By Barrientos S.B. No. 186
76R3603 T
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to public retirement systems for employees of certain
1-3 municipalities:
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 451, Acts of the 72nd Legislature,
1-6 Regular Session, 1991 (Article 6243n, Vernon's Texas Civil
1-7 Statutes), is amended to read as follows:
1-8 Sec. 1. SCOPE. A retirement system is authorized
1-9 [established] by this Act for employees of each municipality having
1-10 a population of more than 460,000 and less than 500,000, according
1-11 to the most recent federal census; provided, however, that once
1-12 such pension system becomes operative in any city, any right or
1-13 privilege of such pension system or its members [accruing to any
1-14 member thereunder shall be a vested right] according to the terms
1-15 of this Act [and the same] shall not be denied or abridged
1-16 thereafter through any act of any such city, or change in
1-17 population of any such city taking such city out of the population
1-18 bracket as herein prescribed, and said pension system shall
1-19 continue to be authorized by this Act and shall operate and perform
1-20 governmental functions pursuant to this Act regardless of any such
1-21 action or whether or not any future population exceeds or falls
1-22 below said population bracket.
1-23 Sec. 2. DEFINITIONS. The following words and phrases have
1-24 the meanings assigned by this section unless a different meaning is
2-1 plainly required by the context:
2-2 (1) "Accumulated deposits" means the amount standing
2-3 to the credit of a member derived from the deposits required to be
2-4 made by the member to the retirement system improved annually by
2-5 interest credited at a rate determined by the retirement board from
2-6 time to time upon the advice of the retirement board's actuary and
2-7 credited as of December 31 to amounts standing to the credit of the
2-8 member on January 1 of the same calendar year.
2-9 (2) "Actual retirement date" means the last day of the
2-10 month during which a member retires.
2-11 (3) "Actuarial equivalent" means any benefit of equal
2-12 present value when computed on the basis of actuarial tables
2-13 adopted by the retirement board from time to time upon the advice
2-14 of the retirement board's actuary. The actuarial tables adopted for
2-15 this purpose shall be tables that are acceptable to the Internal
2-16 Revenue Service and be clearly identified by resolution adopted by
2-17 the retirement board.
2-18 (4) "Actuary" means the technical advisor of the
2-19 retirement board regarding the operations which are based on
2-20 mortality, service, and compensation experience.
2-21 (5) "Agency of the Municipality" means any agency or
2-22 instrumentality of the city[,]; [or] and any governmental or
2-23 publicly owned legal entity created by the municipality[,]
2-24 subsequent to the effective date of this Act[,] to perform or
2-25 provide a public service or function; [and which entity is not a
2-26 hospital authority and] that employs one or more employees to
2-27 provide services and/or accomplish its public purpose.
3-1 (6) "Approved medical leave of absence" means any
3-2 absence authorized in writing by the member's employer for the
3-3 purpose of enabling the member to obtain medical care or treatment
3-4 or to recover from any sickness or injury.
3-5 (7) "Authorized leave of absence" means military leave
3-6 of absence, including a period of not more than 90 days after the
3-7 date of release from active military duty, or any other leave of
3-8 absence during which a member is otherwise authorized by law to
3-9 continue making contributions to the system. The term does not
3-10 include an approved medical leave of absence.
3-11 (8) "Average final compensation" means the average
3-12 monthly compensation, as defined and limited by section 2(12) of
3-13 this [a]Act, less overtime, incentive, and terminal pay, plus, (i)
3-14 amounts picked up by the employer pursuant to Section 10(e) of this
3-15 Act, (ii) amounts not otherwise included in the member's taxable
3-16 income by reason of either an election under a cafeteria plan as
3-17 described in Code Section 125 or deferrals under a plan of deferred
3-18 compensation within the scope of Code Section 457, to the extent
3-19 not in excess of $12,500 for persons who first become members after
3-20 1995, that is earned by a member during, as applicable:
3-21 (A) if the member has 120 months or more of
3-22 membership service, the 36 months of membership service which
3-23 yielded the highest average during the last 120 months of
3-24 membership service;
3-25 (B) if the member has less than 120 months of
3-26 membership service, but has at least 36 months of membership
3-27 service, then the average during the 36 months which yield the
4-1 highest average; or
4-2 (C) if the member does not have 36 months of
4-3 membership service, then the average during the member's months of
4-4 membership service.
4-5 (9) "Beneficiary" means the member's designated
4-6 beneficiary. If there is no effective beneficiary designation on
4-7 the date of the member's death, or if the designated beneficiary
4-8 predeceases the member (or dies [on or] as a result of the same
4-9 event that caused the member's death and does not survive the
4-10 member by 48 hours), the member's spouse or, if the member does not
4-11 have a spouse, the member's estate shall be the beneficiary.
4-12 (10) "Board" means the board[s] of directors or
4-13 similar representative body of [an] each employer [that is not a
4-14 municipality as described in Section 1].
4-15 (11) "Code" means the United States Internal Revenue
4-16 Code of 1986 (26 U.S.C. Section 1 et seq.) and its successors.
4-17 (12) "Compensation" means, with respect to any member,
4-18 such member's wages, within the meaning of Section 3401(a) of the
4-19 Code (for purposes of income tax withholding at the source) but
4-20 determined without regard to any rules that limit the remuneration
4-21 included in wages based on the nature or location of the employment
4-22 or the services performed (such as the exception for agricultural
4-23 labor in Section 3401(a)(2) of the Code). Compensation in excess of
4-24 $12,500 per month for any employee who first becomes a member in a
4-25 year commencing after 1995 shall be disregarded. The $12,500
4-26 limitation shall be adjusted for cost of living increases as
4-27 provided under Section 401(a)(17) of the Code.
5-1 (13) "Consumer price index" means the Consumer Price
5-2 Index for Urban Wage Earners and Clerical Workers (United States
5-3 City average-all items) published monthly by the Bureau of Labor
5-4 Statistics, United States Department of Labor or its successor in
5-5 function.
5-6 (14) "Creditable service" means the total of prior
5-7 service, [and] membership service, redeemed service and service
5-8 purchased pursuant to Section 6 of this Act.
5-9 (15) "Current service annuity" means a series of equal
5-10 monthly payments payable for the member's life after retirement for
5-11 membership service from funds of the retirement system equal to
5-12 one-twelfth of the product of [2.6]2.7 percent, or a higher
5-13 percentage established and specified by the retirement board
5-14 pursuant to subsection 10(f), of a member's average final
5-15 compensation multiplied by the number of months of membership
5-16 service.
5-17 (16) "Deposits" means the amounts required to be paid
5-18 by members in accordance with the provisions of this Act.
5-19 (17) "Designated beneficiary" means any person, trust,
5-20 or estate properly designated [in writing] on a form provided by
5-21 the retirement system by a member to receive benefits from the
5-22 system in the event of the member's death. If the member is married
5-23 an individual other than the member's spouse may be the designated
5-24 beneficiary only if the spouse consents to such designation in the
5-25 form and manner prescribed by the retirement board.
5-26 (18) "Disability retirement" means the termination of
5-27 employment of a member because of disability with a disability
6-1 retirement allowance as provided in Section 8 of this Act.
6-2 (19) "Employer" means the city or municipality
6-3 described in Section 1, [of this Act, a hospital authority as
6-4 defined in Subdivision (24) of this section or] the retirement
6-5 board [defined in Subdivision (43) of this section, or] and any
6-6 agency of the municipality [as defined in Subdivision (5) of this
6-7 section].
6-8 (20) "Fund" means the trust fund containing the
6-9 aggregate of the assets of Fund No. 1 and Fund No. 2.
6-10 (21) "Fund No. 1" means the fund in which shall be
6-11 kept all accumulated deposits of members who have not withdrawn
6-12 from the system.
6-13 (22) "Fund No. 2" means the fund in which shall be
6-14 kept all money contributed by the city on behalf of city employees,
6-15 all money contributed by an [hospital authority] agency of the
6-16 municipality on behalf of [hospital authority] such agency's
6-17 employees, and all money contributed by the retirement board on
6-18 behalf of retirement board employees, interest earned thereon, and
6-19 all accumulations and earnings of the system.
6-20 (23) "Governing Body" means the City Council of the
6-21 municipality described in Section 1 and its successors as
6-22 constituted from time to time.
6-23 (24) ["Hospital authority" means a municipal hospital
6-24 authority created after September 1, 1992, under Chapter 262,
6-25 Health and Safety Code, and its subsequent amendments, by a city
6-26 governed by this Act.]
6-27 [(25)] "Investment consultant" means the person or
7-1 entity that monitors the investment performance of the system and
7-2 provides such other services as requested by the retirement board.
7-3 (25) [(26)] "Investment manager" means the persons or
7-4 entities that have the power to manage, acquire, or dispose of
7-5 assets of the Fund [No. 1 or Fund No. 2] on behalf of the
7-6 retirement system and that acknowledge fiduciary responsibility to
7-7 the system in writing. An investment manager must be a person,
7-8 firm, or corporation registered as an investment adviser under the
7-9 Investment Advisers Act of 1940, a bank, or an insurance company
7-10 qualified to manage, acquire or dispose of assets under the laws of
7-11 more than one state including the State of Texas, [and must
7-12 otherwise] that meets the requirements of Section 802.204, Texas
7-13 Government Code, and its subsequent amendments.
7-14 (26) [(27)] "Life annuity" means a series of equal
7-15 monthly payments, payable after retirement for a member's life,
7-16 consisting of a combination of prior service pension and current
7-17 service annuity to which the member is entitled.
7-18 (27) [(28)] "Life annuity (modified cash refund)"
7-19 means a life annuity providing that, in the event of death of the
7-20 retired member before that member has received payments under the
7-21 life annuity totaling the amount of that member's accumulated
7-22 deposits at the date of retirement, the excess of such accumulated
7-23 deposits over the payments made shall be paid in one lump sum to
7-24 the member's designated beneficiary.
7-25 (28) [(29)] "Malfeasance" means (A) willful misconduct
7-26 or (B) the knowingly improper performance of any act, duty or
7-27 responsibility under this Act, including non-performance; which
8-1 interrupts or interferes with or attempts to interfere with the
8-2 administration, operation and management of the retirement system
8-3 or any person's duties under this Act.
8-4 (29) [(30)] "Member" means any:
8-5 (A) regular full-time employee of an employer;
8-6 [and]
8-7 (B) former regular full-time employee who has
8-8 not withdrawn the member's accumulated deposits from the system;
8-9 and
8-10 (C) former regular full-time employee receiving
8-11 retirement or disability benefits pursuant to this Act, including
8-12 any former regular full-time employee with less than five years of
8-13 creditable service who is receiving proportionate retirement
8-14 benefits.
8-15 In any case of doubt regarding the eligibility of any
8-16 employee to become or remain a member of the retirement system, the
8-17 decision of the retirement board is final.
8-18 (30) [(31)] "Membership service" means the period of
8-19 time on or after January 1, 1941, during which a person is or was
8-20 employed as a regular full-time employee or is or was on an
8-21 authorized leave of absence and who is eligible for participation
8-22 in the system and pays into and keeps on deposit the amounts of
8-23 money prescribed to be paid by the member into the system. The
8-24 term includes redeemed membership service.
8-25 (31) [(32)] "Normal retirement age" means attainment
8-26 of age 62, or the attainment of age 55 years with 20 years of
8-27 creditable service.
9-1 (32) [(33)] "Normal retirement date" means normal
9-2 retirement age or, if [the] earlier, [of] the date on which the
9-3 member has completed 25 years of creditable service or a lesser
9-4 number of years established by the retirement board pursuant to
9-5 subsection 10(f).
9-6 (33) [(34)] "Prior service" means service as an
9-7 employee of the city rendered prior to January 1, 1941, for which a
9-8 pension credit is allowable under prior law governing the
9-9 retirement system of that city and includes redeemed prior service.
9-10 (34) [(35)] "Prior service pension" means a series of
9-11 equal monthly payments payable from funds of the retirement system
9-12 for a member's life after retirement for prior service equal to
9-13 one-twelfth of the product of [2.6] 2.7 percent, or a greater
9-14 percentage number established and specified by the retirement board
9-15 pursuant to subsection 10(f) of this Act, of the member's average
9-16 monthly earnings during a period of five years preceding January 1,
9-17 1941, multiplied by the number of months of prior service. On
9-18 retirement at an age other than normal retirement age, the monthly
9-19 prior service pension herein prescribed shall be the actuarial
9-20 equivalent thereof at the member's actual retirement date, based on
9-21 the schedule or schedules of payments approved by the actuary and
9-22 adopted by the retirement board and in effect on the member's
9-23 actual retirement date.
9-24 (35) [(36)] "Qualified domestic relations order" has
9-25 the meaning assigned by Section 804.001, Texas Government Code, and
9-26 its subsequent amendments.
9-27 (36) [(37)] "Redeemed membership service" means
10-1 membership service reinstated in accordance with Section 5(e) of
10-2 this Act.
10-3 (37) [(38)] "Redeemed prior service" means prior
10-4 service reinstated in accordance with Section 5(e) of this Act.
10-5 (38) [(39)] "Regular full-time employee" means an
10-6 individual who is employed by the city, [a hospital authority, or]
10-7 the retirement board, or any agency of the municipality, who is not
10-8 a commissioned civil service police officer or fire fighter, the
10-9 mayor, or a member of the governing body; who serves in a position
10-10 that is classified in the annual budget of an employer for
10-11 employment for the full calendar year; and who works or is budgeted
10-12 for 30 hours or more in a normal 40-hour work week. The term does
10-13 not include an individual whose position is classified as seasonal
10-14 or temporary by the employer, even if the individual works 30 hours
10-15 or more in a normal 40-hour work week in which the individual is
10-16 employed.
10-17 (39) [(40)] "Retired member" means a person who
10-18 because of creditable service and/or age is qualified to receive
10-19 and who has retired and is eligible to continue receiving a
10-20 retirement allowance as provided by this Act.
10-21 (40) [(41)] "Retirement" means the termination of
10-22 employment of a member after the member becomes entitled to receive
10-23 a retirement allowance in accordance with the provisions of this
10-24 Act.
10-25 (41) [(42)] "Retirement allowance" means the life
10-26 annuity (modified cash refund) to which a member may be entitled
10-27 under this Act, including annuities payable on disability
11-1 retirement [or on early retirement].
11-2 (42) [(43)] "Retirement board" means the board of
11-3 trustees of the retirement and pensioning system herein created for
11-4 the purpose of administering the retirement system.
11-5 (43) [(44)] "Retirement system," "retirement and
11-6 pensioning system," "pension system," or "system" means the
11-7 retirement and pensioning system created by this Act for a city
11-8 governed by this Act, or a pension system established pursuant this
11-9 Act.
11-10 (44) [(45)] "Year of creditable service" means a
11-11 12-month period of creditable service determined in accordance with
11-12 uniform and nondiscriminatory rules established by the retirement
11-13 board.
11-14 Sec. 3. Establishment and applicability. [(a)] Subject to
11-15 the authority granted the retirement board in Section 7(d) of this
11-16 Act, members who retired, and the beneficiaries of members who
11-17 died, prior to [September 1, 1997] October 1, 1999, shall continue
11-18 to receive the same retirement allowances or benefits they were
11-19 entitled to receive prior to that date, together with any benefit
11-20 increases [cost of living adjustments] authorized [and paid in
11-21 accordance with] pursuant to this Act.
11-22 Sec. 4. Administration. (a) There is hereby created a
11-23 retirement board of the retirement and pensioning system, in which
11-24 retirement board is hereby vested the power and responsibility for
11-25 the proper and effective general administration, management, and
11-26 operation of the retirement system for the exclusive benefit of the
11-27 present and future members of the retirement system and their
12-1 beneficiaries. The retirement board shall be organized immediately
12-2 after its members have qualified and taken the oath of office.
12-3 (b) The retirement board shall be composed of 11 members as
12-4 follows:
12-5 (1) place one: one member of the governing body,
12-6 designated by the governing body[, who may be removed and replaced
12-7 or redesignated by the governing body at any time];
12-8 (2) place two: the city manager of the city or his or
12-9 her designee;
12-10 (3) places three through five: three qualified voters
12-11 of the city who have been city residents for the preceding five
12-12 years and who are not employees, former employees, or officers of
12-13 an employer;
12-14 (4) places six through nine: four active-contributory
12-15 members elected by the active-contributory members; and
12-16 (5) places ten and eleven: two retired members
12-17 elected by the retired members.
12-18 (c) (1) The place one retirement board member serves at the
12-19 pleasure of the governing body and until the governing body
12-20 redesignates the place one member, or until the member is no longer
12-21 able to serve because of death, resignation, termination of
12-22 position as a member of the governing body, or disability. The
12-23 governing body shall appoint a person to fill a vacancy in place
12-24 one not later than the 90th day after the first date of the
12-25 vacancy.
12-26 (2) In December of every second even-numbered year,
12-27 the governing body shall appoint, to place three, one person
13-1 meeting the qualifications for place three. In December of every
13-2 second odd-numbered year, the governing body shall appoint, to
13-3 place four, one person meeting the qualifications for place four.
13-4 In December of every second odd-numbered year, the retirement board
13-5 shall appoint, to place five, one person meeting the qualifications
13-6 for place five. Retirement board members holding places three
13-7 through five each serve a four-year term beginning on January 1 of
13-8 the year after their appointment, unless service is earlier
13-9 terminated by the death, disability, resignation, or removal of
13-10 that retirement board member or the retirement board member ceases
13-11 to meet the qualifications of a citizen retirement board member as
13-12 set forth in Section 4(b) of this Act. The governing body shall
13-13 fill a vacancy in place three or four with a person meeting the
13-14 qualifications for that place not later than the 90th day after the
13-15 first date of the vacancy. If the governing body fails to appoint
13-16 an eligible person to fill a vacancy in place three or [five] four
13-17 within the 90-day period, the retirement board may appoint a person
13-18 meeting the qualifications for that place to fill the vacancy for
13-19 the remainder of the unexpired term. The retirement board shall
13-20 appoint a person meeting the qualifications for place five to fill
13-21 a vacancy in place five for the remainder of the unexpired term.
13-22 (3) The places six through nine retirement board
13-23 members each serve on the retirement board for a four-year term,
13-24 unless service is earlier terminated by the death, resignation,
13-25 termination of employment, disability, retirement, or removal of
13-26 the retirement board member. The retirement board shall appoint an
13-27 active-contributory member to fill a vacancy in each of places six
14-1 through nine for the remainder of the unexpired term, provided the
14-2 remainder of such unexpired term is less than 365 days. If the
14-3 remainder of the unexpired term is 365 days, or more, the vacancy
14-4 shall be filled by the active-contributory members voting at a
14-5 special election.
14-6 (4) The places ten and eleven retirement board members
14-7 serve for a four-year term, unless that service is earlier
14-8 terminated by the death, disability, resignation, or removal of the
14-9 member. The retirement board shall appoint a retired member to
14-10 fill a vacancy in places ten or eleven for the remainder of the
14-11 unexpired term, provided the remainder of such unexpired term is
14-12 less than 365 days. If the remainder of the unexpired term is 365
14-13 days, or more, the vacancy shall be filled by the retired members
14-14 voting at a special election.
14-15 (d) Members for places six through eleven shall be elected
14-16 in accordance with the following provisions:
14-17 (1) Only active-contributory members shall be eligible
14-18 for election for places six through nine. Only retired members
14-19 shall be eligible for election for places ten and eleven. Not more
14-20 than one active-contributory member shall be eligible for election
14-21 from any one [city] department, or from any one similar
14-22 organizational unit or office that is established in the annual
14-23 budget of an employer and that is not a part of any other
14-24 department.
14-25 (2) Members for places six through nine shall be
14-26 elected to four-year staggered terms with the terms of two of such
14-27 retirement board members beginning January 1 of each even-numbered
15-1 year.
15-2 (3) Members for places ten and eleven shall be elected
15-3 to four-year staggered terms. One such retirement board member
15-4 shall be elected at an election held in every other even-numbered
15-5 year with the term of such retirement board member beginning on
15-6 January 1 of the following odd-numbered year. [The first election
15-7 for place ten shall be held in 1996 and the term of the retired
15-8 member elected at that election shall begin on January 1, 1997.
15-9 The retirement board shall appoint a retired member, to place ten,
15-10 to serve until January 1, 1997. The term of the retired member
15-11 serving in place eleven shall expire on December 31, 1998.]
15-12 (4) (A) No later than the first day of October of each
15-13 odd-numbered year, the retirement board shall appoint a nominating
15-14 and election committee consisting of five committee members and two
15-15 alternates, all of whom are active-contributory members of the
15-16 retirement system. The nominating and election committee shall
15-17 make one or more nominations for each active-contributory member
15-18 vacancy and shall act as election judges. The nominating and
15-19 election committee shall determine and certify that each such
15-20 nominee and each candidate announcing for election is an
15-21 active-contributory member and prepare the ballot containing the
15-22 names of all certified active-contributory member candidates.
15-23 (B) No later than the first day of October of
15-24 every second even-numbered year, the retirement board shall appoint
15-25 a nominating and election committee consisting of five committee
15-26 members and five alternates, all of whom are retired members of the
15-27 retirement system. The nominating and election committee shall
16-1 make one or more nominations for the retired member vacancy and
16-2 shall act as election judges. The nominating and election
16-3 committee shall determine and certify that each such nominee and
16-4 each candidate announcing for election is a retired member and
16-5 prepare the ballot containing the names of all certified retired
16-6 member candidates.
16-7 (5) Each nominating and election committee shall
16-8 publish a notice at least two (2) weeks prior to the applicable
16-9 election date, informing all active-contributory members or retired
16-10 members, as applicable, of the names of the persons who have been
16-11 certified as candidates.
16-12 (6) Elections for places [seven] six through [10] nine
16-13 shall be held [on the first payday] in December of [each]
16-14 odd-numbered years. Elections for places ten and [11] eleven shall
16-15 be held in December of every second even-numbered year. The
16-16 candidates receiving the highest number of eligible votes shall be
16-17 deemed elected. In case of a tie vote, selection shall be by lot
16-18 drawn by an existing member of the retirement board at a meeting of
16-19 the retirement board held after the election but before the first
16-20 day of January of the year after the election.
16-21 (7) The applicable nominating and election committee
16-22 shall canvass the returns, certify the results, and announce the
16-23 official results of the election.
16-24 (8) The retirement board shall approve written
16-25 procedures for the conduct of the election no later than August 1
16-26 of each year in which an election is held. Such procedures may
16-27 include comprehensive provisions for the conduct of the election
17-1 and early voting.
17-2 (e) Each member of the retirement board shall, within 30
17-3 days after appointment [and] or election, take an oath of office
17-4 that he or she will diligently and honestly administer the affairs
17-5 of the retirement system and will not knowingly violate or
17-6 willingly permit to be violated any law or statute applicable to
17-7 the retirement system. All members of the retirement board serve
17-8 without compensation. [The retirement board may, at any time after
17-9 notice and hearing, by a vote of six retirement board members
17-10 remove a retirement board member for malfeasance.]
17-11 (f) In January of each year, the retirement board shall
17-12 elect from its membership a chair[man]person and a
17-13 vice-chair[man]person to serve one calendar year.
17-14 (g) The retirement board shall hire a pension [officer]
17-15 director as an employee of the retirement board. The retirement
17-16 board shall establish the title and the duties of the pension
17-17 director, which duties shall not be inconsistent with this Act.
17-18 The pension [officer] director shall hire and may fire or suspend
17-19 necessary staff members, and those staff members are employees of
17-20 the retirement [board] system. The pension [officer] director
17-21 acting under the direction of the retirement board shall keep all
17-22 of the records of the retirement system and a record of the
17-23 proceedings of the retirement board. The pension [officer]
17-24 director and [each] other staff members shall receive such
17-25 compensation as the retirement board may fix in each annual budget
17-26 of the retirement system, or amendments to the budget, and that
17-27 compensation shall be paid from the fund.
18-1 (h) Subject to the limitations of this Act, the retirement
18-2 board shall from time to time establish rules and regulations for
18-3 the administration of the funds authorized to be created hereunder
18-4 and for the transaction of the retirement [board] system's
18-5 business. Each member of the retirement board is entitled to one
18-6 vote. Six concurring votes are necessary for a decision by the
18-7 retirement board [members] at any meeting of the retirement board,
18-8 and six members constitute a quorum. Each member will be required
18-9 to serve on a committee of the retirement board. Any retirement
18-10 board member who is absent from four consecutive regular monthly
18-11 meetings of the retirement board shall be removed from the
18-12 retirement board and replaced in accordance with the provisions of
18-13 this section.
18-14 (i) (1) The retirement board shall keep or cause to be kept
18-15 in convenient form such data as [are] is necessary for actuarial
18-16 valuation of the fund of the retirement system and for checking the
18-17 mortality, service, compensation, and payment experience of the
18-18 system. Each employer shall provide to the retirement board the
18-19 records necessary and useful to administer the system and the fund.
18-20 (2) The retirement board shall keep a record of all
18-21 its proceedings, which shall be open to public inspection except as
18-22 otherwise specifically provided or permitted by law, and shall
18-23 publish annually a report showing the fiscal transactions of the
18-24 retirement system for the preceding year, the amount of the
18-25 accumulated cash, securities and other assets of the system, and
18-26 the last balance sheet showing the financial condition of the
18-27 system as disclosed by the most recent actuarial valuation of the
19-1 assets and liabilities of the retirement system.
19-2 (3) The retirement board shall have charge of and
19-3 administer the fund as trustee of the fund, [and] shall order
19-4 payments therefrom in pursuance of the provisions of this Act, and,
19-5 pursuant to subsection 10(f), may increase the benefits and
19-6 allowances to be paid therefrom. Where not impracticable, the
19-7 retirement board shall collect all under payments and refund all
19-8 known over payments made to the system. [Each employer shall
19-9 provide to the retirement board the records necessary and useful to
19-10 administer the system and the fund.] The retirement board shall
19-11 report annually to the members on the condition of the fund and the
19-12 receipts and disbursements on account of the fund. [The retirement
19-13 board shall keep a complete record of the retired members,
19-14 surviving spouses, and beneficiaries of the fund and the amounts
19-15 paid to them.]
19-16 (4) Individual accounts shall be maintained for each
19-17 member of the retirement system, showing the amount of the member's
19-18 accumulated deposits. Annually a statement shall be given each
19-19 member showing the total amount of that member's accumulated
19-20 deposits. The retirement board shall keep a complete record of the
19-21 retired members, surviving spouses, and beneficiaries of the fund
19-22 and the amounts paid to them. The accounts of the retirement board
19-23 and the retirement system shall be included in the annual
19-24 independent audit of the accounts of the system performed by a
19-25 certified public accounting firm selected by the retirement board.
19-26 One copy of the annual audit shall be provided to the governing
19-27 body and to the board of each employer.
20-1 (5) The retirement board shall designate an actuary
20-2 who shall be the technical advisor of the retirement board
20-3 regarding the maintenance and operations of the fund authorized by
20-4 the provisions of this Act and shall perform such other duties as
20-5 may be required in connection therewith, but shall not be an
20-6 investment advisor or fiduciary with respect to any investments of
20-7 the fund. The actuary shall make periodic valuations of the assets
20-8 and liabilities of the funds and other evaluations as requested by
20-9 the retirement board.
20-10 (6) From time to time on the advice of the actuary and
20-11 the direction of the retirement board, the actuary shall make an
20-12 actuarial investigation of the mortality, service, and compensation
20-13 experience of members, retired members, surviving spouses, and
20-14 beneficiaries of the retirement system and shall make a valuation
20-15 of the assets and liabilities of the funds of the system. Taking
20-16 into account the result of such investigation and valuation, the
20-17 retirement board shall adopt for the retirement system such
20-18 mortality, service, and other actuarial tables or rates as are
20-19 deemed necessary. On the basis of tables and rates adopted by the
20-20 retirement board, the actuary shall make a valuation at least once
20-21 every two years of the assets and liabilities of the funds of the
20-22 retirement system.
20-23 (7) The retirement board may retain the services of
20-24 one or more investment managers who shall have full authority to
20-25 invest and manage the assets of the retirement system and the fund,
20-26 as specified by contract in accordance with Subchapter C, Chapter
20-27 802, Texas Government Code, and its subsequent amendments.
21-1 (8) The retirement board may retain the services of
21-2 one or more investment consultants to monitor the investment
21-3 performance of the investment managers and provide other
21-4 investment-related services as requested by the retirement board.
21-5 (j) The retirement board may retain legal counsel as
21-6 necessary in the judgment of the retirement board to advise,
21-7 consult, assist and represent the retirement board and the system
21-8 in and with respect to any legal matter, issue, cause or claim that
21-9 comes before the retirement board or that may affect the retirement
21-10 system or the operation of the fund.
21-11 (k) Except as provided by Subsection [(l)](m) of this
21-12 section, the retirement board may adopt rules, establish policies,
21-13 regulations [or] and procedures, correct any defect, supply any
21-14 information, or reconcile any inconsistency as the retirement board
21-15 considers necessary or advisable to carry out this Act. Further,
21-16 the retirement board is authorized to adopt any amendment that
21-17 modifies this Act to the extent necessary for the retirement system
21-18 to be a qualified plan under the Code.
21-19 (l) The provisions of this Act shall be construed and
21-20 administered in a manner that the retirement system's benefit plan
21-21 will be considered a qualified plan under Section 401(a) of the
21-22 Code (26 U.S.C. Section 401). The retirement board may adopt rules
21-23 that modify the plan to the extent necessary for the retirement
21-24 system to be a qualified plan, and shall adopt rules to ensure that
21-25 benefits paid to a retired member, or to a beneficiary of a member
21-26 or retired member, do not exceed the limits provided by Section 415
21-27 of the Code (26 U.S.C. Section 415). Rules adopted by the
22-1 retirement board are a part of the plan. The retirement board may
22-2 also adopt rules that establish a separate qualified excess benefit
22-3 arrangement as defined in Section 415(m) of the Code to provide any
22-4 benefits that would have been provided under the qualified plan but
22-5 for the limits in Section 415 of the Code.
22-6 [(l)] (m) Any procedure, discretionary act, interpretation,
22-7 or construction by the retirement board must be done in a
22-8 nondiscriminatory manner based on uniform principles consistently
22-9 applied and must be consistent with this Act and with Section
22-10 401(a) of the Code and its subsequent amendments.
22-11 [(m)] (n) The retirement board is authorized to administer
22-12 oaths to any person providing testimony at any hearing or other
22-13 proceeding of the retirement board. The retirement board may, at
22-14 any time after notice and hearing, by a vote of six retirement
22-15 board members remove a retirement board member for malfeasance.
22-16 Sec. 5. Membership. (a) Each regular full-time employee
22-17 shall become an active-contributory member as a condition of
22-18 employment and shall make the required deposits commencing with the
22-19 first pay period in which the employee is compensated following the
22-20 effective date of this Act. Unless on approved medical leave of
22-21 absence or on leave to serve in the uniformed services, the
22-22 employee shall make the deposits as long as the employee remains a
22-23 regular full-time employee and shall remain a member of the system
22-24 until the employee or the employee's beneficiary ceases to be
22-25 entitled to any benefits from the retirement system. The
22-26 membership for all new regular full-time employees shall commence
22-27 on the date their employment commences [and all current active
23-1 contributory members shall be deemed to have additional creditable
23-2 service equal to the time elapsed between the date their regular
23-3 full-time employment commenced and the date they became an active
23-4 contributory member, but not in excess of six (6) months].
23-5 (b) Membership in the retirement system consists of the
23-6 following groups:
23-7 (1) the active-contributory members group, which
23-8 consists of all members, other than those on authorized leave of
23-9 absence, who are making deposits;
23-10 (2) the active-noncontributory members group, which
23-11 consists of all employees on approved medical leave of absence and
23-12 all employees of an employer, other than inactive-contributory
23-13 members, who have been active-contributory members but who are no
23-14 longer so because they are not regular full-time employees;
23-15 (3) the inactive-contributory members group, which
23-16 consists of all members who are on an authorized leave of absence
23-17 and who continue to make deposits into the retirement system during
23-18 their absence;
23-19 (4) the inactive-noncontributory members group, which
23-20 consists of all members whose status as an employee has been
23-21 terminated before retirement or disability retirement but who are
23-22 still entitled to or who may become entitled to, or whose
23-23 beneficiary may become entitled to, benefits from the retirement
23-24 system; and
23-25 (5) the retired members group, which consists of all
23-26 members who have retired and who are receiving or who are entitled
23-27 to receive a retirement allowance.
24-1 (c) An active-noncontributory member becomes an
24-2 active-contributory member immediately on resuming employment as a
24-3 regular full-time employee or on returning from an approved medical
24-4 leave of absence, as applicable.
24-5 (d) It shall be the duty of the retirement board to
24-6 [determine] make a final determination of the membership group to
24-7 which each person who becomes a member of the retirement system
24-8 properly belongs. It shall be the duty of the chief administrative
24-9 officer of each employer to submit to the retirement board a
24-10 statement showing the name, position, compensation, duties, date of
24-11 birth, length of employment, and such other information regarding
24-12 each employee of the employer as the retirement board may require.
24-13 (e) Any person who has ceased to be a member and has
24-14 received a distribution of the person's accumulated deposits may
24-15 have the person's membership service or prior service reinstated if
24-16 the person is reemployed as a regular full-time employee for a
24-17 continuous period of 24 months and deposits into the system, within
24-18 a reasonable period established by the retirement board on a
24-19 uniform and nondiscriminatory basis, the accumulated deposits
24-20 withdrawn by that person, together with an interest payment equal
24-21 to the amount withdrawn multiplied by an interest factor. The
24-22 interest factor is equal to the annually compounded interest rate
24-23 assumed to have been earned by the fund beginning with the month
24-24 and year in which the person withdrew the person's accumulated
24-25 deposits and ending with the month and year in which the deposit
24-26 under this subsection is made. The interest rate assumed to have
24-27 been earned by the fund for any period is equal to the interest
25-1 rate credited for that period to the accumulated deposits of
25-2 members, divided by 0.75.
25-3 (f) [A member on authorized leave of absence may make
25-4 deposits each pay period to the system while on authorized leave of
25-5 absence. Each such deposit shall be in an amount that is equal to
25-6 the amount of the member's deposit for the last complete pay period
25-7 that the member was paid by the employer. As long as the member on
25-8 authorized leave of absence makes the payments each pay period, the
25-9 employee's employer shall make contributions to the retirement
25-10 fund, for such member, each pay period in an amount equal to the
25-11 contribution amount the employer would have made if the member's
25-12 pay had continued to be the pay the member received for the last
25-13 complete pay period that the member was paid by the employer. If
25-14 the member does not make those deposits while on authorized leave
25-15 of absence, the member may make a single payment, within five years
25-16 after the member has returned to employment with the employer,
25-17 equal to the deposits the member would have made if the member had
25-18 continued to be paid during the authorized leave of absence at the
25-19 same rate of pay the member was receiving at the time the member's
25-20 authorized leave of absence began. In the event a member elects to
25-21 make a single payment, the member's employer shall make a single
25-22 payment for such member which payment shall be equal to the
25-23 contributions the employer would have made on the member's behalf
25-24 if the member had made deposits to the fund during the period of
25-25 the member's authorized leave of absence. During an authorized
25-26 leave of absence, the member will continue to earn membership
25-27 service for the pay periods for which the member makes deposits in
26-1 accordance with this subsection. If a member makes the lump sum
26-2 payment provided for in this subsection the membership service will
26-3 be credited at the time of payment.]
26-4 [(g)] From time to time the retirement board, subject to the
26-5 approval of the system's actuary, may elect to permit the
26-6 reinstatement of membership service forfeited in accordance with
26-7 the terms of this section.
26-8 Sec. 6. Creditable service. (a) The retirement allowance
26-9 of a member is based on the member's creditable service as of the
26-10 member's actual retirement date.
26-11 (b) The retirement board shall determine by
26-12 nondiscriminatory rules and regulations consistently applied,
26-13 subject to the provisions of this Act, in case of absence, illness,
26-14 or other temporary interruption in service as a regular full-time
26-15 employee, the portion of each calendar year to be allowed as
26-16 creditable service. No credit shall be allowed as creditable
26-17 service for any period exceeding one month during which an employee
26-18 was absent continuously without pay, except for an authorized leave
26-19 of absence as provided in this Act. The retirement board shall
26-20 verify the records for creditable service claims filed by the
26-21 members of the retirement system, subject to the provisions of this
26-22 Act and in accordance with such administrative rules and
26-23 regulations as the retirement board may from time to time adopt.
26-24 (c) Uniformed service creditable in the retirement system is
26-25 any service required to be credited by the Uniformed Services
26-26 Employment and Reemployment Rights Act of 1994 (38 U.S.C. Section
26-27 4301 et seq.), as amended, and certain active federal duty service
27-1 in the armed forces of the United States performed before the
27-2 commencement of employment with the employer, other than service as
27-3 a student at a service academy, as a member of the reserves, or any
27-4 continuous active military service lasting less than 90 days. A
27-5 member may establish creditable service for uniformed service
27-6 performed that is creditable as provided under this subsection
27-7 according to the following conditions, limitations, and
27-8 restrictions:
27-9 (1) A member may establish uniformed creditable
27-10 service for an authorized leave of absence for military service as
27-11 provided in this subsection (c)(1). A member on authorized leave
27-12 of absence for military service may make deposits each pay period
27-13 to the system while on such authorized leave of absence. Each such
27-14 deposit shall be in an amount that is equal to the amount of the
27-15 member's deposit for the last complete pay period that the member
27-16 was paid by the employer as a regular full-time employee. As long
27-17 as the member on authorized leave of absence makes the payments
27-18 each pay period, the employee's employer shall make contributions
27-19 to the retirement fund, for such member, each pay period in an
27-20 amount equal to the contribution amount the employer would have
27-21 made if the member's pay had continued to be the pay the member
27-22 received for the last complete pay period that the member was paid
27-23 by the employer. If the member does not make those deposits while
27-24 on authorized leave of absence, the member may make a single
27-25 payment, within five years after the member has returned to
27-26 employment with the employer, equal to the deposits the member
27-27 would have made if the member had continued to be paid during the
28-1 authorized leave of absence at the same rate of pay the member was
28-2 receiving at the time the member's authorized leave of absence
28-3 began, provided, however, such lump sum contribution may not exceed
28-4 the amount required under the Uniformed Services Employment and
28-5 Reemployment Rights Act of 1994 (38 U.S.C. Section 4301 et seq.),
28-6 as amended, in the case of a member who makes such contributions
28-7 within the time prescribed by such act. In the event a member
28-8 elects to make a single payment, the member's employer shall make a
28-9 single payment for such member which payment shall be equal to the
28-10 contributions the employer would have made on the member's behalf
28-11 if the member had made deposits to the fund during the period of
28-12 the member's authorized leave of absence. During an authorized
28-13 leave of absence, the member will continue to earn membership
28-14 service for the pay periods for which the member makes deposits in
28-15 accordance with this subsection. If a member makes the lump sum
28-16 payment provided for in this subsection the membership service will
28-17 be credited at the time of payment.
28-18 (2) A member may establish uniformed creditable
28-19 service for certain active federal duty service in the armed forces
28-20 of the United States performed before the member's commencement of
28-21 employment with the employer, other than service as a student at a
28-22 service academy, as a member of the reserves, or any continuous
28-23 active military service lasting less than 90 days, as provided in
28-24 this subsection (c)(2). To be creditable under this subsection
28-25 (c)(2), the uniformed service must have been performed before the
28-26 beginning of the member's most recent period of membership in the
28-27 retirement system or its predecessor system. A member may
29-1 establish creditable service under this subsection (c)(2) by
29-2 contributing to the retirement system a single payment equal to 25
29-3 percent of the estimated cost of the additional projected
29-4 retirement benefits the member will be entitled to receive. The
29-5 retirement board will determine the required contribution based on
29-6 a procedure recommended by the actuary and approved by the
29-7 retirement board.
29-8 [(c) At any time before a member's actual retirement date, a
29-9 member may establish creditable service for uniformed service
29-10 performed that is creditable as provided under this subsection
29-11 according to the following conditions, limitations, and
29-12 restrictions:]
29-13 [(1) Uniformed service creditable in the retirement
29-14 system is any service required to be credited by the Uniformed
29-15 Services Employment and Reemployment Rights Act of 1994 (38 U.S.C.
29-16 Section 4301 et seq.), as amended, and certain active federal duty
29-17 service in the armed forces of the United States performed before
29-18 the commencement of employment with the employer, other than
29-19 service as a student at a service academy, as a member of the
29-20 reserves, or any continuous active military service lasting less
29-21 than 90 days. To be creditable, the uniformed service must have
29-22 been performed before the beginning of the member's most recent
29-23 period of membership in the retirement system or its predecessor
29-24 system.]
29-25 [(2)] (3) A member is not eligible to establish
29-26 uniformed service credit unless the member was released from active
29-27 military duty under conditions other than dishonorable.
30-1 [(3)] (4) A member may not establish creditable
30-2 service in the retirement system for uniformed service for more
30-3 than the greater of the creditable service required under the
30-4 Uniformed Services Employment and Reemployment Rights Act of 1994
30-5 (38 U.S.C. Section 4301 et seq.), as amended, or 48 months of
30-6 creditable service in the retirement system for uniformed service
30-7 under this subsection (c).
30-8 [(4) A member may establish creditable service under
30-9 this subsection by contributing to the retirement system a single
30-10 payment equal to 25 percent of the estimated cost of the additional
30-11 projected retirement benefits the member will be entitled to
30-12 receive. The retirement board will determine the required
30-13 contribution based on a procedure recommended by the actuary and
30-14 approved by the retirement board, provided, however,
30-15 notwithstanding the amount determined under the preceding sentence,
30-16 such contribution may not exceed the amount required under the
30-17 Uniformed Services Employment and Reemployment Rights Act of 1994
30-18 (38 U.S.C. Section 4301 et seq.), as amended, in the case of a
30-19 member who makes such contributions within the time prescribed by
30-20 such act.]
30-21 (5) After the member makes the deposit required by
30-22 this subsection, the retirement system shall grant the member one
30-23 month of creditable service for each month of creditable uniformed
30-24 service established under this subsection.
30-25 (d) At any time before the actual retirement date of a
30-26 member the employer of the member may purchase additional
30-27 creditable service for the member [who was not at any time a highly
31-1 compensated employee within the meaning of Section 414(q) of the
31-2 code, a member may be considered to qualify for unreduced
31-3 retirement benefits at the age of 55 or, if the member is more than
31-4 55 years of age, at the time of the purchase of additional service
31-5 credit by an employer]. Such additional purchased creditable
31-6 service shall be credited to the member for which the purchase is
31-7 made. The incremental cost of eligibility under this subsection
31-8 shall be purchased by the employer at the full actuarial cost of
31-9 such additional creditable service as determined by the retirement
31-10 board acting on the advice of the actuary.
31-11 (e) At any time before a member's actual retirement date,
31-12 the member may purchase noncontributory creditable service [credit]
31-13 equal in amount to the period the member:
31-14 (1) was on verifiable workers' compensation leave due
31-15 to an injury sustained in the course and scope of employment by an
31-16 employer;
31-17 (2) was on an authorized leave of absence from an
31-18 employer; or
31-19 (3) performed service for an employer in a position
31-20 the service for which is not otherwise creditable in the retirement
31-21 system.
31-22 (f) The full actuarial cost of noncontributory creditable
31-23 service purchased as provided by [S]subsection (e) of this section
31-24 is payable by the member purchasing the credit.
31-25 (g) In this section, "noncontributory creditable service"
31-26 means creditable service for which an employer contribution is not
31-27 made.
32-1 Sec. 7. SERVICE RETIREMENT [BENEFITS] AND WITHDRAWAL
32-2 BENEFITS. (a) Except as provided by subsection (b) of this
32-3 section, a member who retires on or after the member's normal
32-4 retirement date and applies in writing for a retirement allowance
32-5 shall receive a life annuity (modified cash refund) beginning on
32-6 the last day of the month after the month in which the member
32-7 retired. Unless [subsection (e) of this section or] section 8 of
32-8 this Act applies, a member whose employment by the employer
32-9 terminates before the member's normal retirement date is entitled
32-10 to a distribution of the member's accumulated deposits in a single
32-11 lump sum. On receiving that distribution, a member is not entitled
32-12 to any other benefit under this Act. If a member has at least five
32-13 years of creditable service and does not withdraw the member's
32-14 accumulated deposits, the member is entitled to a life annuity
32-15 (modified cash refund) beginning on the first day of the month
32-16 after the month in which the member's normal retirement date
32-17 occurs. [If a member has 20 years of creditable service and does
32-18 not withdraw the member's accumulated deposits, the member is
32-19 entitled to a retirement benefit on attaining age 55.]
32-20 (b) A member who terminates employment with the employer and
32-21 who has less than five years of creditable service is not entitled
32-22 to a retirement allowance, unless such member is eligible and
32-23 participates in a proportionate retirement program authorized by
32-24 state law.
32-25 (c) The amount of each [the] retirement allowance and all
32-26 other benefits payable under this statute shall be subject at all
32-27 times to such adjustments as may be required to ensure actuarial
33-1 soundness, as may be approved by the actuary and adopted by the
33-2 retirement board, except that annuities already accrued may not be
33-3 reduced.
33-4 (d)(1) Subject to the conditions, limitations, and
33-5 restrictions set forth in this [subsection, as well as all other
33-6 pertinent conditions, limitations, and restrictions set forth
33-7 elsewhere in this] Act, the retirement board shall have the power
33-8 once each year in December:
33-9 (A) T[t]o authorize a cost of living adjustment
33-10 (hereinafter referred to as the "adjustment") payment of which,
33-11 once authorized, shall be added to the current monthly payment of
33-12 all retirement annuities, pensions, or allowances of each and every
33-13 retired member (or the retired member's beneficiary) who [has]
33-14 bec[o]ame entitled to benefits[,] on or before December 31 of the
33-15 year before the year in which the adjustment [goes into effect] is
33-16 approved; or
33-17 (B) To Authorize a one-time additional benefit
33-18 payment (hereinafter referred to as the "additional payment")
33-19 payment of which, once authorized, shall be made to each retired
33-20 member receiving a retirement annuity, pension, or allowance, who
33-21 became entitled to benefits, on or before December 31 of the year
33-22 before the year in which the additional payment is approved.
33-23 (2) Before December 31 of each year, the retirement
33-24 board shall make a separate determination as to whether to
33-25 authorize the payment of an adjustment and the amount of such
33-26 adjustment, if any, and whether to authorize the payment of an
33-27 additional payment, if any. In determining whether to authorize an
34-1 adjustment and/or an additional payment, the retirement board may
34-2 consider the changes in the consumer price index over the preceding
34-3 12-month period, the actuarial experience of the fund, the
34-4 investment experience of the fund, the amount of any prior or
34-5 current adjustments, or the amount of any prior or current
34-6 additional payments, and other factors that the retirement board
34-7 and the actuary consider appropriate.
34-8 (3) [(2)] In determining whether to authorize the
34-9 payment and the amount of any adjustment or additional payment, the
34-10 retirement board shall be governed by the following conditions,
34-11 considerations, limitations, and restrictions:
34-12 (A) Any and all determinations to authorize the
34-13 payment of any adjustment or additional payment amount must be
34-14 based on the ability of the fund to pay such an amount and shall
34-15 not be based on the individual needs of any particular retired
34-16 members or beneficiaries.
34-17 (B) Prior to the retirement board's authorizing
34-18 the payment of an adjustment or additional payment, the actuary
34-19 must recommend such an adjustment and/or additional payment to the
34-20 retirement board and certify in writing that, based on the sound
34-21 application of actuarial assumptions and methods consistent with
34-22 sound actuarial principles and standards, it is demonstrable that
34-23 the fund has and likely will continue to have the ability to pay
34-24 such an amount out of its realized income after all other
34-25 obligations of the fund have been paid.
34-26 (C) The amount of the adjustment and/or
34-27 additional payment for each retired member or beneficiary shall be
35-1 a uniform percentage of the monthly payment being received by a
35-2 member, or by a beneficiary by reason of a member, who was retired
35-3 at least one year before the adjustment and:
35-4 (i) An adjustment may not exceed six
35-5 percent of the monthly payment due the retired member or
35-6 beneficiary before the adjustment;
35-7 (ii) An additional payment may not exceed
35-8 an amount equal to the amount of the monthly payment being received
35-9 by a member prior to the addition of any adjustment made during
35-10 that year; and[.]
35-11 (iii) For members who retired during the
35-12 year in which the adjustment or additional payment is authorized,
35-13 the additional payment shall be prorated, and the increase for the
35-14 first year in which the adjustment is being paid shall be prorated,
35-15 in the ratio that the number of completed months after the member's
35-16 retirement in the year of the member's retirement bears to 12.
35-17 After the first year the member is entitled to the full amount of
35-18 any adjustment or additional payment without proration.
35-19 (4) [(3)] Any adjustment payments or additional
35-20 payment shall be in addition to the benefits to which a retired
35-21 member or beneficiary is otherwise entitled under this Act.
35-22 (e) Any member who qualifies for retirement by reason of
35-23 creditable service attained with one or more retirement programs
35-24 participating in the proportionate retirement program established
35-25 by state law shall be eligible for [early retirement if the member
35-26 attains the age of 55 years and completes at least 20 years of
35-27 creditable service. Such member shall be entitled to a benefit
36-1 equal to a life annuity (modified cash refund)]. proportionate
36-2 retirement. A member who qualifies for proportionate retirement
36-3 and retires shall begin receiving [the] retirement benefits
36-4 [provided by this subsection] beginning on the last day of the
36-5 month after the month in which the member retired.
36-6 (f) A member may file a written designation, which, if
36-7 approved by the retirement board, shall entitle the member, on
36-8 retirement, to receive the actuarial equivalent of the life annuity
36-9 in the form of one of the following options:
36-10 (1) Option I. 100 Percent Joint and Survivor Annuity.
36-11 This option is a reduced monthly annuity payable to the member but
36-12 with the provision that on the member's death the annuity shall be
36-13 continued throughout the life of and be paid to such person as the
36-14 member shall designate before the member's actual retirement date.
36-15 (2) Option II. 50 Percent Joint and Survivor Annuity.
36-16 This option is a reduced monthly annuity payable to the member but
36-17 with the provision that on the member's death one-half of the
36-18 annuity shall be continued throughout the life of and be paid to
36-19 such person as the member shall designate before the member's
36-20 actual retirement date.
36-21 (3) Option III. 66-2/3 Percent Joint and Survivor
36-22 Annuity. This option is a reduced monthly annuity payable to the
36-23 member but with the provision that on the member's death two-thirds
36-24 of the annuity shall be continued throughout the life of and be
36-25 paid to such person as the member shall designate before the
36-26 member's actual retirement date.
36-27 (4) Option IV. Joint and 66-2/3 Percent Last Survivor
37-1 Annuity. This option is a reduced monthly annuity payable to the
37-2 member but with the provision that two-thirds of the annuity to
37-3 which the member would be entitled shall be continued throughout
37-4 the life of and be paid to the survivor after the death of either
37-5 the member or such person as the member shall designate before the
37-6 member's actual retirement date.
37-7 [(5) Option V. Level Income Option. If payment of a
37-8 retirement allowance commences prior to the earliest age at which
37-9 the member will become eligible for an old age insurance benefit
37-10 under the Social Security Act, the member may elect that the amount
37-11 of the monthly payments be adjusted so that an increased monthly
37-12 amount will be paid prior to such age and a reduced monthly amount,
37-13 if any, will be paid for life after such age. The purpose of this
37-14 adjustment is to enable the member to receive from this plan and
37-15 under the Social Security Act an aggregate income in approximately
37-16 a level amount for life.]
37-17 [(6) Option VI. 66-2/3 Percent Joint and
37-18 Survivor/Level Income Option. If payment of a retirement allowance
37-19 commences prior to the earliest age at which the member could
37-20 become eligible for an old age insurance benefit under the Social
37-21 Security Act, the member may elect that the amount of the monthly
37-22 payments be adjusted so that an increased monthly amount will be
37-23 paid prior to such age and a reduced monthly amount will be paid
37-24 for life after such age. The purpose of this adjustment is to
37-25 enable the member to receive from this plan and under the Social
37-26 Security Act an aggregate income in approximately a level amount
37-27 for life. Option VI provides that if the member's death occurs
38-1 after age 62, two-thirds of the monthly annuity the member was
38-2 receiving at the time of the member's death shall be continued
38-3 throughout the life of and be paid to such person as the member
38-4 shall designate before the member's actual retirement date. If the
38-5 member's death occurs before age 62, two-thirds of the monthly
38-6 annuity the member was receiving at the time of member's death
38-7 shall be paid to such person as the member shall designate before
38-8 the member's actual retirement date through the end of the month
38-9 when the member would have reached age 62. The monthly annuity
38-10 being paid to such person as the member shall designate before the
38-11 member's actual retirement date will be reduced at the end of the
38-12 month following the month in which the member would have reached
38-13 age 62 to two-thirds of the reduced benefit the member would have
38-14 begun to receive at age 62.]
38-15 (5) [(7)] Option V[II]. 15-Year Certain and Life
38-16 Annuity. This option is a reduced annuity payable to the member
38-17 for life. In the event of the member's death before 180 monthly
38-18 payments have been made, the remainder of the 180 payments shall be
38-19 paid to the member's designated beneficiary or, if there is no
38-20 designated beneficiary, to the member's estate.
38-21 (6) [(8)] Option VI[II]. Equivalent Benefit Plan. If
38-22 a member requests in writing, any other form of benefit or benefits
38-23 may be paid either to the member or to such person or persons as
38-24 the member shall designate before the member's actual retirement
38-25 date, provided that the benefit plan requested by the member is
38-26 certified by the actuary for the system to be the actuarial
38-27 equivalent of the life annuity with guaranteed refund of the
39-1 retired member's accumulated deposits. If, on the death of the
39-2 member and all other persons entitled to receive payments under an
39-3 optional benefit, the member's accumulated deposits as of the
39-4 member's actual retirement date exceed the sum of all payments made
39-5 under that optional benefit, that excess shall be paid in one lump
39-6 sum to the member's designated beneficiary.
39-7 (g)(1) For purposes of Subsection (f) of this section, the
39-8 designation of a beneficiary must be made in writing on a form and
39-9 in the manner prescribed by the retirement board. If a member has
39-10 chosen Option I, II, III, IV, [VI,] or VI[II], the member's
39-11 designation of a beneficiary may not be revoked after a member
39-12 retires, and any attempted revocation of a designation for those
39-13 options is void. Spousal consent shall not be required for a
39-14 member to select Option I, II, III[,] or IV [or VI]. If the member
39-15 is married, spousal consent is required for the member to select an
39-16 optional benefit other than Option I, II, III[,] or IV [or VI]. At
39-17 any time before retirement, a member may file with the retirement
39-18 board a written statement designating one or more persons to be
39-19 entitled to receive as beneficiary the reduced annuity payable
39-20 under one of the optional benefits. If a married member designates
39-21 as a beneficiary any person other than the member's spouse, the
39-22 member's spouse must consent in writing to the beneficiary
39-23 designation, and the beneficiary designation may not be changed
39-24 without spousal consent, unless the consent of the spouse expressly
39-25 permits designations by the member without the requirement of
39-26 further consent by the spouse. The spouse's consent is irrevocable
39-27 and must acknowledge the effect of the designation and be witnessed
40-1 by a retirement board employee or notary public. Spousal consent
40-2 is not required if it is established to the satisfaction of the
40-3 retirement board that the required consent cannot be obtained
40-4 because there is no spouse, the spouse cannot be located, or other
40-5 circumstances exist as prescribed by United States Treasury
40-6 regulations. Notwithstanding other provisions of this subdivision,
40-7 the option election or beneficiary designation made by a member and
40-8 consented to by the member's spouse may be revoked by the member in
40-9 writing without consent of the spouse at any time before
40-10 retirement. The number of revocations is not limited. A former
40-11 spouse's waiver or consent is not binding on a new spouse. An
40-12 option selection becomes effective on the member's actual
40-13 retirement date. The member retains the right to change the option
40-14 selected or the beneficiary designated until the member's actual
40-15 retirement date, subject to this subsection.
40-16 (2) After filing the written statement selecting one
40-17 of the optional benefits, the member may continue in employment and
40-18 retire any time after the member becomes eligible by filing a
40-19 written application for retirement. If the member dies before
40-20 retirement but after becoming eligible for retirement, the
40-21 effective date of the member's retirement is the last day of the
40-22 calendar month of death, and the benefit is computed on the
40-23 optional benefit selected as if the member had retired on that
40-24 date.
40-25 (h) The amount of the annuity payment in Options I, II, III,
40-26 IV, V[,] and VI[, VII, and VIII] shall be determined without
40-27 considering the minimum cumulative payment of the retired member's
41-1 accumulated deposits since that refund feature will stay in effect
41-2 as indicated herein.
41-3 (i) If a member who is eligible for retirement dies without
41-4 having filed a written selection of one of the enumerated options
41-5 and if the member leaves a surviving spouse, that spouse may select
41-6 the optional benefit in the same manner as if the member had made
41-7 the selection or may select a lump-sum payment equal to the
41-8 deceased member's accumulated deposits plus an equivalent amount
41-9 from Fund No. 2. If the member does not leave a surviving spouse,
41-10 the member's designated beneficiary is entitled to elect either
41-11 Option V[II], to become effective at the beginning of the calendar
41-12 month after the month in which the death of the member occurs, or
41-13 the sum of a lump-sum payment equal to the deceased member's
41-14 accumulated deposits plus an equivalent amount from Fund No. 2.
41-15 If the surviving spouse dies before the spouse receives retirement
41-16 allowances equal to the amount of the member's accumulated deposits
41-17 on the date of the member's death, the excess of the accumulated
41-18 deposits over the retirement allowances paid shall be distributed
41-19 in one lump sum to the member's estate.
41-20 (j) In the event of death of a member who is ineligible for
41-21 retirement, the member's accumulated deposits and an equivalent
41-22 amount from Fund No. 2 shall be paid in a lump sum to the member's
41-23 beneficiary.
41-24 (k)(1) If a designation of intent to participate in
41-25 proportionate retirement has not been filed with the retirement
41-26 system, or a prior demand for withdrawal of accumulated deposits
41-27 has not been made, within seven years after termination of
42-1 employment by a member with less than five years' of creditable
42-2 service, the member's accumulated deposits shall be returned to the
42-3 member or the member's beneficiary. Except as provided by
42-4 subdivision (2) of this subsection, if the system is unable to
42-5 locate the member or the member's beneficiary, the member's
42-6 accumulated deposits shall thereafter be forfeited and become a
42-7 part of Fund No. 2.
42-8 (2)(A) If the member or member's beneficiary later
42-9 appears and requests in writing the payment of the member's
42-10 accumulated deposits, the system shall:
42-11 ([A]i) reinstate the account of the
42-12 member;
42-13 ([B]ii) credit to that account an amount
42-14 equal to all of the accumulated deposits previously standing to the
42-15 member's credit plus interest that would have been earned on those
42-16 accumulated deposits if the funds had remained in Fund No. 1
42-17 between the date of forfeiture to Fund No. 2 and the date of
42-18 reinstatement of the member's account;
42-19 ([C]iii) fund the account from the monies
42-20 in Fund No. 2; and
42-21 ([D]iv) make all necessary payments to the
42-22 member or member's beneficiary from the reinstated account.
42-23 ([3]B) On payment of the accumulated deposits
42-24 under this subsection, plus any interest on those deposits to which
42-25 the member may be entitled, to the member or member's beneficiary
42-26 in accordance with this subsection, the terminated employee ceases
42-27 to be a member of the system.
43-1 (3) If the member's accumulated deposits are not
43-2 withdrawn and the member gives notice of intent to participate in
43-3 proportionate retirement, and establishes eligibility to
43-4 participate in proportionate retirement, the member's account shall
43-5 be reinstated and credited (but not refunded) as provided in Sec.
43-6 7(k)(2) above, and the member will receive a proportionate
43-7 retirement allowance as provided in this Act.
43-8 (4) If a demand for withdrawal of funds is made more
43-9 than ten years after termination of employment and the records of
43-10 the system do not affirmatively establish that such accumulated
43-11 deposits remain on deposit in the fund, the retirement board shall
43-12 consider the system's records and the evidence presented by the
43-13 member or the beneficiary and determine if any payment is due to
43-14 such member or beneficiary. The burden of proof shall be on the
43-15 member or beneficiary and the decision of the retirement board
43-16 shall be final.
43-17 (l) In the event of the death of a member receiving a
43-18 retirement allowance, the sum of $10,000 shall be payable in a lump
43-19 sum to the member's beneficiary.
43-20 (m) When monthly survivor benefits are deemed payable as a
43-21 result of the death of a member before retirement, an additional
43-22 sum of $10,000 shall be payable as a death benefit to the member's
43-23 designated beneficiary.
43-24 (n) In the event of the death of the retired member then
43-25 receiving a retirement allowance under any retirement option and
43-26 the death of the beneficiary designated by the retired member, when
43-27 either Option I, Option II, Option III[,] or Option IV[, or Option
44-1 VI] is in effect, before retirement allowances have been received
44-2 that are equal or greater than the retired member's accumulated
44-3 deposits, the member's estate will receive the excess of the
44-4 retired member's accumulated deposits over the retirement
44-5 allowances paid.
44-6 (o) If a person who is nominated by a member in the written
44-7 designation under Option I, Option II, Option III or Option IV
44-8 predeceases the retired member after the effective date of this
44-9 Act, the reduced annuity of the retired member who elected the
44-10 optional lifetime retirement annuity shall be increased to the
44-11 standard service retirement annuity that the retiree would
44-12 otherwise be entitled to receive if the retired member had not
44-13 selected Option I, Option II, Option III or Option IV. The
44-14 standard service retirement annuity shall be adjusted as
44-15 appropriate for early retirement as permitted by law, and
44-16 postretirement increases in retirement benefits authorized by law
44-17 after the date of retirement. The increase in the annuity under
44-18 this subsection begins with the monthly payment made to the retired
44-19 member for the month following the month in which the person
44-20 nominated dies, or the month following the month in which the
44-21 retired member gives the system notice of such nominated person's
44-22 death, whichever is later, and is payable to the retired member for
44-23 the remainder of the retired member's life.
44-24 (p) Notwithstanding any contrary provision of this Act, the
44-25 distribution of a member's benefits, including benefits payable
44-26 after the member's death, made on or after January 1, 1985, shall
44-27 be made in accordance with the following requirements and shall
45-1 otherwise comply with Section 401(a)(9) of the Code and related
45-2 regulations, including Regulation Section 1.401(a)(9)-2:
45-3 (1) A member's benefits shall be distributed to the
45-4 member, or the distribution of those benefits shall begin, not
45-5 later than April 1 of the calendar year after the calendar year in
45-6 which occurs the later of the date on which the member attains age
45-7 70-1/2 or the date on which the member's employment by the
45-8 employer terminates.
45-9 (2) A member's benefits shall be distributed over a
45-10 period not exceeding the life of the member or the lives of the
45-11 member and the member's beneficiary or over a period not exceeding
45-12 the life expectancy of the member or the life expectancy of the
45-13 member and the member's beneficiary.
45-14 (3) If the distribution of a member's benefit has
45-15 begun and the member dies before the member's entire benefit is
45-16 distributed, the remaining portion of that benefit shall be
45-17 distributed at least as rapidly as under the form of benefit
45-18 selected as of the date of the member's death, adjusted as
45-19 necessary under this subsection.
45-20 (4) If a member dies before the distribution of the
45-21 member's benefit has begun, the member's death benefit shall be
45-22 distributed to the member's beneficiary within five years after the
45-23 date of the member's death. This five-year rule does not apply to
45-24 any portion of the deceased member's benefit that is payable to or
45-25 for the benefit of the member's surviving spouse. A benefit
45-26 payable to or for the benefit of the member's surviving spouse may
45-27 be distributed over the life of the spouse or over a period not
46-1 exceeding the life expectancy of the spouse, provided that payment
46-2 of the benefit begins not later than the date on which the deceased
46-3 member would have attained age 70-1/2. If the surviving spouse
46-4 dies before distributions to that spouse begin, the five-year rule
46-5 applies as if the spouse had been the member.
46-6 (5) The five-year rule does not apply to distributions
46-7 payable to a beneficiary over the life or life expectancy of the
46-8 beneficiary, provided that payment of the benefit begins not later
46-9 than the first anniversary of the date of the member's death.
46-10 (6) In applying the requirements of this subsection,
46-11 the life expectancy of the member and the member's beneficiary
46-12 shall be redetermined annually in accordance with regulations under
46-13 Section 401(a)(9) of the Code and its subsequent amendments.
46-14 (q) [(p)] Forfeitures that may result from the termination
46-15 of any right of a member may not be used to increase benefits to
46-16 remaining members. This subsection shall not preclude an increase
46-17 in benefits by amendment to this Act or action of the retirement
46-18 board in accordance with subsection (d) of this section that is
46-19 made possible by forfeitures or for any other reason.
46-20 Sec. 8. DISABILITY RETIREMENT. (a) Only
46-21 active-contributory members, inactive-contributory members, and
46-22 members on approved medical leave of absence are eligible for
46-23 consideration for disability retirement. Such members may apply
46-24 for disability retirement at any date prior to their normal
46-25 retirement date; and a member shall be deemed to remain in such
46-26 respective member category for a period of ninety (90) days
46-27 following termination of employment for inability to perform all
47-1 employment duties. Inactive-noncontributory members are not
47-2 eligible for consideration for disability retirement and may not
47-3 receive any benefits under this section.
47-4 (b) If a member who is eligible for consideration for
47-5 disability retirement has become mentally or physically
47-6 incapacitated for the performance of all employment duties as a
47-7 direct result of injuries sustained in the performance of the
47-8 member's employment duties subsequent to the member's effective
47-9 date of membership in the retirement system, the member may apply
47-10 for disability retirement. Such application, made by or on behalf
47-11 of the injured member, shall show that the injury sustained:
47-12 (1) was by external and violent means;
47-13 (2) came as a direct and proximate result of the
47-14 performance of the member's employment duties with the employer;
47-15 and
47-16 (3) is likely to be permanent.
47-17 (c) On recommendation of the physician or physicians
47-18 appointed or selected by the retirement board that the eligible
47-19 member's incapacity is likely to be permanent and after determining
47-20 on that basis, or on the basis of any additional evidence which the
47-21 retirement board deems relevant, that the member meets the
47-22 requirements of subsection (b) of this section, the retirement
47-23 board shall award such member a disability retirement allowance.
47-24 The decision of the retirement board is final subject to the
47-25 reexamination, discontinuance and revocation rules at subsections
47-26 (h) and (i) of this section.
47-27 (d) If a member who is eligible for consideration for
48-1 disability retirement, and who has more than [10] 5 years of
48-2 creditable service, has become mentally or physically incapacitated
48-3 for the performance of all employment duties, such member may apply
48-4 for disability retirement. The application made on behalf of the
48-5 disabled member shall show that the incapacity is likely to be
48-6 permanent. On recommendation of the physician or physicians
48-7 appointed or selected by the retirement board that the eligible
48-8 member's incapacity is likely to be permanent and after determining
48-9 on that basis, or on the basis of any additional evidence which the
48-10 retirement board deems relevant, that the member meets the
48-11 requirements of this subsection (d) of this section, the retirement
48-12 board shall award such member a disability retirement allowance.
48-13 The decision of the retirement board is final subject to the
48-14 reexamination, discontinuance and revocation rules at subsections
48-15 (h) and (i) of this section.
48-16 (e) On award of a disability retirement allowance, the
48-17 member shall receive a disability retirement allowance, beginning
48-18 on the last day of the month after the month in which the member
48-19 became disabled, which shall be computed in the same manner that a
48-20 retirement allowance would be computed at the member's normal
48-21 retirement date, based on compensation and creditable service at
48-22 the date of disability retirement[, without reduction for early
48-23 retirement]. The disabled member may choose to receive a life
48-24 annuity (modified cash refund) or a benefit as described by Section
48-25 7(f) of this Act as Option I, Option II, Option III[,] or Option
48-26 IV[, or Option VII].
48-27 (f) A member receiving a disability retirement allowance
49-1 [will be required to] shall file [an annual] periodic reports with
49-2 the retirement board concerning continued proof of disability. The
49-3 retirement board shall adopt policy establishing the required
49-4 supporting information and documentation and the content and time
49-5 requirements for such reports. The report shall include:
49-6 (1) a current statement of the member's physical or
49-7 mental condition stating existence of continuing disability, signed
49-8 by the member's attending physician; and
49-9 (2) a statement of all employment activities pursued
49-10 in the preceding year.
49-11 (g) [Each calendar year, a d] Disabled members shall file
49-12 the [annual] periodic report required by subsection (f) of this
49-13 section [no later than the 60th day after the anniversary date of
49-14 the member's disability retirement] within the time established by
49-15 the retirement board. The retirement board may require that all
49-16 periodic reports including the member's most recent tax return, be
49-17 filed in the same calendar month. The retirement board may verify
49-18 all information submitted in the report.
49-19 (h) The pension [officer] director will be responsible for a
49-20 yearly report to the retirement board listing those disabled
49-21 members who should be examined. The retirement board shall have
49-22 the right to order [an] one or more examinations of any person on
49-23 disability retirement once each year until the member reaches the
49-24 [age of 62 years] normal retirement date. If the member fails or
49-25 refuses to submit to any examination by a physician or physicians
49-26 appointed by the retirement board or if the member fails or
49-27 refuses to submit [an annual] periodic report in accordance with
50-1 subsection (g) of this section concerning continued proof of
50-2 disability, the disability retirement allowance shall be
50-3 discontinued until such failure or refusal is withdrawn and the
50-4 member has submitted to any examinations requested by the
50-5 retirement board and has submitted [an annual] the periodic report.
50-6 Should such failure or refusal continue for a period of one year,
50-7 the disability retirement allowance may be revoked by the
50-8 retirement board. If a member's disability retirement allowance
50-9 has been revoked for failure to file the required periodic report
50-10 or to submit to any requested examination, the retirement board may
50-11 reinstate the member's disability retirement allowance on a
50-12 prospective basis only on the member's full performance of and
50-13 compliance with all requirements of this section and the retirement
50-14 board's determination that the member's disability is continuing.
50-15 (i)(1) If [after] investigation of the disabled member's
50-16 activities shows, or if the [annual] medical examination(s) shows,
50-17 that the member is no longer physically or mentally incapacitated
50-18 for the purposes of the performance of employment duties, or if
50-19 [that] such member is found to be engaged in, or [is] able to
50-20 engage in, substantial gainful occupation[,] as defined by Social
50-21 Security disability income guidelines, for which he or she is
50-22 reasonably suited by education, training, or experience, the
50-23 retirement board shall discontinue the disability retirement
50-24 allowance.
50-25 (2) If the disability retirement allowance of a member
50-26 who had less than [10] 5 years of creditable service is
50-27 discontinued under this subsection or subsection (h) of this
51-1 section and not reinstated, and the member is not reemployed by the
51-2 employer, the member is entitled to any amount by which the sum of
51-3 the member's accumulated deposits as of the date of disability
51-4 retirement exceeds the sum of all disability retirement benefits
51-5 paid to the member by the system.
51-6 (3) If the disability retirement allowance of a member
51-7 is discontinued under this subsection or subsection (h) of this
51-8 section and not reinstated, and the member is not reemployed by the
51-9 employer, the member may:
51-10 (A) Withdraw any amount by which the sum of the
51-11 member's accumulated deposits as of the date of the disability
51-12 retirement exceeds the sum of all disability retirement benefits
51-13 paid to the member by the system; or[.]
51-14 (B) If [a] the member [who] had [10] 5 or more
51-15 years of creditable service and does not withdraw the excess, the
51-16 member is entitled to a life annuity (modified cash refund)
51-17 beginning on the first day of the month after the month in which
51-18 the member's normal retirement date occurs.
51-19 (j) If a disabled member returns to active employment
51-20 service with the employer, the disability retirement allowance
51-21 shall cease. If the person is reemployed as a regular full-time
51-22 employee, the person shall be reinstated as an active-contributory
51-23 member of the system and shall comply with all requirements of this
51-24 Act. If reinstated as an active-contributory member, all
51-25 membership service credits accumulated prior to disability shall be
51-26 restored to the full amount standing to the member's credit as of
51-27 the date the retirement board found the member eligible for
52-1 disability retirement, and any prior service credit shall be
52-2 restored in full. The member is not required to reimburse the fund
52-3 for any disability retirement allowance amounts received by the
52-4 member.
52-5 Sec. 9. LIMITATIONS ON BENEFITS. (a) Notwithstanding any
52-6 other provisions of this Act, the annual benefit provided with
52-7 respect to any member may not exceed [$90,000] the benefits
52-8 permitted to be provided with a qualified by Section 415 of the
52-9 Code.
52-10 [(b) Benefits provided to a member under this Act and under
52-11 any other qualified defined benefit plan or plans maintained by the
52-12 employer shall be aggregated for purposes of determining whether
52-13 the limitations in subsection (a) are met.] If the aggregate
52-14 benefits otherwise payable to any member under this Act and any
52-15 other defined benefit plan or plans maintained by the employer
52-16 would otherwise exceed the limit[ations] of [subsection (a)]
52-17 Section 415 of the Code, the reductions in benefits shall be made
52-18 in the benefits provided under this Act, to the extent necessary to
52-19 enable each plan or plans to satisfy those limitations, unless the
52-20 retirement board is informed by the administrator of the other plan
52-21 that the reductions are required to be made in the other plan.
52-22 [(c) The maximum benefit otherwise permitted under
52-23 subsection (a) or (b) of this section is subject to the following
52-24 adjustments:]
52-25 [(1) If the annual benefit begins before the member
52-26 attains age 62, the $90,000 limitation, as adjusted, shall be
52-27 reduced in a manner prescribed by the Secretary of the Treasury.
53-1 However, that adjustment may not reduce the member's annual benefit
53-2 below $75,000, if the member's benefit begins after age 55, or the
53-3 actuarial equivalent of $75,000 beginning at age 55 if benefits
53-4 begin before age 55.]
53-5 [(2) If the annual benefit begins after the member
53-6 attains age 65, the $90,000 limitation, as adjusted, will be
53-7 increased so that it is the actuarial equivalent of the $90,000
53-8 limitation at age 65.]
53-9 [(3) The portion of a member's benefit that is
53-10 attributable to the member's own after tax contributions is not
53-11 part of the annual benefit subject to the limitations of this
53-12 section. Instead, the amount of those contributions is treated as
53-13 an annual addition to a qualified defined contribution plan
53-14 maintained by the employer.]
53-15 [(d) The $90,000 limitation on annual benefits provided by
53-16 this section, but not the $75,000 limitation, shall be adjusted
53-17 annually as provided by Section 415(d) of the Code and the
53-18 regulations prescribed by the Secretary of the Treasury to reflect
53-19 cost of living adjustments. The adjusted limitation is effective
53-20 as of January 1 of each calendar year.]
53-21 [(e) The limitation provided by this section for a member
53-22 who has separated from service with a vested right to a pension
53-23 shall be adjusted annually as provided by Section 415(d) of the
53-24 Code and the regulations prescribed by the Secretary of the
53-25 Treasury.]
53-26 [(f) The following interest rate assumptions shall be used
53-27 in computing the limitations under this section:]
54-1 [(1) For the purpose of determining the portion of the
54-2 annual benefit that is purchased with employee contributions, the
54-3 interest rate assumption is 120 percent of the federal mid-term
54-4 rate, as in effect under Section 1274 of the Code, compounded
54-5 annually.]
54-6 [(2) For the purpose of adjusting the annual benefit
54-7 to a straight life annuity, the interest rate assumption is five
54-8 percent, unless a different rate is required by the Secretary of
54-9 the Treasury.]
54-10 [(3) For the purpose of adjusting the $90,000
54-11 limitation after a member attains age 65, the interest rate
54-12 assumption is five percent, unless a different rate is required by
54-13 the Secretary of the Treasury, and the mortality decrement shall be
54-14 ignored to the extent that a forfeiture does not occur at death.]
54-15 [(g) For purposes of this section, an adjustment under
54-16 Section 415(d) of the Code may not be taken into account before the
54-17 year for which that adjustment first takes effect. No adjustment
54-18 is required for the value of qualified joint and survivor annuity
54-19 benefits, preretirement death benefits, post retirement medical
54-20 benefits, or post retirement cost-of-living increases made in
54-21 accordance with Section 415(d) of the Code and Section 1.415-3(c)
54-22 of the Income Tax Regulations.]
54-23 [(h) This plan may still pay an annual benefit to any member
54-24 in excess of the member's maximum annual benefit otherwise allowed
54-25 if:]
54-26 [(1) the annual benefit derived from the employer's
54-27 contributions under all qualified plans subject to the limitations
55-1 of Section 415 of the Code does not in the aggregate exceed $10,000
55-2 for the year or for any prior year; and]
55-3 [(2) the member has not at any time participated in a
55-4 defined contribution plan maintained by the employer.]
55-5 [For purposes of this subsection, member contributions under
55-6 the Act are not considered a separate defined contribution plan
55-7 maintained by the employer.]
55-8 [(i) If a member has less than ten years of creditable
55-9 service at the time the member begins to receive benefits under the
55-10 Act, the $90,000 limitation, as adjusted, shall be reduced by
55-11 multiplying the limitation by a fraction in which the numerator is
55-12 the number of years of creditable service and the denominator is
55-13 10; provided, however, that the fraction may not be less than
55-14 one-tenth. If the employee has less than 10 years of employment
55-15 with the employer, the $10,000 limitation of this subsection (h)
55-16 shall be reduced in the same manner as provided in the preceding
55-17 sentence, except the numerator shall be the number of years of
55-18 employment with the employer rather than the number of years of
55-19 creditable service.]
55-20 [(j) If a member is or has been a member in one or more
55-21 defined contribution plans maintained by the employer, the sum of
55-22 the defined benefit plan fraction and the defined contribution plan
55-23 fraction for any year for which Section 415(e) of the code is in
55-24 effect may not exceed 1.0, as determined in accordance with Section
55-25 415(e) of the code.]
55-26 [(k) For purposes of subsection (j). the defined benefit
55-27 plan fraction for any year is a fraction in which:]
56-1 [(1) the numerator is the projected annual benefit of
56-2 a member, determined as of the close of the year pursuant to
56-3 Section 1.415-7(b)(3) of the Income Tax Regulations; and]
56-4 [(2) the denominator is the lesser of:]
56-5 [(A) the product of 1.25 and the maximum dollar
56-6 limitation provided by subsection (a)(1) of this section, as
56-7 adjusted, for the year; or]
56-8 [(B) the product of 1.4 and the amount that may
56-9 be taken into account under subsection (a)(2) of this section for
56-10 the year.]
56-11 [(l) For purposes of subsection (a) of this section, the
56-12 defined contribution plan fraction for any year is a fraction in
56-13 which:]
56-14 [(1) the numerator is the sum of the annual additions
56-15 to the member's account as of the close of the year; and]
56-16 [(2) the denominator is the sum of the lesser of the
56-17 following amounts determined for the year and each prior year of
56-18 employment with the employer:]
56-19 [(A) the product of 1.25 and the dollar
56-20 limitation in effect under Section 415(c)(1)(A) of the Code for
56-21 the year, determined without regard to Section 415(c)(6) of the
56-22 Code; or]
56-23 [(B) the product of 1.4 and the amount that may
56-24 be taken into account under Section 415(c)(1)(B) of the Code for
56-25 the year.]
56-26 [The annual additions may not be recomputed for years
56-27 beginning before January 1, 1987 to treat all member contributions
57-1 as annual additions.]
57-2 [(m) If the sum of the defined benefit plan fraction and the
57-3 defined contribution plan fraction exceeds 1.0 in any year for any
57-4 member, the retirement board shall first request the person or
57-5 persons responsible for the defined contribution plan or plans, to
57-6 reduce, the annual additions to the member's account to the extent
57-7 necessary for that year. If, after limiting to the extent possible
57-8 the annual additions to the member's account for the year, the sum
57-9 of the defined benefit plan fraction and the defined contribution
57-10 plan fraction still exceeds 1.0, the retirement board shall adjust
57-11 the benefits provided under this Act so that the sum of both
57-12 fractions shall not exceed 1.0 in any year for the member.]
57-13 [(n) For purposes of determining the limits provided by this
57-14 section, all qualified defined benefit plans, whether terminated or
57-15 not, ever maintained by or contributed to by the employer, shall be
57-16 treated as one defined benefit plan, and all qualified defined
57-17 contribution plans, whether terminated or not, ever maintained by
57-18 or contributed to by the employer, shall be treated as one defined
57-19 contribution plan.]
57-20 [(o) Notwithstanding anything contained in this section to
57-21 the contrary, the limitations, adjustments, and other requirements
57-22 prescribed by this Act shall at all times comply with the
57-23 requirements of Section 415 of the Code and all Regulations
57-24 promulgated under the Code. If any provision of Section 415 of the
57-25 Code is repealed or is not enforced by the Internal Revenue
57-26 Service, that provision may not reduce the benefits of any member
57-27 after the effective date of the repeal of the provision or during
58-1 the period in which the provision is not enforced.]
58-2 (b) [(p)] A retired member who resumes regular full-time
58-3 employment with an employer automatically resumes membership as an
58-4 active contribut[ing]ory member, and the retirement board shall
58-5 terminate the person's retirement allowance. The retirement
58-6 allowance of a retired member who is employed by an employer for a
58-7 period of more than 6 months in any 12 consecutive calendar months,
58-8 and who works, is budgeted or is compensated for more than 29 hours
58-9 in a calendar week, shall be suspended. When the person again
58-10 retires, the retirement system shall compute the benefit based on
58-11 service before and after the initial retirement. The resulting
58-12 benefit is reduced actuarially to reflect the value of the benefits
58-13 received before the resumption of full-time employment.
58-14 Sec. 10. METHOD OF FINANCING. (a) Each active-contributory
58-15 member shall make deposits to the retirement system at a rate equal
58-16 to seven percent of the member's base compensation, pay, or salary,
58-17 exclusive of overtime, incentive, or terminal pay, or at a higher
58-18 contribution rate approved by a majority vote of the regular
58-19 full-time employee members. Deposits shall be made by payroll
58-20 deduction each pay period. If a regular full-time employee works
58-21 at least 75 percent of a normal 40-hour work week but less than the
58-22 full 40 hours, the employee shall make deposits as though working a
58-23 normal 40-hour work week even though the rate of contribution may
58-24 exceed seven percent of the employee's actual compensation, pay, or
58-25 salary, and the employee's average final compensation shall be
58-26 computed on the basis of the compensation, pay, or salary for a
58-27 normal 40-hour work week. No deposits may be made nor membership
59-1 service credit received for periods during which an employee's
59-2 authorized normal work week is less than seventy-five percent (75%)
59-3 of a normal 40-hour work week. A person who is eligible for
59-4 inactive-contributory membership status and who chooses to be an
59-5 inactive-contributory member shall make deposits to the retirement
59-6 system each pay period in an amount that is equal to the amount of
59-7 the member's deposit for the last complete pay period that the
59-8 member was a regular full-time employee [employed by the employer].
59-9 The regular full-time employee members may, by a majority vote of
59-10 all such members voting at an election to consider [in favor of] an
59-11 increase in contributions, [above seven percent, may] increase each
59-12 member's contributions above seven percent or above such higher
59-13 rate as is then in effect and approved by majority vote, in
59-14 whatever amount the retirement board recommends. Each employer
59-15 shall contribute amounts equal to seven percent of the
59-16 compensation, pay, or salary of each active-contributory member and
59-17 each inactive-contributory member employed by the employer,
59-18 exclusive of overtime, incentive, or terminal pay. If a regular
59-19 full-time employee of the employer works at least seventy-five
59-20 percent (75%) of a normal 40-hour work week but less than the full
59-21 40 hours, the employer shall make contributions for that employee
59-22 as though that employee works a normal 40-hour work week even
59-23 though the rate of contribution may exceed seven percent of that
59-24 employee's actual compensation, pay, or salary. The governing body
59-25 of the city may authorize the city to make additional contributions
59-26 to the system in whatever amount the governing body may determine.
59-27 If the governing body authorizes additional contributions to the
60-1 system by the city for city employees, the board of each other
60-2 employer may increase the contributions for such employer's
60-3 respective employees by the same percentage. Employer
60-4 contributions shall be made each pay period.
60-5 (b) In addition to the contributions by the city required by
60-6 subsection (a) of this section, the city shall contribute to the
60-7 retirement fund each month two-thirds of such amounts as are
60-8 required for the payment of prior service pensions that are payable
60-9 during that month, and one-third of each prior service pension
60-10 payable that month shall be made from Fund No. 2.
60-11 (c) Employer contributions shall be paid to the retirement
60-12 system after appropriation by the respective governing body or
60-13 board.
60-14 (d) Expenses for administration and operation of the
60-15 retirement system that are approved by the retirement board shall
60-16 be paid by the retirement board from funds of the retirement
60-17 system. Such expenses shall include salaries of retirement board
60-18 employees and fees for actuarial services, legal counsel services,
60-19 physician services, accountant services, annual audits by
60-20 independent certified public accountants, investment manager
60-21 services, investment consultant services, preparation of annual
60-22 reports, and staff assistance.
60-23 (e) Each employer shall pick up the contributions required
60-24 to be made to the fund by its respective employees. Active
60-25 contributory member deposits will be picked up by each employer by
60-26 a reduction in each such employee's monetary compensation. All
60-27 such employee contributions shall be treated as employer
61-1 contributions in accordance with Section 414(h)(2) of the Code for
61-2 the purpose of determining tax treatment of the amounts under the
61-3 Code. Such contributions are not includable in the gross income of
61-4 the employee until such time as they are distributed or made
61-5 available to the employee. Each employee deposit picked up as
61-6 provided by this subsection shall be credited to the individual
61-7 accumulated deposits account of each such employee and shall be
61-8 treated as compensation of the employee for all other purposes of
61-9 this Act and for the purpose of determining contributions to social
61-10 security. The provisions of this subsection shall remain in effect
61-11 as long as the plan covering employees of the employers is a
61-12 qualified retirement plan under Section 401(a) of the Code and its
61-13 related trust is tax exempt under Section 501(a) of the Code.
61-14 (f) Notwithstanding any contrary provision of this Act, if
61-15 the retirement board first obtains an actuarial study showing how
61-16 the proposed change in benefits will affect the financial condition
61-17 of the fund, and the actuarial study shows the proposed change will
61-18 not make the fund financially unsound, and the proposed change is
61-19 not inconsistent with the Code, the retirement board may provide
61-20 additional member benefits, reduce the requirements for unreduced
61-21 retirement benefits, or increase any retirement allowance or other
61-22 benefit authorized by this Act.
61-23 [(f)] (g) Under no circumstances and in no event may any of
61-24 the contributions and income of the retirement system revert to the
61-25 employer or otherwise be diverted to or used for any purpose other
61-26 than the exclusive benefit of the members, retirees and their
61-27 beneficiaries. It shall be impossible for the diversion or use
62-1 prohibited by the preceding sentence to occur, whether by operation
62-2 or natural termination of the retirement system, by power of
62-3 revocation or amendment, by the happening of a contingency, by
62-4 collateral arrangement, or by any other means.
62-5 Sec. 11. INVESTMENTS OF THE RETIREMENT BOARD. (a) The
62-6 retirement board shall be the trustee of the funds of the
62-7 retirement system and shall have full power in its sole discretion
62-8 to invest and reinvest, alter, and change the form of investment of
62-9 the funds. The retirement board shall invest the funds in whatever
62-10 instrument or investments the retirement board considers prudent.
62-11 In making investments for the funds, the retirement board shall
62-12 discharge its duties:
62-13 (1) for the exclusive purposes of:
62-14 (A) providing benefits to members and their
62-15 beneficiaries; and
62-16 (B) defraying reasonable expenses of
62-17 administering the funds;
62-18 (2) with the care, skill, prudence, and diligence
62-19 under the circumstances then prevailing that a prudent person
62-20 acting in a like capacity and familiar with such matters would use
62-21 in the conduct of an enterprise of a like character and with like
62-22 aims;
62-23 (3) by diversifying the investments of the funds to
62-24 minimize the risk of large losses, unless under the circumstances
62-25 it is clearly prudent not to do so; and
62-26 (4) in accordance with the laws, documents, and
62-27 instruments governing the funds.
63-1 (b) A member of the retirement board is not liable for any
63-2 losses incurred in the investment of the fund in accordance with
63-3 this section.
63-4 (c) No member of the retirement board and no employee of the
63-5 retirement board, except as herein provided, shall have any
63-6 interest, directly or indirectly, in the funds or receive any pay
63-7 or emolument for his or her services. No member of the retirement
63-8 board or employee thereof shall, directly or indirectly, for
63-9 himself or herself or as an agent, in any manner use the funds or
63-10 deposits of the retirement system except to make such current and
63-11 necessary payments as are authorized by the retirement board, nor
63-12 shall any member or employee of the retirement board become an
63-13 endorser or surety or in any manner an obligor for money loaned by
63-14 or borrowed from the retirement system.
63-15 (d) Subject to the exceptions provided by this subsection,
63-16 the funds or money mentioned in this Act are not assignable and are
63-17 not subject to execution, levy, attachment, garnishment, the
63-18 operation of bankruptcy or insolvency law, or any other process of
63-19 law whatsoever. This subsection does not apply to a qualified
63-20 domestic relations order. The retirement board shall establish
63-21 written procedures to determine the qualified status of domestic
63-22 relations orders and to administer distributions under those
63-23 orders. To the extent necessary to authorize distributions
63-24 pursuant to a qualified domestic relations order, a former spouse
63-25 of a member will be treated as the spouse or surviving spouse of
63-26 the member.
63-27 (e) Subject to the exceptions provided by this subsection,
64-1 the right of a member to a pension, an annuity, a disability
64-2 retirement allowance, or a retirement allowance, to the return of
64-3 accumulated deposits, the pension, annuity, or retirement allowance
64-4 itself, any optional benefit or death benefits, or any other right
64-5 accrued or accruing to any person under the provisions of this Act,
64-6 is unassignable and is not subject to execution, levy, attachment,
64-7 garnishment, the operation of bankruptcy or insolvency law, or any
64-8 other process of law whatsoever. This subsection does not apply to
64-9 a qualified domestic relations order.
64-10 (f) If the retirement board makes an election to have
64-11 Subchapters A and C of Chapter 804, Texas Government Code, and
64-12 their subsequent amendments, apply to the system, the death of an
64-13 alternate payee, as defined by Section 804.001, Texas Government
64-14 Code, and its subsequent amendments, or the death of a member's
64-15 spouse terminates any interest of the alternate payee or spouse
64-16 that would otherwise exist under this Act, except an interest
64-17 accrued by that person as a member.
64-18 Sec. 12. MISCELLANEOUS. (a) A person who with intent to
64-19 deceive makes any statement or report required under this Act which
64-20 is untrue or falsifies or knowingly permits to be falsified any
64-21 record or records of the retirement system shall forfeit any office
64-22 or rights held by the person under the system, and such deception,
64-23 falsification, or acquiescence in falsification is deemed a Class B
64-24 misdemeanor.
64-25 (b) If any change or error in the records of the retirement
64-26 system is discovered or results in any member, surviving spouse, or
64-27 beneficiary receiving from the retirement system more or less than
65-1 the member, surviving spouse, or beneficiary would have been
65-2 entitled to receive had the records been correct, the retirement
65-3 board shall have the power to correct such error and as far as
65-4 possible to adjust the payments in such a manner that the actuarial
65-5 equivalent of the benefits to which the member, surviving spouse,
65-6 or beneficiary was correctly entitled shall be paid.
65-7 (c) On the full or partial termination of the retirement and
65-8 pensioning system, or on the complete discontinuance of
65-9 contributions by all employers under this Act, the retirement
65-10 allowance of each affected member who is employed by an employer on
65-11 the date of termination is determined by reference to the member's
65-12 average final compensation and creditable service determined as of
65-13 the date of termination or partial termination of the system or the
65-14 date of discontinuance of deposits as if the member had attained
65-15 normal retirement age on that date, and such amount shall become
65-16 nonforfeitable to the extent then funded. This subsection does not
65-17 accelerate the date on which the payment of that benefit would
65-18 otherwise begin.
65-19 [(d) Notwithstanding any other provision in this Act to the
65-20 contrary, in the event of a termination of the retirement and
65-21 pensioning system, the benefit of any highly compensated employee
65-22 or former employee is limited to a benefit that is
65-23 nondiscriminatory under Section 401(a)(4) of the Code. Benefits
65-24 distributed to any of the twenty-five (25) most highly compensated
65-25 active and former highly compensated employees are restricted such
65-26 that the annual payments are no greater than an amount equal to the
65-27 payment that would be made on behalf of an employee under a single
66-1 life annuity that is the actuarial equivalent of the sum of the
66-2 employee's accrued benefit and the employee's other benefits under
66-3 the plan. The preceding sentence shall not apply if: (1) after
66-4 payment of the benefit to an employee described in that sentence,
66-5 the value of plan assets equals or exceeds 110% of the value of
66-6 the current liabilities, as defined in Section 412(l)(7) of the
66-7 Code, or (2) the value of the benefits for an employee described in
66-8 that paragraph is less than one percent (1%) of the value of
66-9 current liabilities. For purposes of this subsection, benefit
66-10 includes loans in excess of the amount set forth in Section
66-11 72(p)(2)(A) of the Code, any periodic income, any withdrawal values
66-12 payable to a living employee and any death benefits not provided
66-13 for by insurance on the employee's life.]
66-14 [(e)] (d) Notwithstanding any provision of this Act to the
66-15 contrary that would otherwise limit a distributee's election, a
66-16 distributee may elect, at the time and in the manner prescribed by
66-17 the retirement board, to have any portion of an eligible rollover
66-18 distribution paid directly to an eligible retirement plan specified
66-19 by the distributee in a direct rollover.
66-20 For purposes of this Subsection [(e)] (d) of this Section:
66-21 (1) An eligible rollover distribution is any
66-22 distribution of all or any portion of the balance to the credit of
66-23 the distributee, except that an eligible rollover distribution does
66-24 not include: (1) any distribution that is one of a series of
66-25 substantially equal periodic payments (not less frequently than
66-26 annually) made over the life (or life expectancy) of the
66-27 distributee or the joint lives (or joint life expectancies) of the
67-1 distributee and the distributee's designated beneficiary; (2) any
67-2 series of payments for a specified period of ten years or more; (3)
67-3 any distribution to the extent such distribution is required under
67-4 Section 401(a)(9) of the Code; or (4) the portion of any
67-5 distribution that is not includable in gross income (determined
67-6 without regard to the exclusion for net unrealized appreciation
67-7 with respect to employer securities).
67-8 (2) An "eligible retirement plan" is an individual
67-9 retirement account described in Section 408(a) of the Code, an
67-10 individual retirement annuity described in Section 408(b) of the
67-11 Code, an annuity plan described in Section 403(a) of the Code, or a
67-12 qualified trust described in Section 401(a) of the Code, that
67-13 accepts the distributee's eligible rollover distribution. However,
67-14 in the case of an eligible rollover distribution to the surviving
67-15 spouse, an eligible retirement plan is an individual retirement
67-16 account or individual retirement annuity only.
67-17 (3) A "distributee" includes an employee or former
67-18 employee. In addition, the employee's or former employee's
67-19 surviving spouse and the employee's or former employee's spouse or
67-20 former spouse who is the alternate payee under a qualified domestic
67-21 relations order, as defined in Section 414(p) of the Code, are
67-22 distributees with regard to the interest of the spouse or the
67-23 former spouse.
67-24 (4) A "direct rollover" is a payment by the retirement
67-25 system to the eligible retirement plan specified by the
67-26 distributee.
67-27 [(f)] (e) (1) A retirement allowance being paid to a member
68-1 of the retirement system created by Chapter 451, Acts of the 72nd
68-2 Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas
68-3 Civil Statutes), who retired before October 1, 199[7]9, or to a
68-4 beneficiary of such a member of that system, is changed beginning
68-5 with the payments due at the end of October, 199[7]9.
68-6 (2) This change is made to reflect the change in the
68-7 benefit multiplier to [2.6] 2.7 percent effective October 199[7]9.
68-8 The amount of the change for a member or a beneficiary of a member
68-9 is equal to the percentage multiplied by the retirement allowance
68-10 otherwise due. The percentage is equal to [13.04] 3.85 percent.
68-11 [(g) (1) The changes in law made by H.B. 2799, Acts of the
68-12 73rd Legislature, Regular Session, 1993, to Section 5(e), Chapter
68-13 451, Acts of the 72nd Legislature, Regular Session, 1991 (Article
68-14 6243n, Vernon's Texas Civil Statutes), permit a member who, before
68-15 July 1, 1993, reinstated any portion of the member's membership
68-16 service or prior service under a city ordinance that was in effect
68-17 before July 1, 1993, to reinstate any membership service or prior
68-18 service to which the member was not entitled to reinstate under
68-19 that city ordinance.]
68-20 [(2) The changes in law made by H.B. 2799, Acts of the
68-21 73rd Legislature, Regular Session, 1993, to Section 7, Chapter 451,
68-22 Acts of the 72nd Legislature, Regular Session, 1991 (Article 6243n,
68-23 Vernon's Texas Civil Statutes), apply only to an option election or
68-24 beneficiary designation made on or after July 1, 1993 is as
68-25 governed by the law in effect at the time the election or
68-26 designation was made, and that law is continued in effect for this
68-27 purpose only.]
69-1 Sec. 13. CONFIDENTIALITY. (a) Information contained in
69-2 records that are in the custody of the retirement board or the
69-3 system concerning an individual member, retiree, annuitant,
69-4 beneficiary, or alternate payee is confidential under this Section
69-5 [14] and may not be disclosed in a form identifiable with a
69-6 specific individual unless:
69-7 (1) the information is disclosed to:
69-8 (A) the individual or the individual's attorney,
69-9 guardian, executor, administrator, conservator, or other person who
69-10 the pension [officer] director determines is acting in the interest
69-11 of the individual or the individual's estate;
69-12 (B) a spouse or former spouse of the individual
69-13 if the pension [officer] director determines that the information
69-14 is relevant to the spouse's or former spouse's interest in member
69-15 accounts, benefits, or other amounts payable by the retirement
69-16 system;
69-17 (C) a governmental official or employee if the
69-18 pension [officer] director determines that disclosure of the
69-19 information requested is reasonably necessary to the performance of
69-20 the duties of the official or employee;
69-21 (D) the individual's employer as defined in this
69-22 Act; or
69-23 (E) a person authorized by the individual in
69-24 writing to receive the information; or
69-25 (2) the information is disclosed pursuant to a
69-26 subpoena and the pension [officer] director determines that the
69-27 individual will have a reasonable opportunity to contest the
70-1 subpoena.
70-2 (b) This section does not prevent the disclosure of the
70-3 status or identity of an individual as a member, former member,
70-4 retiree, deceased member or retiree, beneficiary, or alternate
70-5 payee of the retirement system.
70-6 (c) The pension [officer] director may designate other
70-7 employees of the retirement system to make the necessary
70-8 determinations under Subsection (a).
70-9 (d) A determination and disclosure under Subsection (a) may
70-10 be made without notice to the individual member, retiree,
70-11 annuitant, beneficiary, or alternate payee.
70-12 Sec. 14. SEVERABILITY. If any provision, section, part,
70-13 subsection, sentence, clause, phrase, or paragraph of this Act is
70-14 declared invalid or unconstitutional, the same shall not affect any
70-15 other portion or provision hereof and all other provisions shall
70-16 remain valid and unaffected by any invalid portion, if any.
70-17 Sec. 15. SAVINGS CLAUSE. The provisions of this Act shall
70-18 be cumulative of and in addition to all laws relating to pensions,
70-19 which laws are hereby preserved and continued in full force and
70-20 effect, provided that in the event of conflict, expressly excluding
70-21 any statutes relating to federal tax exemption, the provisions of
70-22 this Act control, and employee pensions in a city covered by this
70-23 Act shall be administered in accordance with this Act.
70-24 SECTION 2. Except as provided by Section 7 of this Act, this
70-25 Act takes effect October 1, 199[7]9.
70-26 SECTION 3. The importance of this legislation and the
70-27 crowded condition of the calendars in both houses create an
71-1 emergency and an imperative public necessity that the
71-2 constitutional rule requiring bills to be read on three several
71-3 days in each house be suspended, and this rule is hereby suspended.