) A member who terminated active service before November
2-16 1, 1997, and who had completed at least 20 years of participation
2-17 on the effective date of termination of service is entitled on
2-18 retirement to receive a monthly service pension in the amount
2-19 provided under the law in effect on the effective date of that
2-20 retirement, unless a subsequent benefit increase is expressly made
2-21 applicable to that member.
2-22 (d) [A member with a service or disability pension, other
2-23 than a deferred retiree or an active member who has elected the
2-24 DROP under Section 5(b) of this article, who began receiving
2-25 benefits from the fund before November 1, 1997, or a member's
2-26 beneficiary who began receiving benefits from the fund before
2-27 November 1, 1997, shall be paid a one-time additional benefit of
2-28 $5,000 from the fund, payable in a lump sum as soon as
2-29 administratively practicable after November 1, 1997.]
2-30 [(e)] The total monthly benefit payable to a retired or
2-31 disabled member, other than a deferred retiree or active member who
2-32 has elected the DROP under Section 5(b) of this article, or each
2-33 eligible survivor of a deceased member, shall be increased by $100,
2-34 beginning with the monthly payment made for July 1999. That
2-35 additional benefit may not be increased under Section 11(c) of this
2-36 article.
2-37 [(f) The benefit under Subsection (d) of this section shall
2-38 be paid to the member or to the eligible spouse of a deceased
2-39 member. If the member is deceased and there is no eligible spouse,
2-40 the benefit shall be divided equally among and paid to each
2-41 eligible child of the member, or, if there is no eligible child,
2-42 the benefit shall be divided among the eligible parents of the
2-43 member.]
2-44 SECTION 5. Section 5, Article 6243e.2(1), Revised Statutes,
2-45 is amended to read as follows:
2-46 Sec. 5. DEFERRED RETIREMENT OPTION PLAN. (a) A member who
2-47 is eligible to receive a service pension under Section 4 of this
2-48 article and who remains in active service may elect to participate
2-49 in the deferred retirement option plan provided by this section.
2-50 On subsequently terminating active service, a member who elected
2-51 the DROP may apply for a monthly service pension under Section 4 of
2-52 this article, except that the effective date of the member's
2-53 election to participate in the DROP will be considered the member's
2-54 retirement date for determining the amount of the member's monthly
2-55 service pension. The member may also apply for any DROP benefit
2-56 provided under this section on terminating active service. Except
2-57 as provided by Subsection (l) [(n)] of this section, an election to
2-58 participate in the DROP, once approved by the board, is
2-59 irrevocable.
2-60 (b) A member may elect to participate in the DROP by
2-61 complying with the election process established by the board. The
2-62 member's election may be made at any time beginning on the date the
2-63 member has completed 20 years of participation in the fund and is
2-64 otherwise eligible for a service pension under Section 4 of this
2-65 article. The election becomes effective on the first day of the
2-66 month following the month in which the board approves the member's
2-67 DROP election. Beginning on the effective date of the member's
2-68 DROP election, amounts equal to the deductions made from the
2-69 member's salary under Section 13(c) of this article shall be
3-1 credited to the member's DROP account. If a DROP participant
3-2 remains in active service after the seventh [fifth] anniversary of
3-3 the effective date of the member's DROP election, subsequent
3-4 deductions from the member's salary under Section 13(c) of this
3-5 article may not be credited to the member's DROP account and may
3-6 not otherwise increase any benefit payable from the fund for the
3-7 member's service.
3-8 (c) Beginning in the month a member's DROP election becomes
3-9 effective, an amount equal to the monthly service pension the
3-10 member would have received under Section 4 of this article and
3-11 Section 11(c) of this article, if applicable, had the member
3-12 terminated active service on the effective date of the member's
3-13 DROP election shall be credited to a DROP account maintained for
3-14 the member. That monthly credit to the member's DROP account shall
3-15 continue until the earlier of the date the member terminates active
3-16 service or the seventh [fifth] anniversary of the effective date of
3-17 the member's DROP election.
3-18 (d) A member's DROP account shall be credited with earnings
3-19 or losses at an annual rate equal to the average annual return
3-20 earned by the fund over the five years preceding, but not
3-21 including, the year during which the credit is given. Those
3-22 earnings or losses shall be computed and credited at a time and in
3-23 a manner determined by the board, except that earnings or losses
3-24 shall be credited not less frequently than once in each 13-month
3-25 period and shall take into account partial years of participation
3-26 in the DROP. If the member has not terminated active service, the
3-27 member's DROP account may not be credited with earnings or losses
3-28 after the seventh [fifth] anniversary of the effective date of the
3-29 member's DROP election.
3-30 (e) A member who terminates active service after
3-31 participating in the DROP is entitled to receive, in addition to
3-32 the member's service pension under Section 4 of this article, a
3-33 benefit equal to the balance of the member's DROP account. Unless
3-34 the member elects to receive [installment or] partial distributions
3-35 in accordance with Subsection (f) [or (h)] of this section, the
3-36 balance of a member's DROP account shall be paid to the member in a
3-37 single lump-sum payment as soon as is administratively practicable
3-38 after the member's termination of active service.
3-39 (f) [In lieu of a single lump-sum payment, a member may
3-40 elect to receive the balance of the member's DROP account in three
3-41 substantially equal installments. A member electing the
3-42 installment form of distribution is entitled to receive the first
3-43 installment within a reasonable period after terminating active
3-44 service. The second and third installments shall be paid to the
3-45 member on the first and second anniversaries of the date of the
3-46 first installment. A member electing to receive the member's DROP
3-47 account balance in installments may convert that election at any
3-48 time after receipt of the first installment to an election to
3-49 receive the remainder of the member's DROP account balance in a
3-50 lump-sum payment. If a member elects to receive installments, the
3-51 member's DROP account may not be credited with earnings or losses
3-52 occurring after the member leaves active service. The DROP account
3-53 balance of a member who elects to receive the member's DROP account
3-54 balance in installments may not be credited with interest after the
3-55 date of payment of the first installment.]
3-56 [(g) The board may adopt by a majority vote the provisions
3-57 of Subsections (h) and (i) of this section.]
3-58 [(h)] In lieu of a single lump-sum payment, a member may
3-59 elect to receive partial payments from the member's DROP account
3-60 for each calendar year, in an amount elected by the member. The
3-61 board may establish procedures concerning partial payments,
3-62 including limitations on timing and frequency of those payments. A
3-63 member who elects partial payments may, at any time, elect to
3-64 receive the member's entire remaining DROP account balance in a
3-65 single lump-sum payment.
3-66 (g) [(i)] If a member elects partial payments, for periods
3-67 after a member terminates active service and before the member's
3-68 DROP account is completely distributed, the member's DROP account
3-69 shall be credited with earnings or losses of the fund as computed
4-1 under Subsection (d) of this section and reduced by an
4-2 administrative fee of one percent of the account balance each year,
4-3 determined before adjustment for earnings or losses for the year.
4-4 (h) [(j)] An election by a member concerning single lump-sum
4-5 [installment] or partial payments as provided by Subsection (e) or
4-6 (f) [Subsections (f) (i)] of this section must satisfy the
4-7 requirements of Section 401(a)(9) of the code. All distributions
4-8 and changes in form of distribution must be made in a manner and at
4-9 a time that comply with that provision of the code.
4-10 (i) [(k)] A member who elects to participate in the DROP is
4-11 considered to have terminated active service on the effective date
4-12 of the member's DROP election for purposes of computing and
4-13 providing service pension benefits under Section 4 of this article
4-14 and for purposes of computing and providing death benefits under
4-15 Section 7 of this article. A salary earned or additional years of
4-16 participation completed after the member's DROP election becomes
4-17 effective may not be considered in the computation of retirement,
4-18 disability, or death benefits unless a DROP revocation is made as
4-19 prescribed by Subsection (l) [(n)] of this section.
4-20 (j) [(l)] If a DROP participant dies before complete
4-21 distribution of the member's DROP account has been made, the
4-22 member's DROP account balance shall be distributed to the member's
4-23 eligible beneficiaries, determined as follows:
4-24 (1) if the member is survived by a spouse [person] who
4-25 was the member's spouse on the member's last day of active service
4-26 and one or more eligible children, one-half of the member's DROP
4-27 account balance shall be paid to that eligible spouse, and the
4-28 remaining one-half shall be divided equally among the member's
4-29 eligible children;
4-30 (2) if the member is survived by a spouse described by
4-31 Subdivision (1) of this subsection, but not by an eligible child,
4-32 the member's entire DROP account balance shall be paid to the
4-33 surviving spouse;
4-34 (3) if the member is survived by one or more eligible
4-35 children, but not by a spouse described by Subdivision (1) of this
4-36 subsection, the member's DROP account balance shall be divided
4-37 equally among the eligible children;
4-38 (4) if the member is not survived by a spouse
4-39 described by Subdivision (1) of this subsection or an eligible
4-40 child, the member's DROP account balance shall be divided equally
4-41 among the member's eligible parents;
4-42 (5) if the member is not survived by a spouse
4-43 described by Subdivision (1) of this subsection, an eligible child,
4-44 or an eligible parent, the member's DROP account balance shall be
4-45 distributed in accordance with the member's beneficiary designation
4-46 filed with the board or, if the member has failed to file a valid
4-47 beneficiary designation, to the member's estate; and
4-48 (6) if a member's spouse described by Subdivision (1)
4-49 of this subsection was not married to the member on the date the
4-50 member's DROP election became effective, the spouse shall receive a
4-51 reduced benefit equal to the benefit otherwise payable to the
4-52 surviving spouse under this subsection, multiplied by the
4-53 percentage of the period between the member's DROP election and the
4-54 date the member left active service during which the spouse and the
4-55 member were married, and the amount by which the spouse's benefit
4-56 is reduced shall be divided among any other eligible survivors as
4-57 if the member did not have an eligible spouse.
4-58 (k) [(m)] An eligible beneficiary's share of a deceased
4-59 member's DROP account shall be distributed as soon as
4-60 administratively practicable after the member's death in the form
4-61 of a single lump-sum payment. All distributions to beneficiaries
4-62 under this subsection must be made in a manner and at a time that
4-63 comply with Section 401(a)(9) of the code.
4-64 (l) [(n)] Except as otherwise provided by this subsection, a
4-65 member who participates in the DROP is ineligible for disability
4-66 benefits described by Section 6 of this article, and the member's
4-67 survivors are ineligible to receive enhanced death benefits
4-68 described by Section 7(c) of this article. A DROP participant who
4-69 is determined under Section 6(c) of this article to be incapable of
5-1 performing any substantial gainful employment because of an on-duty
5-2 disability may retroactively revoke the member's DROP election if
5-3 the revocation occurs before the member receives a distribution
5-4 from the member's DROP account or retirement benefits. If a DROP
5-5 participant dies in the course of the performance of the member's
5-6 duty or dies as a result of an on-duty disability described by
5-7 Section 6(c) of this article, the DROP participant's eligible
5-8 survivors under Section 7 of this article and the member's eligible
5-9 DROP beneficiaries under Subsection (j) [(l)] of this section may,
5-10 by unanimous agreement, retroactively revoke the member's DROP
5-11 election if the revocation occurs before receipt of a distribution
5-12 from the member's DROP account, service pension benefits under
5-13 Section 4 of this article, or death benefits under Section 7 of
5-14 this article. For purposes of this subsection, an on-duty
5-15 disability must have occurred after the effective date of a
5-16 member's election to participate in the DROP. If a DROP election
5-17 revocation is made as prescribed by this subsection, the member's
5-18 DROP account is not distributed, and the member or the member's
5-19 beneficiary, as applicable, is entitled to benefits under this
5-20 article as if a DROP election had not been made.
5-21 (m) [(o)] A retired member who previously participated in
5-22 the DROP and who returns to active service is subject to the terms
5-23 of this section in effect at the time of the member's return to
5-24 active service.
5-25 (n) [(p)] After August 31, 2000, the board may set a date
5-26 after which additional members will not be allowed to elect to
5-27 participate in the DROP. A member whose election to participate in
5-28 the DROP becomes effective before a deadline established by the
5-29 board is entitled to continue participating in the DROP.
5-30 (o) A member who has made a DROP election is not classified
5-31 as retired, eligible to be paid, or eligible to accrue or to
5-32 receive any benefit that is accrued or received by a member who has
5-33 terminated active service or by the eligible survivors of deceased
5-34 members unless the member who has made the DROP election has
5-35 terminated active service.
5-36 SECTION 6. Section 6(d), Article 6243e.2(1), Revised
5-37 Statutes, is amended to read as follows:
5-38 (d) If a full-time active member with at least six years of
5-39 service becomes disabled or dies from heart or lung disease or
5-40 cancer, and the member successfully passed a physical examination
5-41 before the claimed disability or death or on beginning employment
5-42 as a firefighter, and the examination failed to reveal any evidence
5-43 of the heart or lung disease or cancer, that condition will be
5-44 presumed to have caused an on-duty disability for purposes of
5-45 determining eligibility for disability benefits under this section,
5-46 and the amount of the disability benefit is presumed to constitute,
5-47 unless the presumption is rebutted, [constitutes] the pension
5-48 amount that shall be used to determine the death benefit payable
5-49 with respect to that member. The on-duty disability presumption
5-50 may be rebutted only by clear and convincing evidence. Another
5-51 statutory presumption regarding the cause of illnesses or
5-52 conditions does not affect any benefit payable under this article.
5-53 SECTION 7. Section 7(e), Article 6243e.2(1), Revised
5-54 Statutes, is amended to read as follows:
5-55 (e) In addition to the monthly death benefit provided under
5-56 Subsection (a) of this section, if an active member or a member
5-57 receiving a service pension under Section 4 of this article or a
5-58 disability pension under Section 6 of this article dies on or after
5-59 July 1, 1998, the member's eligible survivors are entitled to a
5-60 one-time $5,000 death benefit, payable as a lump sum as follows:
5-61 (1) if the member is survived by an eligible spouse,
5-62 the eligible spouse is entitled to receive $5,000;
5-63 (2) if the member is not survived by an eligible
5-64 spouse, the member's eligible children are entitled to receive
5-65 $5,000, divided equally among those children; [or]
5-66 (3) if the member is not survived by an eligible
5-67 spouse or an eligible child, the $5,000 death benefit shall be
5-68 divided equally among the eligible parents of the deceased member;
5-69 or
6-1 (4) if the member is not survived by an eligible
6-2 spouse, an eligible child, or an eligible parent, the $5,000 death
6-3 benefit shall be paid to the deceased member's estate.
6-4 SECTION 8. Section 10, Article 6243e.2(1), Revised Statutes,
6-5 is amended to read as follows:
6-6 Sec. 10. NONSTATUTORY BENEFIT INCREASES. The benefits
6-7 provided by this article may be increased if:
6-8 (1) [the increase is first approved by] an actuary
6-9 selected by the board who, if an individual, is a Fellow of the
6-10 Society of Actuaries, a Fellow of the Conference of Actuaries in
6-11 Public Practice, or a member of the American Academy of Actuaries
6-12 determines that the increase cannot reasonably be viewed as posing
6-13 a material risk of jeopardizing the fund's ability to pay any
6-14 existing benefit;
6-15 (2) a majority of the participating members of the
6-16 fund vote for the increase by a secret ballot;
6-17 (3) the increase does not deprive a member, without
6-18 the member's written consent, of a right to receive benefits that
6-19 have already become fully vested and matured in a member; and
6-20 (4) the State Pension Review Board approves the
6-21 determination by the actuary selected by the board that the
6-22 increase cannot reasonably be viewed as posing a material risk of
6-23 jeopardizing the fund's ability to pay any existing benefit
6-24 [increase, which approval may not be unreasonably withheld].
6-25 SECTION 9. Article 6243e.2(1), Revised Statutes, is amended
6-26 by adding Sections 10A and 10B to read as follows:
6-27 Sec. 10A. ANNUAL SUPPLEMENTAL BENEFIT FOR CERTAIN RETIRED
6-28 MEMBERS AND ELIGIBLE SURVIVORS. (a) The board shall pay
6-29 supplemental benefits under this section to retired members, not
6-30 including deferred retirees, and to eligible survivors, not
6-31 including survivors of deferred retirees, if the requirements of
6-32 Subsection (b) of this section are met. The board shall pay the
6-33 supplemental benefits in January following a fiscal year of the
6-34 fund in which the requirements of Subsection (b) of this section
6-35 are met.
6-36 (b) The board shall pay supplemental benefits under this
6-37 section if the fund actuary determines that, as of the end of any
6-38 fund fiscal year:
6-39 (1) the value of the fund's assets exceeds the amount
6-40 of the fund's accrued liability;
6-41 (2) the fund's gross rate of return on investments for
6-42 that fiscal year exceeds 9.25 percent; and
6-43 (3) payment of supplemental benefits will not result
6-44 in an increase of the municipality's contribution rate.
6-45 (c) The board shall adopt rules and procedures to govern the
6-46 payment of benefits under this section and shall establish a
6-47 minimum income level consistent with the national poverty level set
6-48 by the United States Department of Health and Human Services.
6-49 (d) The board shall determine an aggregate supplemental
6-50 benefit amount that may not exceed the lesser of:
6-51 (1) the amount by which the value of fund assets
6-52 exceeds the amount of accrued liability as determined under
6-53 Subsection (b)(1) of this section; or
6-54 (2) $4 million.
6-55 (e) Based on the aggregate supplemental benefit amount
6-56 determined under Subsection (d) of this section, the board shall
6-57 determine the amount of a lump-sum payment for each retired member
6-58 or eligible survivor.
6-59 (f) In determining the lump-sum payment amount, the total
6-60 number of years since the commencement date of each retired
6-61 member's or eligible survivor's annual retirement or survivor
6-62 benefit shall be divided by the total number of years since the
6-63 commencement date of all retired members' and eligible survivors'
6-64 annual retirement or survivor benefit to establish a payment
6-65 percentage for each retired member and eligible survivor.
6-66 (g) The payment percentage of each retired member and
6-67 eligible survivor shall be multiplied by the aggregate supplemental
6-68 benefit less the total amount of any payments made under Subsection
6-69 (i) of this section.
7-1 (h) The product of the computation under Subsection (g) of
7-2 this section determines the lump-sum payment to the retired member
7-3 or eligible survivor unless the lump-sum payment plus the annual
7-4 retirement benefit is less than the minimum income level
7-5 established by the board.
7-6 (i) If the lump-sum payment plus the annual retirement
7-7 benefit is less than the minimum income level established by the
7-8 board, the retired member or eligible survivor is entitled to
7-9 receive an additional payment from the amount determined under
7-10 Subsection (d) of this section that will cause the recipient to
7-11 meet but not exceed the minimum income level.
7-12 (j) The benefits commencement date for a retired member or
7-13 the eligible survivor of a retired member is the first day on which
7-14 the retired member most recently began receiving pension benefits
7-15 from the fund. The benefits commencement date for an eligible
7-16 survivor of an active member is the first day of receipt of
7-17 benefits as an eligible survivor.
7-18 (k) Notwithstanding any other provision of this section, if
7-19 more than one eligible survivor is to receive a supplemental
7-20 benefit as a result of one deceased person under this section:
7-21 (1) only one eligible survivor is considered in
7-22 computations under this section other than computations under
7-23 Subdivision (2) of this subsection and as receiving the payments
7-24 received by all eligible survivors of the one deceased person; and
7-25 (2) the amount of payments under this section will be
7-26 paid to the eligible survivors in the same manner as payments under
7-27 Sections 7(a) and (b) of this article are made.
7-28 (l) All actuarial determinations required under this section
7-29 must be made by the fund's actuary.
7-30 Sec. 10B. ADDITIONAL LUMP-SUM RETIREMENT OR DEATH BENEFIT.
7-31 (a) The board shall pay the following people a $4,000 lump-sum
7-32 payment from the fund, in addition to any other benefits, as soon
7-33 as administratively practicable after the date of the person's
7-34 retirement, if the person's retirement occurs or occurred after
7-35 June 30, 1998:
7-36 (1) each member who retires or retired after
7-37 completing 20 years of service and is eligible to receive service
7-38 pension benefits under Section 4 of this article; and
7-39 (2) each member who retires or retired and is eligible
7-40 to receive disability benefits under Section 6 of this article.
7-41 (b) The board shall pay a $4,000 lump-sum payment from the
7-42 fund, in addition to any other benefits, to an eligible survivor of
7-43 a member:
7-44 (1) whose death occurs or occurred after June 30,
7-45 1998;
7-46 (2) who had not terminated active service; and
7-47 (3) who was ineligible to receive service pension
7-48 benefits under Section 4 of this article or disability benefits
7-49 under Section 6 of this article.
7-50 (c) If more than one eligible survivor of one deceased
7-51 member exists, the amount of each survivor's benefit is determined
7-52 in the same manner as payment of death benefits is determined under
7-53 Section 7(e) of this article. The board shall make payments under
7-54 Subsection (b) of this section as soon as administratively
7-55 practicable after the date of death of the member of whom each
7-56 recipient is an eligible survivor.
7-57 SECTION 10. Sections 13(b) and (h), Article 6243e.2(1),
7-58 Revised Statutes, are amended to read as follows:
7-59 (b) [The board shall establish minimum physical requirements
7-60 for membership in the fund that may not exceed the physical
7-61 requirements established by the Fire Fighters' and Police Officers'
7-62 Civil Service Commission under Section 143.022, Local Government
7-63 Code, and that must be the same for all applicants.] At the time
7-64 that physical examinations are administered on behalf of the
7-65 municipality, each applicant must be provided written notice that a
7-66 copy of the results of the examination will be forwarded to the
7-67 board for the purpose of determining whether the applicant has a
7-68 preexisting condition that would be relevant to any determination
7-69 under Section 6 of this article [to determine eligibility for
8-1 membership in the fund and the existence of any preexisting
8-2 condition]. Not later than the 10th day after the date of a
8-3 physical examination performed on an applicant for a beginning
8-4 position in the fire department as required by Section 143.022,
8-5 Local Government Code, the municipality shall provide to the board
8-6 a copy of all documents resulting from the physical examination.
8-7 The board may require additional physical examinations if necessary
8-8 in determining the presence or absence of any preexisting condition
8-9 [to determine whether the applicant meets the minimum physical
8-10 requirements for membership in the fund]. The fund shall pay the
8-11 cost of any additional physical examination the board requires.
8-12 [Within a reasonable time after receiving the examination reports
8-13 of an applicant, the board shall, on the basis of one or more
8-14 physical examinations, determine whether the applicant meets the
8-15 minimum physical requirements for membership in the fund. The
8-16 board shall notify the applicant and the chief of the fire
8-17 department not later than the 10th calendar day after the date of
8-18 the board's decision on the applicant's satisfaction of the minimum
8-19 physical requirements. If the board rejects the applicant, the
8-20 applicant may request further examination by a board of three
8-21 physicians appointed by the board at the expense of the applicant.
8-22 If a physician board finds that an applicant meets the minimum
8-23 physical requirements for membership in the fund, the board shall
8-24 accept the applicant for membership.] If accepted by the board,
8-25 the applicant's membership in the fund is effective on being
8-26 appointed to the position of probationary firefighter.
8-27 (h) If the municipality's actuarially determined
8-28 contribution rate computed in accordance with Subsection (d) of
8-29 this section would exceed the minimum contribution rate specified,
8-30 the benefits payable under Sections 4(d)[, 4(e),] and 7(e) of this
8-31 article may not be paid, an eligible spouse whose benefit is
8-32 reduced under Section 7(b) of this article may not be paid a
8-33 benefit if there are no other eligible survivors, and the
8-34 municipality's actuarially determined contribution rate shall be
8-35 recomputed on the basis of the assumption that those benefits are
8-36 suspended indefinitely. If the recomputation results in an
8-37 actuarially determined contribution rate less than the minimum
8-38 contribution rate specified, a portion of the benefits shall be
8-39 paid, as determined by the board, to the extent that, with the
8-40 payments determined, the two contribution rates are equal. This
8-41 subsection expires July 31, 1999, unless on that date the
8-42 municipality's actuarially determined contribution rate computed in
8-43 accordance with Subsection (d) of this section would exceed the
8-44 minimum contribution rate specified.
8-45 SECTION 11. This Act takes effect November 1, 1999.
8-46 SECTION 12. The importance of this legislation and the
8-47 crowded condition of the calendars in both houses create an
8-48 emergency and an imperative public necessity that the
8-49 constitutional rule requiring bills to be read on three several
8-50 days in each house be suspended, and this rule is hereby suspended.
8-51 * * * * *