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
2-1 but before the effective date of the member's retirement;
2-2 (2) shall be increased by any annual cost-of-living
2-3 adjustments under Section 9.04 of this Act that occur between the
2-4 effective date of the member's election to participate in the DROP
2-5 and the effective date of the member's retirement but only as to
2-6 amounts credited to the member's DROP account after a
2-7 cost-of-living adjustment; and
2-8 (3) is subject to the limitations prescribed by
2-9 Section 9.03 of this Act.
2-10 SECTION 3. Section 8.06, Chapter 183, Acts of the 64th
2-11 Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's Texas
2-12 Civil Statutes), is amended by adding Subsections (d) and (e) to
2-13 read as follows:
2-14 (d) If a member who did not establish a DROP account under
2-15 this section but was eligible to do so dies before retirement, the
2-16 surviving spouse, if any, of that member may elect to participate
2-17 in the DROP if the surviving spouse has not received any benefit
2-18 payments under Section 7.01 of this Act. If a surviving spouse
2-19 makes an election under this subsection:
2-20 (1) the board of trustees shall cause to be paid to
2-21 the surviving spouse in a lump sum, as soon as administratively
2-22 possible after the fund receives notice of the election, an amount
2-23 equal to the credits that the member's DROP account would have
2-24 received, including interest, if the member had established the
2-25 DROP account after becoming eligible for service retirement, but
2-26 not more than five years before the date of the member's death; and
2-27 (2) the amount of the benefit payable to the surviving
3-1 spouse under Section 7.03 of this Act is 75 percent of the benefit
3-2 the member would have been eligible to receive if the member had
3-3 established the DROP account on becoming eligible for service
3-4 retirement, but not more than five years before the date of the
3-5 member's death.
3-6 (e) If a member who did not establish a DROP account under
3-7 this section but was eligible to do so dies before retirement
3-8 without leaving a surviving spouse, the surviving dependent
3-9 children, if any, may elect to participate in the DROP if the
3-10 dependent children have not received any benefit payments under
3-11 Section 7.05 of this Act. An election under this subsection must
3-12 be made by all of the surviving dependent children of the member,
3-13 except that the guardian of any child who is younger than 18 years
3-14 of age at the time of the election makes a binding election for the
3-15 child. If the surviving dependent children make an election under
3-16 this subsection:
3-17 (1) the board of trustees shall cause to be paid
3-18 jointly to the dependent children in a lump sum, as soon as
3-19 administratively possible after the fund receives notice of the
3-20 election, an amount equal to the credits the member's DROP account
3-21 would have received, including interest, if the member had
3-22 established the DROP account after becoming eligible for service
3-23 retirement, but not less than the credits the DROP account would
3-24 have received, including interest, based on 20 years of service
3-25 credit; and
3-26 (2) the amount of the benefit payable to the dependent
3-27 children under Section 7.05(a) is 75 percent of the benefit the
4-1 member would have been entitled to receive if the member had
4-2 established the DROP account on becoming eligible for service
4-3 retirement, but based on not less than 20 years of service credit.
4-4 SECTION 4. Section 9.04(b), Chapter 183, Acts of the 64th
4-5 Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's Texas
4-6 Civil Statutes), is amended to read as follows:
4-7 (b) If an adjustment under Subsection (a) of this section
4-8 would exceed one-half of one percent of a person's benefit, the
4-9 portion of the [An] adjustment that exceeds one-half of one percent
4-10 of the benefit may not be made under this section unless the
4-11 board's actuary has advised the board of trustees that the
4-12 adjustment would not impair the financial stability of the fund and
4-13 the adjustment has been approved by the affirmative vote of a
4-14 majority of the board of trustees. If an adjustment under
4-15 Subsection (a) of this section would be one-half of one percent or
4-16 less of a person's benefit, the adjustment may not be made under
4-17 this section unless the board's actuary has advised the board of
4-18 trustees that the adjustment would not impair the financial
4-19 stability of the fund.
4-20 SECTION 5. This Act takes effect September 1, 1999.
4-21 SECTION 6. The importance of this legislation and the
4-22 crowded condition of the calendars in both houses create an
4-23 emergency and an imperative public necessity that the
4-24 constitutional rule requiring bills to be read on three several
4-25 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1207 was passed by the House on April
16, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1207 was passed by the Senate on May
12, 1999, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor