1-1 AN ACT
1-2 relating to participation in, administration of, and benefits from
1-3 certain public retirement systems for municipal employees.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2, Chapter 358, Acts of the 48th
1-6 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
1-7 Civil Statutes), is amended by amending Subdivisions (b), (f), (g),
1-8 (j), and (l) and adding Subdivisions (m) and (n) to read as
1-9 follows:
1-10 (b) "Member" means each [city] employee included in
1-11 the Pension System provided for herein and becoming a member
1-12 thereof.
1-13 (f) "Separation from Service" or "separated from
1-14 service" means cessation of work for the city, whether caused by
1-15 death, discharge, resignation or any reason other than retirement.
1-16 (g) "Employee" means and includes any person eligible
1-17 under this Act whose name appears on a regular full time payroll of
1-18 any such city or Pension System and who is paid a regular salary
1-19 for his services. Provided, that any elected official who becomes
1-20 a member of the Pension System as permitted by this amended Act
1-21 shall be considered to be and to have been an employee during the
1-22 period of any service as an elected official.
1-23 (j) "Previous Service" means all services and work as
1-24 an employee, other than "prior service" as herein defined, which
2-1 preceded a [Group A] member's current period of employment.
2-2 (l) "Pension Fund" or "fund" means assets consisting
2-3 of the contributions made by the city, contributions made by any
2-4 member [of Group A], and any income derived from investments made
2-5 from those contributions, which are held in trust for the sole
2-6 benefit of the members and retirees of the Pension System and their
2-7 survivors.
2-8 (m) "Effective Retirement Date" means the first day of
2-9 the month retirement begins for a member or former member who is
2-10 eligible for retirement. If the Pension System receives a member's
2-11 application for normal retirement before the member's separation
2-12 from service or not later than the 30th day after the date of the
2-13 member's separation from service, the effective retirement date is
2-14 the later of the first day of the month following the month of
2-15 separation or the date specified on the application. If the
2-16 Pension System does not receive the application within 30 days
2-17 after the date of the member's separation from service, the
2-18 effective retirement date is the later of the first day of the
2-19 month after the Pension System receives the application, or the
2-20 date specified on the application. The effective retirement date
2-21 for a person who qualifies for a service or ordinary disability
2-22 retirement is the later of the day following the person's last day
2-23 of credited service or the date the Pension System receives a
2-24 request to apply for disability retirement.
2-25 (n) "Military Service" of any member means service in
2-26 the armed forces of the United States or wartime service in the
2-27 armed forces of the United States or in the Allied Forces, if
3-1 credit for military service has not been granted under any other
3-2 federal or state system or used in any other retirement system.
3-3 SECTION 2. Section 3, Chapter 358, Acts of the 48th
3-4 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
3-5 Civil Statutes), is amended to read as follows:
3-6 Sec. 3. PERSONS ELIGIBLE UNDER THIS ACT. The following
3-7 persons are eligible under this Act:
3-8 (a) Any person who is now a member of any such System
3-9 under the terms of the original Act, as amended, and who does not
3-10 make the election provided by Section 22 of this Act shall be a
3-11 Group A member. A person who becomes an employee on or after
3-12 September 1, 1999, becomes a Group A member of the Pension System
3-13 as a condition of employment except as otherwise provided by this
3-14 section or Section 4 of this Act [The disability and benefit
3-15 provisions of Sections 11 through 16 of this Act shall apply to
3-16 Group A members].
3-17 (b) Any person who becomes an employee [of such city]
3-18 after September 1, 1981, and before September 1, 1999, shall
3-19 automatically become a Group B member of the Pension System as a
3-20 condition of his employment except as otherwise provided by this
3-21 section or Section 4 of this Act. A Group A member who has
3-22 terminated employment included in the Pension System, elected under
3-23 Section 16 of this Act to leave the member's contributions in the
3-24 Pension Fund, and met the minimum service requirements for
3-25 retirement at an attained age shall, if the member is reemployed in
3-26 a position included in the Pension System before September 1, 1999,
3-27 elect, not later than the 14th day after the date reemployment
4-1 begins, whether to continue as a Group A member or become a Group B
4-2 member. [Except as expressly stated otherwise, the eligibility and
4-3 benefit provisions of Sections 22 through 31, inclusive, shall
4-4 apply to such Group B members.]
4-5 (c) Elected officials in office on September 1, 1981,
4-6 shall have the option of becoming members of the Pension System.
4-7 Any member or former member of the Pension System who shall
4-8 hereafter be elected to an office of said city shall have the right
4-9 to reinstatement and shall receive credit for prior service and
4-10 previous service as an employee on the same conditions as
4-11 reemployed Group A members; except that no elected official who
4-12 has retired or does retire from the Pension System on a service or
4-13 disability retirement pension may receive pension payments while
4-14 serving in an elective city office and such payments shall be
4-15 suspended during the term of office. However, upon leaving office
4-16 such payments shall be restored and credit given for the period
4-17 served. Except as otherwise provided by this Act, an [Any] elected
4-18 official who is first elected after September 1, 1981, and before
4-19 September 1, 1999, shall become a Group B member and receive credit
4-20 for all previous service. An elected official who is first elected
4-21 on or after September 1, 1999, becomes a Group A member and is
4-22 entitled to receive credit for all previous service on the same
4-23 conditions as reemployed Group A members, except as otherwise
4-24 provided under this Act.
4-25 SECTION 3. Section 3A(a), Chapter 358, Acts of the 48th
4-26 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
4-27 Civil Statutes), is amended to read as follows:
5-1 (a) A person who, on or after a date determined by the
5-2 Pension Board and before September 1, 1999, becomes a member of, or
5-3 resumes membership in, the Pension System as an employee or elected
5-4 official of a city to which this Act applies shall elect:
5-5 (1) by submission of a signed and notarized form, to
5-6 become a Group A member and contribute a portion of the person's
5-7 salary to the Pension Fund as required by this Act; or
5-8 (2) to become a Group B member and make no
5-9 contributions to the Pension Fund.
5-10 SECTION 4. Section 3B(a), Chapter 358, Acts of the 48th
5-11 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
5-12 Civil Statutes), is amended to read as follows:
5-13 (a) Each member of the Pension System as an employee or
5-14 elected official of a city to which this Act applies may [shall]
5-15 make a one-time, irrevocable election on a date determined by the
5-16 Pension Board[:]
5-17 [(1) to retain membership in the group of which the
5-18 employee or official is currently a member;]
5-19 [(2) to change membership from Group A to Group B and
5-20 receive a refund of contributions, without interest, made by the
5-21 person to Group A; or]
5-22 [(3)] to change membership from Group B to Group A and
5-23 comply with the requirements of Subsection (b) of this section.
5-24 SECTION 5. Section 5, Chapter 358, Acts of the 48th
5-25 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
5-26 Civil Statutes), is amended by amending Subsections (d) and (h) and
5-27 adding Subsections (m), (n), and (o) to read as follows:
6-1 (d)(1) In each odd-numbered year, the [The] Board shall
6-2 elect from the elected members of the Board [its membership
6-3 annually] a Chairman, Vice-Chairman and Secretary.
6-4 (2) Effective July 1, 1989, or on the effective date
6-5 of the 1989 amendment of this Act, whichever is later, the Pension
6-6 Board may hire or contract with one (1) or more persons to perform
6-7 administrative services for the Pension System. The services
6-8 include clerical services, record keeping, and the performance of
6-9 such other related administrative functions as assigned by the
6-10 Board. The Board shall fix and pay the compensation for persons
6-11 performing administrative services under this subdivision from the
6-12 Pension Fund. Additionally, the Board may provide related benefits
6-13 that the Board considers proper.
6-14 (3) Any person employed by the Pension Board to serve
6-15 on the administrative staff who has service credits with the
6-16 Pension System at the time of the person's employment by the Board
6-17 retains the person's status in the System, and any person so
6-18 employed who does not have accrued service credits with the System
6-19 at the time of employment is a Group A member [entitled to join the
6-20 System as a Group B member].
6-21 (4) The Pension Board shall adopt a detailed annual
6-22 budget showing its proposed administrative expenditures under
6-23 Subdivision (2) of this subsection for the next fiscal year.
6-24 (h) The Pension Board shall:
6-25 (1) adopt for the administration of the Pension Fund
6-26 written rules and guidelines not inconsistent with this Act;
6-27 (2) correct any defect, supply any omission, and
7-1 reconcile any inconsistency that may appear in this Act in a manner
7-2 and to the extent that the Board considers expedient for the
7-3 administration of this Act for the greatest benefit of all members;
7-4 [and]
7-5 (3) establish and maintain all records necessary or
7-6 appropriate for the proper administration of the Pension Fund; and
7-7 (4) have the authority to institute, conduct, and
7-8 maintain legal action in the name of the Board on behalf of the
7-9 Pension System.
7-10 (m) The Board may by resolution make the implementation of a
7-11 provision of this Act contingent on receipt of a favorable private
7-12 letter ruling or favorable determination letter from the Internal
7-13 Revenue Service if the Board determines that the action is in the
7-14 best interest of the Pension System.
7-15 (n) After separation from service or retirement, a member is
7-16 subject to the schedule of benefits and provisions in effect at the
7-17 time of the member's separation from service, except as otherwise
7-18 provided by this Act.
7-19 (o) A person receiving or eligible for a survivor benefit
7-20 under this Act is subject to the schedule of benefits and
7-21 provisions in effect at the time of separation from service of the
7-22 deceased participant for whom the person is claiming survivor
7-23 status, except as expressly provided otherwise in this Act.
7-24 SECTION 6. Section 7, Chapter 358, Acts of the 48th
7-25 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
7-26 Civil Statutes), is amended to read as follows:
7-27 Sec. 7. CONTRIBUTIONS BY MEMBERS. Each Group A member of
8-1 the Pension System shall make periodic contributions during
8-2 employment [by the city] in an [the] amount determined by the Board
8-3 and expressed as a percentage [of four percent (4%)] of salary.
8-4 Such contributions shall be deducted by the employer [city] from
8-5 the salary of each such member and paid to the Pension System for
8-6 deposit in [Treasurer of] the Pension Fund [for deposit therein].
8-7 SECTION 7. Sections 7A(a), (b), and (c), Chapter 358, Acts
8-8 of the 48th Legislature, Regular Session, 1943 (Article 6243g,
8-9 Vernon's Texas Civil Statutes), are amended to read as follows:
8-10 (a) The employer [city] shall pick up the contributions
8-11 required of Group A members by Section 7 of this Act for all
8-12 salaries earned after December 31, 1987. The city shall pay the
8-13 pick-up contributions to the Pension System from the same source of
8-14 funds that is used in paying salaries to the members. The pickup
8-15 of contributions shall be in lieu of contributions by Group A
8-16 members. The city may pick up these contributions by a deduction
8-17 from each Group A member's salary equal to the amount of the
8-18 member's contributions picked up by the city. Members do not have
8-19 the option of choosing to receive the contributed amounts directly
8-20 instead of having them paid by the city to the Pension System.
8-21 (b) Contributions picked up as provided by Subsection (a) of
8-22 this section shall be treated as employer contributions in
8-23 determining tax treatment of the amounts under the United States
8-24 Internal Revenue Code; however, the employer [city] shall continue
8-25 to withhold federal income taxes on these picked-up contributions
8-26 until the Internal Revenue Service determines or the federal courts
8-27 rule that pursuant to Section 414(h) of the Internal Revenue Code
9-1 of 1986 (26 U.S.C. Section 414(h)) these picked-up contributions
9-2 are not includable as gross income of the employee until the time
9-3 that they are distributed or made available.
9-4 (c) An accounting of member [Member] contributions picked up
9-5 by the employer [city] shall be maintained [credited to the
9-6 individual account of the member] and the contributions shall be
9-7 treated for all other purposes as if the amount were a part of the
9-8 member's salary and had been deducted as provided by Section 7 of
9-9 this Act.
9-10 SECTION 8. Section 8(b), Chapter 358, Acts of the 48th
9-11 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
9-12 Civil Statutes), is amended to read as follows:
9-13 (b) Beginning January 1, 1983, the city shall make periodic
9-14 payments into the Pension Fund in an amount equal to the percentage
9-15 contribution rate multiplied by the salaries paid to Group A and
9-16 Group B members of the Fund. Such contribution rate expressed as a
9-17 percentage shall be based on the results of actuarial valuations
9-18 made at least every three (3) years, with the first such actuarial
9-19 valuation to be made as of January 1, 1982. The city's
9-20 contribution rate shall be comprised of the normal cost plus the
9-21 level percentage of salary payment required to amortize the
9-22 unfunded actuarial liability over a period of forty (40) years from
9-23 January 1, 1983, calculated on the basis of an acceptable actuarial
9-24 reserve funding method approved by the Pension Board.
9-25 Notwithstanding any other provision of this Act, the city's
9-26 contribution rate, when added to any contributions with respect to
9-27 a qualified governmental excess benefit arrangement maintained in
10-1 accordance with Section 31D of this Act, may not be an amount less
10-2 than the greater of 10 percent of the salaries paid to members or
10-3 two times the contribution rate of Group A members.
10-4 SECTION 9. Section 9, Chapter 358, Acts of the 48th
10-5 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
10-6 Civil Statutes), is amended to read as follows:
10-7 Sec. 9. INCREASE IN ANNUITIES. (a) In addition to the
10-8 postretirement increases provided by Section [Sections] 11 [and 31]
10-9 of this Act, the Pension Board may increase annuities payable under
10-10 this Act by an amount that does not exceed the annual increase in
10-11 the amount of premiums being paid under a group insurance program
10-12 provided for retirees of the city.
10-13 (b) The Pension Board may distribute a supplemental payment
10-14 to all retirees, survivors, or DROP participants if:
10-15 (1) the Pension System is fully funded;
10-16 (2) the Pension System has met the actuarial
10-17 investment assumption for the previous fiscal year; and
10-18 (3) the issuance of the supplemental check will not
10-19 cause the city's contribution rate to increase.
10-20 SECTION 10. Effective September 1, 1999, Sections 11(a) and
10-21 (b), Chapter 358, Acts of the 48th Legislature, Regular Session,
10-22 1943 (Article 6243g, Vernon's Texas Civil Statutes), are amended to
10-23 read as follows:
10-24 (a) Any member of such Pension System who has attained fifty
10-25 (50) years of age and completed twenty-five (25) or more years of
10-26 credited service, who has attained fifty-five (55) years of age and
10-27 completed twenty (20) or more years of credited service, who has
11-1 attained sixty (60) years of age and completed ten (10) or more
11-2 years of credited service, or who has attained sixty-two (62) years
11-3 of age and completed five (5) or more years of credited service
11-4 shall be eligible for a normal retirement pension.
11-5 (b) The amount of the monthly pension for each Group A
11-6 member shall equal the member's average monthly salary multiplied
11-7 by two and one-quarter percent (2 1/4%) for each year of the
11-8 member's first twenty (20) years of credited service and two and
11-9 three-quarters percent (2 3/4%) for each additional year, prorated
11-10 to the nearest 12th of a year, of credited service of the member.
11-11 For purposes of this Subsection, such average salary shall be
11-12 computed by adding together the seventy-eight (78) highest biweekly
11-13 salaries paid to a member during his period of credited service and
11-14 dividing the sum by thirty-six (36). Provided, however, that no
11-15 Group A member's pension shall be more than eighty percent (80%) of
11-16 such average salary; and no Group A member's pension shall be less
11-17 than Eight Dollars ($8) a month for each year of credited service,
11-18 or One Hundred Dollars ($100) a month total pension, whichever is
11-19 the greater amount.
11-20 SECTION 11. Effective August 1, 2000, Sections 11(a) and
11-21 (b), Chapter 358, Acts of the 48th Legislature, Regular Session,
11-22 1943 (Article 6243g, Vernon's Texas Civil Statutes), are amended to
11-23 read as follows:
11-24 (a) Any member of such Pension System who has [attained
11-25 fifty (50) years of age and completed twenty-five (25) or more
11-26 years of credited service, who has attained fifty-five (55) years
11-27 of age and completed twenty (20) or more years of credited service,
12-1 who has attained sixty (60) years of age and completed ten (10) or
12-2 more years of credited service, or who has attained sixty-two (62)
12-3 years of age and] completed five (5) or more years of credited
12-4 service and attained sixty-two (62) years of age or a combination
12-5 of years of age and years of credited service equal to the number
12-6 70 shall be eligible for a normal retirement pension.
12-7 (b) The amount of the monthly pension for each Group A
12-8 member shall equal the member's average monthly salary multiplied
12-9 by two and one-half percent (2 1/2%) [one-quarter percent (2 1/4%)]
12-10 for each year of the member's first twenty (20) years of credited
12-11 service and three and one-quarter percent (3 1/4%) [two and
12-12 three-quarters percent (2 3/4%)] for each additional year, prorated
12-13 to the nearest 12th of a year, of credited service of the member.
12-14 For purposes of this Subsection, such average salary shall be
12-15 computed by adding together the seventy-eight (78) highest biweekly
12-16 salaries paid to a member during his period of credited service and
12-17 dividing the sum by thirty-six (36). Provided, however, that no
12-18 Group A member's pension shall be more than eighty percent (80%) of
12-19 such average salary; and no Group A member's pension shall be less
12-20 than Eight Dollars ($8) a month for each year of credited service,
12-21 or One Hundred Dollars ($100) a month total pension, whichever is
12-22 the greater amount.
12-23 SECTION 12. Section 11(g), Chapter 358, Acts of the 48th
12-24 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
12-25 Civil Statutes), is amended to read as follows:
12-26 (g) Pensions for all [Group A] members, retirees, or their
12-27 survivors shall be adjusted annually upward by three and one-half
13-1 percent (3 1/2%), not compounded.
13-2 SECTION 13. Section 12, Chapter 358, Acts of the 48th
13-3 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
13-4 Civil Statutes), is amended to read as follows:
13-5 Sec. 12. DISABILITY PENSIONS. (a) Any [Group A] member who
13-6 has completed five (5) [ten (10)] or more years of service and who
13-7 becomes totally disabled for further duty shall, regardless of age,
13-8 be retired for "ordinary disability" and shall receive a monthly
13-9 pension computed in accordance with Section 11(b) for Group A
13-10 members and Section 24 for Group B members.
13-11 (b) If any [Group A] member who becomes totally disabled for
13-12 further duty by reason of a personal injury sustained or a hazard
13-13 undergone as a result of, and while in the performance of, his
13-14 duties at some definite place and at some definite time on or after
13-15 the date of his becoming a [Group A] member, without serious and
13-16 willful misconduct on his part, shall be retired for "service
13-17 [accidental] disability" and shall receive a monthly pension equal
13-18 to twenty percent (20%) of his monthly salary on the date such
13-19 injury was sustained or such hazard was undergone plus, if a Group
13-20 A member, one percent (1%) of the above salary for each year of
13-21 credited service; provided, that the total pension as so computed
13-22 will not exceed forty percent (40%) of such monthly salary, or, if
13-23 greater, a monthly pension computed in accordance with Section
13-24 11(b) for a Group A member or with Section 24 for a Group B
13-25 member[, whichever is greater].
13-26 (c) By "totally disabled" is meant the sustaining of such
13-27 disability as completely and permanently incapacitates a member
14-1 from performing the usual and customary duties which he has been
14-2 performing for such city or other full time duties that could be
14-3 performed by such member. Before any disability pension is
14-4 allowed, the Pension Board shall require such medical examination
14-5 and such other evidence as it may see fit to establish such total
14-6 disability, as above provided.
14-7 (d)(1) A person retired for disability under this Act or a
14-8 person receiving survivor benefits as a disabled child under this
14-9 Act must file an annual report of employment activities and
14-10 earnings with the Pension Board. The Board shall establish the
14-11 form of the report and the time for filing the report [Any Group A
14-12 member receiving a disability pension in accordance with this
14-13 section or any Group B member receiving a disability pension in
14-14 accordance with Section 25 of this Act shall, each April 1, submit
14-15 a sworn affidavit stating his earnings for the previous calendar
14-16 year, if any, obtained from any gainful occupation]. If the
14-17 earnings together with the disability pension being received by any
14-18 member exceed the monthly salary of such member at the time of his
14-19 separation from service, as adjusted annually by cost-of-living
14-20 adjustments made in the manner provided by Section 11(g) [or
14-21 Section 31] of this Act, the Pension Board shall have authority to
14-22 reduce the amount of pension. A disability pension recipient whose
14-23 disability does not cease after the recipient reaches the date on
14-24 which the recipient is eligible to retire under Section 11(a) or
14-25 sixty-five (65) years of age may not be required to submit the
14-26 annual affidavit of employment activities and earnings [Failure to
14-27 submit an affidavit of earnings or submission of a materially false
15-1 affidavit shall be cause for suspension of the pension upon proper
15-2 action by the Pension Board].
15-3 (2) No member shall receive a disability and service
15-4 pension at the same time. If a member who is already eligible for
15-5 retirement is granted a disability pension and, thereafter,
15-6 although his disability ceases to exist, he does not return to work
15-7 for the city, he shall be entitled to receive a service pension,
15-8 calculated in accordance with Section 11 for Group A members and
15-9 Section 24 for Group B members. Such service pension shall be
15-10 based on actual service up to the time of disability. [If a
15-11 disability does not cease before a member becomes sixty-five (65)
15-12 years of age while continuing to receive a disability pension, the
15-13 Pension System shall reclassify the pension as a service pension,
15-14 without regard to whether the person is otherwise eligible to
15-15 receive a service pension.]
15-16 (3) When any member has been retired for disability or
15-17 a person is receiving survivor benefits as a disabled child under
15-18 this Act, he shall be subject at all times to re-examination by the
15-19 Pension Board and shall submit himself to such further examination
15-20 as the Pension Board may require. If any such member shall refuse
15-21 to submit himself to any such examination, the Pension Board may,
15-22 within its discretion, order said payments stopped. If such a
15-23 member who has been retired under the provisions of this Section
15-24 should thereafter recover so that in the opinion of the Pension
15-25 Board he is able to perform the usual and customary duties formerly
15-26 handled by him for said city, [and such member is reinstated or
15-27 tendered reinstatement to the position he had at the time of his
16-1 retirement, then] the Pension Board shall order such pension
16-2 payments stopped.
16-3 (4) The result of an examination, report by a
16-4 physician, or report of employment activities and earnings shall be
16-5 considered by the Board in determining whether the benefits shall
16-6 be continued, increased if less than the maximum provided,
16-7 decreased, or discontinued. The Board may reduce, suspend, or
16-8 entirely discontinue all benefits to a person receiving benefits
16-9 under this Act who, after notice from the Board, fails to appear
16-10 for a required examination, fails to file a report of employment
16-11 activities and earnings, or files a materially false or misleading
16-12 report of employment activities and earnings or examination result
16-13 or report, as determined by the Board.
16-14 (e) To apply for a disability pension, a person must be an
16-15 employee or a former employee whose separation from service
16-16 occurred not more than 30 days before the date the Pension System
16-17 receives the person's request to apply for a disability pension as
16-18 a result of a disability that arose during employment.
16-19 SECTION 14. Effective September 1, 1999, Section 13, Chapter
16-20 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
16-21 6243g, Vernon's Texas Civil Statutes), is amended to read as
16-22 follows:
16-23 Sec. 13. MONTHLY ALLOWANCE TO SURVIVING SPOUSES AND
16-24 CHILDREN. (a) If any [Group A or Group B] member of the Pension
16-25 System, as herein defined, shall die from any cause whatsoever
16-26 after having completed five (5) years of service with the city, or
16-27 if, while in the service of the city, any such member shall die
17-1 from any cause directly resulting from a specific incident in
17-2 [growing out of or in consequence of] the performance of his duty,
17-3 or shall die after he has been retired on pension because of length
17-4 of service or disability and shall leave a surviving spouse, or a
17-5 qualifying child or children, or both a surviving spouse and a
17-6 qualifying child or children, said Board shall order paid monthly
17-7 allowances under this section. [as follows:]
17-8 (b) A [(a) To the] surviving spouse of a member who dies
17-9 after having completed five (5) years of active service with the
17-10 city but before beginning to receive retirement benefits, provided
17-11 she or he shall have married such member before the decedent
17-12 terminated employment [with the city], is entitled to a sum equal
17-13 to eighty-five percent (85%) [one-half (1/2)] of the retirement
17-14 benefits that the deceased member would have been entitled to had
17-15 she or he been totally disabled at the time of her or his
17-16 retirement or death, but the allowance payable to the surviving
17-17 spouse shall not in any event be less than Fifty Dollars ($50) a
17-18 month.
17-19 (c) A [(b) To the] surviving spouse of a member who dies
17-20 from a cause directly resulting from a specific incident in
17-21 [growing out of or in consequence of] the performance of duty is
17-22 entitled to [with the city,] a sum equal to one hundred percent
17-23 (100%) [eighty percent (80%)] of the deceased member's final
17-24 average salary.
17-25 (d) A [(c) To the] surviving spouse of a member who dies
17-26 after having begun to receive retirement benefits is entitled to[,]
17-27 a sum equal to eighty-five percent (85%) [seventy-five percent
18-1 (75%)] of the retirement benefits being received at the time of the
18-2 retiree's death, if the surviving spouse married the decedent
18-3 before the decedent terminated employment [with the city].
18-4 (e) [(d)] If there is a surviving spouse, each dependent
18-5 child shall receive a death benefit equal to ten percent (10%) of
18-6 the pension the member would have received if the member had been
18-7 disabled at the time of death, to a maximum of twenty percent (20%)
18-8 for all dependent children, with a proportionate reduction in the
18-9 percentage of benefit payable to the surviving spouse until no
18-10 benefit is payable to a dependent child.
18-11 (f) [(e)] If there is no surviving spouse, each dependent
18-12 child shall receive a death benefit equal to fifty percent (50%)
18-13 [twenty percent (20%)] of what the surviving spouse benefit [the
18-14 pension the member] would have been had there been a surviving
18-15 spouse [received if the member had been disabled at the time of
18-16 death], to a maximum of one hundred percent (100%) of the benefit
18-17 [forty percent (40%)] for all dependent children.
18-18 (g) [(f)] Benefits payable to each dependent child shall be
18-19 paid if the child is unmarried and:
18-20 (1) is younger than twenty-one (21) [eighteen (18)]
18-21 years of age [and unmarried]; or
18-22 (2) [is a full-time student and younger than
18-23 twenty-three (23) years of age; or]
18-24 [(3)] is permanently and totally disabled because of
18-25 illness, injury, or retardation that began before the death of the
18-26 member and before the child reached eighteen (18) years of age.
18-27 (h) [(g)] Benefits for a dependent child are payable to the
19-1 guardian of the child. The term "guardian," as used in this
19-2 subsection, means the person who has the primary responsibility for
19-3 a child's care and support, for example, the surviving spouse,
19-4 legal guardian, managing conservator, or any other person with a
19-5 similar legal relationship to the child.
19-6 SECTION 15. Effective August 1, 2001, Section 13, Chapter
19-7 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
19-8 6243g, Vernon's Texas Civil Statutes), is amended to read as
19-9 follows:
19-10 Sec. 13. MONTHLY ALLOWANCE TO SURVIVING SPOUSES AND
19-11 CHILDREN. (a) If any [Group A or Group B] member of the Pension
19-12 System, as herein defined, shall die from any cause whatsoever
19-13 after having completed five (5) years of service with the city, or
19-14 if, while in the service of the city, any such member shall die
19-15 from any cause directly resulting from a specific incident in
19-16 [growing out of or in consequence of] the performance of his duty,
19-17 or shall die after he has been retired on pension because of length
19-18 of service or disability and shall leave a surviving spouse, or a
19-19 qualifying child or children, or both a surviving spouse and a
19-20 qualifying child or children, said Board shall order paid monthly
19-21 allowances under this section. [as follows:]
19-22 (b) A [(a) To the] surviving spouse of a member who dies
19-23 after having completed five (5) years of active service with the
19-24 city but before beginning to receive retirement benefits, provided
19-25 she or he shall have married such member before the decedent
19-26 terminated employment with the city is entitled to[,] a sum equal
19-27 to one hundred percent (100%) [one-half (1/2)] of the retirement
20-1 benefits that the deceased member would have been entitled to had
20-2 she or he been totally disabled at the time of her or his
20-3 retirement or death, but the allowance payable to the surviving
20-4 spouse shall not in any event be less than Fifty Dollars ($50) a
20-5 month.
20-6 (c) A [(b) To the] surviving spouse of a member who dies
20-7 from a cause directly resulting from a specific incident in
20-8 [growing out of or in consequence of] the performance of duty is
20-9 entitled to [with the city,] a sum equal to one hundred percent
20-10 (100%) [eighty percent (80%)] of the deceased member's final
20-11 average salary.
20-12 (d) A [(c) To the] surviving spouse of a member who dies
20-13 after having begun to receive retirement benefits is entitled to[,]
20-14 a sum equal to one hundred percent (100%) [seventy-five percent
20-15 (75%)] of the retirement benefits being received at the time of the
20-16 retiree's death, if the surviving spouse married the decedent
20-17 before the decedent terminated employment [with the city].
20-18 (e) [(d)] If there is a surviving spouse, each dependent
20-19 child shall receive a death benefit equal to ten percent (10%) of
20-20 the pension the member would have received if the member had been
20-21 disabled at the time of death, to a maximum of twenty percent (20%)
20-22 for all dependent children, with a proportionate reduction in the
20-23 percentage of benefit payable to the surviving spouse until no
20-24 benefit is payable to a dependent child.
20-25 (f) [(e)] If there is no surviving spouse, each dependent
20-26 child shall receive a death benefit equal to fifty percent (50%)
20-27 [twenty percent (20%)] of what the surviving spouse benefit [the
21-1 pension the member] would have been had there been a surviving
21-2 spouse [received if the member had been disabled at the time of
21-3 death], to a maximum of one hundred percent (100%) of the benefit
21-4 [forty percent (40%)] for all dependent children.
21-5 (g) [(f)] Benefits payable to each dependent child shall be
21-6 paid if the child is unmarried and:
21-7 (1) is younger than twenty-one (21) [eighteen (18)]
21-8 years of age [and unmarried]; or
21-9 (2) [is a full-time student and younger than
21-10 twenty-three (23) years of age; or]
21-11 [(3)] is permanently and totally disabled because of
21-12 illness, injury, or retardation that began before the death of the
21-13 member and before the child reached eighteen (18) years of age.
21-14 (h) [(g)] Benefits for a dependent child are payable to the
21-15 guardian of the child. The term "guardian," as used in this
21-16 subsection, means the person who has the primary responsibility for
21-17 a child's care and support, for example, the surviving spouse,
21-18 legal guardian, managing conservator, or any other person with a
21-19 similar legal relationship to the child.
21-20 SECTION 16. Section 14, Chapter 358, Acts of the 48th
21-21 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
21-22 Civil Statutes), is amended to read as follows:
21-23 Sec. 14. REFUND OF CONTRIBUTIONS. If any member's
21-24 employment by the city is terminated for other than a service
21-25 [total and permanent] disability [arising as a result of or as a
21-26 consequence of the performance of his duties] prior to his having
21-27 completed five (5) [ten (10)] years of service with the city, he
22-1 shall not be paid any pension whatsoever, but he shall receive the
22-2 amount paid by him into the Pension Fund by way of salary deduction
22-3 or other authorized contributions without interest as provided in
22-4 Section 16 of this Act. In the event of his death, if there are no
22-5 widow or children to receive the allowance provided for in Section
22-6 13 above, his beneficiary, and if none, his estate, shall receive
22-7 the said amount.
22-8 SECTION 17. Section 15, Chapter 358, Acts of the 48th
22-9 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
22-10 Civil Statutes), is amended to read as follows:
22-11 Sec. 15. In the computation of the years of service of an
22-12 employee who is a [Group A] member, the following rules shall
22-13 apply:
22-14 (a) Interruptions of service of three (3) months or
22-15 less shall be treated as continuous service, but such employee
22-16 shall be required to pay into the Pension Fund any contributions
22-17 withdrawn at the time of separation plus the amount of the employee
22-18 contributions allocable to each such period of interruption.
22-19 (b) If[, before September 1, 1981,] there were
22-20 interruptions of service of more than three (3) months, no credit
22-21 shall be allowed for the period of an interruption, except as
22-22 otherwise expressly provided in this Act [but credit shall be
22-23 allowed for previous service and prior service if (1) such employee
22-24 shall have repaid to the Pension Fund after resumption of service
22-25 all moneys theretofore withdrawn by him upon separation from
22-26 service, plus interest thereon at the rate of six percent (6%) per
22-27 annum, or (2) if such employee shall at any time have made payments
23-1 to the Pension Fund which, under then existing provisions of law,
23-2 entitled him to credit for previous service].
23-3 SECTION 18. Section 16, Chapter 358, Acts of the 48th
23-4 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
23-5 Civil Statutes), is amended to read as follows:
23-6 Sec. 16. (a) A [Group A] member who terminates employment
23-7 with the city involuntarily due to a reduction in work force before
23-8 becoming eligible either for a normal retirement pension or for
23-9 vesting may, by written notice to the Pension Board, make an
23-10 irrevocable election to leave the person's contributions in the
23-11 Pension Fund for a period of one (1) year after the date of
23-12 termination. If, during that period, the person is reemployed by
23-13 the city, all rights and service credit as a [Group A] member shall
23-14 be restored immediately without penalty. If reemployment with the
23-15 city is not attained within one (1) year after the date of
23-16 termination, [the person ceases to be eligible for reemployment as
23-17 a Group A member, and] all of the payments made by the person into
23-18 the Pension Fund by way of salary deductions or other authorized
23-19 contributions shall be refunded to the person, without interest.
23-20 If the person is subsequently reemployed [as a Group B member], the
23-21 person shall be given credit subject to the provisions applicable
23-22 at the time of reemployment [immediately, without penalty, for all
23-23 previous service as a Group A member]. When any [Group A] member
23-24 shall leave [the] employment [of such city] voluntarily, before
23-25 becoming eligible for a retirement or disability pension, he shall
23-26 thereupon cease to be a member of such Pension System, and shall
23-27 have refunded to him all of the eligible payments made by him into
24-1 said Pension Fund by way of salary deductions or other authorized
24-2 contributions, without interest, subject to this section.
24-3 (b) A member whose employment is terminated for a reason
24-4 other than death or receipt of a retirement or disability pension
24-5 after the completion of five (5) years of creditable service may
24-6 elect, in a manner determined by the board, to receive a deferred
24-7 retirement benefit that begins on the effective retirement date.
24-8 The amount of monthly benefit shall be computed in the same manner
24-9 as for a service retirement benefit, but based on average monthly
24-10 salary and creditable service as of the date of separation from
24-11 service and subject to the provisions of this Act in effect on the
24-12 date of separation from service. [the following provisos:]
24-13 [(a) If such member has completed twenty-five (25) or
24-14 more years of service at the time of termination of employment but
24-15 has not yet attained the age of fifty (50) years he may, by written
24-16 notice to the Pension Board, make an irrevocable election to leave
24-17 his contributions in the Pension Fund, in which event he shall,
24-18 upon reaching the age of fifty (50) years, be entitled to a pension
24-19 on the basis of the schedule of benefits for retiring Group A
24-20 members that was in effect at the time of his separation from the
24-21 service.]
24-22 [(b) If such member has completed twenty (20) or more
24-23 years of service at the time of termination of employment but has
24-24 not yet attained the age of fifty-five (55) years he may, by
24-25 written notice to the Pension Board, make an irrevocable election
24-26 to leave his contributions in the Pension Fund, in which event he
24-27 shall, upon reaching the age of fifty-five (55) years, be entitled
25-1 to a pension on the basis of the schedule of benefits for retiring
25-2 Group A members that was in effect at the time of his separation
25-3 from service.]
25-4 [(c) If such member has completed ten (10) or more
25-5 years of service at the time of termination of employment but has
25-6 not yet attained the age of sixty (60) years he may, by written
25-7 notice to the Pension Board, make an irrevocable election to leave
25-8 his contributions in the Pension Fund, in which event he shall,
25-9 upon reaching the age of sixty (60) years, be entitled to a pension
25-10 on the basis of the schedule of benefits for retiring Group A
25-11 members that was in effect at the time of his separation from
25-12 service.]
25-13 (c) [(d)] If, while still employed by the city, whether
25-14 eligible for a pension or not, a [Group A] member dies, then,
25-15 unless the provisions of Section 13 hereof are applicable, all of
25-16 his rights in the Pension Fund shall be satisfied by the refund to
25-17 his designated beneficiary, if any, or if none, to his estate, of
25-18 all the payments, if any, theretofore made by him into the Pension
25-19 Fund [by way of employee's contributions], without interest.
25-20 (d) [(e)] The provisions of Section 13 concerning payments
25-21 to widows, widowers and children shall apply in the case of any
25-22 former [Group A] member who has made the election permitted by
25-23 Subsection [(a),] (b) of this section [or (c), above,] and who dies
25-24 before reaching the age at which he would be entitled to a pension.
25-25 If there be no surviving widow, widower or children, then all of
25-26 such member's rights in the Pension Fund shall be satisfied by the
25-27 refund to his designated beneficiary, if any, or if none, to his
26-1 estate, of all the eligible payments theretofore made by him into
26-2 the Pension Fund by way of employee's contributions, without
26-3 interest.
26-4 (e) [(f)] It is not the intention of an [this] Amendatory
26-5 Act to change the status of any former member of the Pension System
26-6 whose services with the city were terminated under a previous Act,
26-7 except as otherwise expressly provided. Refunds of contributions
26-8 above provided for shall be paid such departing member, his
26-9 beneficiary or estate in a lump sum, but if, in the opinion of the
26-10 Pension Board, the funds on hand are too low to justify such lump
26-11 sum payment, said payment shall be refunded on a monthly basis in
26-12 such amounts as may be determined by the Pension Board.
26-13 (f) [(g)] If any [Group A] member of the pension system,
26-14 after having made the election permitted by Subsection [(a),] (b)
26-15 of this section [or (c), above], at the time of separation from the
26-16 service of the city, shall be reemployed by the city before
26-17 becoming eligible to receive pension benefits, the following
26-18 provisions shall apply to the computation of the pension due such
26-19 member upon his subsequent separation from service [retirement]:
26-20 (1) [1.] The portion of such member's pension
26-21 attributable to his period of credited service accrued prior to his
26-22 making the aforesaid election shall be calculated on the basis of
26-23 the schedule of benefits for [retiring] members that was in effect
26-24 at the time the member terminated employment attributable to that
26-25 period of credited service [said election was made].
26-26 (2) [2.] The portion of such member's pension
26-27 attributable to his period of credited service accrued after his
27-1 reemployment by the city shall be calculated on the basis of the
27-2 schedule of benefits for [retiring] members that is in effect at
27-3 the time of such subsequent separation from service [retirement].
27-4 If a member has more than two (2) years of continuous credited
27-5 service following the date of reemployment, any retirement,
27-6 disability, or survivor benefit payable shall be computed under
27-7 this subdivision for all previous periods of credited service
27-8 without giving effect to Subdivision (1) of this subsection. If a
27-9 member has two (2) years or less of continuous credited service
27-10 following the date of reemployment, any disability or survivor
27-11 benefit payable shall be computed on the basis of the schedule of
27-12 benefits in effect at the time of the member's previous separation
27-13 from service.
27-14 (g) A retiree who is reemployed by the city and becomes a
27-15 member shall cease receiving a pension under this Act on
27-16 reemployment. On subsequent separation, benefits payable shall be
27-17 computed as set forth in Subsections (f)(1) and (2) of this
27-18 section.
27-19 SECTION 19. Section 20, Chapter 358, Acts of the 48th
27-20 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
27-21 Civil Statutes), is amended to read as follows:
27-22 Sec. 20. EXEMPTION FROM EXECUTION, ATTACHMENT OR OTHER WRIT.
27-23 No portion of any such Pension Fund, either before or after its
27-24 order of disbursement by said Pension Board, and no amounts due or
27-25 to become due any beneficiary or pensioner, under this Act, shall
27-26 ever be held, seized, taken, subjected to, detained, or levied upon
27-27 by virtue of any execution, attachment, garnishment, injunction, or
28-1 other writ, and no order or decree, or any process or proceeding
28-2 whatsoever, shall issue out of or by any court of this state for
28-3 the payment or satisfaction in whole or in part out of said Pension
28-4 Fund, of any debt, damage, claim, demand, or judgment against any
28-5 such members, pensioners, dependents, or any person whomsoever, nor
28-6 shall such Pension or any part thereof, or any claim thereto, be
28-7 directly or indirectly assigned or transferred and any attempt to
28-8 transfer or assign the same or any part thereof, or any claim
28-9 thereto, shall be void. Said Fund shall be sacredly held, kept,
28-10 and disbursed for the purposes provided by this Act and for no
28-11 other purpose whatsoever, except that the pensioner, survivor, or
28-12 dependent, at his discretion, may have deducted from his pension an
28-13 amount required by law or a voluntary amount authorized by law and
28-14 the board [the monthly premium cost of the city's group
28-15 hospitalization and life insurance plan].
28-16 SECTION 20. Section 21, Chapter 358, Acts of the 48th
28-17 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
28-18 Civil Statutes), is amended to read as follows:
28-19 Sec. 21. MEMBERS IN MILITARY SERVICE. (a) Members of the
28-20 Pension System engaged in active military service shall not be
28-21 required to make the [monthly] payments into the Pension Fund
28-22 provided for in this Act, nor shall they lose credit for any
28-23 previous years of service with the city as a result of such
28-24 military service. Furthermore, the city shall not be required to
28-25 make any [monthly] payments into the Pension Fund for such member
28-26 while he is engaged in the military service.
28-27 (b) A member shall receive credited service for military
29-1 service if:
29-2 (1) the member is employed in a position in the city
29-3 covered by the pension system immediately before the military
29-4 service and leaves the position to enter the armed forces of the
29-5 United States;
29-6 (2) the member's discharge from military service is
29-7 other than dishonorable;
29-8 (3) the member applies for reemployment within a
29-9 period established by the board, not later than ninety (90) days
29-10 after the date of discharge unless the period is extended by the
29-11 board, and is reemployed by the city;
29-12 (4) the member makes the required employee
29-13 contributions, if any, and the city makes the required employer
29-14 contributions for the employee's membership for each month of
29-15 service credit during the military service, based on the employee's
29-16 rate of monthly compensation as of the date the employee left the
29-17 employee's position, plus six (6) percent interest on the
29-18 contributions from the date due until the payment is made to the
29-19 fund, with the payments beginning on the date of reemployment and
29-20 completed in the lesser of a period of three times the period of
29-21 the person's military service or before the fifth anniversary of
29-22 reemployment;
29-23 (5) the period of service claimed under this
29-24 subsection does not exceed five (5) years; and
29-25 (6) the period of service claimed is in the group in
29-26 which the person was a member immediately before military service.
29-27 (c) Any member who has military service and who is not
30-1 eligible to claim the service under Subsection (b) may receive
30-2 credited service for the military service on proper action by the
30-3 board, if:
30-4 (1) the member has completed a minimum of five (5)
30-5 years of credited service;
30-6 (2) the military service, not to exceed a total of
30-7 sixty (60) months, is claimed only as service earned in the group
30-8 in which the member belongs at the time the member claims the
30-9 service;
30-10 (3) the member obtains, at the member's cost, a report
30-11 approved by the board of the actuarially determined cost of the
30-12 service for which the member requests credit with service time
30-13 expressed as a number of whole months; and
30-14 (4) the member pays the actuarially determined cost of
30-15 the service under Subsection (c)(3) of this section, plus all
30-16 administrative costs associated with crediting the service, plus
30-17 six (6) percent interest from the due date of the amounts until
30-18 payment is made to the fund, with the payments made before the
30-19 fifth anniversary of the date the claim for service is made. [Any
30-20 member who engages in active military service shall, if he returns
30-21 to employment by the city within three (3) months after termination
30-22 of such service, receive credit for his time in such service and
30-23 shall immediately at the beginning of his first full pay period
30-24 begin repaying to the Pension Fund the equivalent of all monthly
30-25 contributions for the total number of months elapsed since he went
30-26 into such service, such repayment to be completed within
30-27 twenty-four (24) months of reemployment, and the city shall pay
31-1 into the Fund one and one-half (1 1/2) times such amount. Credit
31-2 for military service shall be limited to twenty-four (24) months,
31-3 unless such period is extended by the Pension Board.]
31-4 SECTION 21. Section 22(a), Chapter 358, Acts of the 48th
31-5 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
31-6 Civil Statutes), is amended to read as follows:
31-7 (a) Any employee initially hired or reemployed after
31-8 September 1, 1981, and before September 1, 1999, shall become a
31-9 Group B member, except as otherwise provided by this Act. On or
31-10 after September 1, 1981, any Group A member may irrevocably elect
31-11 to become a Group B member effective January 1, 1982, by filing an
31-12 election form with the Board. Such election must be made prior to
31-13 December 1, 1981. A Group A member who makes such an election
31-14 shall be refunded his or her accumulated contributions without
31-15 interest and shall not be required to make further contributions as
31-16 a Group B member. Such refund shall be made by March 1, 1982.
31-17 Upon the effective date of the election, all rights as a Group A
31-18 member shall be extinguished; however, pensions and benefits shall
31-19 be based on total credited service as a Group A and Group B member.
31-20 Any former Group A member who was entitled to purchase service
31-21 credit for previous employment under the provisions of this Act in
31-22 effect prior to the date of this amendment and who becomes a Group
31-23 B member may purchase such service credit at any time after
31-24 September 1, 1981, by paying into the fund an amount equal to six
31-25 percent (6%) interest on any contributions previously withdrawn for
31-26 the period from the date of withdrawal to the date of purchase.
31-27 SECTION 22. Effective August 1, 2000, Section 24, Chapter
32-1 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
32-2 6243g, Vernon's Texas Civil Statutes), is amended to read as
32-3 follows:
32-4 Sec. 24. AMOUNT OF PENSION. The amount of the normal
32-5 pension payable to a retired Group B member shall equal the
32-6 member's average monthly salary multiplied by one and
32-7 three-quarters percent (1 3/4%) [one and one-half percent (1 1/2%)]
32-8 for each of the member's first ten (10) years of credited service,
32-9 two percent (2%) [one and three-quarters percent (1 3/4%)] for each
32-10 of the next ten (10) years of credited service, and two and
32-11 one-half percent (2 1/2%) [(2%)] for each additional year, taken to
32-12 the nearest twelfth (12th) of a year, in the period of credited
32-13 service. The normal pension of a retired Group B member may not
32-14 exceed eighty percent (80%) of the member's average monthly salary
32-15 computed under this section. Average monthly salary shall be the
32-16 average of the seventy-eight (78) highest biweekly salaries during
32-17 a member's period of credited service.
32-18 SECTION 23. Section 30, Chapter 358, Acts of the 48th
32-19 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
32-20 Civil Statutes), is amended to read as follows:
32-21 Sec. 30. Any Group B member who separates from service
32-22 [terminates employment] before completing five (5) years of
32-23 credited service shall have all service credit canceled at the time
32-24 of separation [termination]. However, if such member is reemployed
32-25 by the city within one (1) year of the date of separation
32-26 [termination], then all credit for previous service shall be
32-27 restored. Further, any member who is reemployed by the city more
33-1 than one (1) year from the date of separation [termination] shall
33-2 receive credit for one (1) year of previous [prior] service for
33-3 each full year of subsequent service.
33-4 SECTION 24. Section 31A(a), Chapter 358, Acts of the 48th
33-5 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
33-6 Civil Statutes), is amended to read as follows:
33-7 (a) The Pension Board may pay a member or other beneficiary,
33-8 in lieu of any other benefit payable under this Act and
33-9 notwithstanding anything in this Act to the contrary, in a lump sum
33-10 the present value as a lump sum of any benefit payable to a Group A
33-11 or Group B member that is less than $10,000. If the lump sum
33-12 present value of the benefit is at least $3,500 but less than
33-13 $10,000, the Board may make a lump sum payment only on written
33-14 request by the member or other beneficiary. The Board shall make
33-15 any payments under this subsection as soon as practicable after
33-16 eligibility under this section has been determined by the Board [a
33-17 member's termination of employment, death, divorce, or election to
33-18 receive a previously deferred pension].
33-19 SECTION 25. Sections 31B(a), (c), (d), (e), and (h), Chapter
33-20 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
33-21 6243g, Vernon's Texas Civil Statutes), are amended to read as
33-22 follows:
33-23 (a) In this section:
33-24 (1) "DROP" means the deferred retirement option plan
33-25 established under this Act.
33-26 (2) "DROP benefit" means a member's total DROP account
33-27 balance at the time the member terminates active service.
34-1 (3) "DROP member" means a Pension System member who is
34-2 participating in the DROP.
34-3 (4) "DROP entry date" means the date a member ceases
34-4 to earn service credit and begins earning credit for the member's
34-5 DROP account.
34-6 (5) "DROP election date" means the date the pension
34-7 system receives a member's election to participate in the DROP in
34-8 the manner and form determined by the pension system and approved
34-9 by the board.
34-10 (c) A member who is eligible to receive a normal retirement
34-11 pension under this Act and who is [remains] in active service with
34-12 the city, or a person who is eligible to receive a normal
34-13 retirement pension under this Act and who has been separated from
34-14 service within the last thirty (30) days and has not otherwise
34-15 applied for a benefit, may file with the Pension System an election
34-16 to participate in the DROP and receive a DROP benefit. The period
34-17 of a member's DROP participation, unless revoked as provided under
34-18 this section, ceases when the member terminates employment. A
34-19 member's DROP entry date, subject to approval by the board, is the
34-20 later of the date the member is eligible to participate in the
34-21 DROP, the DROP entry date requested by the member, or October 1,
34-22 1997. An [Except as otherwise provided by this section, an]
34-23 election to participate in the DROP is irrevocable, except that any
34-24 active member who elected to participate in the DROP before
34-25 September 1, 1999, may make a one-time revocation of an election,
34-26 in a manner determined by the board. The effective date of a
34-27 member's participation in the DROP is the first day of the first
35-1 month following the month in which the Board approves the member's
35-2 DROP election.
35-3 (d) Credits to a member's DROP account consist of:
35-4 (1) a monthly amount equal to the member's normal
35-5 accrued monthly retirement based on the member's credited service
35-6 and average monthly salary as of the DROP entry date and the
35-7 provisions of this Act applicable on the DROP election date
35-8 [benefit on the effective date of the member's participation in the
35-9 DROP], adjusted for cost-of-living adjustments that would apply if
35-10 the member's DROP entry date had been the person's date of
35-11 eligibility for a normal retirement benefit [occur on or after the
35-12 effective date of the DROP and that otherwise would apply to the
35-13 benefit];
35-14 (2) a Group [Plan] A member's regular biweekly
35-15 contributions; and
35-16 (3) interest on the member's DROP account balance
35-17 computed at a rate determined by the Board and compounded at
35-18 intervals designated by the Board, but at least once in each
35-19 thirteen-month period.
35-20 (e) The accumulation period for credits [Credits] to a
35-21 member's DROP account includes each month beginning with [begin on
35-22 the effective date of] the member's [participation in the] DROP
35-23 entry date through the date [and continue until] the DROP member
35-24 terminates active service with the city. Amounts are creditable
35-25 for partial crediting periods. Credits may not be made to a
35-26 member's DROP account for a period that occurs after the member
35-27 terminates active service with the city, except that interest at a
36-1 rate determined by the board may be paid on the amount remaining in
36-2 a person's DROP account after the person terminates active service.
36-3 (h) A DROP member is ineligible for disability benefits
36-4 provided by this Act, except that a DROP member who incurs a
36-5 service [an on-duty, service-related] disability may revoke the
36-6 member's DROP election.
36-7 SECTION 26. Section 31C(e), Chapter 358, Acts of the 48th
36-8 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
36-9 Civil Statutes), is amended to read as follows:
36-10 (e) Accrued benefits under this Act become 100 percent
36-11 vested for a member on the date the member has completed five (5)
36-12 years of credited service, except as otherwise provided by law.
36-13 SECTION 27. Section 33, Chapter 358, Acts of the 48th
36-14 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
36-15 Civil Statutes), is amended to read as follows:
36-16 Sec. 33. CITIES WITH PENSION PROVISIONS IN THEIR CHARTERS.
36-17 The terms of this Act shall not apply to any city operating a
36-18 municipal employees pension program under the terms and provisions
36-19 of its charter, unless a city's municipal employees are already
36-20 covered by this Act.
36-21 SECTION 28. Sections 25, 26, 27, and 31, Chapter 358, Acts
36-22 of the 48th Legislature, Regular Session, 1943 (Article 6243g,
36-23 Vernon's Texas Civil Statutes), are repealed.
36-24 SECTION 29. Except as otherwise expressly provided by this
36-25 Act, this Act takes effect September 1, 1999.
36-26 SECTION 30. The importance of this legislation and the
36-27 crowded condition of the calendars in both houses create an
37-1 emergency and an imperative public necessity that the
37-2 constitutional rule requiring bills to be read on three several
37-3 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3532 was passed by the House on April
23, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3532 was passed by the Senate on May
17, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor