By Coleman H.B. No. 3532
76R5875 GJH-F
A BILL TO BE ENTITLED
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 person's last day of credited
2-23 service or the date the Pension System receives a request to apply
2-24 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. The following persons are eligible under this Act:
3-7 (a) Any person who is now a member of any such System
3-8 under the terms of the original Act, as amended, and who does not
3-9 make the election provided by Section 22 of this Act shall be a
3-10 Group A member. A person who becomes an employee on or after
3-11 September 1, 1999, becomes a Group A member of the Pension System
3-12 as a condition of employment except as otherwise provided by this
3-13 section or Section 4 of this Act [The disability and benefit
3-14 provisions of Sections 11 through 16 of this Act shall apply to
3-15 Group A members].
3-16 (b) Any person who becomes an employee [of such city]
3-17 after September 1, 1981, and before September 1, 1999, shall
3-18 automatically become a Group B member of the Pension System as a
3-19 condition of his employment except as otherwise provided by this
3-20 section or Section 4 of this Act. A Group A member who has
3-21 terminated employment included in the Pension System, elected under
3-22 Section 16 of this Act to leave the member's contributions in the
3-23 Pension Fund, and met the minimum service requirements for
3-24 retirement at an attained age shall, if the member is reemployed in
3-25 a position included in the Pension System before September 1, 1999,
3-26 elect, not later than the 14th day after the date reemployment
3-27 begins, whether to continue as a Group A member or become a Group B
4-1 member. [Except as expressly stated otherwise, the eligibility and
4-2 benefit provisions of Sections 22 through 31, inclusive, shall
4-3 apply to such Group B members.]
4-4 (c) Elected officials in office on September 1, 1981,
4-5 shall have the option of becoming members of the Pension System.
4-6 Any member or former member of the Pension System who shall
4-7 hereafter be elected to an office of said city shall have the right
4-8 to reinstatement and shall receive credit for prior service and
4-9 previous service as an employee on the same conditions as
4-10 reemployed Group A members; except that no elected official who
4-11 has retired or does retire from the Pension System on a service or
4-12 disability retirement pension may receive pension payments while
4-13 serving in an elective city office and such payments shall be
4-14 suspended during the term of office. However, upon leaving office
4-15 such payments shall be restored and credit given for the period
4-16 served. Except as otherwise provided by this Act, an [Any] elected
4-17 official who is first elected after September 1, 1981, and before
4-18 September 1, 1999, shall become a Group B member and receive credit
4-19 for all previous service. An elected official who is first elected
4-20 on or after September 1, 1999, becomes a Group A member and is
4-21 entitled to receive credit for all previous service on the same
4-22 conditions as reemployed Group A members, except as otherwise
4-23 provided under this Act.
4-24 SECTION 3. Section 3A(a), Chapter 358, Acts of the 48th
4-25 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
4-26 Civil Statutes), is amended to read as follows:
4-27 (a) A person who, on or after a date determined by the
5-1 Pension Board and before September 1, 1999, becomes a member of, or
5-2 resumes membership in, the Pension System as an employee or elected
5-3 official of a city to which this Act applies shall elect:
5-4 (1) by submission of a signed and notarized form, to
5-5 become a Group A member and contribute a portion of the person's
5-6 salary to the Pension Fund as required by this Act; or
5-7 (2) to become a Group B member and make no
5-8 contributions to the Pension Fund.
5-9 SECTION 4. Section 3B(a), Chapter 358, Acts of the 48th
5-10 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
5-11 Civil Statutes), is amended to read as follows:
5-12 (a) Each member of the Pension System as an employee or
5-13 elected official of a city to which this Act applies may [shall]
5-14 make a one-time, irrevocable election on a date determined by the
5-15 Pension Board[:]
5-16 [(1) to retain membership in the group of which the
5-17 employee or official is currently a member;]
5-18 [(2) to change membership from Group A to Group B and
5-19 receive a refund of contributions, without interest, made by the
5-20 person to Group A; or]
5-21 [(3)] to change membership from Group B to Group A and
5-22 comply with the requirements of Subsection (b) of this section.
5-23 SECTION 5. Section 5, Chapter 358, Acts of the 48th
5-24 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
5-25 Civil Statutes), is amended by amending Subsections (b), (d), and
5-26 (h) and adding Subsections (m), (n), and (o) to read as follows:
5-27 (b) The Pension Board shall be composed of eleven (11)
6-1 members as follows:
6-2 (1) The Mayor of the City, or the Director of the
6-3 Civil Service Commission as his representative.
6-4 (2) The Treasurer of the City or person performing the
6-5 duties of Treasurer.
6-6 (3) Four (4) employees of the city having membership
6-7 in the Pension System and elected by the active members of such
6-8 System. No city department shall have more than two (2)
6-9 representatives. Persons elected as employee members of the Board
6-10 shall continue in office until the expiration of their terms if
6-11 they retire during their terms. Persons elected as employee
6-12 members of the Board serve staggered terms of four (4) years, with
6-13 the terms of two (2) of the members expiring in each even-numbered
6-14 year. Each employee member shall continue to serve until his
6-15 successor is duly elected and qualified. Vacancies occurring by
6-16 death, resignation or removal of such representative shall be
6-17 filled by appointments made by any three (3) of the Board members
6-18 elected by the members of the Pension System. Such appointees
6-19 shall serve for the remainder of the unexpired term of the member
6-20 they replace. The first election of employee members in cities
6-21 hereafter coming under this Act shall be held in such city at such
6-22 time and place as shall be fixed by the governing body of the city,
6-23 and to be not more than seventy-five (75) days from the date such
6-24 city comes under the terms of this Act.
6-25 (4) Three (3) legally qualified taxpayers of such
6-26 city, who have been residents of the county in which such city is
6-27 located for the preceding five (5) years, to be appointed [chosen]
7-1 by the elected members of the Board [governing body of the city],
7-2 being neither retirees, employees, nor officers of such city. The
7-3 three (3) members so appointed [chosen] by the elected members of
7-4 the Board [governing body of the city] shall serve for a term of
7-5 two (2) years [and until their successors are duly appointed and
7-6 qualified]. Vacancies occurring by death, resignation, or removal
7-7 of such member [representative] shall be filled by vote of the
7-8 elected members of the Board [governing body of the city]. A
7-9 member who is appointed to fill a vacancy holds office for the
7-10 unexpired term of the member who vacated that position [Public
7-11 members now on the Boards of cities having established Systems
7-12 shall continue in office until the expiration of their terms].
7-13 (5) Two (2) retirees of the Pension System elected by
7-14 the retirees of the System. Persons elected as retiree members of
7-15 the Board serve staggered terms of four (4) years, with the term of
7-16 one (1) member expiring in each even-numbered year. Each retiree
7-17 member serves until the retiree's successor is elected and has
7-18 qualified. A vacancy occurring by death, resignation, or removal
7-19 of a board member normally chosen by retiree election shall be
7-20 filled by appointment made by the other member normally chosen by
7-21 retiree election.
7-22 (d)(1) In each odd-numbered year, the [The] Board shall
7-23 elect from the elected members of the Board [its membership
7-24 annually] a Chairman, Vice-Chairman and Secretary.
7-25 (2) Effective July 1, 1989, or on the effective date
7-26 of the 1989 amendment of this Act, whichever is later, the Pension
7-27 Board may hire or contract with one (1) or more persons to perform
8-1 administrative services for the Pension System. The services
8-2 include clerical services, record keeping, and the performance of
8-3 such other related administrative functions as assigned by the
8-4 Board. The Board shall fix and pay the compensation for persons
8-5 performing administrative services under this subdivision from the
8-6 Pension Fund. Additionally, the Board may provide related benefits
8-7 that the Board considers proper.
8-8 (3) Any person employed by the Pension Board to serve
8-9 on the administrative staff who has service credits with the
8-10 Pension System at the time of the person's employment by the Board
8-11 retains the person's status in the System, and any person so
8-12 employed who does not have accrued service credits with the System
8-13 at the time of employment is a Group A member [entitled to join the
8-14 System as a Group B member].
8-15 (4) The Pension Board shall adopt a detailed annual
8-16 budget showing its proposed administrative expenditures under
8-17 Subdivision (2) of this subsection for the next fiscal year.
8-18 (h) The Pension Board shall:
8-19 (1) adopt for the administration of the Pension Fund
8-20 written rules and guidelines not inconsistent with this Act;
8-21 (2) correct any defect, supply any omission, and
8-22 reconcile any inconsistency that may appear in this Act in a manner
8-23 and to the extent that the Board considers expedient for the
8-24 administration of this Act for the greatest benefit of all members;
8-25 [and]
8-26 (3) establish and maintain all records necessary or
8-27 appropriate for the proper administration of the Pension Fund; and
9-1 (4) have the authority to institute, conduct, and
9-2 maintain legal action in the name of the Board on behalf of the
9-3 Pension System.
9-4 (m) The Board may by resolution make the implementation of a
9-5 provision of this Act contingent on receipt of a favorable private
9-6 letter ruling or favorable determination letter from the Internal
9-7 Revenue Service if the Board determines that the action is in the
9-8 best interest of the Pension System.
9-9 (n) After separation from service or retirement, a member is
9-10 subject to the schedule of benefits and provisions in effect at the
9-11 time of the member's separation from service, except as otherwise
9-12 provided by this Act.
9-13 (o) A person receiving or eligible for a survivor benefit
9-14 under this Act is subject to the schedule of benefits and
9-15 provisions in effect at the time of separation from service of the
9-16 deceased participant for whom the person is claiming survivor
9-17 status, except as expressly provided otherwise in this Act.
9-18 SECTION 6. Section 7, Chapter 358, Acts of the 48th
9-19 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
9-20 Civil Statutes), is amended to read as follows:
9-21 Sec. 7. Each Group A member of the Pension System shall make
9-22 periodic contributions during employment [by the city] in an [the]
9-23 amount determined by the Board and expressed as a percentage [of
9-24 four percent (4%)] of salary. Such contributions shall be deducted
9-25 by the employer [city] from the salary of each such member and paid
9-26 to the Pension System for deposit in [Treasurer of] the Pension
9-27 Fund [for deposit therein].
10-1 SECTION 7. Sections 7A(a), (b), and (c), Chapter 358, Acts
10-2 of the 48th Legislature, Regular Session, 1943 (Article 6243g,
10-3 Vernon's Texas Civil Statutes), are amended to read as follows:
10-4 (a) The employer [city] shall pick up the contributions
10-5 required of Group A members by Section 7 of this Act for all
10-6 salaries earned after December 31, 1987. The city shall pay the
10-7 pick-up contributions to the Pension System from the same source of
10-8 funds that is used in paying salaries to the members. The pickup
10-9 of contributions shall be in lieu of contributions by Group A
10-10 members. The city may pick up these contributions by a deduction
10-11 from each Group A member's salary equal to the amount of the
10-12 member's contributions picked up by the city. Members do not have
10-13 the option of choosing to receive the contributed amounts directly
10-14 instead of having them paid by the city to the Pension System.
10-15 (b) Contributions picked up as provided by Subsection (a) of
10-16 this section shall be treated as employer contributions in
10-17 determining tax treatment of the amounts under the United States
10-18 Internal Revenue Code; however, the employer [city] shall continue
10-19 to withhold federal income taxes on these picked-up contributions
10-20 until the Internal Revenue Service determines or the federal courts
10-21 rule that pursuant to Section 414(h) of the Internal Revenue Code
10-22 of 1986 (26 U.S.C. Section 414(h)) these picked-up contributions
10-23 are not includable as gross income of the employee until the time
10-24 that they are distributed or made available.
10-25 (c) An accounting of member [Member] contributions picked up
10-26 by the employer [city] shall be maintained [credited to the
10-27 individual account of the member] and the contributions shall be
11-1 treated for all other purposes as if the amount were a part of the
11-2 member's salary and had been deducted as provided by Section 7 of
11-3 this Act.
11-4 SECTION 8. Section 8(b), Chapter 358, Acts of the 48th
11-5 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
11-6 Civil Statutes), is amended to read as follows:
11-7 (b) Beginning January 1, 1983, the city shall make periodic
11-8 payments into the Pension Fund in an amount equal to the percentage
11-9 contribution rate multiplied by the salaries paid to Group A and
11-10 Group B members of the Fund. Such contribution rate expressed as a
11-11 percentage shall be based on the results of actuarial valuations
11-12 made at least every three (3) years, with the first such actuarial
11-13 valuation to be made as of January 1, 1982. The city's
11-14 contribution rate shall be comprised of the normal cost plus the
11-15 level percentage of salary payment required to amortize the
11-16 unfunded actuarial liability over a period of forty (40) years from
11-17 January 1, 1983, calculated on the basis of an acceptable actuarial
11-18 reserve funding method approved by the Pension Board.
11-19 Notwithstanding any other provision of this Act, the city's
11-20 contribution rate, when added to any contributions with respect to
11-21 a qualified governmental excess benefit arrangement maintained in
11-22 accordance with Section 31D of this Act, may not be an amount less
11-23 than the greater of 10 percent of the salaries paid to Group A
11-24 members or two times the contribution rate of Group A members.
11-25 SECTION 9. Section 9, Chapter 358, Acts of the 48th
11-26 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
11-27 Civil Statutes), is amended to read as follows:
12-1 Sec. 9. (a) In addition to the postretirement increases
12-2 provided by Sections 11 and 31 of this Act, the Pension Board may
12-3 increase annuities payable under this Act by an amount that does
12-4 not exceed the annual increase in the amount of premiums being paid
12-5 under a group insurance program provided for retirees of the city.
12-6 (b) The Pension Board may distribute a supplemental payment
12-7 to all retirees, survivors, or DROP participants if:
12-8 (1) the Pension System is fully funded;
12-9 (2) the Pension System has met the actuarial
12-10 investment assumption for the previous fiscal year; and
12-11 (3) the issuance of the supplemental check will not
12-12 cause the city's contribution rate to increase.
12-13 SECTION 10. Effective September 1, 1999, Sections 11(a) and
12-14 (b), Chapter 358, Acts of the 48th Legislature, Regular Session,
12-15 1943 (Article 6243g, Vernon's Texas Civil Statutes), are amended to
12-16 read as follows:
12-17 (a) Any member of such Pension System who has attained fifty
12-18 (50) years of age and completed twenty-five (25) or more years of
12-19 credited service, who has attained fifty-five (55) years of age and
12-20 completed twenty (20) or more years of credited service, who has
12-21 attained sixty (60) years of age and completed ten (10) or more
12-22 years of credited service, or who has attained sixty-two (62) years
12-23 of age and completed five (5) or more years of credited service
12-24 shall be eligible for a normal retirement pension.
12-25 (b) The amount of the monthly pension for each Group A
12-26 member shall equal the member's average monthly salary multiplied
12-27 by two and one-quarter percent (2 1/4%) for each month of the
13-1 member's first twenty (20) years of credited service and two and
13-2 three-quarters percent (2 3/4%) for each additional month [year] of
13-3 credited service of the member. For purposes of this Subsection,
13-4 such average salary shall be computed by adding together the
13-5 seventy-eight (78) highest biweekly salaries paid to a member
13-6 during his period of credited service and dividing the sum by
13-7 thirty-six (36). Provided, however, that no Group A member's
13-8 pension shall be more than eighty percent (80%) of such average
13-9 salary; and no Group A member's pension shall be less than Eight
13-10 Dollars ($8) a month for each year of credited service, or One
13-11 Hundred Dollars ($100) a month total pension, whichever is the
13-12 greater amount.
13-13 SECTION 11. Effective August 1, 2000, Sections 11(a) and
13-14 (b), Chapter 358, Acts of the 48th Legislature, Regular Session,
13-15 1943 (Article 6243g, Vernon's Texas Civil Statutes), are amended to
13-16 read as follows:
13-17 (a) Any member of such Pension System who has [attained
13-18 fifty (50) years of age and completed twenty-five (25) or more
13-19 years of credited service, who has attained fifty-five (55) years
13-20 of age and completed twenty (20) or more years of credited service,
13-21 who has attained sixty (60) years of age and completed ten (10) or
13-22 more years of credited service, or who has attained sixty-two (62)
13-23 years of age and] completed five (5) or more years of credited
13-24 service and attained sixty-two (62) years of age or a combination
13-25 of years of age and years of credited service equal to the number
13-26 70 shall be eligible for a normal retirement pension.
13-27 (b) The amount of the monthly pension for each Group A
14-1 member shall equal the member's average monthly salary multiplied
14-2 by two and one-half percent (2 1/2%) [one-quarter percent (2 1/4%)]
14-3 for each month of the member's first twenty (20) years of credited
14-4 service and three and one-quarter percent (3 1/4%) [two and
14-5 three-quarters percent (2 3/4%)] for each additional month [year]
14-6 of credited service of the member. For purposes of this
14-7 Subsection, such average salary shall be computed by adding
14-8 together the seventy-eight (78) highest biweekly salaries paid to a
14-9 member during his period of credited service and dividing the sum
14-10 by thirty-six (36). Provided, however, that no Group A member's
14-11 pension shall be more than eighty percent (80%) of such average
14-12 salary; and no Group A member's pension shall be less than Eight
14-13 Dollars ($8) a month for each year of credited service, or One
14-14 Hundred Dollars ($100) a month total pension, whichever is the
14-15 greater amount.
14-16 SECTION 12. Section 11(g), Chapter 358, Acts of the 48th
14-17 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
14-18 Civil Statutes), is amended to read as follows:
14-19 (g) Pensions for all [Group A] members, retirees, or their
14-20 survivors shall be adjusted annually upward by three and one-half
14-21 percent (3 1/2%), not compounded.
14-22 SECTION 13. Section 12, Chapter 358, Acts of the 48th
14-23 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
14-24 Civil Statutes), is amended to read as follows:
14-25 Sec. 12. (a) Any [Group A] member who has completed five
14-26 (5) [ten (10)] or more years of service and who becomes totally
14-27 disabled for further duty shall, regardless of age, be retired for
15-1 "ordinary disability" and shall receive a monthly pension computed
15-2 in accordance with Section 11(b) for Group A members and Section 24
15-3 for Group B members.
15-4 (b) If any [Group A] member who becomes totally disabled for
15-5 further duty by reason of a personal injury sustained or a hazard
15-6 undergone as a result of, and while in the performance of, his
15-7 duties at some definite place and at some definite time on or after
15-8 the date of his becoming a [Group A] member, without serious and
15-9 willful misconduct on his part, shall be retired for "service
15-10 [accidental] disability" and shall receive a monthly pension equal
15-11 to twenty percent (20%) of his monthly salary on the date such
15-12 injury was sustained or such hazard was undergone plus, if a Group
15-13 A member, one percent (1%) of the above salary for each year of
15-14 credited service; provided, that the total pension as so computed
15-15 will not exceed forty percent (40%) of such monthly salary, or, if
15-16 greater, a monthly pension computed in accordance with Section
15-17 11(b) for a Group A member or with Section 24 for a Group B
15-18 member[, whichever is greater].
15-19 (c) By "totally disabled" is meant the sustaining of such
15-20 disability as completely and permanently incapacitates a member
15-21 from performing the usual and customary duties which he has been
15-22 performing for such city or other full time duties that could be
15-23 performed by such member. Before any disability pension is
15-24 allowed, the Pension Board shall require such medical examination
15-25 and such other evidence as it may see fit to establish such total
15-26 disability, as above provided.
15-27 (d)(1) A person retired for disability under this Act or a
16-1 person receiving survivor benefits as a disabled child under this
16-2 Act must file an annual report of employment activities and
16-3 earnings with the Pension Board. The Board shall establish the
16-4 form of the report and the time for filing the report [Any Group A
16-5 member receiving a disability pension in accordance with this
16-6 section or any Group B member receiving a disability pension in
16-7 accordance with Section 25 of this Act shall, each April 1, submit
16-8 a sworn affidavit stating his earnings for the previous calendar
16-9 year, if any, obtained from any gainful occupation]. If the
16-10 earnings together with the disability pension being received by any
16-11 member exceed the monthly salary of such member at the time of his
16-12 separation from service, as adjusted annually by cost-of-living
16-13 adjustments made in the manner provided by Section 11(g) [or
16-14 Section 31] of this Act, the Pension Board shall have authority to
16-15 reduce the amount of pension. A disability pension recipient whose
16-16 disability does not cease after the recipient reaches the date on
16-17 which the recipient is eligible to retire under Section 11(a) or
16-18 sixty-five (65) years of age may not be required to submit the
16-19 annual affidavit of employment activities and earnings [Failure to
16-20 submit an affidavit of earnings or submission of a materially false
16-21 affidavit shall be cause for suspension of the pension upon proper
16-22 action by the Pension Board].
16-23 (2) No member shall receive a disability and service
16-24 pension at the same time. If a member who is already eligible for
16-25 retirement is granted a disability pension and, thereafter,
16-26 although his disability ceases to exist, he does not return to work
16-27 for the city, he shall be entitled to receive a service pension,
17-1 calculated in accordance with Section 11 for Group A members and
17-2 Section 24 for Group B members. Such service pension shall be
17-3 based on actual service up to the time of disability. [If a
17-4 disability does not cease before a member becomes sixty-five (65)
17-5 years of age while continuing to receive a disability pension, the
17-6 Pension System shall reclassify the pension as a service pension,
17-7 without regard to whether the person is otherwise eligible to
17-8 receive a service pension.]
17-9 (3) When any member has been retired for disability or
17-10 a person is receiving survivor benefits as a disabled child under
17-11 this Act, he shall be subject at all times to re-examination by the
17-12 Pension Board and shall submit himself to such further examination
17-13 as the Pension Board may require. If any such member shall refuse
17-14 to submit himself to any such examination, the Pension Board may,
17-15 within its discretion, order said payments stopped. If such a
17-16 member who has been retired under the provisions of this Section
17-17 should thereafter recover so that in the opinion of the Pension
17-18 Board he is able to perform the usual and customary duties formerly
17-19 handled by him for said city, [and such member is reinstated or
17-20 tendered reinstatement to the position he had at the time of his
17-21 retirement, then] the Pension Board shall order such pension
17-22 payments stopped.
17-23 (4) The result of an examination, report by a
17-24 physician, or report of employment activities and earnings shall be
17-25 considered by the Board in determining whether the benefits shall
17-26 be continued, increased if less than the maximum provided,
17-27 decreased, or discontinued. The Board may reduce, suspend, or
18-1 entirely discontinue all benefits to a person receiving benefits
18-2 under this Act who, after notice from the Board, fails to appear
18-3 for a required examination, fails to file a report of employment
18-4 activities and earnings, or files a materially false or misleading
18-5 report of employment activities and earnings or examination result
18-6 or report, as determined by the Board.
18-7 (e) To apply for a disability pension, a person must
18-8 be an employee or a former employee whose separation from service,
18-9 other than by indefinite suspension, occurred not later than the
18-10 30th day after the date the Pension System receives the person's
18-11 request to apply for a disability pension as a result of a
18-12 disability that arose during employment.
18-13 SECTION 14. Effective September 1, 1999, Section 13, Chapter
18-14 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
18-15 6243g, Vernon's Texas Civil Statutes), is amended to read as
18-16 follows:
18-17 Sec. 13. (a) If any [Group A or Group B] member of the
18-18 Pension System, as herein defined, shall die from any cause
18-19 whatsoever after having completed five (5) years of service with
18-20 the city, or if, while in the service of the city, any such member
18-21 shall die from any cause directly resulting from a specific
18-22 incident in [growing out of or in consequence of] the performance
18-23 of his duty, or shall die after he has been retired on pension
18-24 because of length of service or disability and shall leave a
18-25 surviving spouse, or a qualifying child or children, or both a
18-26 surviving spouse and a qualifying child or children, said Board
18-27 shall order paid monthly allowances under this section. [as
19-1 follows:]
19-2 (b) A [(a) To the] surviving spouse of a member who dies
19-3 after having completed five (5) years of active service with the
19-4 city but before beginning to receive retirement benefits, provided
19-5 she or he shall have married such member before the decedent
19-6 terminated employment [with the city], is entitled to a sum equal
19-7 to eighty-five percent (85%) [one-half (1/2)] of the retirement
19-8 benefits that the deceased member would have been entitled to had
19-9 she or he been totally disabled at the time of her or his
19-10 retirement or death, but the allowance payable to the surviving
19-11 spouse shall not in any event be less than Fifty Dollars ($50) a
19-12 month.
19-13 (c) A [(b) To the] surviving spouse of a member who dies
19-14 from a cause directly resulting from a specific incident in
19-15 [growing out of or in consequence of] the performance of duty is
19-16 entitled to [with the city,] a sum equal to one hundred percent
19-17 (100%) [eighty percent (80%)] of the deceased member's final
19-18 average salary.
19-19 (d) A [(c) To the] surviving spouse of a member who dies
19-20 after having begun to receive retirement benefits is entitled to[,]
19-21 a sum equal to eighty-five percent (85%) [seventy-five percent
19-22 (75%)] of the retirement benefits being received at the time of the
19-23 retiree's death, if the surviving spouse married the decedent
19-24 before the decedent terminated employment [with the city].
19-25 (e) [(d)] If there is a surviving spouse, each dependent
19-26 child shall receive a death benefit equal to ten percent (10%) of
19-27 the pension the member would have received if the member had been
20-1 disabled at the time of death, to a maximum of twenty percent (20%)
20-2 for all dependent children, with a proportionate reduction in the
20-3 percentage of benefit payable to the surviving spouse until no
20-4 benefit is payable to a dependent child.
20-5 (f) [(e)] If there is no surviving spouse, each dependent
20-6 child shall receive a death benefit equal to fifty percent (50%)
20-7 [twenty percent (20%)] of what the surviving spouse benefit [the
20-8 pension the member] would have been had there been a surviving
20-9 spouse [received if the member had been disabled at the time of
20-10 death], to a maximum of one hundred percent (100%) of the benefit
20-11 [forty percent (40%)] for all dependent children.
20-12 (g) [(f)] Benefits payable to each dependent child shall be
20-13 paid if the child is unmarried and:
20-14 (1) is younger than twenty-one (21) [eighteen (18)]
20-15 years of age [and unmarried]; or
20-16 (2) [is a full-time student and younger than
20-17 twenty-three (23) years of age; or]
20-18 [(3)] is permanently and totally disabled because of
20-19 illness, injury, or retardation that began before the death of the
20-20 member and before the child reached eighteen (18) years of age.
20-21 (h) [(g)] Benefits for a dependent child are payable to the
20-22 guardian of the child. The term "guardian," as used in this
20-23 subsection, means the person who has the primary responsibility for
20-24 a child's care and support, for example, the surviving spouse,
20-25 legal guardian, managing conservator, or any other person with a
20-26 similar legal relationship to the child.
20-27 SECTION 15. Effective August 1, 2001, Section 13, Chapter
21-1 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
21-2 6243g, Vernon's Texas Civil Statutes), is amended to read as
21-3 follows:
21-4 Sec. 13. (a) If any [Group A or Group B] member of the
21-5 Pension System, as herein defined, shall die from any cause
21-6 whatsoever after having completed five (5) years of service with
21-7 the city, or if, while in the service of the city, any such member
21-8 shall die from any cause directly resulting from a specific
21-9 incident in [growing out of or in consequence of] the performance
21-10 of his duty, or shall die after he has been retired on pension
21-11 because of length of service or disability and shall leave a
21-12 surviving spouse, or a qualifying child or children, or both a
21-13 surviving spouse and a qualifying child or children, said Board
21-14 shall order paid monthly allowances under this section. [as
21-15 follows:]
21-16 (b) A [(a) To the] surviving spouse of a member who dies
21-17 after having completed five (5) years of active service with the
21-18 city but before beginning to receive retirement benefits, provided
21-19 she or he shall have married such member before the decedent
21-20 terminated employment with the city is entitled to[,] a sum equal
21-21 to one hundred percent (100%) [one-half (1/2)] of the retirement
21-22 benefits that the deceased member would have been entitled to had
21-23 she or he been totally disabled at the time of her or his
21-24 retirement or death, but the allowance payable to the surviving
21-25 spouse shall not in any event be less than Fifty Dollars ($50) a
21-26 month.
21-27 (c) A [(b) To the] surviving spouse of a member who dies
22-1 from a cause directly resulting from a specific incident in
22-2 [growing out of or in consequence of] the performance of duty is
22-3 entitled to [with the city,] a sum equal to one hundred percent
22-4 (100%) [eighty percent (80%)] of the deceased member's final
22-5 average salary.
22-6 (d) A [(c) To the] surviving spouse of a member who dies
22-7 after having begun to receive retirement benefits is entitled to[,]
22-8 a sum equal to one hundred percent (100%) [seventy-five percent
22-9 (75%)] of the retirement benefits being received at the time of the
22-10 retiree's death, if the surviving spouse married the decedent
22-11 before the decedent terminated employment [with the city].
22-12 (e) [(d)] If there is a surviving spouse, each dependent
22-13 child shall receive a death benefit equal to ten percent (10%) of
22-14 the pension the member would have received if the member had been
22-15 disabled at the time of death, to a maximum of twenty percent (20%)
22-16 for all dependent children, with a proportionate reduction in the
22-17 percentage of benefit payable to the surviving spouse until no
22-18 benefit is payable to a dependent child.
22-19 (f) [(e)] If there is no surviving spouse, each dependent
22-20 child shall receive a death benefit equal to fifty percent (50%)
22-21 [twenty percent (20%)] of what the surviving spouse benefit [the
22-22 pension the member] would have been had there been a surviving
22-23 spouse [received if the member had been disabled at the time of
22-24 death], to a maximum of one hundred percent (100%) of the benefit
22-25 [forty percent (40%)] for all dependent children.
22-26 (g) [(f)] Benefits payable to each dependent child shall be
22-27 paid if the child is unmarried and:
23-1 (1) is younger than twenty-one (21) [eighteen (18)]
23-2 years of age [and unmarried]; or
23-3 (2) [is a full-time student and younger than
23-4 twenty-three (23) years of age; or]
23-5 [(3)] is permanently and totally disabled because of
23-6 illness, injury, or retardation that began before the death of the
23-7 member and before the child reached eighteen (18) years of age.
23-8 (h) [(g)] Benefits for a dependent child are payable to the
23-9 guardian of the child. The term "guardian," as used in this
23-10 subsection, means the person who has the primary responsibility for
23-11 a child's care and support, for example, the surviving spouse,
23-12 legal guardian, managing conservator, or any other person with a
23-13 similar legal relationship to the child.
23-14 SECTION 16. Section 14, Chapter 358, Acts of the 48th
23-15 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
23-16 Civil Statutes), is amended to read as follows:
23-17 Sec. 14. REFUND OF CONTRIBUTIONS. If any member's
23-18 employment by the city is terminated for other than a service
23-19 [total and permanent] disability [arising as a result of or as a
23-20 consequence of the performance of his duties] prior to his having
23-21 completed five (5) [ten (10)] years of service with the city, he
23-22 shall not be paid any pension whatsoever, but he shall receive the
23-23 amount paid by him into the Pension Fund by way of salary deduction
23-24 or other authorized contributions without interest as provided in
23-25 Section 16 of this Act. In the event of his death, if there are no
23-26 widow or children to receive the allowance provided for in Section
23-27 13 above, his beneficiary, and if none, his estate, shall receive
24-1 the said amount.
24-2 SECTION 17. Section 15, Chapter 358, Acts of the 48th
24-3 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
24-4 Civil Statutes), is amended to read as follows:
24-5 Sec. 15. In the computation of the years of service of an
24-6 employee who is a [Group A] member, the following rules shall
24-7 apply:
24-8 (a) Interruptions of service of three (3) months or
24-9 less shall be treated as continuous service, but such employee
24-10 shall be required to pay into the Pension Fund any contributions
24-11 withdrawn at the time of separation plus the amount of the employee
24-12 contributions allocable to each such period of interruption.
24-13 (b) If[, before September 1, 1981,] there were
24-14 interruptions of service of more than three (3) months, no credit
24-15 shall be allowed for the period of an interruption, except as
24-16 otherwise expressly provided in this Act [but credit shall be
24-17 allowed for previous service and prior service if (1) such employee
24-18 shall have repaid to the Pension Fund after resumption of service
24-19 all moneys theretofore withdrawn by him upon separation from
24-20 service, plus interest thereon at the rate of six percent (6%) per
24-21 annum, or (2) if such employee shall at any time have made payments
24-22 to the Pension Fund which, under then existing provisions of law,
24-23 entitled him to credit for previous service].
24-24 SECTION 18. Section 16, Chapter 358, Acts of the 48th
24-25 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
24-26 Civil Statutes), is amended to read as follows:
24-27 Sec. 16. (a) A [Group A] member who terminates employment
25-1 with the city involuntarily due to a reduction in work force before
25-2 becoming eligible either for a normal retirement pension or for
25-3 vesting may, by written notice to the Pension Board, make an
25-4 irrevocable election to leave the person's contributions in the
25-5 Pension Fund for a period of one (1) year after the date of
25-6 termination. If, during that period, the person is reemployed by
25-7 the city, all rights and service credit as a [Group A] member shall
25-8 be restored immediately without penalty. If reemployment with the
25-9 city is not attained within one (1) year after the date of
25-10 termination, [the person ceases to be eligible for reemployment as
25-11 a Group A member, and] all of the payments made by the person into
25-12 the Pension Fund by way of salary deductions or other authorized
25-13 contributions shall be refunded to the person, without interest.
25-14 If the person is subsequently reemployed [as a Group B member], the
25-15 person shall be given credit subject to the provisions applicable
25-16 at the time of reemployment [immediately, without penalty, for all
25-17 previous service as a Group A member]. When any [Group A] member
25-18 shall leave [the] employment [of such city] voluntarily, before
25-19 becoming eligible for a retirement or disability pension, he shall
25-20 thereupon cease to be a member of such Pension System, and shall
25-21 have refunded to him all of the eligible payments made by him into
25-22 said Pension Fund by way of salary deductions or other authorized
25-23 contributions, without interest, subject to this section.
25-24 (b) A member whose employment is terminated for a reason
25-25 other than death or receipt of a retirement or disability pension
25-26 after the completion of five (5) years of creditable service may
25-27 elect, in a manner determined by the board, to receive a deferred
26-1 retirement benefit that begins on the effective retirement date.
26-2 The amount of monthly benefit shall be computed in the same manner
26-3 as for a service retirement benefit, but based on average monthly
26-4 salary and creditable service as of the date of separation from
26-5 service and subject to the provisions of this Act in effect on the
26-6 date of separation from service. [the following provisos:]
26-7 [(a) If such member has completed twenty-five (25) or
26-8 more years of service at the time of termination of employment but
26-9 has not yet attained the age of fifty (50) years he may, by written
26-10 notice to the Pension Board, make an irrevocable election to leave
26-11 his contributions in the Pension Fund, in which event he shall,
26-12 upon reaching the age of fifty (50) years, be entitled to a pension
26-13 on the basis of the schedule of benefits for retiring Group A
26-14 members that was in effect at the time of his separation from the
26-15 service.]
26-16 [(b) If such member has completed twenty (20) or more
26-17 years of service at the time of termination of employment but has
26-18 not yet attained the age of fifty-five (55) years he may, by
26-19 written notice to the Pension Board, make an irrevocable election
26-20 to leave his contributions in the Pension Fund, in which event he
26-21 shall, upon reaching the age of fifty-five (55) years, be entitled
26-22 to a pension on the basis of the schedule of benefits for retiring
26-23 Group A members that was in effect at the time of his separation
26-24 from service.]
26-25 [(c) If such member has completed ten (10) or more
26-26 years of service at the time of termination of employment but has
26-27 not yet attained the age of sixty (60) years he may, by written
27-1 notice to the Pension Board, make an irrevocable election to leave
27-2 his contributions in the Pension Fund, in which event he shall,
27-3 upon reaching the age of sixty (60) years, be entitled to a pension
27-4 on the basis of the schedule of benefits for retiring Group A
27-5 members that was in effect at the time of his separation from
27-6 service.]
27-7 (c) [(d)] If, while still employed by the city, whether
27-8 eligible for a pension or not, a [Group A] member dies, then,
27-9 unless the provisions of Section 13 hereof are applicable, all of
27-10 his rights in the Pension Fund shall be satisfied by the refund to
27-11 his designated beneficiary, if any, or if none, to his estate, of
27-12 all the payments, if any, theretofore made by him into the Pension
27-13 Fund [by way of employee's contributions], without interest.
27-14 (d) [(e)] The provisions of Section 13 concerning payments
27-15 to widows, widowers and children shall apply in the case of any
27-16 former [Group A] member who has made the election permitted by
27-17 Subsection [(a),] (b) of this section [or (c), above,] and who dies
27-18 before reaching the age at which he would be entitled to a pension.
27-19 If there be no surviving widow, widower or children, then all of
27-20 such member's rights in the Pension Fund shall be satisfied by the
27-21 refund to his designated beneficiary, if any, or if none, to his
27-22 estate, of all the eligible payments theretofore made by him into
27-23 the Pension Fund by way of employee's contributions, without
27-24 interest.
27-25 (e) [(f)] It is not the intention of an [this] Amendatory
27-26 Act to change the status of any former member of the Pension System
27-27 whose services with the city were terminated under a previous Act,
28-1 except as otherwise expressly provided. Refunds of contributions
28-2 above provided for shall be paid such departing member, his
28-3 beneficiary or estate in a lump sum, but if, in the opinion of the
28-4 Pension Board, the funds on hand are too low to justify such lump
28-5 sum payment, said payment shall be refunded on a monthly basis in
28-6 such amounts as may be determined by the Pension Board.
28-7 (f) [(g)] If any [Group A] member of the pension system,
28-8 after having made the election permitted by Subsection [(a),] (b)
28-9 of this section [or (c), above], at the time of separation from the
28-10 service of the city, shall be reemployed by the city before
28-11 becoming eligible to receive pension benefits, the following
28-12 provisions shall apply to the computation of the pension due such
28-13 member upon his subsequent separation from service [retirement]:
28-14 (1) [1.] The portion of such member's pension
28-15 attributable to his period of credited service accrued prior to his
28-16 making the aforesaid election shall be calculated on the basis of
28-17 the schedule of benefits for [retiring] members that was in effect
28-18 at the time the member terminated employment attributable to that
28-19 period of credited service [said election was made].
28-20 (2) [2.] The portion of such member's pension
28-21 attributable to his period of credited service accrued after his
28-22 reemployment by the city shall be calculated on the basis of the
28-23 schedule of benefits for [retiring] members that is in effect at
28-24 the time of such subsequent separation from service [retirement].
28-25 If a member has more than two (2) years of continuous credited
28-26 service following the date of reemployment, any retirement,
28-27 disability, or survivor benefit payable shall be computed under
29-1 this subdivision for all previous periods of credited service
29-2 without giving effect to Subdivision (1) of this subsection. If a
29-3 member has two (2) years or less of continuous credited service
29-4 following the date of reemployment, any retirement, disability, or
29-5 survivor benefit payable shall be computed on the basis of the
29-6 schedule of benefits in effect at the time of the member's previous
29-7 separation from service.
29-8 (g) A retiree who is reemployed by the city and becomes a
29-9 member shall cease receiving a pension under this Act on
29-10 reemployment. On subsequent separation, benefits payable shall be
29-11 computed as set forth in Subsections (f)(1) and (2) of this
29-12 section.
29-13 SECTION 19. Section 20, Chapter 358, Acts of the 48th
29-14 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
29-15 Civil Statutes), is amended to read as follows:
29-16 Sec. 20. No portion of any such Pension Fund, either before
29-17 or after its order of disbursement by said Pension Board, and no
29-18 amounts due or to become due any beneficiary or pensioner, under
29-19 this Act, shall ever be held, seized, taken, subjected to,
29-20 detained, or levied upon by virtue of any execution, attachment,
29-21 garnishment, injunction, or other writ, and no order or decree, or
29-22 any process or proceeding whatsoever, shall issue out of or by any
29-23 court of this state for the payment or satisfaction in whole or in
29-24 part out of said Pension Fund, of any debt, damage, claim, demand,
29-25 or judgment against any such members, pensioners, dependents, or
29-26 any person whomsoever, nor shall such Pension or any part thereof,
29-27 or any claim thereto, be directly or indirectly assigned or
30-1 transferred and any attempt to transfer or assign the same or any
30-2 part thereof, or any claim thereto, shall be void. Said Fund shall
30-3 be sacredly held, kept, and disbursed for the purposes provided by
30-4 this Act and for no other purpose whatsoever, except that the
30-5 pensioner, survivor, or dependent, at his discretion, may have
30-6 deducted from his pension an amount required by law or a voluntary
30-7 amount authorized by law and the board [the monthly premium cost of
30-8 the city's group hospitalization and life insurance plan].
30-9 SECTION 20. Section 21, Chapter 358, Acts of the 48th
30-10 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
30-11 Civil Statutes), is amended to read as follows:
30-12 Sec. 21. (a) Members of the Pension System engaged in
30-13 active military service shall not be required to make the [monthly]
30-14 payments into the Pension Fund provided for in this Act, nor shall
30-15 they lose credit for any previous years of service with the city as
30-16 a result of such military service. Furthermore, the city shall not
30-17 be required to make any [monthly] payments into the Pension Fund
30-18 for such member while he is engaged in the military service. [Any
30-19 member who engages in active military service shall, if he returns
30-20 to employment by the city within three (3) months after termination
30-21 of such service, receive credit for his time in such service and
30-22 shall immediately at the beginning of his first full pay period
30-23 begin repaying to the Pension Fund the equivalent of all monthly
30-24 contributions for the total number of months elapsed since he went
30-25 into such service, such repayment to be completed within
30-26 twenty-four (24) months of reemployment, and the city shall pay
30-27 into the Fund one and one-half (1/2) times such amount. Credit for
31-1 military service shall be limited to twenty-four (24) months,
31-2 unless such period is extended by the Pension Board.]
31-3 (b) A member shall receive credited service for military
31-4 service if:
31-5 (1) the member is employed in a position in the city
31-6 covered by the pension system immediately before the military
31-7 service and leaves the position to enter the armed forces of the
31-8 United States;
31-9 (2) the member's discharge from military service is
31-10 other than dishonorable;
31-11 (3) the member applies for reemployment within a
31-12 period established by the board, not later than ninety (90) days
31-13 after the date of discharge unless the period is extended by the
31-14 board, and is reemployed by the city;
31-15 (4) the member makes the required employee
31-16 contributions, if any, and the city makes the required employer
31-17 contributions for the employee's membership for each month of
31-18 service credit during the military service, based on the employee's
31-19 rate of monthly compensation as of the date the employee left the
31-20 employee's position, plus six (6) percent interest on the
31-21 contributions from the date due until the payment is made to the
31-22 fund, with the payments beginning on the date of reemployment and
31-23 completed in the lesser of a period of three times the period of
31-24 the person's military service or before the fifth anniversary of
31-25 discharge;
31-26 (5) the period of service claimed under this
31-27 subsection does not exceed five (5) years; and
32-1 (6) the period of service claimed is in the group in
32-2 which the person was a member immediately before military service.
32-3 (c) Any member who has military service and who is not
32-4 eligible to claim the service under Subsection (b) may receive
32-5 credited service for the military service on proper action by the
32-6 board, if:
32-7 (1) the member has completed a minimum of five (5)
32-8 years of credited service;
32-9 (2) the military service, not to exceed a total of
32-10 sixty (60) months, is claimed only as service earned in the group
32-11 in which the member belongs at the time the member claims the
32-12 service;
32-13 (3) the member obtains, at the member's cost, a report
32-14 approved by the board of the actuarially determined cost of the
32-15 service for which the member requests credit with service time
32-16 expressed as a number of whole months; and
32-17 (4) the member pays the actuarially determined cost of
32-18 the service under Subsection (c)(3) of this section, plus all
32-19 administrative costs associated with crediting the service, plus
32-20 six (6) percent interest from the due date of the amounts until
32-21 payment is made to the fund, with the payments made before the
32-22 fifth anniversary of discharge.
32-23 SECTION 21. Section 22(a), Chapter 358, Acts of the 48th
32-24 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
32-25 Civil Statutes), is amended to read as follows:
32-26 (a) Any employee initially hired or reemployed after
32-27 September 1, 1981, and before September 1, 1999, shall become a
33-1 Group B member, except as otherwise provided by this Act. On or
33-2 after September 1, 1981, any Group A member may irrevocably elect
33-3 to become a Group B member effective January 1, 1982, by filing an
33-4 election form with the Board. Such election must be made prior to
33-5 December 1, 1981. A Group A member who makes such an election
33-6 shall be refunded his or her accumulated contributions without
33-7 interest and shall not be required to make further contributions as
33-8 a Group B member. Such refund shall be made by March 1, 1982.
33-9 Upon the effective date of the election, all rights as a Group A
33-10 member shall be extinguished; however, pensions and benefits shall
33-11 be based on total credited service as a Group A and Group B member.
33-12 Any former Group A member who was entitled to purchase service
33-13 credit for previous employment under the provisions of this Act in
33-14 effect prior to the date of this amendment and who becomes a Group
33-15 B member may purchase such service credit at any time after
33-16 September 1, 1981, by paying into the fund an amount equal to six
33-17 percent (6%) interest on any contributions previously withdrawn for
33-18 the period from the date of withdrawal to the date of purchase.
33-19 SECTION 22. Effective August 1, 2000, Section 24, Chapter
33-20 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
33-21 6243g, Vernon's Texas Civil Statutes), is amended to read as
33-22 follows:
33-23 Sec. 24. The amount of the normal pension payable to a
33-24 retired Group B member shall equal the member's average monthly
33-25 salary multiplied by one and three-quarters percent (1 3/4%) [one
33-26 and one-half percent (1 1/2%)] for each of the member's first ten
33-27 (10) years of credited service, two percent (2%) [one and
34-1 three-quarters percent (1 3/4%)] for each of the next ten (10)
34-2 years of credited service, and two and one-half percent (2 1/2%)
34-3 [(2%)] for each additional year, taken to the nearest twelfth
34-4 (12th) of a year, in the period of credited service. The normal
34-5 pension of a retired Group B member may not exceed eighty percent
34-6 (80%) of the member's average monthly salary computed under this
34-7 section. Average monthly salary shall be the average of the
34-8 seventy-eight (78) highest biweekly salaries during a member's
34-9 period of credited service.
34-10 SECTION 23. Section 30, Chapter 358, Acts of the 48th
34-11 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
34-12 Civil Statutes), is amended to read as follows:
34-13 Sec. 30. Any Group B member who separates from service
34-14 [terminates employment] before completing five (5) years of
34-15 credited service shall have all service credit canceled at the time
34-16 of separation [termination]. However, if such member is reemployed
34-17 by the city within one (1) year of the date of separation
34-18 [termination], then all credit for previous service shall be
34-19 restored. Further, any member who is reemployed by the city more
34-20 than one (1) year from the date of separation [termination] shall
34-21 receive credit for one (1) year of previous [prior] service for
34-22 each full year of subsequent service.
34-23 SECTION 24. Section 31A(a), Chapter 358, Acts of the 48th
34-24 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
34-25 Civil Statutes), is amended to read as follows:
34-26 (a) The Pension Board may pay a member or other beneficiary,
34-27 in lieu of any other benefit payable under this Act and
35-1 notwithstanding anything in this Act to the contrary, in a lump sum
35-2 the present value as a lump sum of any benefit payable to a Group A
35-3 or Group B member that is less than $10,000. If the lump sum
35-4 present value of the benefit is at least $3,500 but less than
35-5 $10,000, the Board may make a lump sum payment only on written
35-6 request by the member or other beneficiary. The Board shall make
35-7 any payments under this subsection as soon as practicable after
35-8 eligibility under this section has been determined by the board [a
35-9 member's termination of employment, death, divorce, or election to
35-10 receive a previously deferred pension].
35-11 SECTION 25. Sections 31B(a), (c), (d), (e), and (h), Chapter
35-12 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
35-13 6243g, Vernon's Texas Civil Statutes), are amended to read as
35-14 follows:
35-15 (a) In this section:
35-16 (1) "DROP" means the deferred retirement option plan
35-17 established under this Act.
35-18 (2) "DROP benefit" means a member's total DROP account
35-19 balance at the time the member terminates active service.
35-20 (3) "DROP member" means a Pension System member who is
35-21 participating in the DROP.
35-22 (4) "DROP entry date" means the date a member ceases
35-23 to earn service credit and begins earning credit for the member's
35-24 DROP account.
35-25 (5) "DROP election date" means the date the pension
35-26 system receives a member's election to participate in the DROP in
35-27 the manner and form determined by the pension system and approved
36-1 by the board.
36-2 (c) A member who is eligible to receive a normal retirement
36-3 pension under this Act and who is [remains] in active service with
36-4 the city, or a person who is eligible to receive a normal
36-5 retirement pension under this Act and who has been separated from
36-6 service within the last thirty (30) days and has not otherwise
36-7 applied for a benefit, may file with the Pension System an election
36-8 to participate in the DROP and receive a DROP benefit. The period
36-9 of a member's DROP participation, unless revoked as provided under
36-10 this section, ceases when the member terminates employment. A
36-11 member's DROP entry date, subject to approval by the board, is the
36-12 later of the date the member is eligible to participate in the
36-13 DROP, the DROP entry date requested by the member, or October 1,
36-14 1997. An [Except as otherwise provided by this section, an]
36-15 election to participate in the DROP is irrevocable, except that any
36-16 active member who elected to participate in the DROP before
36-17 September 1, 1999, may make a one-time revocation of an election,
36-18 in a manner determined by the board. The effective date of a
36-19 member's participation in the DROP is the first day of the first
36-20 month following the month in which the Board approves the member's
36-21 DROP election.
36-22 (d) Credits to a member's DROP account consist of:
36-23 (1) a monthly amount equal to the member's normal
36-24 accrued monthly retirement based on the member's credited service
36-25 and average monthly salary as of the DROP entry date and the
36-26 provisions of this Act applicable on the DROP election date
36-27 [benefit on the effective date of the member's participation in the
37-1 DROP], adjusted for cost-of-living adjustments that would apply if
37-2 the member's DROP entry date had been the person's date of
37-3 eligibility for a normal retirement benefit [occur on or after the
37-4 effective date of the DROP and that otherwise would apply to the
37-5 benefit];
37-6 (2) a Group [Plan] A member's regular biweekly
37-7 contributions; and
37-8 (3) interest on the member's DROP account balance
37-9 computed at a rate determined by the Board and compounded at
37-10 intervals designated by the Board, but at least once in each
37-11 thirteen-month period.
37-12 (e) The accumulation period for credits [Credits] to a
37-13 member's DROP account includes each month beginning with the month
37-14 of [begin on] the effective date of the member's participation in
37-15 the DROP through the month in which [and continue until] the DROP
37-16 member terminates active service with the city. Amounts are
37-17 creditable for partial crediting periods. Credits may not be made
37-18 to a member's DROP account for a period that occurs after the
37-19 member terminates active service with the city, except that
37-20 interest at a rate determined by the board may be paid on the
37-21 amount remaining in a person's DROP account after the person
37-22 terminates active service.
37-23 (h) A DROP member is ineligible for disability benefits
37-24 provided by this Act, except that a DROP member who incurs a
37-25 service [an on-duty, service-related] disability may revoke the
37-26 member's DROP election.
37-27 SECTION 26. Section 31C(e), Chapter 358, Acts of the 48th
38-1 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
38-2 Civil Statutes), is amended to read as follows:
38-3 (e) Accrued benefits under this Act become 100 percent
38-4 vested for a member on the date the member has completed five (5)
38-5 years of credited service, except as otherwise provided by law.
38-6 SECTION 27. Section 33, Chapter 358, Acts of the 48th
38-7 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
38-8 Civil Statutes), is amended to read as follows:
38-9 Sec. 33. The terms of this Act shall not apply to any city
38-10 operating a municipal employees pension program under the terms and
38-11 provisions of its charter, unless a city's municipal employees are
38-12 already covered by this Act.
38-13 SECTION 28. Sections 25, 26, 27, and 31, Chapter 358, Acts
38-14 of the 48th Legislature, Regular Session, 1943 (Article 6243g,
38-15 Vernon's Texas Civil Statutes), are repealed.
38-16 SECTION 29. Except as otherwise expressly provided by this
38-17 Act, this Act takes effect September 1, 1999.
38-18 SECTION 30. The importance of this legislation and the
38-19 crowded condition of the calendars in both houses create an
38-20 emergency and an imperative public necessity that the
38-21 constitutional rule requiring bills to be read on three several
38-22 days in each house be suspended, and this rule is hereby suspended.