76R9104 GCH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to benefits and administration of retirement systems for
1-3 firefighters in certain municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Article 1, Chapter 183, Acts of the 64th
1-6 Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's Texas
1-7 Civil Statutes), is amended by adding Section 1.05 to read as
1-8 follows:
1-9 Sec. 1.05. AGREEMENT MAY NOT SUPERSEDE THIS ACT.
1-10 Notwithstanding Section 143.307, Local Government Code, an
1-11 agreement between a public employer and an association under
1-12 Subchapter I, Chapter 143, Local Government Code, may not supersede
1-13 or preempt any provision of this Act and may not increase,
1-14 diminish, or qualify any right, benefit, privilege, or obligation
1-15 under this Act.
1-16 SECTION 2. Section 8.04, Chapter 183, Acts of the 64th
1-17 Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's Texas
1-18 Civil Statutes), is amended to read as follows:
1-19 Sec. 8.04. AMOUNT OF CREDITS TO MEMBER'S DROP ACCOUNT. The
1-20 amount credited monthly to the member's DROP account:
1-21 (1) shall [may not] be increased as a result of any
1-22 increase in the formula used in computing service retirement
1-23 benefits under Section 5.04 of this Act that occurs after the
1-24 effective date of the member's election to participate in the DROP
1-25 but before the effective date of the member's retirement;
1-26 (2) shall be increased by any annual cost-of-living
1-27 adjustments under Section 9.04 of this Act that occur between the
2-1 effective date of the member's election to participate in the DROP
2-2 and the effective date of the member's retirement but only as to
2-3 amounts credited to the member's DROP account after a
2-4 cost-of-living adjustment; and
2-5 (3) is subject to the limitations prescribed by
2-6 Section 9.03 of this Act.
2-7 SECTION 3. Section 8.06, Chapter 183, Acts of the 64th
2-8 Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's Texas
2-9 Civil Statutes), is amended by adding Subsections (d) and (e) to
2-10 read as follows:
2-11 (d) If a member who did not establish a DROP account under
2-12 this section but was eligible to do so dies before retirement, the
2-13 surviving spouse, if any, of that member may elect to participate
2-14 in the DROP if the surviving spouse has not received any benefit
2-15 payments under Section 7.01 of this Act. If a surviving spouse
2-16 makes an election under this subsection:
2-17 (1) the board of trustees shall cause to be paid to
2-18 the surviving spouse in a lump sum, as soon as administratively
2-19 possible after the fund receives notice of the election, an amount
2-20 equal to the credits that the member's DROP account would have
2-21 received, including interest, if the member had established the
2-22 DROP account after becoming eligible for service retirement, but
2-23 not more than five years before the date of the member's death; and
2-24 (2) the amount of the benefit payable to the surviving
2-25 spouse under Section 7.03 of this Act is 75 percent of the benefit
2-26 the member would have been eligible to receive if the member had
2-27 established the DROP account on becoming eligible for service
3-1 retirement, but not more than five years before the date of the
3-2 member's death.
3-3 (e) If a member who did not establish a DROP account under
3-4 this section but was eligible to do so dies before retirement
3-5 without leaving a surviving spouse, the surviving dependent
3-6 children, if any, may elect to participate in the DROP if the
3-7 dependent children have not received any benefit payments under
3-8 Section 7.05 of this Act. An election under this subsection must
3-9 be made by all of the surviving dependent children of the member,
3-10 except that the guardian of any child who is younger than 18 years
3-11 of age at the time of the election makes a binding election for the
3-12 child. If the surviving dependent children make an election under
3-13 this subsection:
3-14 (1) the board of trustees shall cause to be paid
3-15 jointly to the dependent children in a lump sum, as soon as
3-16 administratively possible after the fund receives notice of the
3-17 election, an amount equal to the credits the member's DROP account
3-18 would have received, including interest, if the member had
3-19 established the DROP account after becoming eligible for service
3-20 retirement, but not less than the credits the DROP account would
3-21 have received, including interest, based on 20 years of service
3-22 credit; and
3-23 (2) the amount of the benefit payable to the dependent
3-24 children under Section 7.05(a) is 75 percent of the benefit the
3-25 member would have been entitled to receive if the member had
3-26 established the DROP account on becoming eligible for service
3-27 retirement, but based on not less than 20 years of service credit.
4-1 SECTION 4. Section 9.04(b), Chapter 183, Acts of the 64th
4-2 Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's Texas
4-3 Civil Statutes), is amended to read as follows:
4-4 (b) If an adjustment under Subsection (a) of this section
4-5 would exceed one-half of one percent of a person's benefit, the
4-6 portion of the [An] adjustment that exceeds one-half of one percent
4-7 of the benefit may not be made under this section unless the
4-8 board's actuary has advised the board of trustees that the
4-9 adjustment would not impair the financial stability of the fund and
4-10 the adjustment has been approved by the affirmative vote of a
4-11 majority of the board of trustees. If an adjustment under
4-12 Subsection (a) of this section would be one-half of one percent or
4-13 less of a person's benefit, the adjustment may not be made under
4-14 this section unless the board's actuary has advised the board of
4-15 trustees that the adjustment would not impair the financial
4-16 stability of the fund.
4-17 SECTION 5. This Act takes effect September 1, 1999.
4-18 SECTION 6. The importance of this legislation and the
4-19 crowded condition of the calendars in both houses create an
4-20 emergency and an imperative public necessity that the
4-21 constitutional rule requiring bills to be read on three several
4-22 days in each house be suspended, and this rule is hereby suspended.