1-1 By: Coleman (Senate Sponsor - Gallegos) H.B. No. 3532
1-2 (In the Senate - Received from the House April 26, 1999;
1-3 April 27, 1999, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 6, 1999, reported favorably by the
1-5 following vote: Yeas 5, Nays 0; May 6, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to participation in, administration of, and benefits from
1-9 certain public retirement systems for municipal employees.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 2, Chapter 358, Acts of the 48th
1-12 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
1-13 Civil Statutes), is amended by amending Subdivisions (b), (f), (g),
1-14 (j), and (l) and adding Subdivisions (m) and (n) to read as
1-15 follows:
1-16 (b) "Member" means each [city] employee included in
1-17 the Pension System provided for herein and becoming a member
1-18 thereof.
1-19 (f) "Separation from Service" or "separated from
1-20 service" means cessation of work for the city, whether caused by
1-21 death, discharge, resignation or any reason other than retirement.
1-22 (g) "Employee" means and includes any person eligible
1-23 under this Act whose name appears on a regular full time payroll of
1-24 any such city or Pension System and who is paid a regular salary
1-25 for his services. Provided, that any elected official who becomes
1-26 a member of the Pension System as permitted by this amended Act
1-27 shall be considered to be and to have been an employee during the
1-28 period of any service as an elected official.
1-29 (j) "Previous Service" means all services and work as
1-30 an employee, other than "prior service" as herein defined, which
1-31 preceded a [Group A] member's current period of employment.
1-32 (l) "Pension Fund" or "fund" means assets consisting
1-33 of the contributions made by the city, contributions made by any
1-34 member [of Group A], and any income derived from investments made
1-35 from those contributions, which are held in trust for the sole
1-36 benefit of the members and retirees of the Pension System and their
1-37 survivors.
1-38 (m) "Effective Retirement Date" means the first day of
1-39 the month retirement begins for a member or former member who is
1-40 eligible for retirement. If the Pension System receives a member's
1-41 application for normal retirement before the member's separation
1-42 from service or not later than the 30th day after the date of the
1-43 member's separation from service, the effective retirement date is
1-44 the later of the first day of the month following the month of
1-45 separation or the date specified on the application. If the
1-46 Pension System does not receive the application within 30 days
1-47 after the date of the member's separation from service, the
1-48 effective retirement date is the later of the first day of the
1-49 month after the Pension System receives the application, or the
1-50 date specified on the application. The effective retirement date
1-51 for a person who qualifies for a service or ordinary disability
1-52 retirement is the later of the day following the person's last day
1-53 of credited service or the date the Pension System receives a
1-54 request to apply for disability retirement.
1-55 (n) "Military Service" of any member means service in
1-56 the armed forces of the United States or wartime service in the
1-57 armed forces of the United States or in the Allied Forces, if
1-58 credit for military service has not been granted under any other
1-59 federal or state system or used in any other retirement system.
1-60 SECTION 2. Section 3, Chapter 358, Acts of the 48th
1-61 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
1-62 Civil Statutes), is amended to read as follows:
1-63 Sec. 3. PERSONS ELIGIBLE UNDER THIS ACT. The following
1-64 persons are eligible under this Act:
2-1 (a) Any person who is now a member of any such System
2-2 under the terms of the original Act, as amended, and who does not
2-3 make the election provided by Section 22 of this Act shall be a
2-4 Group A member. A person who becomes an employee on or after
2-5 September 1, 1999, becomes a Group A member of the Pension System
2-6 as a condition of employment except as otherwise provided by this
2-7 section or Section 4 of this Act [The disability and benefit
2-8 provisions of Sections 11 through 16 of this Act shall apply to
2-9 Group A members].
2-10 (b) Any person who becomes an employee [of such city]
2-11 after September 1, 1981, and before September 1, 1999, shall
2-12 automatically become a Group B member of the Pension System as a
2-13 condition of his employment except as otherwise provided by this
2-14 section or Section 4 of this Act. A Group A member who has
2-15 terminated employment included in the Pension System, elected under
2-16 Section 16 of this Act to leave the member's contributions in the
2-17 Pension Fund, and met the minimum service requirements for
2-18 retirement at an attained age shall, if the member is reemployed in
2-19 a position included in the Pension System before September 1, 1999,
2-20 elect, not later than the 14th day after the date reemployment
2-21 begins, whether to continue as a Group A member or become a Group B
2-22 member. [Except as expressly stated otherwise, the eligibility and
2-23 benefit provisions of Sections 22 through 31, inclusive, shall
2-24 apply to such Group B members.]
2-25 (c) Elected officials in office on September 1, 1981,
2-26 shall have the option of becoming members of the Pension System.
2-27 Any member or former member of the Pension System who shall
2-28 hereafter be elected to an office of said city shall have the right
2-29 to reinstatement and shall receive credit for prior service and
2-30 previous service as an employee on the same conditions as
2-31 reemployed Group A members; except that no elected official who
2-32 has retired or does retire from the Pension System on a service or
2-33 disability retirement pension may receive pension payments while
2-34 serving in an elective city office and such payments shall be
2-35 suspended during the term of office. However, upon leaving office
2-36 such payments shall be restored and credit given for the period
2-37 served. Except as otherwise provided by this Act, an [Any] elected
2-38 official who is first elected after September 1, 1981, and before
2-39 September 1, 1999, shall become a Group B member and receive credit
2-40 for all previous service. An elected official who is first elected
2-41 on or after September 1, 1999, becomes a Group A member and is
2-42 entitled to receive credit for all previous service on the same
2-43 conditions as reemployed Group A members, except as otherwise
2-44 provided under this Act.
2-45 SECTION 3. Section 3A(a), Chapter 358, Acts of the 48th
2-46 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
2-47 Civil Statutes), is amended to read as follows:
2-48 (a) A person who, on or after a date determined by the
2-49 Pension Board and before September 1, 1999, becomes a member of, or
2-50 resumes membership in, the Pension System as an employee or elected
2-51 official of a city to which this Act applies shall elect:
2-52 (1) by submission of a signed and notarized form, to
2-53 become a Group A member and contribute a portion of the person's
2-54 salary to the Pension Fund as required by this Act; or
2-55 (2) to become a Group B member and make no
2-56 contributions to the Pension Fund.
2-57 SECTION 4. Section 3B(a), Chapter 358, Acts of the 48th
2-58 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
2-59 Civil Statutes), is amended to read as follows:
2-60 (a) Each member of the Pension System as an employee or
2-61 elected official of a city to which this Act applies may [shall]
2-62 make a one-time, irrevocable election on a date determined by the
2-63 Pension Board[:]
2-64 [(1) to retain membership in the group of which the
2-65 employee or official is currently a member;]
2-66 [(2) to change membership from Group A to Group B and
2-67 receive a refund of contributions, without interest, made by the
2-68 person to Group A; or]
2-69 [(3)] to change membership from Group B to Group A and
3-1 comply with the requirements of Subsection (b) of this section.
3-2 SECTION 5. Section 5, Chapter 358, Acts of the 48th
3-3 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
3-4 Civil Statutes), is amended by amending Subsections (d) and (h) and
3-5 adding Subsections (m), (n), and (o) to read as follows:
3-6 (d)(1) In each odd-numbered year, the [The] Board shall
3-7 elect from the elected members of the Board [its membership
3-8 annually] a Chairman, Vice-Chairman and Secretary.
3-9 (2) Effective July 1, 1989, or on the effective date
3-10 of the 1989 amendment of this Act, whichever is later, the Pension
3-11 Board may hire or contract with one (1) or more persons to perform
3-12 administrative services for the Pension System. The services
3-13 include clerical services, record keeping, and the performance of
3-14 such other related administrative functions as assigned by the
3-15 Board. The Board shall fix and pay the compensation for persons
3-16 performing administrative services under this subdivision from the
3-17 Pension Fund. Additionally, the Board may provide related benefits
3-18 that the Board considers proper.
3-19 (3) Any person employed by the Pension Board to serve
3-20 on the administrative staff who has service credits with the
3-21 Pension System at the time of the person's employment by the Board
3-22 retains the person's status in the System, and any person so
3-23 employed who does not have accrued service credits with the System
3-24 at the time of employment is a Group A member [entitled to join the
3-25 System as a Group B member].
3-26 (4) The Pension Board shall adopt a detailed annual
3-27 budget showing its proposed administrative expenditures under
3-28 Subdivision (2) of this subsection for the next fiscal year.
3-29 (h) The Pension Board shall:
3-30 (1) adopt for the administration of the Pension Fund
3-31 written rules and guidelines not inconsistent with this Act;
3-32 (2) correct any defect, supply any omission, and
3-33 reconcile any inconsistency that may appear in this Act in a manner
3-34 and to the extent that the Board considers expedient for the
3-35 administration of this Act for the greatest benefit of all members;
3-36 [and]
3-37 (3) establish and maintain all records necessary or
3-38 appropriate for the proper administration of the Pension Fund; and
3-39 (4) have the authority to institute, conduct, and
3-40 maintain legal action in the name of the Board on behalf of the
3-41 Pension System.
3-42 (m) The Board may by resolution make the implementation of a
3-43 provision of this Act contingent on receipt of a favorable private
3-44 letter ruling or favorable determination letter from the Internal
3-45 Revenue Service if the Board determines that the action is in the
3-46 best interest of the Pension System.
3-47 (n) After separation from service or retirement, a member is
3-48 subject to the schedule of benefits and provisions in effect at the
3-49 time of the member's separation from service, except as otherwise
3-50 provided by this Act.
3-51 (o) A person receiving or eligible for a survivor benefit
3-52 under this Act is subject to the schedule of benefits and
3-53 provisions in effect at the time of separation from service of the
3-54 deceased participant for whom the person is claiming survivor
3-55 status, except as expressly provided otherwise in this Act.
3-56 SECTION 6. Section 7, Chapter 358, Acts of the 48th
3-57 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
3-58 Civil Statutes), is amended to read as follows:
3-59 Sec. 7. CONTRIBUTIONS BY MEMBERS. Each Group A member of
3-60 the Pension System shall make periodic contributions during
3-61 employment [by the city] in an [the] amount determined by the Board
3-62 and expressed as a percentage [of four percent (4%)] of salary.
3-63 Such contributions shall be deducted by the employer [city] from
3-64 the salary of each such member and paid to the Pension System for
3-65 deposit in [Treasurer of] the Pension Fund [for deposit therein].
3-66 SECTION 7. Sections 7A(a), (b), and (c), Chapter 358, Acts
3-67 of the 48th Legislature, Regular Session, 1943 (Article 6243g,
3-68 Vernon's Texas Civil Statutes), are amended to read as follows:
3-69 (a) The employer [city] shall pick up the contributions
4-1 required of Group A members by Section 7 of this Act for all
4-2 salaries earned after December 31, 1987. The city shall pay the
4-3 pick-up contributions to the Pension System from the same source of
4-4 funds that is used in paying salaries to the members. The pickup
4-5 of contributions shall be in lieu of contributions by Group A
4-6 members. The city may pick up these contributions by a deduction
4-7 from each Group A member's salary equal to the amount of the
4-8 member's contributions picked up by the city. Members do not have
4-9 the option of choosing to receive the contributed amounts directly
4-10 instead of having them paid by the city to the Pension System.
4-11 (b) Contributions picked up as provided by Subsection (a) of
4-12 this section shall be treated as employer contributions in
4-13 determining tax treatment of the amounts under the United States
4-14 Internal Revenue Code; however, the employer [city] shall continue
4-15 to withhold federal income taxes on these picked-up contributions
4-16 until the Internal Revenue Service determines or the federal courts
4-17 rule that pursuant to Section 414(h) of the Internal Revenue Code
4-18 of 1986 (26 U.S.C. Section 414(h)) these picked-up contributions
4-19 are not includable as gross income of the employee until the time
4-20 that they are distributed or made available.
4-21 (c) An accounting of member [Member] contributions picked up
4-22 by the employer [city] shall be maintained [credited to the
4-23 individual account of the member] and the contributions shall be
4-24 treated for all other purposes as if the amount were a part of the
4-25 member's salary and had been deducted as provided by Section 7 of
4-26 this Act.
4-27 SECTION 8. Section 8(b), Chapter 358, Acts of the 48th
4-28 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
4-29 Civil Statutes), is amended to read as follows:
4-30 (b) Beginning January 1, 1983, the city shall make periodic
4-31 payments into the Pension Fund in an amount equal to the percentage
4-32 contribution rate multiplied by the salaries paid to Group A and
4-33 Group B members of the Fund. Such contribution rate expressed as a
4-34 percentage shall be based on the results of actuarial valuations
4-35 made at least every three (3) years, with the first such actuarial
4-36 valuation to be made as of January 1, 1982. The city's
4-37 contribution rate shall be comprised of the normal cost plus the
4-38 level percentage of salary payment required to amortize the
4-39 unfunded actuarial liability over a period of forty (40) years from
4-40 January 1, 1983, calculated on the basis of an acceptable actuarial
4-41 reserve funding method approved by the Pension Board.
4-42 Notwithstanding any other provision of this Act, the city's
4-43 contribution rate, when added to any contributions with respect to
4-44 a qualified governmental excess benefit arrangement maintained in
4-45 accordance with Section 31D of this Act, may not be an amount less
4-46 than the greater of 10 percent of the salaries paid to members or
4-47 two times the contribution rate of Group A members.
4-48 SECTION 9. Section 9, Chapter 358, Acts of the 48th
4-49 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
4-50 Civil Statutes), is amended to read as follows:
4-51 Sec. 9. INCREASE IN ANNUITIES. (a) In addition to the
4-52 postretirement increases provided by Section [Sections] 11 [and 31]
4-53 of this Act, the Pension Board may increase annuities payable under
4-54 this Act by an amount that does not exceed the annual increase in
4-55 the amount of premiums being paid under a group insurance program
4-56 provided for retirees of the city.
4-57 (b) The Pension Board may distribute a supplemental payment
4-58 to all retirees, survivors, or DROP participants if:
4-59 (1) the Pension System is fully funded;
4-60 (2) the Pension System has met the actuarial
4-61 investment assumption for the previous fiscal year; and
4-62 (3) the issuance of the supplemental check will not
4-63 cause the city's contribution rate to increase.
4-64 SECTION 10. Effective September 1, 1999, Sections 11(a) and
4-65 (b), Chapter 358, Acts of the 48th Legislature, Regular Session,
4-66 1943 (Article 6243g, Vernon's Texas Civil Statutes), are amended to
4-67 read as follows:
4-68 (a) Any member of such Pension System who has attained fifty
4-69 (50) years of age and completed twenty-five (25) or more years of
5-1 credited service, who has attained fifty-five (55) years of age and
5-2 completed twenty (20) or more years of credited service, who has
5-3 attained sixty (60) years of age and completed ten (10) or more
5-4 years of credited service, or who has attained sixty-two (62) years
5-5 of age and completed five (5) or more years of credited service
5-6 shall be eligible for a normal retirement pension.
5-7 (b) The amount of the monthly pension for each Group A
5-8 member shall equal the member's average monthly salary multiplied
5-9 by two and one-quarter percent (2 1/4%) for each year of the
5-10 member's first twenty (20) years of credited service and two and
5-11 three-quarters percent (2 3/4%) for each additional year, prorated
5-12 to the nearest 12th of a year, of credited service of the member.
5-13 For purposes of this Subsection, such average salary shall be
5-14 computed by adding together the seventy-eight (78) highest biweekly
5-15 salaries paid to a member during his period of credited service and
5-16 dividing the sum by thirty-six (36). Provided, however, that no
5-17 Group A member's pension shall be more than eighty percent (80%) of
5-18 such average salary; and no Group A member's pension shall be less
5-19 than Eight Dollars ($8) a month for each year of credited service,
5-20 or One Hundred Dollars ($100) a month total pension, whichever is
5-21 the greater amount.
5-22 SECTION 11. Effective August 1, 2000, Sections 11(a) and
5-23 (b), Chapter 358, Acts of the 48th Legislature, Regular Session,
5-24 1943 (Article 6243g, Vernon's Texas Civil Statutes), are amended to
5-25 read as follows:
5-26 (a) Any member of such Pension System who has [attained
5-27 fifty (50) years of age and completed twenty-five (25) or more
5-28 years of credited service, who has attained fifty-five (55) years
5-29 of age and completed twenty (20) or more years of credited service,
5-30 who has attained sixty (60) years of age and completed ten (10) or
5-31 more years of credited service, or who has attained sixty-two (62)
5-32 years of age and] completed five (5) or more years of credited
5-33 service and attained sixty-two (62) years of age or a combination
5-34 of years of age and years of credited service equal to the number
5-35 70 shall be eligible for a normal retirement pension.
5-36 (b) The amount of the monthly pension for each Group A
5-37 member shall equal the member's average monthly salary multiplied
5-38 by two and one-half percent (2 1/2%) [one-quarter percent (2 1/4%)]
5-39 for each year of the member's first twenty (20) years of credited
5-40 service and three and one-quarter percent (3 1/4%) [two and
5-41 three-quarters percent (2 3/4%)] for each additional year, prorated
5-42 to the nearest 12th of a year, of credited service of the member.
5-43 For purposes of this Subsection, such average salary shall be
5-44 computed by adding together the seventy-eight (78) highest biweekly
5-45 salaries paid to a member during his period of credited service and
5-46 dividing the sum by thirty-six (36). Provided, however, that no
5-47 Group A member's pension shall be more than eighty percent (80%) of
5-48 such average salary; and no Group A member's pension shall be less
5-49 than Eight Dollars ($8) a month for each year of credited service,
5-50 or One Hundred Dollars ($100) a month total pension, whichever is
5-51 the greater amount.
5-52 SECTION 12. Section 11(g), Chapter 358, Acts of the 48th
5-53 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
5-54 Civil Statutes), is amended to read as follows:
5-55 (g) Pensions for all [Group A] members, retirees, or their
5-56 survivors shall be adjusted annually upward by three and one-half
5-57 percent (3 1/2%), not compounded.
5-58 SECTION 13. Section 12, Chapter 358, Acts of the 48th
5-59 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
5-60 Civil Statutes), is amended to read as follows:
5-61 Sec. 12. DISABILITY PENSIONS. (a) Any [Group A] member who
5-62 has completed five (5) [ten (10)] or more years of service and who
5-63 becomes totally disabled for further duty shall, regardless of age,
5-64 be retired for "ordinary disability" and shall receive a monthly
5-65 pension computed in accordance with Section 11(b) for Group A
5-66 members and Section 24 for Group B members.
5-67 (b) If any [Group A] member who becomes totally disabled for
5-68 further duty by reason of a personal injury sustained or a hazard
5-69 undergone as a result of, and while in the performance of, his
6-1 duties at some definite place and at some definite time on or after
6-2 the date of his becoming a [Group A] member, without serious and
6-3 willful misconduct on his part, shall be retired for "service
6-4 [accidental] disability" and shall receive a monthly pension equal
6-5 to twenty percent (20%) of his monthly salary on the date such
6-6 injury was sustained or such hazard was undergone plus, if a Group
6-7 A member, one percent (1%) of the above salary for each year of
6-8 credited service; provided, that the total pension as so computed
6-9 will not exceed forty percent (40%) of such monthly salary, or, if
6-10 greater, a monthly pension computed in accordance with Section
6-11 11(b) for a Group A member or with Section 24 for a Group B
6-12 member[, whichever is greater].
6-13 (c) By "totally disabled" is meant the sustaining of such
6-14 disability as completely and permanently incapacitates a member
6-15 from performing the usual and customary duties which he has been
6-16 performing for such city or other full time duties that could be
6-17 performed by such member. Before any disability pension is
6-18 allowed, the Pension Board shall require such medical examination
6-19 and such other evidence as it may see fit to establish such total
6-20 disability, as above provided.
6-21 (d)(1) A person retired for disability under this Act or a
6-22 person receiving survivor benefits as a disabled child under this
6-23 Act must file an annual report of employment activities and
6-24 earnings with the Pension Board. The Board shall establish the
6-25 form of the report and the time for filing the report [Any Group A
6-26 member receiving a disability pension in accordance with this
6-27 section or any Group B member receiving a disability pension in
6-28 accordance with Section 25 of this Act shall, each April 1, submit
6-29 a sworn affidavit stating his earnings for the previous calendar
6-30 year, if any, obtained from any gainful occupation]. If the
6-31 earnings together with the disability pension being received by any
6-32 member exceed the monthly salary of such member at the time of his
6-33 separation from service, as adjusted annually by cost-of-living
6-34 adjustments made in the manner provided by Section 11(g) [or
6-35 Section 31] of this Act, the Pension Board shall have authority to
6-36 reduce the amount of pension. A disability pension recipient whose
6-37 disability does not cease after the recipient reaches the date on
6-38 which the recipient is eligible to retire under Section 11(a) or
6-39 sixty-five (65) years of age may not be required to submit the
6-40 annual affidavit of employment activities and earnings [Failure to
6-41 submit an affidavit of earnings or submission of a materially false
6-42 affidavit shall be cause for suspension of the pension upon proper
6-43 action by the Pension Board].
6-44 (2) No member shall receive a disability and service
6-45 pension at the same time. If a member who is already eligible for
6-46 retirement is granted a disability pension and, thereafter,
6-47 although his disability ceases to exist, he does not return to work
6-48 for the city, he shall be entitled to receive a service pension,
6-49 calculated in accordance with Section 11 for Group A members and
6-50 Section 24 for Group B members. Such service pension shall be
6-51 based on actual service up to the time of disability. [If a
6-52 disability does not cease before a member becomes sixty-five (65)
6-53 years of age while continuing to receive a disability pension, the
6-54 Pension System shall reclassify the pension as a service pension,
6-55 without regard to whether the person is otherwise eligible to
6-56 receive a service pension.]
6-57 (3) When any member has been retired for disability or
6-58 a person is receiving survivor benefits as a disabled child under
6-59 this Act, he shall be subject at all times to re-examination by the
6-60 Pension Board and shall submit himself to such further examination
6-61 as the Pension Board may require. If any such member shall refuse
6-62 to submit himself to any such examination, the Pension Board may,
6-63 within its discretion, order said payments stopped. If such a
6-64 member who has been retired under the provisions of this Section
6-65 should thereafter recover so that in the opinion of the Pension
6-66 Board he is able to perform the usual and customary duties formerly
6-67 handled by him for said city, [and such member is reinstated or
6-68 tendered reinstatement to the position he had at the time of his
6-69 retirement, then] the Pension Board shall order such pension
7-1 payments stopped.
7-2 (4) The result of an examination, report by a
7-3 physician, or report of employment activities and earnings shall be
7-4 considered by the Board in determining whether the benefits shall
7-5 be continued, increased if less than the maximum provided,
7-6 decreased, or discontinued. The Board may reduce, suspend, or
7-7 entirely discontinue all benefits to a person receiving benefits
7-8 under this Act who, after notice from the Board, fails to appear
7-9 for a required examination, fails to file a report of employment
7-10 activities and earnings, or files a materially false or misleading
7-11 report of employment activities and earnings or examination result
7-12 or report, as determined by the Board.
7-13 (e) To apply for a disability pension, a person must be an
7-14 employee or a former employee whose separation from service
7-15 occurred not more than 30 days before the date the Pension System
7-16 receives the person's request to apply for a disability pension as
7-17 a result of a disability that arose during employment.
7-18 SECTION 14. Effective September 1, 1999, Section 13, Chapter
7-19 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
7-20 6243g, Vernon's Texas Civil Statutes), is amended to read as
7-21 follows:
7-22 Sec. 13. MONTHLY ALLOWANCE TO SURVIVING SPOUSES AND
7-23 CHILDREN. (a) If any [Group A or Group B] member of the Pension
7-24 System, as herein defined, shall die from any cause whatsoever
7-25 after having completed five (5) years of service with the city, or
7-26 if, while in the service of the city, any such member shall die
7-27 from any cause directly resulting from a specific incident in
7-28 [growing out of or in consequence of] the performance of his duty,
7-29 or shall die after he has been retired on pension because of length
7-30 of service or disability and shall leave a surviving spouse, or a
7-31 qualifying child or children, or both a surviving spouse and a
7-32 qualifying child or children, said Board shall order paid monthly
7-33 allowances under this section. [as follows:]
7-34 (b) A [(a) To the] surviving spouse of a member who dies
7-35 after having completed five (5) years of active service with the
7-36 city but before beginning to receive retirement benefits, provided
7-37 she or he shall have married such member before the decedent
7-38 terminated employment [with the city], is entitled to a sum equal
7-39 to eighty-five percent (85%) [one-half (1/2)] of the retirement
7-40 benefits that the deceased member would have been entitled to had
7-41 she or he been totally disabled at the time of her or his
7-42 retirement or death, but the allowance payable to the surviving
7-43 spouse shall not in any event be less than Fifty Dollars ($50) a
7-44 month.
7-45 (c) A [(b) To the] surviving spouse of a member who dies
7-46 from a cause directly resulting from a specific incident in
7-47 [growing out of or in consequence of] the performance of duty is
7-48 entitled to [with the city,] a sum equal to one hundred percent
7-49 (100%) [eighty percent (80%)] of the deceased member's final
7-50 average salary.
7-51 (d) A [(c) To the] surviving spouse of a member who dies
7-52 after having begun to receive retirement benefits is entitled to[,]
7-53 a sum equal to eighty-five percent (85%) [seventy-five percent
7-54 (75%)] of the retirement benefits being received at the time of the
7-55 retiree's death, if the surviving spouse married the decedent
7-56 before the decedent terminated employment [with the city].
7-57 (e) [(d)] If there is a surviving spouse, each dependent
7-58 child shall receive a death benefit equal to ten percent (10%) of
7-59 the pension the member would have received if the member had been
7-60 disabled at the time of death, to a maximum of twenty percent (20%)
7-61 for all dependent children, with a proportionate reduction in the
7-62 percentage of benefit payable to the surviving spouse until no
7-63 benefit is payable to a dependent child.
7-64 (f) [(e)] If there is no surviving spouse, each dependent
7-65 child shall receive a death benefit equal to fifty percent (50%)
7-66 [twenty percent (20%)] of what the surviving spouse benefit [the
7-67 pension the member] would have been had there been a surviving
7-68 spouse [received if the member had been disabled at the time of
7-69 death], to a maximum of one hundred percent (100%) of the benefit
8-1 [forty percent (40%)] for all dependent children.
8-2 (g) [(f)] Benefits payable to each dependent child shall be
8-3 paid if the child is unmarried and:
8-4 (1) is younger than twenty-one (21) [eighteen (18)]
8-5 years of age [and unmarried]; or
8-6 (2) [is a full-time student and younger than
8-7 twenty-three (23) years of age; or]
8-8 [(3)] is permanently and totally disabled because of
8-9 illness, injury, or retardation that began before the death of the
8-10 member and before the child reached eighteen (18) years of age.
8-11 (h) [(g)] Benefits for a dependent child are payable to the
8-12 guardian of the child. The term "guardian," as used in this
8-13 subsection, means the person who has the primary responsibility for
8-14 a child's care and support, for example, the surviving spouse,
8-15 legal guardian, managing conservator, or any other person with a
8-16 similar legal relationship to the child.
8-17 SECTION 15. Effective August 1, 2001, Section 13, Chapter
8-18 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
8-19 6243g, Vernon's Texas Civil Statutes), is amended to read as
8-20 follows:
8-21 Sec. 13. MONTHLY ALLOWANCE TO SURVIVING SPOUSES AND
8-22 CHILDREN. (a) If any [Group A or Group B] member of the Pension
8-23 System, as herein defined, shall die from any cause whatsoever
8-24 after having completed five (5) years of service with the city, or
8-25 if, while in the service of the city, any such member shall die
8-26 from any cause directly resulting from a specific incident in
8-27 [growing out of or in consequence of] the performance of his duty,
8-28 or shall die after he has been retired on pension because of length
8-29 of service or disability and shall leave a surviving spouse, or a
8-30 qualifying child or children, or both a surviving spouse and a
8-31 qualifying child or children, said Board shall order paid monthly
8-32 allowances under this section. [as follows:]
8-33 (b) A [(a) To the] surviving spouse of a member who dies
8-34 after having completed five (5) years of active service with the
8-35 city but before beginning to receive retirement benefits, provided
8-36 she or he shall have married such member before the decedent
8-37 terminated employment with the city is entitled to[,] a sum equal
8-38 to one hundred percent (100%) [one-half (1/2)] of the retirement
8-39 benefits that the deceased member would have been entitled to had
8-40 she or he been totally disabled at the time of her or his
8-41 retirement or death, but the allowance payable to the surviving
8-42 spouse shall not in any event be less than Fifty Dollars ($50) a
8-43 month.
8-44 (c) A [(b) To the] surviving spouse of a member who dies
8-45 from a cause directly resulting from a specific incident in
8-46 [growing out of or in consequence of] the performance of duty is
8-47 entitled to [with the city,] a sum equal to one hundred percent
8-48 (100%) [eighty percent (80%)] of the deceased member's final
8-49 average salary.
8-50 (d) A [(c) To the] surviving spouse of a member who dies
8-51 after having begun to receive retirement benefits is entitled to[,]
8-52 a sum equal to one hundred percent (100%) [seventy-five percent
8-53 (75%)] of the retirement benefits being received at the time of the
8-54 retiree's death, if the surviving spouse married the decedent
8-55 before the decedent terminated employment [with the city].
8-56 (e) [(d)] If there is a surviving spouse, each dependent
8-57 child shall receive a death benefit equal to ten percent (10%) of
8-58 the pension the member would have received if the member had been
8-59 disabled at the time of death, to a maximum of twenty percent (20%)
8-60 for all dependent children, with a proportionate reduction in the
8-61 percentage of benefit payable to the surviving spouse until no
8-62 benefit is payable to a dependent child.
8-63 (f) [(e)] If there is no surviving spouse, each dependent
8-64 child shall receive a death benefit equal to fifty percent (50%)
8-65 [twenty percent (20%)] of what the surviving spouse benefit [the
8-66 pension the member] would have been had there been a surviving
8-67 spouse [received if the member had been disabled at the time of
8-68 death], to a maximum of one hundred percent (100%) of the benefit
8-69 [forty percent (40%)] for all dependent children.
9-1 (g) [(f)] Benefits payable to each dependent child shall be
9-2 paid if the child is unmarried and:
9-3 (1) is younger than twenty-one (21) [eighteen (18)]
9-4 years of age [and unmarried]; or
9-5 (2) [is a full-time student and younger than
9-6 twenty-three (23) years of age; or]
9-7 [(3)] is permanently and totally disabled because of
9-8 illness, injury, or retardation that began before the death of the
9-9 member and before the child reached eighteen (18) years of age.
9-10 (h) [(g)] Benefits for a dependent child are payable to the
9-11 guardian of the child. The term "guardian," as used in this
9-12 subsection, means the person who has the primary responsibility for
9-13 a child's care and support, for example, the surviving spouse,
9-14 legal guardian, managing conservator, or any other person with a
9-15 similar legal relationship to the child.
9-16 SECTION 16. Section 14, Chapter 358, Acts of the 48th
9-17 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
9-18 Civil Statutes), is amended to read as follows:
9-19 Sec. 14. REFUND OF CONTRIBUTIONS. If any member's
9-20 employment by the city is terminated for other than a service
9-21 [total and permanent] disability [arising as a result of or as a
9-22 consequence of the performance of his duties] prior to his having
9-23 completed five (5) [ten (10)] years of service with the city, he
9-24 shall not be paid any pension whatsoever, but he shall receive the
9-25 amount paid by him into the Pension Fund by way of salary deduction
9-26 or other authorized contributions without interest as provided in
9-27 Section 16 of this Act. In the event of his death, if there are no
9-28 widow or children to receive the allowance provided for in Section
9-29 13 above, his beneficiary, and if none, his estate, shall receive
9-30 the said amount.
9-31 SECTION 17. Section 15, Chapter 358, Acts of the 48th
9-32 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
9-33 Civil Statutes), is amended to read as follows:
9-34 Sec. 15. In the computation of the years of service of an
9-35 employee who is a [Group A] member, the following rules shall
9-36 apply:
9-37 (a) Interruptions of service of three (3) months or
9-38 less shall be treated as continuous service, but such employee
9-39 shall be required to pay into the Pension Fund any contributions
9-40 withdrawn at the time of separation plus the amount of the employee
9-41 contributions allocable to each such period of interruption.
9-42 (b) If[, before September 1, 1981,] there were
9-43 interruptions of service of more than three (3) months, no credit
9-44 shall be allowed for the period of an interruption, except as
9-45 otherwise expressly provided in this Act [but credit shall be
9-46 allowed for previous service and prior service if (1) such employee
9-47 shall have repaid to the Pension Fund after resumption of service
9-48 all moneys theretofore withdrawn by him upon separation from
9-49 service, plus interest thereon at the rate of six percent (6%) per
9-50 annum, or (2) if such employee shall at any time have made payments
9-51 to the Pension Fund which, under then existing provisions of law,
9-52 entitled him to credit for previous service].
9-53 SECTION 18. Section 16, Chapter 358, Acts of the 48th
9-54 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
9-55 Civil Statutes), is amended to read as follows:
9-56 Sec. 16. (a) A [Group A] member who terminates employment
9-57 with the city involuntarily due to a reduction in work force before
9-58 becoming eligible either for a normal retirement pension or for
9-59 vesting may, by written notice to the Pension Board, make an
9-60 irrevocable election to leave the person's contributions in the
9-61 Pension Fund for a period of one (1) year after the date of
9-62 termination. If, during that period, the person is reemployed by
9-63 the city, all rights and service credit as a [Group A] member shall
9-64 be restored immediately without penalty. If reemployment with the
9-65 city is not attained within one (1) year after the date of
9-66 termination, [the person ceases to be eligible for reemployment as
9-67 a Group A member, and] all of the payments made by the person into
9-68 the Pension Fund by way of salary deductions or other authorized
9-69 contributions shall be refunded to the person, without interest.
10-1 If the person is subsequently reemployed [as a Group B member], the
10-2 person shall be given credit subject to the provisions applicable
10-3 at the time of reemployment [immediately, without penalty, for all
10-4 previous service as a Group A member]. When any [Group A] member
10-5 shall leave [the] employment [of such city] voluntarily, before
10-6 becoming eligible for a retirement or disability pension, he shall
10-7 thereupon cease to be a member of such Pension System, and shall
10-8 have refunded to him all of the eligible payments made by him into
10-9 said Pension Fund by way of salary deductions or other authorized
10-10 contributions, without interest, subject to this section.
10-11 (b) A member whose employment is terminated for a reason
10-12 other than death or receipt of a retirement or disability pension
10-13 after the completion of five (5) years of creditable service may
10-14 elect, in a manner determined by the board, to receive a deferred
10-15 retirement benefit that begins on the effective retirement date.
10-16 The amount of monthly benefit shall be computed in the same manner
10-17 as for a service retirement benefit, but based on average monthly
10-18 salary and creditable service as of the date of separation from
10-19 service and subject to the provisions of this Act in effect on the
10-20 date of separation from service. [the following provisos:]
10-21 [(a) If such member has completed twenty-five (25) or
10-22 more years of service at the time of termination of employment but
10-23 has not yet attained the age of fifty (50) years he may, by written
10-24 notice to the Pension Board, make an irrevocable election to leave
10-25 his contributions in the Pension Fund, in which event he shall,
10-26 upon reaching the age of fifty (50) years, be entitled to a pension
10-27 on the basis of the schedule of benefits for retiring Group A
10-28 members that was in effect at the time of his separation from the
10-29 service.]
10-30 [(b) If such member has completed twenty (20) or more
10-31 years of service at the time of termination of employment but has
10-32 not yet attained the age of fifty-five (55) years he may, by
10-33 written notice to the Pension Board, make an irrevocable election
10-34 to leave his contributions in the Pension Fund, in which event he
10-35 shall, upon reaching the age of fifty-five (55) years, be entitled
10-36 to a pension on the basis of the schedule of benefits for retiring
10-37 Group A members that was in effect at the time of his separation
10-38 from service.]
10-39 [(c) If such member has completed ten (10) or more
10-40 years of service at the time of termination of employment but has
10-41 not yet attained the age of sixty (60) years he may, by written
10-42 notice to the Pension Board, make an irrevocable election to leave
10-43 his contributions in the Pension Fund, in which event he shall,
10-44 upon reaching the age of sixty (60) years, be entitled to a pension
10-45 on the basis of the schedule of benefits for retiring Group A
10-46 members that was in effect at the time of his separation from
10-47 service.]
10-48 (c) [(d)] If, while still employed by the city, whether
10-49 eligible for a pension or not, a [Group A] member dies, then,
10-50 unless the provisions of Section 13 hereof are applicable, all of
10-51 his rights in the Pension Fund shall be satisfied by the refund to
10-52 his designated beneficiary, if any, or if none, to his estate, of
10-53 all the payments, if any, theretofore made by him into the Pension
10-54 Fund [by way of employee's contributions], without interest.
10-55 (d) [(e)] The provisions of Section 13 concerning payments
10-56 to widows, widowers and children shall apply in the case of any
10-57 former [Group A] member who has made the election permitted by
10-58 Subsection [(a),] (b) of this section [or (c), above,] and who dies
10-59 before reaching the age at which he would be entitled to a pension.
10-60 If there be no surviving widow, widower or children, then all of
10-61 such member's rights in the Pension Fund shall be satisfied by the
10-62 refund to his designated beneficiary, if any, or if none, to his
10-63 estate, of all the eligible payments theretofore made by him into
10-64 the Pension Fund by way of employee's contributions, without
10-65 interest.
10-66 (e) [(f)] It is not the intention of an [this] Amendatory
10-67 Act to change the status of any former member of the Pension System
10-68 whose services with the city were terminated under a previous Act,
10-69 except as otherwise expressly provided. Refunds of contributions
11-1 above provided for shall be paid such departing member, his
11-2 beneficiary or estate in a lump sum, but if, in the opinion of the
11-3 Pension Board, the funds on hand are too low to justify such lump
11-4 sum payment, said payment shall be refunded on a monthly basis in
11-5 such amounts as may be determined by the Pension Board.
11-6 (f) [(g)] If any [Group A] member of the pension system,
11-7 after having made the election permitted by Subsection [(a),] (b)
11-8 of this section [or (c), above], at the time of separation from the
11-9 service of the city, shall be reemployed by the city before
11-10 becoming eligible to receive pension benefits, the following
11-11 provisions shall apply to the computation of the pension due such
11-12 member upon his subsequent separation from service [retirement]:
11-13 (1) [1.] The portion of such member's pension
11-14 attributable to his period of credited service accrued prior to his
11-15 making the aforesaid election shall be calculated on the basis of
11-16 the schedule of benefits for [retiring] members that was in effect
11-17 at the time the member terminated employment attributable to that
11-18 period of credited service [said election was made].
11-19 (2) [2.] The portion of such member's pension
11-20 attributable to his period of credited service accrued after his
11-21 reemployment by the city shall be calculated on the basis of the
11-22 schedule of benefits for [retiring] members that is in effect at
11-23 the time of such subsequent separation from service [retirement].
11-24 If a member has more than two (2) years of continuous credited
11-25 service following the date of reemployment, any retirement,
11-26 disability, or survivor benefit payable shall be computed under
11-27 this subdivision for all previous periods of credited service
11-28 without giving effect to Subdivision (1) of this subsection. If a
11-29 member has two (2) years or less of continuous credited service
11-30 following the date of reemployment, any disability or survivor
11-31 benefit payable shall be computed on the basis of the schedule of
11-32 benefits in effect at the time of the member's previous separation
11-33 from service.
11-34 (g) A retiree who is reemployed by the city and becomes a
11-35 member shall cease receiving a pension under this Act on
11-36 reemployment. On subsequent separation, benefits payable shall be
11-37 computed as set forth in Subsections (f)(1) and (2) of this
11-38 section.
11-39 SECTION 19. Section 20, Chapter 358, Acts of the 48th
11-40 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
11-41 Civil Statutes), is amended to read as follows:
11-42 Sec. 20. EXEMPTION FROM EXECUTION, ATTACHMENT OR OTHER WRIT.
11-43 No portion of any such Pension Fund, either before or after its
11-44 order of disbursement by said Pension Board, and no amounts due or
11-45 to become due any beneficiary or pensioner, under this Act, shall
11-46 ever be held, seized, taken, subjected to, detained, or levied upon
11-47 by virtue of any execution, attachment, garnishment, injunction, or
11-48 other writ, and no order or decree, or any process or proceeding
11-49 whatsoever, shall issue out of or by any court of this state for
11-50 the payment or satisfaction in whole or in part out of said Pension
11-51 Fund, of any debt, damage, claim, demand, or judgment against any
11-52 such members, pensioners, dependents, or any person whomsoever, nor
11-53 shall such Pension or any part thereof, or any claim thereto, be
11-54 directly or indirectly assigned or transferred and any attempt to
11-55 transfer or assign the same or any part thereof, or any claim
11-56 thereto, shall be void. Said Fund shall be sacredly held, kept,
11-57 and disbursed for the purposes provided by this Act and for no
11-58 other purpose whatsoever, except that the pensioner, survivor, or
11-59 dependent, at his discretion, may have deducted from his pension an
11-60 amount required by law or a voluntary amount authorized by law and
11-61 the board [the monthly premium cost of the city's group
11-62 hospitalization and life insurance plan].
11-63 SECTION 20. Section 21, Chapter 358, Acts of the 48th
11-64 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
11-65 Civil Statutes), is amended to read as follows:
11-66 Sec. 21. MEMBERS IN MILITARY SERVICE. (a) Members of the
11-67 Pension System engaged in active military service shall not be
11-68 required to make the [monthly] payments into the Pension Fund
11-69 provided for in this Act, nor shall they lose credit for any
12-1 previous years of service with the city as a result of such
12-2 military service. Furthermore, the city shall not be required to
12-3 make any [monthly] payments into the Pension Fund for such member
12-4 while he is engaged in the military service.
12-5 (b) A member shall receive credited service for military
12-6 service if:
12-7 (1) the member is employed in a position in the city
12-8 covered by the pension system immediately before the military
12-9 service and leaves the position to enter the armed forces of the
12-10 United States;
12-11 (2) the member's discharge from military service is
12-12 other than dishonorable;
12-13 (3) the member applies for reemployment within a
12-14 period established by the board, not later than ninety (90) days
12-15 after the date of discharge unless the period is extended by the
12-16 board, and is reemployed by the city;
12-17 (4) the member makes the required employee
12-18 contributions, if any, and the city makes the required employer
12-19 contributions for the employee's membership for each month of
12-20 service credit during the military service, based on the employee's
12-21 rate of monthly compensation as of the date the employee left the
12-22 employee's position, plus six (6) percent interest on the
12-23 contributions from the date due until the payment is made to the
12-24 fund, with the payments beginning on the date of reemployment and
12-25 completed in the lesser of a period of three times the period of
12-26 the person's military service or before the fifth anniversary of
12-27 reemployment;
12-28 (5) the period of service claimed under this
12-29 subsection does not exceed five (5) years; and
12-30 (6) the period of service claimed is in the group in
12-31 which the person was a member immediately before military service.
12-32 (c) Any member who has military service and who is not
12-33 eligible to claim the service under Subsection (b) may receive
12-34 credited service for the military service on proper action by the
12-35 board, if:
12-36 (1) the member has completed a minimum of five (5)
12-37 years of credited service;
12-38 (2) the military service, not to exceed a total of
12-39 sixty (60) months, is claimed only as service earned in the group
12-40 in which the member belongs at the time the member claims the
12-41 service;
12-42 (3) the member obtains, at the member's cost, a report
12-43 approved by the board of the actuarially determined cost of the
12-44 service for which the member requests credit with service time
12-45 expressed as a number of whole months; and
12-46 (4) the member pays the actuarially determined cost of
12-47 the service under Subsection (c)(3) of this section, plus all
12-48 administrative costs associated with crediting the service, plus
12-49 six (6) percent interest from the due date of the amounts until
12-50 payment is made to the fund, with the payments made before the
12-51 fifth anniversary of the date the claim for service is made. [Any
12-52 member who engages in active military service shall, if he returns
12-53 to employment by the city within three (3) months after termination
12-54 of such service, receive credit for his time in such service and
12-55 shall immediately at the beginning of his first full pay period
12-56 begin repaying to the Pension Fund the equivalent of all monthly
12-57 contributions for the total number of months elapsed since he went
12-58 into such service, such repayment to be completed within
12-59 twenty-four (24) months of reemployment, and the city shall pay
12-60 into the Fund one and one-half (1 1/2) times such amount. Credit
12-61 for military service shall be limited to twenty-four (24) months,
12-62 unless such period is extended by the Pension Board.]
12-63 SECTION 21. Section 22(a), Chapter 358, Acts of the 48th
12-64 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
12-65 Civil Statutes), is amended to read as follows:
12-66 (a) Any employee initially hired or reemployed after
12-67 September 1, 1981, and before September 1, 1999, shall become a
12-68 Group B member, except as otherwise provided by this Act. On or
12-69 after September 1, 1981, any Group A member may irrevocably elect
13-1 to become a Group B member effective January 1, 1982, by filing an
13-2 election form with the Board. Such election must be made prior to
13-3 December 1, 1981. A Group A member who makes such an election
13-4 shall be refunded his or her accumulated contributions without
13-5 interest and shall not be required to make further contributions as
13-6 a Group B member. Such refund shall be made by March 1, 1982.
13-7 Upon the effective date of the election, all rights as a Group A
13-8 member shall be extinguished; however, pensions and benefits shall
13-9 be based on total credited service as a Group A and Group B member.
13-10 Any former Group A member who was entitled to purchase service
13-11 credit for previous employment under the provisions of this Act in
13-12 effect prior to the date of this amendment and who becomes a Group
13-13 B member may purchase such service credit at any time after
13-14 September 1, 1981, by paying into the fund an amount equal to six
13-15 percent (6%) interest on any contributions previously withdrawn for
13-16 the period from the date of withdrawal to the date of purchase.
13-17 SECTION 22. Effective August 1, 2000, Section 24, Chapter
13-18 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
13-19 6243g, Vernon's Texas Civil Statutes), is amended to read as
13-20 follows:
13-21 Sec. 24. AMOUNT OF PENSION. The amount of the normal
13-22 pension payable to a retired Group B member shall equal the
13-23 member's average monthly salary multiplied by one and
13-24 three-quarters percent (1 3/4%) [one and one-half percent (1 1/2%)]
13-25 for each of the member's first ten (10) years of credited service,
13-26 two percent (2%) [one and three-quarters percent (1 3/4%)] for each
13-27 of the next ten (10) years of credited service, and two and
13-28 one-half percent (2 1/2%) [(2%)] for each additional year, taken to
13-29 the nearest twelfth (12th) of a year, in the period of credited
13-30 service. The normal pension of a retired Group B member may not
13-31 exceed eighty percent (80%) of the member's average monthly salary
13-32 computed under this section. Average monthly salary shall be the
13-33 average of the seventy-eight (78) highest biweekly salaries during
13-34 a member's period of credited service.
13-35 SECTION 23. Section 30, Chapter 358, Acts of the 48th
13-36 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
13-37 Civil Statutes), is amended to read as follows:
13-38 Sec. 30. Any Group B member who separates from service
13-39 [terminates employment] before completing five (5) years of
13-40 credited service shall have all service credit canceled at the time
13-41 of separation [termination]. However, if such member is reemployed
13-42 by the city within one (1) year of the date of separation
13-43 [termination], then all credit for previous service shall be
13-44 restored. Further, any member who is reemployed by the city more
13-45 than one (1) year from the date of separation [termination] shall
13-46 receive credit for one (1) year of previous [prior] service for
13-47 each full year of subsequent service.
13-48 SECTION 24. Section 31A(a), Chapter 358, Acts of the 48th
13-49 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
13-50 Civil Statutes), is amended to read as follows:
13-51 (a) The Pension Board may pay a member or other beneficiary,
13-52 in lieu of any other benefit payable under this Act and
13-53 notwithstanding anything in this Act to the contrary, in a lump sum
13-54 the present value as a lump sum of any benefit payable to a Group A
13-55 or Group B member that is less than $10,000. If the lump sum
13-56 present value of the benefit is at least $3,500 but less than
13-57 $10,000, the Board may make a lump sum payment only on written
13-58 request by the member or other beneficiary. The Board shall make
13-59 any payments under this subsection as soon as practicable after
13-60 eligibility under this section has been determined by the Board [a
13-61 member's termination of employment, death, divorce, or election to
13-62 receive a previously deferred pension].
13-63 SECTION 25. Sections 31B(a), (c), (d), (e), and (h), Chapter
13-64 358, Acts of the 48th Legislature, Regular Session, 1943 (Article
13-65 6243g, Vernon's Texas Civil Statutes), are amended to read as
13-66 follows:
13-67 (a) In this section:
13-68 (1) "DROP" means the deferred retirement option plan
13-69 established under this Act.
14-1 (2) "DROP benefit" means a member's total DROP account
14-2 balance at the time the member terminates active service.
14-3 (3) "DROP member" means a Pension System member who is
14-4 participating in the DROP.
14-5 (4) "DROP entry date" means the date a member ceases
14-6 to earn service credit and begins earning credit for the member's
14-7 DROP account.
14-8 (5) "DROP election date" means the date the pension
14-9 system receives a member's election to participate in the DROP in
14-10 the manner and form determined by the pension system and approved
14-11 by the board.
14-12 (c) A member who is eligible to receive a normal retirement
14-13 pension under this Act and who is [remains] in active service with
14-14 the city, or a person who is eligible to receive a normal
14-15 retirement pension under this Act and who has been separated from
14-16 service within the last thirty (30) days and has not otherwise
14-17 applied for a benefit, may file with the Pension System an election
14-18 to participate in the DROP and receive a DROP benefit. The period
14-19 of a member's DROP participation, unless revoked as provided under
14-20 this section, ceases when the member terminates employment. A
14-21 member's DROP entry date, subject to approval by the board, is the
14-22 later of the date the member is eligible to participate in the
14-23 DROP, the DROP entry date requested by the member, or October 1,
14-24 1997. An [Except as otherwise provided by this section, an]
14-25 election to participate in the DROP is irrevocable, except that any
14-26 active member who elected to participate in the DROP before
14-27 September 1, 1999, may make a one-time revocation of an election,
14-28 in a manner determined by the board. The effective date of a
14-29 member's participation in the DROP is the first day of the first
14-30 month following the month in which the Board approves the member's
14-31 DROP election.
14-32 (d) Credits to a member's DROP account consist of:
14-33 (1) a monthly amount equal to the member's normal
14-34 accrued monthly retirement based on the member's credited service
14-35 and average monthly salary as of the DROP entry date and the
14-36 provisions of this Act applicable on the DROP election date
14-37 [benefit on the effective date of the member's participation in the
14-38 DROP], adjusted for cost-of-living adjustments that would apply if
14-39 the member's DROP entry date had been the person's date of
14-40 eligibility for a normal retirement benefit [occur on or after the
14-41 effective date of the DROP and that otherwise would apply to the
14-42 benefit];
14-43 (2) a Group [Plan] A member's regular biweekly
14-44 contributions; and
14-45 (3) interest on the member's DROP account balance
14-46 computed at a rate determined by the Board and compounded at
14-47 intervals designated by the Board, but at least once in each
14-48 thirteen-month period.
14-49 (e) The accumulation period for credits [Credits] to a
14-50 member's DROP account includes each month beginning with [begin on
14-51 the effective date of] the member's [participation in the] DROP
14-52 entry date through the date [and continue until] the DROP member
14-53 terminates active service with the city. Amounts are creditable
14-54 for partial crediting periods. Credits may not be made to a
14-55 member's DROP account for a period that occurs after the member
14-56 terminates active service with the city, except that interest at a
14-57 rate determined by the board may be paid on the amount remaining in
14-58 a person's DROP account after the person terminates active service.
14-59 (h) A DROP member is ineligible for disability benefits
14-60 provided by this Act, except that a DROP member who incurs a
14-61 service [an on-duty, service-related] disability may revoke the
14-62 member's DROP election.
14-63 SECTION 26. Section 31C(e), Chapter 358, Acts of the 48th
14-64 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
14-65 Civil Statutes), is amended to read as follows:
14-66 (e) Accrued benefits under this Act become 100 percent
14-67 vested for a member on the date the member has completed five (5)
14-68 years of credited service, except as otherwise provided by law.
14-69 SECTION 27. Section 33, Chapter 358, Acts of the 48th
15-1 Legislature, Regular Session, 1943 (Article 6243g, Vernon's Texas
15-2 Civil Statutes), is amended to read as follows:
15-3 Sec. 33. CITIES WITH PENSION PROVISIONS IN THEIR CHARTERS.
15-4 The terms of this Act shall not apply to any city operating a
15-5 municipal employees pension program under the terms and provisions
15-6 of its charter, unless a city's municipal employees are already
15-7 covered by this Act.
15-8 SECTION 28. Sections 25, 26, 27, and 31, Chapter 358, Acts
15-9 of the 48th Legislature, Regular Session, 1943 (Article 6243g,
15-10 Vernon's Texas Civil Statutes), are repealed.
15-11 SECTION 29. Except as otherwise expressly provided by this
15-12 Act, this Act takes effect September 1, 1999.
15-13 SECTION 30. The importance of this legislation and the
15-14 crowded condition of the calendars in both houses create an
15-15 emergency and an imperative public necessity that the
15-16 constitutional rule requiring bills to be read on three several
15-17 days in each house be suspended, and this rule is hereby suspended.
15-18 * * * * *