76R12162 GJH-F
By Greenberg, Maxey, Dukes, Keel, Naishtat H.B. No. 1697
Substitute the following for H.B. No. 1697:
By Greenberg C.S.H.B. No. 1697
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to eligibility and benefits under public retirement
1-3 systems for employees of certain municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 2(5), (9), (14), (15), (17), (19), (22),
1-6 (26), (29), (32), (33), (35), (39), (40), (42), and (44), Chapter
1-7 451, Acts of the 72nd Legislature, Regular Session, 1991 (Article
1-8 6243n, Vernon's Texas Civil Statutes), are amended to read as
1-9 follows:
1-10 (5) "Agency of the municipality" means any agency or
1-11 instrumentality of the municipality [city,] or governmental or
1-12 publicly owned legal entity created by the municipality, subsequent
1-13 to the effective date of this Act, to perform or provide a public
1-14 service or function [and which entity is not a hospital authority]
1-15 and that employs at least one employee [or more employees] to
1-16 provide services or [and/or] accomplish its public purpose.
1-17 (9) "Beneficiary" means the member's designated
1-18 beneficiary. If there is no effective beneficiary designation on
1-19 the date of the member's death, or if the designated beneficiary
1-20 predeceases the member (or dies [in or] as a result of the same
1-21 event that caused the member's death and does not survive the
1-22 member by 48 hours), the member's spouse or, if the member does not
1-23 have a spouse, the member's estate shall be the beneficiary.
1-24 (14) "Creditable service" means the total of prior
2-1 service, [and] membership service, redeemed service, and service
2-2 purchased under Section 6 of this Act.
2-3 (15) "Current service annuity" means a series of equal
2-4 monthly payments payable for the member's life after retirement for
2-5 membership service from funds of the retirement system equal to
2-6 one-twelfth of the product of 2.7 [2.6] percent or a higher
2-7 percentage established by the retirement board under Section 10(g)
2-8 of this Act of a member's average final compensation multiplied by
2-9 the number of months of membership service.
2-10 (17) "Designated beneficiary" means any person, trust,
2-11 or estate properly designated on a form provided by the retirement
2-12 system [in writing] by a member to receive benefits from the system
2-13 in the event of the member's death. If the member is married, an
2-14 individual other than the member's spouse may be the designated
2-15 beneficiary only if the spouse consents to such designation in the
2-16 form and manner prescribed by the retirement board.
2-17 (19) "Employer" means the [city or] municipality
2-18 described in Section 1 of this Act, [a hospital authority as
2-19 defined in Subdivision (24) of this section or] the retirement
2-20 board [defined in Subdivision (43) of this section], or an agency
2-21 of the municipality [as defined in Subdivision (5) of this
2-22 section].
2-23 (22) "Fund No. 2" means the fund in which shall be
2-24 kept all money contributed by the city on behalf of city employees,
2-25 [all money contributed] by an agency of the municipality [a
2-26 hospital authority] on behalf of the agency's [hospital authority]
2-27 employees, and [all money contributed] by the retirement board on
3-1 behalf of retirement board employees, interest earned thereon, and
3-2 all accumulations and earnings of the system.
3-3 (26) "Investment manager" means the persons or
3-4 entities that have the power to manage, acquire, or dispose of
3-5 assets of the fund [Fund No. 1 or Fund No. 2] on behalf of the
3-6 retirement system and that acknowledge fiduciary responsibility to
3-7 the system in writing. An investment manager must be a person,
3-8 firm, or corporation registered as an investment adviser under the
3-9 Investment Advisers Act of 1940, a bank, or an insurance company
3-10 qualified to manage, acquire or dispose of assets under the laws of
3-11 more than one state including this state that meets [the State of
3-12 Texas and must otherwise meet] the requirements of Section 802.204,
3-13 Government Code[, and its subsequent amendments].
3-14 (29) "Malfeasance" means [(A)] willful misconduct or
3-15 [(B)] the knowingly improper performance of any act, duty, or
3-16 responsibility under this Act, including non-performance, that[;
3-17 which] interrupts, [or] interferes with, or attempts to interfere
3-18 with the administration, operation, and management of the
3-19 retirement system or any person's duties under this Act.
3-20 (32) "Normal retirement age" means:
3-21 (A) [attainment of] age 62; or
3-22 (B) 55 years of age with 20 years of creditable
3-23 service.
3-24 (33) "Normal retirement date" means the earlier of the
3-25 date a member attains a normal retirement age or the date on which
3-26 the member has completed 25 years of creditable service or a lesser
3-27 number of years of creditable service established by the retirement
4-1 board under Section 10(g) of this Act [has reached normal
4-2 retirement age].
4-3 (35) "Prior service pension" means a series of equal
4-4 monthly payments payable from funds of the retirement system for a
4-5 member's life after retirement for prior service equal to
4-6 one-twelfth of the product of 2.7 [2.6] percent or a greater
4-7 percentage established by the retirement board under Section 10(g)
4-8 of this Act of the member's average monthly earnings during a
4-9 period of five years preceding January 1, 1941, multiplied by the
4-10 number of months of prior service. On retirement at an age other
4-11 than normal retirement age, the monthly prior service pension
4-12 herein prescribed shall be the actuarial equivalent thereof at the
4-13 member's actual retirement date, based on the schedule or schedules
4-14 of payments approved by the actuary and adopted by the retirement
4-15 board and in effect on the member's actual retirement date.
4-16 (39) "Regular full-time employee" means an individual
4-17 who is employed by the municipality [city], an agency of the
4-18 municipality [a hospital authority], or the retirement board[;]
4-19 who is not a commissioned civil service police officer or fire
4-20 fighter, a fire or police cadet employed under civil service
4-21 procedures, the mayor, or a member of the governing body; who
4-22 serves in a position that is classified in the annual budget of an
4-23 employer for employment for the full calendar year; and who works
4-24 or is budgeted for 30 hours or more in a normal 40-hour work week.
4-25 The term does not include an individual whose position is
4-26 classified as seasonal or temporary by the employer, even if the
4-27 individual works 30 hours or more in a normal 40-hour work week in
5-1 which the individual is employed.
5-2 (40) "Retired member" means a person who because of
5-3 creditable service or age is qualified to receive and who has
5-4 retired and is eligible to continue receiving a retirement
5-5 allowance as provided by this Act.
5-6 (42) "Retirement allowance" means the life annuity
5-7 (modified cash refund) to which a member may be entitled under this
5-8 Act, including annuities payable on disability retirement [or on
5-9 early retirement].
5-10 (44) "Retirement system," "retirement and pensioning
5-11 system," "pension system," or "system" means the retirement and
5-12 pensioning system created by this Act for a municipality [city]
5-13 governed by this Act or a retirement system established under this
5-14 Act.
5-15 SECTION 2. Section 3, Chapter 451, Acts of the 72nd
5-16 Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas
5-17 Civil Statutes), is amended to read as follows:
5-18 Sec. 3. ESTABLISHMENT AND APPLICABILITY. Subject to the
5-19 authority granted the retirement board in Section 7(d) of this Act,
5-20 members who retired, and the beneficiaries of members who died,
5-21 prior to October 1, 1999 [September 1, 1997], shall continue to
5-22 receive the same retirement allowances or benefits they were
5-23 entitled to receive prior to that date, together with any benefit
5-24 increase [cost of living adjustments] authorized under [and paid in
5-25 accordance with] this Act.
5-26 SECTION 3. Section 4, Chapter 451, Acts of the 72nd
5-27 Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas
6-1 Civil Statutes), is amended to read as follows:
6-2 Sec. 4. ADMINISTRATION. (a) The [There is hereby created
6-3 a] retirement board of the retirement [and pensioning] system[, in
6-4 which retirement board] is hereby vested the power and
6-5 responsibility for the proper and effective general administration,
6-6 management, and operation of the retirement system for the
6-7 exclusive benefit of its present and future members and
6-8 beneficiaries. [The retirement board shall be organized
6-9 immediately after its members have qualified and taken the oath of
6-10 office.]
6-11 (b) The retirement board consists [shall be composed] of 11
6-12 members as follows:
6-13 (1) place one: one member of the governing body,
6-14 designated by the governing body[, who may be removed and replaced
6-15 or redesignated by the governing body at any time];
6-16 (2) place two: the city manager of the municipality
6-17 [city] or the manager's [his or her] designee;
6-18 (3) places three through five: three qualified voters
6-19 of the city who have been city residents for the preceding five
6-20 years and who are not employees, former employees, or officers of
6-21 an employer;
6-22 (4) places six through nine: four active-contributory
6-23 members elected by the active-contributory members; and
6-24 (5) places ten and eleven: two retired members
6-25 elected by the retired members.
6-26 (c)(1) The place one retirement board member serves at the
6-27 pleasure of the governing body and until the governing body
7-1 redesignates the place one member, or until the member is no longer
7-2 able to serve because of death, resignation, termination of
7-3 position as a member of the governing body, or disability. The
7-4 governing body shall appoint a person to fill a vacancy in place
7-5 one not later than the 90th day after the first date of the
7-6 vacancy.
7-7 (2) In December of every second even-numbered year,
7-8 the governing body shall appoint, to place three, one person
7-9 meeting the qualifications for place three. In December of every
7-10 second odd-numbered year, the governing body shall appoint, to
7-11 place four, one person meeting the qualifications for place four.
7-12 In December of every second odd-numbered year, the retirement board
7-13 shall appoint, to place five, one person meeting the qualifications
7-14 for place five. Retirement board members holding places three
7-15 through five each serve a four-year term beginning on January 1 of
7-16 the year after their appointment, unless service is earlier
7-17 terminated by the death, disability, resignation, or removal of
7-18 that retirement board member or the retirement board member ceases
7-19 to meet the qualifications of a citizen retirement board member as
7-20 set forth in Section 4(b) of this Act. The governing body shall
7-21 fill a vacancy in place three or four with a person meeting the
7-22 qualifications for that place not later than the 90th day after the
7-23 first date of the vacancy. If the governing body fails to appoint
7-24 an eligible person to fill a vacancy in place three or four [five]
7-25 within the 90-day period, the retirement board may appoint a person
7-26 meeting the qualifications for that place to fill the vacancy for
7-27 the remainder of the unexpired term. The retirement board shall
8-1 appoint a person meeting the qualifications for place five to fill
8-2 a vacancy in place five for the remainder of the unexpired term.
8-3 (3) The places six through nine retirement board
8-4 members each serve on the retirement board for a four-year term,
8-5 unless service is earlier terminated by the death, resignation,
8-6 termination of employment, disability, retirement, or removal of
8-7 the retirement board member. The retirement board shall appoint an
8-8 active-contributory member to fill a vacancy in each of places six
8-9 through nine for the remainder of the unexpired term if the
8-10 remainder of the unexpired term is 364 days or fewer. If the
8-11 remainder of the unexpired term is 365 days or more, the vacancy
8-12 shall be filled by the active-contributory members voting at a
8-13 special election.
8-14 (4) The places ten and eleven retirement board members
8-15 serve for a four-year term, unless that service is earlier
8-16 terminated by the death, disability, resignation, or removal of the
8-17 member. The retirement board shall appoint a retired member to
8-18 fill a vacancy in place ten or eleven for the remainder of the
8-19 unexpired term if the remainder of the unexpired term is 364 days
8-20 or fewer. If the remainder of the unexpired term is 365 days or
8-21 more, the vacancy shall be filled by the retired members voting at
8-22 a special election.
8-23 (d) Members for places six through eleven shall be elected
8-24 in accordance with Subsections (e)-(m) of this section. [the
8-25 following provisions:]
8-26 (e) [(1)] Only active-contributory members shall be eligible
8-27 for election for places six through nine. Only retired members
9-1 shall be eligible for election for places ten and eleven. Not more
9-2 than one active-contributory member shall be eligible for election
9-3 from any one [city] department or office or similar organizational
9-4 unit that is established in the annual budget of an employer and is
9-5 not part of any department.
9-6 (f) [(2)] Members for places six through nine shall be
9-7 elected to four-year staggered terms with the terms of two of such
9-8 retirement board members beginning January 1 of each even-numbered
9-9 year.
9-10 (g) [(3)] Members for places ten and eleven shall be elected
9-11 to four-year staggered terms. One such retirement board member
9-12 shall be elected at an election held in every other even-numbered
9-13 year with the term of such retirement board member beginning on
9-14 January 1 of the following odd-numbered year. [The first election
9-15 for place ten shall be held in 1996 and the term of the retired
9-16 member elected at that election shall begin on January 1, 1997.
9-17 The retirement board shall appoint a retired member, to place ten,
9-18 to serve until January 1, 1997. The term of the retired member
9-19 serving in place eleven shall expire on December 31, 1998.]
9-20 (h) [(4)(A)] No later than the first day of October of each
9-21 odd-numbered year, the retirement board shall appoint a nominating
9-22 and election committee consisting of five committee members and two
9-23 alternates, all of whom are active-contributory members of the
9-24 retirement system. The nominating and election committee shall
9-25 make one or more nominations for each active-contributory member
9-26 vacancy and shall act as election judges. The nominating and
9-27 election committee shall determine and certify that each such
10-1 nominee and each candidate announcing for election is an
10-2 active-contributory member and prepare the ballot containing the
10-3 names of all certified active-contributory member candidates.
10-4 (i) [(B)] No later than the first day of October of every
10-5 second even-numbered year, the retirement board shall appoint a
10-6 nominating and election committee consisting of five committee
10-7 members and five alternates, all of whom are retired members of the
10-8 retirement system. The nominating and election committee shall
10-9 make one or more nominations for the retired member vacancy and
10-10 shall act as election judges. The nominating and election
10-11 committee shall determine and certify that each such nominee and
10-12 each candidate announcing for election is a retired member and
10-13 prepare the ballot containing the names of all certified retired
10-14 member candidates.
10-15 (j) [(5)] Each nominating and election committee shall
10-16 publish a notice at least two weeks prior to the applicable
10-17 election date, informing all active-contributory members or retired
10-18 members, as applicable, of the names of the persons who have been
10-19 certified as candidates.
10-20 (k) [(6)] Elections for places six [seven] through nine [10]
10-21 shall be held [on the first payday] in December of [each]
10-22 odd-numbered years [year]. Elections for places 10 and [place] 11
10-23 shall be held in December of every second even-numbered year. The
10-24 candidates receiving the highest number of eligible votes shall be
10-25 deemed elected. In case of a tie vote, selection shall be by lot
10-26 drawn by an existing member of the retirement board at a meeting of
10-27 the retirement board held after the election but before the first
11-1 day of January of the year after the election.
11-2 (l) [(7)] The applicable nominating and election committee
11-3 shall canvass the returns, certify the results, and announce the
11-4 official results of the election.
11-5 (m) [(8)] The retirement board shall approve written
11-6 procedures for the conduct of the election no later than August 1
11-7 of each year in which an election is held. The procedures may
11-8 include comprehensive provisions prescribing the conduct of the
11-9 election and early voting.
11-10 (n) [(e)] Each member of the retirement board shall, within
11-11 30 days after appointment or [and] election, take an oath of office
11-12 that he or she will diligently and honestly administer the affairs
11-13 of the retirement system and will not knowingly violate or
11-14 willingly permit to be violated any law or statute applicable to
11-15 the retirement system. All members of the retirement board serve
11-16 without compensation. [The retirement board may, at any time after
11-17 notice and hearing, by a vote of six retirement board members
11-18 remove a retirement board member for malfeasance.]
11-19 (o) [(f)] In January of each year, the retirement board
11-20 shall elect from its membership a presiding officer [chairman] and
11-21 an assistant presiding officer for [a vice-chairman to serve] one
11-22 calendar year terms.
11-23 (p) [(g)] The retirement board shall hire a pension director
11-24 [officer] as an employee of the retirement board. The retirement
11-25 board shall establish, consistent with this Act, the duties of the
11-26 pension director and shall assign the pension director a title.
11-27 The pension director [officer] shall hire and may fire or suspend
12-1 necessary staff members, and those staff members are employees of
12-2 the retirement system [board]. The pension director [officer]
12-3 acting under the direction of the retirement board shall keep all
12-4 of the records of the retirement system and a record of the
12-5 proceedings of the retirement board. The pension director
12-6 [officer] and each staff member shall receive such compensation as
12-7 the retirement board may fix in each annual budget of the
12-8 retirement system, or amendments to the budget, and that
12-9 compensation shall be paid from the fund.
12-10 (q) [(h)] Subject to [the limitations of] this Act, the
12-11 retirement board shall from time to time establish rules and
12-12 regulations for the administration of the funds authorized to be
12-13 created [hereunder] and for the transaction of the retirement
12-14 system's [board's] business. Each member of the retirement board
12-15 is entitled to one vote. Six concurring votes are necessary for a
12-16 decision by the retirement board [members] at any meeting of the
12-17 retirement board, and six members constitute a quorum. Each member
12-18 will be required to serve on a committee of the retirement board.
12-19 Any retirement board member who is absent from four consecutive
12-20 regular monthly meetings of the retirement board shall be removed
12-21 from the retirement board and replaced in accordance with the
12-22 provisions of this section.
12-23 (r) [(i)(1)] The retirement board shall keep or cause to be
12-24 kept in convenient form such data as are necessary for actuarial
12-25 valuation of the fund of the retirement system and for checking the
12-26 mortality, service, compensation, and payment experience of the
12-27 system. Each employer shall provide to the retirement board
13-1 records that are useful for the board's administration of the
13-2 retirement system or the fund.
13-3 (s) [(2)] The retirement board shall keep a record of all
13-4 its proceedings, which shall be open to public inspection except as
13-5 otherwise specifically provided or permitted by law, and shall
13-6 publish annually a report showing the fiscal transactions of the
13-7 retirement system for the preceding year, the amount of the
13-8 accumulated cash, securities and other assets of the system, and
13-9 the last balance sheet showing the financial condition of the
13-10 system as disclosed by the most recent actuarial valuation of the
13-11 assets and liabilities of the retirement system.
13-12 (t) [(3)] The retirement board shall have charge of and
13-13 administer the fund as trustee of the fund, [and] shall order
13-14 payments from the fund in accordance with [therefrom in pursuance
13-15 of the provisions of] this Act, and may increase, under Section
13-16 10(g) of this Act, the benefits and allowances the board pays from
13-17 the fund. If practicable, the retirement board shall collect
13-18 underpayments and refund overpayments. [Each employer shall
13-19 provide to the retirement board the records necessary and useful to
13-20 administer the system and the fund.] The retirement board shall
13-21 report annually to the members on the condition of the fund and the
13-22 receipts and disbursements on account of the fund. [The retirement
13-23 board shall keep a complete record of the retired members,
13-24 surviving spouses, and beneficiaries of the fund and the amounts
13-25 paid to them.]
13-26 (u) [(4)] Individual accounts shall be maintained for each
13-27 member of the retirement system, showing the amount of the member's
14-1 accumulated deposits. Annually a statement shall be given each
14-2 member showing the total amount of that member's accumulated
14-3 deposits. The board shall keep a record of the names and amounts
14-4 paid to retired members, surviving spouses, and beneficiaries. The
14-5 accounts of the retirement board and the retirement system shall be
14-6 included in the annual independent audit of the accounts of the
14-7 system performed by a certified public accounting firm selected by
14-8 the retirement board. One copy of the annual audit shall be
14-9 provided to the governing body and to the board of each employer.
14-10 (v) [(5)] The retirement board shall designate an actuary
14-11 who shall be the technical advisor of the retirement board
14-12 regarding the maintenance and operations of the fund authorized by
14-13 the provisions of this Act and shall perform such other duties as
14-14 may be required in connection therewith, but shall not be an
14-15 investment advisor or fiduciary with respect to any investments of
14-16 the fund. The actuary shall make periodic valuations of the assets
14-17 and liabilities of the funds and other evaluations as requested by
14-18 the retirement board.
14-19 (w) [(6)] From time to time on the advice of the actuary and
14-20 the direction of the retirement board, the actuary shall make an
14-21 actuarial investigation of the mortality, service, and compensation
14-22 experience of members, retired members, surviving spouses, and
14-23 beneficiaries of the retirement system and shall make a valuation
14-24 of the assets and liabilities of the funds of the system. Taking
14-25 into account the result of such investigation and valuation, the
14-26 retirement board shall adopt for the retirement system such
14-27 mortality, service, and other actuarial tables or rates as are
15-1 deemed necessary. On the basis of tables and rates adopted by the
15-2 retirement board, the actuary shall make a valuation at least once
15-3 every two years of the assets and liabilities of the funds of the
15-4 retirement system.
15-5 (x) [(7)] The retirement board may retain the services of
15-6 one or more investment managers who shall have full authority to
15-7 invest and manage the assets of the retirement system and the fund,
15-8 as specified by contract in accordance with Subchapter C, Chapter
15-9 802, Government Code[, and its subsequent amendments].
15-10 (y) [(8)] The retirement board may retain the services of
15-11 one or more investment consultants to monitor the investment
15-12 performance of the investment managers and provide other
15-13 investment-related services as requested by the retirement board.
15-14 (z) [(j)] The retirement board may retain legal counsel as
15-15 necessary in the judgment of the retirement board to advise,
15-16 consult, assist and represent the retirement board and the system
15-17 in and with respect to any legal matter, issue, cause or claim that
15-18 comes before the retirement board or that may affect the retirement
15-19 system or the operation of the fund.
15-20 (aa) [(k)] Except as provided by Subsection (cc) [(l)] of
15-21 this section, the retirement board may adopt rules, policies, and
15-22 [establish regulations or] procedures, correct any defect, supply
15-23 any information, or reconcile any inconsistency as the retirement
15-24 board considers necessary or advisable to carry out this Act.
15-25 Further, the retirement board is authorized to adopt any amendment
15-26 that modifies this Act to the extent necessary for the retirement
15-27 system to be a qualified plan under the code.
16-1 (bb) This Act shall be construed and administered in a
16-2 manner that will allow the retirement system's benefit plan to be a
16-3 plan qualified under Section 401(a) of the code. The retirement
16-4 board may adopt rules that modify the plan to the extent necessary
16-5 for the retirement system to be a qualified plan and shall adopt
16-6 rules to ensure that benefits paid to a retired member or to a
16-7 beneficiary do not exceed the limits provided by Section 415 of the
16-8 code. Rules adopted by the retirement board are part of the plan.
16-9 The retirement board may adopt rules that establish a separate
16-10 qualified excess benefit arrangement under Section 415(m) of the
16-11 code to provide any benefits that would have been provided under
16-12 the qualified plan except for the limits in Section 415 of the
16-13 code.
16-14 (cc) [(l)] Any procedure, discretionary act, interpretation,
16-15 or construction by the retirement board must be done in a
16-16 nondiscriminatory manner based on uniform principles consistently
16-17 applied and must be consistent with this Act and with Section
16-18 401(a) of the code and its subsequent amendments.
16-19 (dd) [(m)] The retirement board is authorized to administer
16-20 oaths to any person providing testimony at any hearing or other
16-21 proceeding of the retirement board. The retirement board may
16-22 remove a retirement board member for malfeasance, after notice and
16-23 a hearing, by a vote of six of its members.
16-24 SECTION 4. Section 5, Chapter 451, Acts of the 72nd
16-25 Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas
16-26 Civil Statutes), is amended to read as follows:
16-27 Sec. 5. MEMBERSHIP. (a) Each regular full-time employee
17-1 shall become an active-contributory member as a condition of
17-2 employment and shall make the required deposits commencing with the
17-3 first pay period in which the employee is compensated following the
17-4 effective date of this Act. Unless on approved medical leave of
17-5 absence or on leave to serve in the uniformed services, the
17-6 employee shall make the deposits as long as the employee remains a
17-7 regular full-time employee and shall remain a member of the system
17-8 until the employee or the employee's beneficiary ceases to be
17-9 entitled to any benefits from the retirement system. The
17-10 membership for all new regular full-time employees shall commence
17-11 on the date their employment commences [and all current active
17-12 contributory members shall be deemed to have additional creditable
17-13 service equal to the time elapsed between the date their regular
17-14 full-time employment commenced and the date they became an active
17-15 contributory member, but not in excess of six months].
17-16 (b) Membership in the retirement system consists of the
17-17 following groups:
17-18 (1) the active-contributory members group, which
17-19 consists of all members, other than those on authorized leave of
17-20 absence, who are making deposits;
17-21 (2) the active-noncontributory members group, which
17-22 consists of all employees on approved medical leave of absence and
17-23 all employees of an employer, other than inactive-contributory
17-24 members, who have been active-contributory members but who are no
17-25 longer so because they are not regular full-time employees;
17-26 (3) the inactive-contributory members group, which
17-27 consists of all members who are on an authorized leave of absence
18-1 and who continue to make deposits into the retirement system during
18-2 their absence;
18-3 (4) the inactive-noncontributory members group, which
18-4 consists of all members whose status as an employee has been
18-5 terminated before retirement or disability retirement but who are
18-6 still entitled to or who may become entitled to, or whose
18-7 beneficiary may become entitled to, benefits from the retirement
18-8 system; and
18-9 (5) the retired members group, which consists of all
18-10 members who have retired and who are receiving or who are entitled
18-11 to receive a retirement allowance.
18-12 (c) An active-noncontributory member becomes an
18-13 active-contributory member immediately on resuming employment as a
18-14 regular full-time employee or on returning from an approved medical
18-15 leave of absence, as applicable.
18-16 (d) It shall be the duty of the retirement board to make a
18-17 final determination of [determine] the membership group to which
18-18 each person who becomes a member of the retirement system properly
18-19 belongs. It shall be the duty of the chief administrative officer
18-20 of each employer to submit to the retirement board a statement
18-21 showing the name, position, compensation, duties, date of birth,
18-22 length of employment, and other information regarding each employee
18-23 of the employer the retirement board may require.
18-24 (e) Any person who has ceased to be a member and has
18-25 received a distribution of the person's accumulated deposits may
18-26 have the person's membership service or prior service reinstated if
18-27 the person is reemployed as a regular full-time employee for a
19-1 continuous period of 24 months and deposits into the system, within
19-2 a reasonable period established by the retirement board on a
19-3 uniform and nondiscriminatory basis, the accumulated deposits
19-4 withdrawn by that person, together with an interest payment equal
19-5 to the amount withdrawn multiplied by an interest factor. The
19-6 interest factor is equal to the annually compounded interest rate
19-7 assumed to have been earned by the fund beginning with the month
19-8 and year in which the person withdrew the person's accumulated
19-9 deposits and ending with the month and year in which the deposit
19-10 under this subsection is made. The interest rate assumed to have
19-11 been earned by the fund for any period is equal to the interest
19-12 rate credited for that period to the accumulated deposits of
19-13 members, divided by 0.75.
19-14 (f) [A member on authorized leave of absence may make
19-15 deposits each pay period to the system while on authorized leave of
19-16 absence. Each such deposit shall be in an amount that is equal to
19-17 the amount of the member's deposit for the last complete pay period
19-18 that the member was paid by the employer. As long as the member on
19-19 authorized leave of absence makes the payments each pay period, the
19-20 employee's employer shall make contributions to the retirement
19-21 fund, for such member, each pay period in an amount equal to the
19-22 contribution amount the employer would have made if the member's
19-23 pay had continued to be the pay the member received for the last
19-24 complete pay period that the member was paid by the employer. If
19-25 the member does not make those deposits while on authorized leave
19-26 of absence, the member may make a single payment, within five years
19-27 after the member has returned to employment with the employer,
20-1 equal to the deposits the member would have made if the member had
20-2 continued to be paid during the authorized leave of absence at the
20-3 same rate of pay the member was receiving at the time the member's
20-4 authorized leave of absence began. In the event a member elects to
20-5 make a single payment, the member's employer shall make a single
20-6 payment for such member which payment shall be equal to the
20-7 contributions the employer would have made on the member's behalf
20-8 if the member had made deposits to the fund during the period of
20-9 the member's authorized leave of absence. During an authorized
20-10 leave of absence, the member will continue to earn membership
20-11 service for the pay periods for which the member makes deposits in
20-12 accordance with this subsection. If a member makes the lump sum
20-13 payment provided for in this subsection the membership service will
20-14 be credited at the time of payment.]
20-15 [(g)] From time to time the retirement board, subject to the
20-16 approval of the system's actuary, may elect to permit the
20-17 reinstatement of membership service forfeited in accordance with
20-18 the terms of this section.
20-19 SECTION 5. Sections 6(c), (d), and (e), Chapter 451, Acts of
20-20 the 72nd Legislature, Regular Session, 1991 (Article 6243n,
20-21 Vernon's Texas Civil Statutes), are amended to read as follows:
20-22 (c)(1) Uniformed service creditable in the retirement system
20-23 is any service required to be credited by the Uniformed Services
20-24 Employment and Reemployment Rights Act of 1994 (38 U.S.C. Section
20-25 4301 et seq.), as amended, and certain federal duty service in the
20-26 armed forces of the United States performed before the beginning of
20-27 employment with the employer, other than service as a student at a
21-1 service academy, as a member of the reserves, or any continuous
21-2 active military service lasting less than 90 days. A member may
21-3 use uniformed service to establish creditable service subject to
21-4 the conditions of Subdivisions (2)-(6) of this subsection.
21-5 (2) A member may establish uniformed creditable
21-6 service for an authorized leave of absence from employment for
21-7 military service under this subsection by making periodic payments
21-8 or a lump-sum payment. If the member elects to make periodic
21-9 payments, the member shall make, each pay period during the period
21-10 that the member is on authorized leave, a deposit in an amount
21-11 equal to the amount of the member's deposit for the last complete
21-12 pay period that the member was paid by the employer as a regular
21-13 full-time employee. If the member elects to make a lump-sum
21-14 payment, the member and the employer shall, not later than the
21-15 fifth anniversary of the date the member returns to employment with
21-16 the employer, make separate lump-sum payments equal to the total
21-17 amount of the contributions the member would have made if the
21-18 member had made periodic contributions. A lump-sum payment may not
21-19 exceed the amount required under the Uniformed Service Employment
21-20 and Reemployment Rights Act of 1994 (38 U.S.C. Section 4301 et
21-21 seq.), as amended, if the member makes the contributions within the
21-22 time required by that Act. The employee's employer shall make
21-23 contributions to the retirement fund as though the member has
21-24 continued employment at the salary of the member for the last
21-25 complete pay period before the absence for military service. The
21-26 employer's contributions shall be made each pay period if the
21-27 member is making periodic payments during the period. During an
22-1 authorized leave of absence, the member accrues membership service
22-2 for the pay periods in which the member makes a deposit.
22-3 Membership service credit for a lump-sum payment accrues at the
22-4 time of payment.
22-5 (3) A member may establish uniformed creditable
22-6 service for active federal duty service in the armed forces of the
22-7 United States, other than service as a student at a service
22-8 academy, as a member of the reserves, or any continuous active
22-9 military service lasting less than 90 days, performed before the
22-10 first day of employment of the member's most recent membership in
22-11 the retirement system or its predecessor system. To establish
22-12 creditable service under this subdivision, the member must
22-13 contribute a lump-sum payment equal to 25 percent of the estimated
22-14 cost of the retirement benefits the member will be entitled to
22-15 receive. The retirement board will determine the required
22-16 contribution based on a procedure recommended by the actuary and
22-17 approved by the retirement board.
22-18 (4) [At any time before a member's actual retirement
22-19 date, a member may establish creditable service for uniformed
22-20 service performed that is creditable as provided under this
22-21 subsection according to the following conditions, limitations, and
22-22 restrictions:]
22-23 [(1) Uniformed service creditable in the retirement
22-24 system is any service required to be credited by the Uniformed
22-25 Services Employment and Reemployment Rights Act of 1994 (38 U.S.C.
22-26 Section 4301 et seq.), as amended, and certain active federal duty
22-27 service in the armed forces of the United States performed before
23-1 the commencement of employment with the employer, other than
23-2 service as a student at a service academy, as a member of the
23-3 reserves, or any continuous active military service lasting less
23-4 than 90 days. To be creditable, the uniformed service must have
23-5 been performed before the beginning of the member's most recent
23-6 period of membership in the retirement system or its predecessor
23-7 system.]
23-8 [(2)] A member is not eligible to establish uniformed
23-9 service credit unless the member was released from active military
23-10 duty under conditions other than dishonorable.
23-11 (5) [(3)] A member may not establish creditable
23-12 service in the retirement system for uniformed service for more
23-13 than the greater of the creditable service required under the
23-14 Uniformed Services Employment and Reemployment Rights Act of 1994
23-15 (38 U.S.C. Section 4301 et seq.), as amended, or 48 months of
23-16 creditable service in the retirement system for uniformed service
23-17 under this subsection.
23-18 (6) [(4) A member may establish creditable service
23-19 under this subsection by contributing to the retirement system a
23-20 single payment equal to 25 percent of the estimated cost of the
23-21 additional projected retirement benefits the member will be
23-22 entitled to receive. The retirement board will determine the
23-23 required contribution based on a procedure recommended by the
23-24 actuary and approved by the retirement board, provided, however,
23-25 notwithstanding the amount determined under the preceding sentence,
23-26 such contribution may not exceed the amount required under the
23-27 Uniformed Services Employment and Reemployment Rights Act of 1994
24-1 (38 U.S.C. Section 4301 et seq.), as amended, in the case of a
24-2 member who makes such contributions within the time prescribed by
24-3 such act.]
24-4 [(5)] After the member makes the deposit required by
24-5 this subsection, the retirement system shall grant the member one
24-6 month of creditable service for each month of creditable uniformed
24-7 service established under this subsection.
24-8 (d) At any time before the actual retirement date of a
24-9 member, the employer of the member may purchase for the member
24-10 additional creditable service that shall be credited to the member
24-11 [who was not at any time a highly compensated employee within the
24-12 meaning of Section 414(q) of the code, a member may be considered
24-13 to qualify for unreduced retirement benefits at the age of 55 or,
24-14 if the member is more than 55 years of age, at the time of the
24-15 purchase of additional service credit by an employer]. The
24-16 incremental cost of eligibility under this subsection shall be
24-17 purchased by the employer at the full actuarial cost of the
24-18 additional creditable service as determined by the retirement board
24-19 acting on the advice of the actuary.
24-20 (e) At any time before a member's actual retirement date,
24-21 the member may purchase noncontributory creditable service [credit]
24-22 equal in amount to the period the member:
24-23 (1) was on verifiable workers' compensation leave due
24-24 to an injury sustained in the course and scope of employment by an
24-25 employer;
24-26 (2) was on an authorized leave of absence from an
24-27 employer; or
25-1 (3) performed service for an employer in a position
25-2 the service for which is not otherwise creditable in the retirement
25-3 system.
25-4 SECTION 6. Section 7, Chapter 451, Acts of the 72nd
25-5 Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas
25-6 Civil Statutes), is amended to read as follows:
25-7 Sec. 7. SERVICE RETIREMENT [BENEFITS] AND WITHDRAWAL
25-8 BENEFITS. (a) Except as provided by Subsection (b) of this
25-9 section, a member who retires on or after the member's normal
25-10 retirement date and applies in writing for a retirement allowance
25-11 shall receive a life annuity (modified cash refund) beginning on
25-12 the last day of the month after the month in which the member
25-13 retired. Unless [Subsection (e) of this section or] Section 8 of
25-14 this Act applies, a member whose employment by the employer
25-15 terminates before the member's normal retirement date is entitled
25-16 to a distribution of the member's accumulated deposits in a single
25-17 lump sum. On receiving that distribution, a member is not entitled
25-18 to any other benefit under this Act. If a member has at least five
25-19 years of creditable service and does not withdraw the member's
25-20 accumulated deposits, the member is entitled to a life annuity
25-21 (modified cash refund) beginning on the first day of the month
25-22 after the month in which the member's normal retirement date
25-23 occurs. [If a member has 20 years of creditable service and does
25-24 not withdraw the member's accumulated deposits, the member is
25-25 entitled to a retirement benefit on attaining age 55.]
25-26 (b) A member who terminates employment with the employer and
25-27 who has less than five years of creditable service is not entitled
26-1 to a retirement allowance unless the member is eligible and
26-2 participates in the proportionate retirement program under Chapter
26-3 803, Government Code.
26-4 (c) The amount of each [the] retirement allowance and all
26-5 other benefits payable under this statute shall be subject at all
26-6 times to such adjustments as may be required to ensure actuarial
26-7 soundness as may be approved by the actuary and adopted by the
26-8 retirement board, except that annuities already accrued may not be
26-9 reduced.
26-10 (d) [(1)] Subject to the conditions, limitations, and
26-11 restrictions set forth in this [subsection, as well as all other
26-12 pertinent conditions, limitations, and restrictions set forth
26-13 elsewhere in this] Act, the retirement board may [shall have the
26-14 power] once each December:
26-15 (1) [year to] authorize a cost of living adjustment
26-16 (hereinafter referred to as the "adjustment") payment of which,
26-17 once authorized, shall be added to the current monthly payment of
26-18 all retirement annuities, pensions, or allowances of each [and
26-19 every] retired member and [(or the retired member's] beneficiary[)]
26-20 who became [has become] entitled to benefits[,] on or before
26-21 December 31 of the year before the year in which the adjustment is
26-22 approved; or
26-23 (2) authorize a lump-sum additional benefit payment
26-24 that shall be paid to each retired member or beneficiary receiving
26-25 a retirement annuity, pension, or allowance who became entitled to
26-26 benefits on or before December 31 of the year before the year in
26-27 which the additional payment is approved [goes into effect].
27-1 (e) Before December 31 of each year, the retirement board
27-2 shall make a separate determination as to whether to authorize the
27-3 payment of an adjustment or additional payment and the amount of
27-4 the [such] adjustment or additional payment, if any. In
27-5 determining whether to authorize an adjustment or additional
27-6 payment, the retirement board may consider the changes in the
27-7 consumer price index over the preceding 12-month period, the
27-8 actuarial experience of the fund, the investment experience of the
27-9 fund, the amount of any prior or current adjustments or additional
27-10 payments, and other factors that the retirement board and the
27-11 actuary consider appropriate.
27-12 (f) [(2)] In determining whether to authorize the payment
27-13 and the amount of any adjustment or additional payment, the
27-14 retirement board shall be governed by Subsections (g)-(i) of this
27-15 section. [the following conditions, considerations, limitations,
27-16 and restrictions:]
27-17 (g) [(A)] Any [and all] determinations to authorize [the]
27-18 payment of any adjustment or additional payment amount must be
27-19 based on the ability of the fund to pay the [such an] amount and
27-20 may [shall] not be based on the individual needs of any particular
27-21 retired members or beneficiaries.
27-22 (h) [(B)] Prior to the retirement board's authorizing the
27-23 payment of an adjustment or additional payment, the actuary must
27-24 recommend such an adjustment or additional payment to the
27-25 retirement board and certify in writing that, based on the sound
27-26 application of actuarial assumptions and methods consistent with
27-27 sound actuarial principles and standards, it is demonstrable that
28-1 the fund has and likely will continue to have the ability to pay
28-2 such an amount out of its realized income after all other
28-3 obligations of the fund have been paid.
28-4 (i) [(C)] The amount of the adjustment or additional payment
28-5 for each retired member or beneficiary:
28-6 (1) shall be a uniform percentage of the monthly
28-7 payment being received by a member, or by a beneficiary by reason
28-8 of a member, who was retired at least one year before the
28-9 adjustment;
28-10 (2) [and] may not exceed six percent of the monthly
28-11 payment due the retired member or beneficiary before the adjustment
28-12 if the payment is an adjustment;
28-13 (3) may not exceed an amount equal to the amount of
28-14 the monthly payment being received by a member before the addition
28-15 of any adjustment made during that year if the payment is an
28-16 additional payment; and
28-17 (4) for [. For] members who retired during the year
28-18 in which the adjustment or additional payment is authorized, the
28-19 adjustment or additional payment shall be prorated, and the
28-20 increase for the first year in which the adjustment is being paid
28-21 shall be prorated in the ratio that the number of completed months
28-22 after the member's retirement in the year of the member's
28-23 retirement bears to 12. After the first year the member is
28-24 entitled to the full amount of any adjustment or additional payment
28-25 without proration.
28-26 (j) [(3)] Any adjustment payments or additional payment
28-27 shall be in addition to the benefits to which a retired member or
29-1 beneficiary is otherwise entitled under this Act.
29-2 (k) [(e)] Any member who qualifies for retirement by reason
29-3 of creditable service attained with one or more retirement programs
29-4 participating in the proportionate retirement program established
29-5 under Chapter 803, Government Code, shall be eligible for
29-6 proportionate retirement [early retirement if the member attains
29-7 the age of 55 years and completes at least 20 years of creditable
29-8 service. Such member shall be entitled to a benefit equal to a
29-9 life annuity (modified cash refund)]. A member who qualifies for
29-10 proportionate retirement and retires [takes early retirement] shall
29-11 begin receiving retirement [the] benefits [provided by this
29-12 subsection] beginning on the last day of the month after the month
29-13 in which the member retired.
29-14 (l) [(f)] A member may file a written designation, which, if
29-15 approved by the retirement board, shall entitle the member, on
29-16 retirement, to receive the actuarial equivalent of the life annuity
29-17 in the form of one of the following options:
29-18 (1) Option I. 100 Percent Joint and Survivor Annuity.
29-19 This option is a reduced monthly annuity payable to the member but
29-20 with the provision that on the member's death the annuity shall be
29-21 continued throughout the life of and be paid to such person as the
29-22 member shall designate before the member's actual retirement date.
29-23 (2) Option II. 50 Percent Joint and Survivor Annuity.
29-24 This option is a reduced monthly annuity payable to the member but
29-25 with the provision that on the member's death one-half of the
29-26 annuity shall be continued throughout the life of and be paid to
29-27 such person as the member shall designate before the member's
30-1 actual retirement date.
30-2 (3) Option III. 66-2/3 Percent Joint and Survivor
30-3 Annuity. This option is a reduced monthly annuity payable to the
30-4 member but with the provision that on the member's death two-thirds
30-5 of the annuity shall be continued throughout the life of and be
30-6 paid to such person as the member shall designate before the
30-7 member's actual retirement date.
30-8 (4) Option IV. Joint and 66-2/3 Percent Last Survivor
30-9 Annuity. This option is a reduced monthly annuity payable to the
30-10 member but with the provision that two-thirds of the annuity to
30-11 which the member would be entitled shall be continued throughout
30-12 the life of and be paid to the survivor after the death of either
30-13 the member or such person as the member shall designate before the
30-14 member's actual retirement date.
30-15 (5) Option V. [Level Income Option. If payment of a
30-16 retirement allowance commences prior to the earliest age at which
30-17 the member will become eligible for an old age insurance benefit
30-18 under the Social Security Act, the member may elect that the amount
30-19 of the monthly payments be adjusted so that an increased monthly
30-20 amount will be paid prior to such age and a reduced monthly amount,
30-21 if any, will be paid for life after such age. The purpose of this
30-22 adjustment is to enable the member to receive from this plan and
30-23 under the Social Security Act an aggregate income in approximately
30-24 a level amount for life.]
30-25 [(6) Option VI. 66-2/3 Percent Joint and
30-26 Survivor/Level Income Option. If payment of a retirement allowance
30-27 commences prior to the earliest age at which the member could
31-1 become eligible for an old age insurance benefit under the Social
31-2 Security Act, the member may elect that the amount of the monthly
31-3 payments be adjusted so that an increased monthly amount will be
31-4 paid prior to such age and a reduced monthly amount will be paid
31-5 for life after such age. The purpose of this adjustment is to
31-6 enable the member to receive from this plan and under the Social
31-7 Security Act an aggregate income in approximately a level amount
31-8 for life. Option VI provides that if the member's death occurs
31-9 after age 62, two-thirds of the monthly annuity the member was
31-10 receiving at the time of the member's death shall be continued
31-11 throughout the life of and be paid to such person as the member
31-12 shall designate before the member's actual retirement date. If the
31-13 member's death occurs before age 62, two-thirds of the monthly
31-14 annuity the member was receiving at the time of member's death
31-15 shall be paid to such person as the member shall designate before
31-16 the member's actual retirement date through the end of the month
31-17 when the member would have reached age 62. The monthly annuity
31-18 being paid to such person as the member shall designate before the
31-19 member's actual retirement date will be reduced at the end of the
31-20 month following the month in which the member would have reached
31-21 age 62 to two-thirds of the reduced benefit the member would have
31-22 begun to receive at age 62.]
31-23 [(7) Option VII.] 15-Year Certain and Life Annuity.
31-24 This option is a reduced annuity payable to the member for life.
31-25 In the event of the member's death before 180 monthly payments have
31-26 been made, the remainder of the 180 payments shall be paid to the
31-27 member's beneficiary or, if there is no beneficiary, to the
32-1 member's estate.
32-2 (6) Option VI. [(8) Option VIII.] Equivalent Benefit
32-3 Plan. If a member requests in writing, any other form of benefit
32-4 or benefits may be paid either to the member or to such person or
32-5 persons as the member shall designate before the member's actual
32-6 retirement date, provided that the benefit plan requested by the
32-7 member is certified by the actuary for the system to be the
32-8 actuarial equivalent of the life annuity with guaranteed refund of
32-9 the retired member's accumulated deposits. If, on the death of the
32-10 member and all other persons entitled to receive payments under an
32-11 optional benefit, the member's accumulated deposits as of the
32-12 member's actual retirement date exceed the sum of all payments made
32-13 under that optional benefit, that excess shall be paid in one lump
32-14 sum to the member's beneficiary.
32-15 (m) [(g)(1)] For purposes of Subsection (l) [(f)] of this
32-16 section, the designation of a beneficiary must be made in writing
32-17 on a form and in the manner prescribed by the retirement board. If
32-18 a member has chosen Option I, II, III, IV, or VI[, or VIII], the
32-19 member's designation of a beneficiary may not be revoked after a
32-20 member retires, and any attempted revocation of a designation for
32-21 those options is void. Spousal consent shall not be required for a
32-22 member to select Option I, II, III, or IV [or VI]. If the member
32-23 is married, spousal consent is required for the member to select an
32-24 optional benefit other than Option I, II, III, or IV [or VI]. At
32-25 any time before retirement, a member may file with the retirement
32-26 board a written statement designating one or more persons to be
32-27 entitled to receive as beneficiary the reduced annuity payable
33-1 under one of the optional benefits. If a married member designates
33-2 as a beneficiary any person other than the member's spouse, the
33-3 member's spouse must consent in writing to the beneficiary
33-4 designation, and the beneficiary designation may not be changed
33-5 without spousal consent, unless the consent of the spouse expressly
33-6 permits designations by the member without the requirement of
33-7 further consent by the spouse. The spouse's consent is irrevocable
33-8 and must acknowledge the effect of the designation and be witnessed
33-9 by a retirement board employee or notary public. Spousal consent
33-10 is not required if it is established to the satisfaction of the
33-11 retirement board that the required consent cannot be obtained
33-12 because there is no spouse, the spouse cannot be located, or other
33-13 circumstances exist as prescribed by United States Treasury
33-14 regulations. Notwithstanding other provisions of this subdivision,
33-15 the option election or beneficiary designation made by a member and
33-16 consented to by the member's spouse may be revoked by the member in
33-17 writing without consent of the spouse at any time before
33-18 retirement. The number of revocations is not limited. A former
33-19 spouse's waiver or consent is not binding on a new spouse. An
33-20 option selection becomes effective on the member's actual
33-21 retirement date. The member retains the right to change the option
33-22 selected or the beneficiary designated until the member's actual
33-23 retirement date, subject to this subsection.
33-24 (n) [(2)] After filing the written statement selecting one
33-25 of the optional benefits, the member may continue in employment and
33-26 retire any time after the member becomes eligible by filing a
33-27 written application for retirement. If the member dies before
34-1 retirement but after becoming eligible for retirement, the
34-2 effective date of the member's retirement is the last day of the
34-3 calendar month of death, and the benefit is computed on the
34-4 optional benefit selected as if the member had retired on that
34-5 date.
34-6 (o) [(h)] The amount of the annuity payment in Options I,
34-7 II, III, IV, V, and VI[, VII, and VIII] shall be determined without
34-8 considering the minimum cumulative payment of the retired member's
34-9 accumulated deposits since that refund feature will stay in effect
34-10 as indicated herein.
34-11 (p) [(i)] If a member who is eligible for retirement dies
34-12 without having filed a written selection of one of the enumerated
34-13 options and if the member leaves a surviving spouse, that spouse
34-14 may select the optional benefit in the same manner as if the member
34-15 had made the selection or may select a lump-sum payment equal to
34-16 the deceased member's accumulated deposits plus an equivalent
34-17 amount from Fund No. 2. If the member does not leave a surviving
34-18 spouse, the member's designated beneficiary is entitled to elect
34-19 either Option V [VII], to become effective at the beginning of the
34-20 calendar month after the month in which the death of the member
34-21 occurs, or the sum of a lump-sum payment equal to the deceased
34-22 member's accumulated deposits plus an equivalent amount from Fund
34-23 No. 2. If the surviving spouse dies before the spouse receives
34-24 retirement allowances equal to the amount of the member's
34-25 accumulated deposits on the date of the member's death, the excess
34-26 of the accumulated deposits over the retirement allowances paid
34-27 shall be distributed in one lump sum to the member's estate.
35-1 (q) [(j)] In the event of death of a member who is
35-2 ineligible for retirement, the member's accumulated deposits and an
35-3 equivalent amount from Fund No. 2 shall be paid in a lump sum to
35-4 the member's beneficiary.
35-5 (r) [(k)(1)] If a designation of intent to participate in
35-6 the proportionate retirement program under Chapter 803, Government
35-7 Code, has not been filed with the retirement system and a prior
35-8 demand for withdrawal of accumulated deposits has not been made
35-9 within seven years after termination of employment by a member with
35-10 less than five years' of creditable service, the member's
35-11 accumulated deposits shall be returned to the member or the
35-12 member's beneficiary. Except as provided by Subsection (s)
35-13 [Subdivision (2)] of this section [subsection], if the system is
35-14 unable to locate the member or the member's beneficiary, the
35-15 member's accumulated deposits shall thereafter be forfeited and
35-16 become a part of Fund No. 2.
35-17 (s) [(2)] If the member or member's beneficiary later
35-18 appears and requests in writing the payment of the member's
35-19 accumulated deposits, the system shall:
35-20 (1) [(A)] reinstate the account of the member;
35-21 (2) [(B)] credit to that account an amount equal to
35-22 all of the accumulated deposits previously standing to the member's
35-23 credit plus interest that would have been earned on those
35-24 accumulated deposits if the funds had remained in Fund No. 1
35-25 between the date of forfeiture to Fund No. 2 and the date of
35-26 reinstatement of the member's account;
35-27 (3) [(C)] fund the account from the monies in Fund No.
36-1 2; and
36-2 (4) [(D)] make all necessary payments to the member or
36-3 member's beneficiary from the reinstated account.
36-4 (t) [(3)] On payment of the accumulated deposits under this
36-5 subsection, plus any interest on those deposits to which the member
36-6 may be entitled, to the member or member's beneficiary in
36-7 accordance with this subsection, the terminated employee ceases to
36-8 be a member of the system.
36-9 (u) If the member's accumulated deposits are not withdrawn,
36-10 notice of intent to participate in proportionate retirement is
36-11 given, and eligibility to participate in proportionate retirement
36-12 is established, the member's account shall be reinstated and
36-13 credited but not refunded as provided by Subsection (s) of this
36-14 section, and the member is entitled to receive a proportionate
36-15 retirement allowance as provided by this Act.
36-16 (v) If a demand for withdrawal of funds is made after the
36-17 10th anniversary of the date of termination of employment and
36-18 system records do not affirmatively establish that the accumulated
36-19 deposits remain on deposit in the fund, the retirement board shall
36-20 consider system records and evidence presented by the member or
36-21 beneficiary in determining if any payment is due. The member or
36-22 beneficiary bears the burden of proof. A decision by the
36-23 retirement board is final.
36-24 (w) [(l)] In the event of the death of a member receiving a
36-25 retirement allowance, the sum of $10,000 shall be payable in a lump
36-26 sum to the member's beneficiary.
36-27 (x) [(m)] When monthly survivor benefits are deemed payable
37-1 as a result of the death of a member before retirement, an
37-2 additional sum of $10,000 shall be payable as a death benefit to
37-3 the member's designated beneficiary.
37-4 (y) [(n)] In the event of the death of the retired member
37-5 then receiving a retirement allowance under any retirement option
37-6 and the death of the beneficiary designated by the retired member,
37-7 when either Option I, Option II, Option III, or Option IV[, or
37-8 Option VI] is in effect, before retirement allowances have been
37-9 received that are equal or greater than the retired member's
37-10 accumulated deposits, the member's estate will receive the excess
37-11 of the retired member's accumulated deposits over the retirement
37-12 allowances paid.
37-13 (z) If the person designated in writing by the member under
37-14 Option I, Option II, or Option III, predeceases the retired member,
37-15 the reduced annuity of a retired member who selected the optional
37-16 lifetime retirement annuity shall be increased to the standard
37-17 service retirement annuity that the retiree would have been
37-18 entitled to receive if the retired member had not selected Option
37-19 I, Option II, or Option III. The standard service retirement
37-20 annuity shall be appropriately adjusted for early retirement and
37-21 for the postretirement increases in retirement benefits. The
37-22 increase in the annuity under this subsection is payable to the
37-23 retired member for life and begins with the later of the monthly
37-24 payment made to the retired member for the month following the
37-25 month in which the person designated by the member dies or the
37-26 month following the month in which the retired member gives the
37-27 system notice of the designated person's death.
38-1 (aa) [(o)] Notwithstanding any contrary provision of this
38-2 Act, the distribution of a member's benefits, including benefits
38-3 payable after the member's death, made on or after January 1, 1985,
38-4 shall be made in accordance with Subsections (bb)-(gg) of this
38-5 section [the following requirements] and shall otherwise comply
38-6 with Section 401(a)(9) of the code and related regulations,
38-7 including Regulation Section 1.401(a)(9)-2.[:]
38-8 (bb) [(1)] A member's benefits shall be distributed to the
38-9 member, or the distribution of those benefits shall begin, not
38-10 later than April 1 of the calendar year after the calendar year in
38-11 which occurs the later of the date on which the member attains age
38-12 70 1/2 or the date on which the member's employment by the employer
38-13 terminates.
38-14 (cc) [(2)] A member's benefits shall be distributed over a
38-15 period not exceeding the life of the member or the lives of the
38-16 member and the member's beneficiary or over a period not exceeding
38-17 the life expectancy of the member or the life expectancy of the
38-18 member and the member's beneficiary.
38-19 (dd) [(3)] If the distribution of a member's benefit has
38-20 begun and the member dies before the member's entire benefit is
38-21 distributed, the remaining portion of that benefit shall be
38-22 distributed at least as rapidly as under the form of benefit
38-23 selected as of the date of the member's death, adjusted as
38-24 necessary under this subsection.
38-25 (ee) [(4)] If a member dies before the distribution of the
38-26 member's benefit has begun, the member's death benefit shall be
38-27 distributed to the member's beneficiary within five years after the
39-1 date of the member's death. This five-year rule does not apply to
39-2 any portion of the deceased member's benefit that is payable to or
39-3 for the benefit of the member's surviving spouse. A benefit
39-4 payable to or for the benefit of the member's surviving spouse may
39-5 be distributed over the life of the spouse or over a period not
39-6 exceeding the life expectancy of the spouse, provided that payment
39-7 of the benefit begins not later than the date on which the deceased
39-8 member would have attained age 70 1/2. If the surviving spouse
39-9 dies before distributions to that spouse begin, the five-year rule
39-10 applies as if the spouse had been the member.
39-11 (ff) [(5)] The five-year rule does not apply to
39-12 distributions payable to a beneficiary over the life or life
39-13 expectancy of the beneficiary, provided that payment of the benefit
39-14 begins not later than the first anniversary of the date of the
39-15 member's death.
39-16 (gg) [(6)] In applying the requirements of this subsection,
39-17 the life expectancy of the member and the member's beneficiary
39-18 shall be redetermined annually in accordance with regulations under
39-19 Section 401(a)(9) of the code and its subsequent amendments.
39-20 (hh) [(p)] Forfeitures that may result from the termination
39-21 of any right of a member may not be used to increase benefits to
39-22 remaining members. This subsection shall not preclude an increase
39-23 in benefits by amendment to this Act or action of the retirement
39-24 board in accordance with Subsection (d) of this section that is
39-25 made possible by forfeitures or for any other reason.
39-26 SECTION 7. Sections 8(a) and (d)-(i), Chapter 451, Acts of
39-27 the 72nd Legislature, Regular Session, 1991 (Article 6243n,
40-1 Vernon's Texas Civil Statutes), are amended to read as follows:
40-2 (a) Only active-contributory members, inactive-contributory
40-3 members, and members on approved medical leave of absence are
40-4 eligible for consideration for disability retirement. A member
40-5 [Such members] may apply for disability retirement at any date
40-6 prior to the member's [their] normal retirement date, and the
40-7 member remains in the member's membership category for the 90-day
40-8 period following the date of termination for inability to perform
40-9 all employment duties. Inactive-noncontributory members are not
40-10 eligible for consideration for disability retirement and may not
40-11 receive any benefits under this section.
40-12 (d) If a member who is eligible for consideration for
40-13 disability retirement, and who has more than five [10] years of
40-14 creditable service, has become mentally or physically incapacitated
40-15 for the performance of all employment duties, such member may apply
40-16 for disability retirement. The application made on behalf of the
40-17 disabled member shall show that the incapacity is likely to be
40-18 permanent. On recommendation of the physician or physicians
40-19 appointed or selected by the retirement board that the eligible
40-20 member's incapacity is likely to be permanent and after determining
40-21 on that basis, or on the basis of any additional evidence which the
40-22 retirement board deems relevant, that the member meets the
40-23 requirements of this subsection [Subsection (d) of this section],
40-24 the retirement board shall award such member a disability
40-25 retirement allowance. The decision of the retirement board is
40-26 final subject to the reexamination, discontinuance and revocation
40-27 rules at Subsections (h) and (i) of this section.
41-1 (e) On award of a disability retirement allowance, the
41-2 member shall receive a disability retirement allowance, beginning
41-3 on the last day of the month after the month in which the member
41-4 became disabled, which shall be computed in the same manner that a
41-5 retirement allowance would be computed at the member's normal
41-6 retirement date, based on compensation and creditable service at
41-7 the date of disability retirement[, without reduction for early
41-8 retirement]. The disabled member may choose to receive a life
41-9 annuity (modified cash refund) or a benefit as described by Section
41-10 7(f) of this Act as Option I, Option II, Option III, or Option IV[,
41-11 or Option VII].
41-12 (f) A member receiving a disability retirement allowance
41-13 shall periodically [will be required to] file a [an annual] report
41-14 with the retirement board concerning continued proof of disability.
41-15 The retirement board shall adopt rules establishing the required
41-16 supporting information to accompany the reports, the content of the
41-17 reports, and deadlines for filing the reports. The report shall
41-18 include:
41-19 (1) a current statement of the member's physical or
41-20 mental condition stating the existence of continued disability,
41-21 signed by the member's attending physician; and
41-22 (2) a statement of all employment activities pursued
41-23 in the preceding year.
41-24 (g) A [Each calendar year, a] disabled member shall file
41-25 periodic reports [the annual report] required by Subsection (f) of
41-26 this section no later than the deadlines established by the
41-27 retirement board [the 60th day after the anniversary date of the
42-1 member's disability retirement]. The retirement board may require
42-2 that all periodic reports, including the member's most recent tax
42-3 return, be filed in the same calendar month. The retirement board
42-4 may verify all information submitted in the report.
42-5 (h) The pension director [officer] will be responsible for a
42-6 yearly report to the retirement board listing those disabled
42-7 members who should be examined. The retirement board shall have
42-8 the right to order examinations [an examination] of any person on
42-9 disability retirement [once] each year until the member reaches the
42-10 normal retirement date [age of 62 years]. If the member fails or
42-11 refuses to submit to an examination by a physician or physicians
42-12 appointed by the retirement board or if the member fails or refuses
42-13 to submit a periodic [an annual] report in accordance with
42-14 Subsection (g) of this section concerning continued proof of
42-15 disability, the disability retirement allowance shall be
42-16 discontinued until [such refusal is withdrawn and] the member has
42-17 submitted to an examination requested by the retirement board and
42-18 has submitted any delinquent [an annual] report. Should such
42-19 failure or refusal continue for a period of one year, the
42-20 disability retirement allowance may be revoked by the retirement
42-21 board. If a member's disability retirement allowance has been
42-22 revoked for failure to file a periodic report or to submit to any
42-23 requested examination, the retirement board may reinstate the
42-24 member's disability retirement allowance on a prospective basis
42-25 only on the member's full performance of and compliance with all
42-26 requirements of this section and the retirement board's
42-27 determination that the member's disability is continuing.
43-1 (i)(1) If an [after] investigation of the disabled member's
43-2 activities or a [if the annual] medical examination shows that the
43-3 member is no longer physically or mentally incapacitated for the
43-4 purposes of the performance of employment duties or if the [that
43-5 such] member is found to be engaged in or is able to engage in
43-6 substantial gainful occupation, as defined by Social Security
43-7 disability income guidelines, for which the member [he or she] is
43-8 reasonably suited by education, training, or experience, the
43-9 retirement board shall discontinue the disability retirement
43-10 allowance.
43-11 (2) If the disability retirement allowance of a member
43-12 who had less than five [10] years of creditable service is
43-13 discontinued under this subsection or Subsection (h) of this
43-14 section and not reinstated, and the member is not reemployed by the
43-15 employer, the member is entitled to any amount by which the sum of
43-16 the member's accumulated deposits as of the date of disability
43-17 retirement exceeds the sum of all disability retirement benefits
43-18 paid to the member by the system.
43-19 (3) If the disability retirement allowance of a member
43-20 is discontinued under this subsection or Subsection (h) of this
43-21 section and not reinstated, and the member is not reemployed by the
43-22 employer, the member may withdraw any amount by which the sum of
43-23 the member's accumulated deposits as of the date of the disability
43-24 retirement exceeds the sum of all disability retirement benefits
43-25 paid to the member by the system. If a member has five [who had
43-26 10] or more years of creditable service and does not withdraw the
43-27 excess, the member is entitled to a life annuity (modified cash
44-1 refund) beginning on the first day of the month after the month in
44-2 which the member's normal retirement date occurs.
44-3 SECTION 8. Sections 9(a), (b), and (p), Chapter 451, Acts of
44-4 the 72nd Legislature, Regular Session, 1991 (Article 6243n,
44-5 Vernon's Texas Civil Statutes), are amended to read as follows:
44-6 (a) Notwithstanding any other provisions of this Act, the
44-7 annual benefit provided with respect to any member may not exceed
44-8 the benefits allowed for a plan qualified under Section 415 of the
44-9 code [$90,000].
44-10 (b) [Benefits provided to a member under this Act and under
44-11 any other qualified defined benefit plan or plans maintained by the
44-12 employer shall be aggregated for purposes of determining whether
44-13 the limitations in Subsection (a) of this section are met.] If
44-14 the aggregate benefits otherwise payable to any member under this
44-15 Act and any other defined benefit plan or plans maintained by the
44-16 employer would otherwise exceed the limit provided by Section 415
44-17 of the code [limitations of Subsection (a) of this section], the
44-18 reductions in benefits shall be made in the benefits provided under
44-19 this Act, to the extent necessary to enable each plan or plans to
44-20 satisfy those limitations, unless the retirement board is informed
44-21 by the administrator of the other plan that the reductions are
44-22 required to be made in the other plan.
44-23 (p) A retired member who resumes regular full-time
44-24 employment with an employer automatically resumes membership as an
44-25 active contributory [contributing] member, and the retirement board
44-26 shall terminate the person's retirement allowance. The retirement
44-27 allowance of a retired member shall be suspended if the member is
45-1 employed by an employer for at least six months of any consecutive
45-2 12 calendar months and works, is budgeted, or is compensated for
45-3 more than 29 hours in a calendar week. When the person again
45-4 retires, the retirement system shall compute the benefit based on
45-5 service before and after the initial retirement. The resulting
45-6 benefit is reduced actuarially to reflect the value of the benefits
45-7 received before the resumption of full-time employment.
45-8 SECTION 9. Section 10, Chapter 451, Acts of the 72nd
45-9 Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas
45-10 Civil Statutes), is amended by amending Subsections (a) and (d) and
45-11 adding Subsection (g) to read as follows:
45-12 (a) Each active-contributory member shall make deposits to
45-13 the retirement system at a rate equal to seven percent of the
45-14 member's base compensation, pay, or salary, exclusive of overtime,
45-15 incentive, or terminal pay or at a higher contribution rate
45-16 approved by a majority vote of regular full-time employee members.
45-17 Deposits shall be made by payroll deduction each pay period. If a
45-18 regular full-time employee works at least 75 percent of a normal
45-19 40-hour work week but less than the full 40 hours, the employee
45-20 shall make deposits as though working a normal 40-hour work week
45-21 even though the rate of contribution may exceed seven percent of
45-22 the employee's actual compensation, pay, or salary, and the
45-23 employee's average final compensation shall be computed on the
45-24 basis of the compensation, pay, or salary for a normal 40-hour work
45-25 week. No deposits may be made nor membership service credit
45-26 received for periods during which an employee's authorized normal
45-27 work week is less than 75 percent of a normal 40-hour work week. A
46-1 person who is eligible for inactive-contributory membership status
46-2 and who chooses to be an inactive-contributory member shall make
46-3 deposits to the retirement system each pay period in an amount that
46-4 is equal to the amount of the member's deposit for the last
46-5 complete pay period that the member was a regular full-time
46-6 employee [employed by the employer]. The regular full-time
46-7 employee members may increase, by a majority vote of all such
46-8 members voting at an election to consider [in favor of] an increase
46-9 in contributions, [above seven percent, may increase] each member's
46-10 contributions above seven percent or above the higher rate in
46-11 effect and approved by majority vote in whatever amount the
46-12 retirement board recommends. Each employer shall contribute
46-13 amounts equal to seven percent of the compensation, pay, or salary
46-14 of each active-contributory member and each inactive-contributory
46-15 member employed by the employer, exclusive of overtime, incentive,
46-16 or terminal pay. If a regular full-time employee of the employer
46-17 works at least 75 percent of a normal 40-hour work week but less
46-18 than the full 40 hours, the employer shall make contributions for
46-19 that employee as though that employee works a normal 40-hour work
46-20 week even though the rate of contribution may exceed seven percent
46-21 of that employee's actual compensation, pay, or salary. The
46-22 governing body of the city may authorize the city to make
46-23 additional contributions to the system in whatever amount the
46-24 governing body may determine. If the governing body authorizes
46-25 additional contributions to the system by the city for city
46-26 employees, the board of each other employer may increase the
46-27 contributions for such employer's respective employees by the same
47-1 percentage. Employer contributions shall be made each pay period.
47-2 (d) Expenses for administration and operation of the
47-3 retirement system that are approved by the retirement board shall
47-4 be paid by the retirement board from funds of the retirement
47-5 system. Such expenses shall include salaries of retirement board
47-6 employees and fees for actuarial services, legal counsel services,
47-7 physician services, accountant services, annual audits by
47-8 independent certified public accountants, investment manager
47-9 services, investment consultant services, preparation of annual
47-10 reports, and staff assistance.
47-11 (g) Notwithstanding any other provision of this Act, if the
47-12 retirement board obtains an acturial study indicating that a
47-13 proposed change will not make the fund financially unsound and the
47-14 proposed change is not inconsistent with the code, the retirement
47-15 board may:
47-16 (1) provide additional member benefits;
47-17 (2) reduce the requirements for unreduced retirement
47-18 benefits; or
47-19 (3) increase any retirement allowance or other benefit
47-20 authorized by this Act.
47-21 SECTION 10. Section 11(e), Chapter 451, Acts of the 72nd
47-22 Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas
47-23 Civil Statutes), is amended to read as follows:
47-24 (e) Subject to the exceptions provided by this subsection,
47-25 the right of a member to a pension, an annuity, a disability
47-26 retirement allowance, or a retirement allowance, to the return of
47-27 accumulated deposits, the pension, annuity, or retirement allowance
48-1 itself, any optional benefit or death benefits, or any other right
48-2 accrued or accruing to any person under the provisions of this Act
48-3 is unassignable and is not subject to execution, levy, attachment,
48-4 garnishment, the operation of bankruptcy or insolvency law, or any
48-5 other process of law whatsoever. This subsection does not apply to
48-6 a qualified domestic relations order.
48-7 SECTION 11. Sections 12(d) and (e), Chapter 451, Acts of the
48-8 72nd Legislature, Regular Session, 1991 (Article 6243n, Vernon's
48-9 Texas Civil Statutes), are amended to read as follows:
48-10 (d) Notwithstanding any other provision in this Act to the
48-11 contrary, the municipality or its governing body may not deny or
48-12 abridge a vested right of any member or a right or privilege of the
48-13 retirement system, and the retirement system shall continue to be
48-14 authorized by and administer this Act without regard to any action
48-15 taken by the municipality or its governing body [in the event of a
48-16 termination of the retirement and pensioning system, the benefit of
48-17 any highly compensated employee or former employee is limited to a
48-18 benefit that is nondiscriminatory under Section 401(a)(4) of the
48-19 code. Benefits distributed to any of the 25 most highly
48-20 compensated active and former highly compensated employees are
48-21 restricted such that the annual payments are no greater than an
48-22 amount equal to the payment that would be made on behalf of an
48-23 employee under a single life annuity that is the actuarial
48-24 equivalent of the sum of the employee's accrued benefit and the
48-25 employee's other benefits under the plan. The preceding sentence
48-26 shall not apply if: (1) after payment of the benefit to an
48-27 employee described in that sentence, the value of plan assets
49-1 equals or exceeds 110 percent of the value of the current
49-2 liabilities, as defined in Section 412(l)(7) of the code, or (2)
49-3 the value of the benefits for an employee described in that
49-4 paragraph is less than one percent of the value of current
49-5 liabilities. For purposes of this subsection, benefit includes
49-6 loans in excess of the amount set forth in Section 72(p)(2)(A) of
49-7 the code, any periodic income, any withdrawal values payable to a
49-8 living employee and any death benefits not provided for by
49-9 insurance on the employee's life].
49-10 (e) Notwithstanding any provision of this Act to the
49-11 contrary that would otherwise limit a distributee's election, a
49-12 distributee may elect, at the time and in the manner prescribed by
49-13 the retirement board, to have any portion of an eligible rollover
49-14 distribution paid directly to an eligible retirement plan specified
49-15 by the distributee in a direct rollover. For purposes of this
49-16 subsection [Subsection (e) of this section]:
49-17 (1) An eligible rollover distribution is any
49-18 distribution of all or any portion of the balance to the credit of
49-19 the distributee, except that an eligible rollover distribution does
49-20 not include:
49-21 (A) [(1)] any distribution that is one of a
49-22 series of substantially equal periodic payments (not less
49-23 frequently than annually) made over the life (or life expectancy)
49-24 of the distributee or the joint lives (or joint life expectancies)
49-25 of the distributee and the distributee's designated beneficiary;
49-26 (B) [(2)] any series of payments for a specified
49-27 period of ten years or more;
50-1 (C) [(3)] any distribution to the extent such
50-2 distribution is required under Section 401(a)(9) of the code; or
50-3 (D) [(4)] the portion of any distribution that
50-4 is not includable in gross income (determined without regard to the
50-5 exclusion for net unrealized appreciation with respect to employer
50-6 securities).
50-7 (2) An "eligible retirement plan" is an individual
50-8 retirement account described in Section 408(a) of the code, an
50-9 individual retirement annuity described in Section 408(b) of the
50-10 code, an annuity plan described in Section 403(a) of the code, or a
50-11 qualified trust described in Section 401(a) of the code, that
50-12 accepts the distributee's eligible rollover distribution. However,
50-13 in the case of an eligible rollover distribution to the surviving
50-14 spouse, an eligible retirement plan is an individual retirement
50-15 account or individual retirement annuity only.
50-16 (3) A "distributee" includes an employee or former
50-17 employee. In addition, the employee's or former employee's
50-18 surviving spouse and the employee's or former employee's spouse or
50-19 former spouse who is the alternate payee under a qualified domestic
50-20 relations order, as defined in Section 414(p) of the code, are
50-21 distributees with regard to the interest of the spouse or the
50-22 former spouse.
50-23 (4) A "direct rollover" is a payment by the retirement
50-24 system to the eligible retirement plan specified by the
50-25 distributee.
50-26 SECTION 12. Sections 13(a) and (c), Chapter 451, Acts of the
50-27 72nd Legislature, Regular Session, 1991 (Article 6243n, Vernon's
51-1 Texas Civil Statutes), are amended to read as follows:
51-2 (a) Information contained in records that are in the custody
51-3 of the retirement board or the system concerning an individual
51-4 member, retiree, annuitant, beneficiary, or alternate payee is
51-5 confidential under this section [Section 13] and may not be
51-6 disclosed in a form identifiable with a specific individual unless:
51-7 (1) the information is disclosed to:
51-8 (A) the individual or the individual's attorney,
51-9 guardian, executor, administrator, conservator, or other person who
51-10 the pension director [officer] determines is acting in the
51-11 interest of the individual or the individual's estate;
51-12 (B) a spouse or former spouse of the individual
51-13 if the pension director [officer] determines that the information
51-14 is relevant to the spouse's or former spouse's interest in member
51-15 accounts, benefits, or other amounts payable by the retirement
51-16 system;
51-17 (C) a governmental official or employee if the
51-18 pension director [officer] determines that disclosure of the
51-19 information requested is reasonably necessary to the performance of
51-20 the duties of the official or employee;
51-21 (D) the individual's employer as defined in this
51-22 Act; or
51-23 (E) a person authorized by the individual in
51-24 writing to receive the information; or
51-25 (2) the information is disclosed pursuant to a
51-26 subpoena and the pension director [officer] determines that the
51-27 individual will have a reasonable opportunity to contest the
52-1 subpoena.
52-2 (c) The pension director [officer] may designate other
52-3 employees of the retirement system to make the necessary
52-4 determinations under Subsection (a) of this section.
52-5 SECTION 13. (a) A retirement allowance being paid to a
52-6 member of the retirement system created by Chapter 451, Acts of the
52-7 72nd Legislature, Regular Session, 1991 (Article 6243n, Vernon's
52-8 Texas Civil Statutes), who retired before October 1, 1999, or the
52-9 beneficiary of a member of that system, is changed beginning with
52-10 the payments due at the end of October 1999.
52-11 (b) This change is made to reflect the change in the benefit
52-12 multiplier to 2.7 percent effective October 1, 1999. The amount of
52-13 the change for a member or a beneficiary of a member is equal to
52-14 the percentage multiplied by the retirement allowance otherwise
52-15 due. The percentage is equal to 3.85 percent.
52-16 SECTION 14. Section 2(24) and Sections 9(c)-(o), Chapter
52-17 451, Acts of the 72nd Legislature, Regular Session, 1991 (Article
52-18 6243n, Vernon's Texas Civil Statutes), are repealed.
52-19 SECTION 15. This Act takes effect October 1, 1999.
52-20 SECTION 16. The importance of this legislation and the
52-21 crowded condition of the calendars in both houses create an
52-22 emergency and an imperative public necessity that the
52-23 constitutional rule requiring bills to be read on three several
52-24 days in each house be suspended, and this rule is hereby suspended.