1-1 By: Naishtat (Senate Sponsor - Barrientos) H.B. No. 1207
1-2 (In the Senate - Received from the House April 19, 1999;
1-3 April 20, 1999, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 6, 1999, reported favorably by the
1-5 following vote: Yeas 5, Nays 0; May 6, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to benefits and administration of retirement systems for
1-9 firefighters in certain municipalities.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Article 1, Chapter 183, Acts of the 64th
1-12 Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's Texas
1-13 Civil Statutes), is amended by adding Section 1.05 to read as
1-14 follows:
1-15 Sec. 1.05. AGREEMENT MAY NOT SUPERSEDE THIS ACT.
1-16 Notwithstanding Section 143.307, Local Government Code, an
1-17 agreement between a public employer and an association under
1-18 Subchapter I, Chapter 143, Local Government Code, may not supersede
1-19 or preempt any provision of this Act and may not increase,
1-20 diminish, or qualify any right, benefit, privilege, or obligation
1-21 under this Act.
1-22 SECTION 2. Section 8.04, Chapter 183, Acts of the 64th
1-23 Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's Texas
1-24 Civil Statutes), is amended to read as follows:
1-25 Sec. 8.04. AMOUNT OF CREDITS TO MEMBER'S DROP ACCOUNT. The
1-26 amount credited monthly to the member's DROP account:
1-27 (1) shall [may not] be increased as a result of any
1-28 increase in the formula used in computing service retirement
1-29 benefits under Section 5.04 of this Act that occurs after the
1-30 effective date of the member's election to participate in the DROP
1-31 but before the effective date of the member's retirement;
1-32 (2) shall be increased by any annual cost-of-living
1-33 adjustments under Section 9.04 of this Act that occur between the
1-34 effective date of the member's election to participate in the DROP
1-35 and the effective date of the member's retirement but only as to
1-36 amounts credited to the member's DROP account after a
1-37 cost-of-living adjustment; and
1-38 (3) is subject to the limitations prescribed by
1-39 Section 9.03 of this Act.
1-40 SECTION 3. Section 8.06, Chapter 183, Acts of the 64th
1-41 Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's Texas
1-42 Civil Statutes), is amended by adding Subsections (d) and (e) to
1-43 read as follows:
1-44 (d) If a member who did not establish a DROP account under
1-45 this section but was eligible to do so dies before retirement, the
1-46 surviving spouse, if any, of that member may elect to participate
1-47 in the DROP if the surviving spouse has not received any benefit
1-48 payments under Section 7.01 of this Act. If a surviving spouse
1-49 makes an election under this subsection:
1-50 (1) the board of trustees shall cause to be paid to
1-51 the surviving spouse in a lump sum, as soon as administratively
1-52 possible after the fund receives notice of the election, an amount
1-53 equal to the credits that the member's DROP account would have
1-54 received, including interest, if the member had established the
1-55 DROP account after becoming eligible for service retirement, but
1-56 not more than five years before the date of the member's death; and
1-57 (2) the amount of the benefit payable to the surviving
1-58 spouse under Section 7.03 of this Act is 75 percent of the benefit
1-59 the member would have been eligible to receive if the member had
1-60 established the DROP account on becoming eligible for service
1-61 retirement, but not more than five years before the date of the
1-62 member's death.
1-63 (e) If a member who did not establish a DROP account under
1-64 this section but was eligible to do so dies before retirement
2-1 without leaving a surviving spouse, the surviving dependent
2-2 children, if any, may elect to participate in the DROP if the
2-3 dependent children have not received any benefit payments under
2-4 Section 7.05 of this Act. An election under this subsection must
2-5 be made by all of the surviving dependent children of the member,
2-6 except that the guardian of any child who is younger than 18 years
2-7 of age at the time of the election makes a binding election for the
2-8 child. If the surviving dependent children make an election under
2-9 this subsection:
2-10 (1) the board of trustees shall cause to be paid
2-11 jointly to the dependent children in a lump sum, as soon as
2-12 administratively possible after the fund receives notice of the
2-13 election, an amount equal to the credits the member's DROP account
2-14 would have received, including interest, if the member had
2-15 established the DROP account after becoming eligible for service
2-16 retirement, but not less than the credits the DROP account would
2-17 have received, including interest, based on 20 years of service
2-18 credit; and
2-19 (2) the amount of the benefit payable to the dependent
2-20 children under Section 7.05(a) is 75 percent of the benefit the
2-21 member would have been entitled to receive if the member had
2-22 established the DROP account on becoming eligible for service
2-23 retirement, but based on not less than 20 years of service credit.
2-24 SECTION 4. Section 9.04(b), Chapter 183, Acts of the 64th
2-25 Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's Texas
2-26 Civil Statutes), is amended to read as follows:
2-27 (b) If an adjustment under Subsection (a) of this section
2-28 would exceed one-half of one percent of a person's benefit, the
2-29 portion of the [An] adjustment that exceeds one-half of one percent
2-30 of the benefit may not be made under this section unless the
2-31 board's actuary has advised the board of trustees that the
2-32 adjustment would not impair the financial stability of the fund and
2-33 the adjustment has been approved by the affirmative vote of a
2-34 majority of the board of trustees. If an adjustment under
2-35 Subsection (a) of this section would be one-half of one percent or
2-36 less of a person's benefit, the adjustment may not be made under
2-37 this section unless the board's actuary has advised the board of
2-38 trustees that the adjustment would not impair the financial
2-39 stability of the fund.
2-40 SECTION 5. This Act takes effect September 1, 1999.
2-41 SECTION 6. The importance of this legislation and the
2-42 crowded condition of the calendars in both houses create an
2-43 emergency and an imperative public necessity that the
2-44 constitutional rule requiring bills to be read on three several
2-45 days in each house be suspended, and this rule is hereby suspended.
2-46 * * * * *