By: Madla S.B. No. 455
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the retirement system for firefighters and police
1-2 officers in certain municipalities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1.05, Chapter 824, Acts of the 73rd
1-5 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
1-6 Civil Statutes), is amended to read as follows:
1-7 Sec. 1.05. EXEMPTIONS. (a) An amount payable [A retirement
1-8 annuity] from the fund is exempt from garnishment, assignment,
1-9 attachment, judgments, other legal process, and inheritance or
1-10 other taxes established by this state.
1-11 (b) Fund assets are exempt from attachment, execution,
1-12 alienation, and forced sale. A judgment lien or abstract of
1-13 judgment may not be filed or perfected against the fund on fund
1-14 assets. A judgment lien or abstract of judgment filed against the
1-15 fund on fund assets is void.
1-16 SECTION 2. Subsection (a), Section 2.04, Chapter 824, Acts
1-17 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
1-18 Vernon's Texas Civil Statutes), is amended to read as follows:
1-19 (a) The board shall elect from [among] the trustees a
1-20 presiding officer [chairman], an assistant presiding officer [a
1-21 vice-chairman], and a secretary.
1-22 SECTION 3. Subsection (a), Section 2.06, Chapter 824, Acts
1-23 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
1-24 Vernon's Texas Civil Statutes), is amended to read as follows:
2-1 (a) The board shall hold regular monthly meetings and
2-2 special meetings at the call of the presiding officer [chairman] or
2-3 on written demand by a majority of the members of the board.
2-4 SECTION 4. Subsection (a), Section 2.07, Chapter 824, Acts
2-5 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
2-6 Vernon's Texas Civil Statutes), is amended to read as follows:
2-7 (a) The presiding officer [chairman] of the board may
2-8 appoint committees that report to the board.
2-9 SECTION 5. Section 3.01, Chapter 824, Acts of the 73rd
2-10 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
2-11 Civil Statutes), is amended to read as follows:
2-12 Sec. 3.01. GENERAL POWERS AND DUTIES OF BOARD. (a) The
2-13 board has complete authority and power to:
2-14 (1) administer the fund for the exclusive benefit of
2-15 all members, retirees, and beneficiaries;
2-16 (2) order payments from the fund as required by this
2-17 Act;
2-18 (3) control the fund independently;
2-19 (4) conduct all litigation on behalf of the fund; and
2-20 (5) purchase with fund assets from one or more
2-21 insurers licensed to do business in this state one or more
2-22 insurance policies that provide for reimbursement of the fund and
2-23 any trustee, officer, or employee of the board for liability
2-24 imposed or damages because of an alleged act, error, or omission
2-25 committed in the trustee's, officer's, or employee's capacity as a
2-26 fiduciary officer or employee [of assets] of the fund and for costs
3-1 and expenses incurred as a trustee, officer, or employee in defense
3-2 of a claim for an alleged act, error, or omission, as long as the
3-3 insurance policy does not provide for reimbursement of a trustee,
3-4 officer, or employee for liability imposed or expenses incurred
3-5 because of the trustee's, officer's, or employee's personal
3-6 dishonesty, fraud, lack of good faith, or intentional failure to
3-7 act prudently.
3-8 (b) If the insurance coverage described by Subsection (a)(5)
3-9 of this section is insufficient or is not in effect, the board may
3-10 indemnify a person for liability, damages, and reasonable legal
3-11 expenses that result from an alleged act, error, or omission
3-12 occurring in the person's capacity as a trustee, officer, or
3-13 employee of the fund without regard to the time of the occurrence
3-14 of the allegation or whether the person continues to serve in that
3-15 capacity. The board may not indemnify an individual because of the
3-16 individual's dishonesty, fraudulent act, lack of good faith, or
3-17 intentional failure to act prudently.
3-18 (c) Indemnification under Subsection (b) of this section
3-19 shall be determined by a majority vote of trustees who are not the
3-20 subject of the indemnification. The board may adopt a policy for
3-21 the presentation, approval, and payment of indemnification claims
3-22 covered under Subsection (b) of this section.
3-23 (d) The board shall adopt rules necessary for the board's
3-24 effective operation, including rules relating to:
3-25 (1) the disbursement of the fund's assets;
3-26 (2) the designation of beneficiaries of the fund; and
4-1 (3) the name of the board and the fund.
4-2 (e) [(c)] The board shall report annually to the governing
4-3 body of the municipality regarding the condition of the fund and
4-4 the receipts and disbursements of the fund.
4-5 SECTION 6. Subsection (d), Section 3.02, Chapter 824, Acts
4-6 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
4-7 Vernon's Texas Civil Statutes), is amended to read as follows:
4-8 (d) The presiding officer [chairman] of the board may issue
4-9 process for witnesses, administer oaths to those witnesses, and
4-10 examine any witness in any manner affecting retirement or a benefit
4-11 under this Act. The process for witnesses may be served on any
4-12 member of the fire or police department or any other person the
4-13 board considers to be an appropriate person. On the failure of any
4-14 witness to attend and testify, that person may be compelled to
4-15 attend and testify as in any judicial proceeding.
4-16 SECTION 7. Section 3.03, Chapter 824, Acts of the 73rd
4-17 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
4-18 Civil Statutes), is amended to read as follows:
4-19 Sec. 3.03. ORDERS FOR DISBURSEMENTS OF BENEFITS. (a) The
4-20 board shall issue orders for disbursements signed by the presiding
4-21 officer [chairman] or assistant presiding officer [vice-chairman]
4-22 of the board and the secretary of the board to the appropriate
4-23 persons. The order shall state the purposes for the payments. The
4-24 board shall keep a record of those orders.
4-25 (b) Disbursements may not be made without a record vote of
4-26 the board.
5-1 (c) Each member, retiree, and beneficiary shall provide bank
5-2 depository information to the board so that the board can disburse
5-3 benefits by electronic transfer.
5-4 (d) The board may reduce the amount of a benefit to which a
5-5 retiree or beneficiary is otherwise entitled in order to reimburse
5-6 the fund for an overpayment or incorrect payment of benefits to the
5-7 retiree or beneficiary.
5-8 SECTION 8. Section 5.01, Chapter 824, Acts of the 73rd
5-9 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
5-10 Civil Statutes), is amended by amending Subsections (d), (e), and
5-11 (f) and adding Subsection (g) to read as follows:
5-12 (d) The board shall compute the retirement annuity of a
5-13 member who retires after September 30, 1997, but before October 1,
5-14 1999, at the rate of two percent of the member's average total
5-15 salary for each of the first 20 years of service, plus four percent
5-16 of average total salary for each of the next 10 years of service,
5-17 plus one percent of average total salary for each of the next five
5-18 years of service, with fractional years of service prorated based
5-19 on full months served as a contributing member. In making the
5-20 computation for a year, the year is considered to begin on the
5-21 first day a contribution is made. A retirement annuity under this
5-22 subsection may not exceed, as of the date of retirement, 85 percent
5-23 of the member's average total salary.
5-24 (e) The board shall compute the retirement annuity of a
5-25 member who retires after September 30, 1999, at the rate of 2-1/8
5-26 percent of the member's average total salary for each of the first
6-1 20 years of service, plus four percent of the member's average
6-2 total salary for each of the next 10 years of service, plus one
6-3 percent of the member's average total salary for each of the next
6-4 five years of service, with fractional years of service prorated
6-5 based on full months served as a contributing member. In making
6-6 the computation for a year, the year is considered to begin on the
6-7 first day a contribution is made. A retirement annuity under this
6-8 subsection may not exceed, as of the date of retirement, 87-1/2
6-9 percent of the member's average total salary.
6-10 (f) A member may not receive an award from the fund for
6-11 service retirement until the member has at least 20 years of
6-12 service in the fire or police department and has also contributed
6-13 the required amount of money for at least 20 years. In determining
6-14 the number of years of service in a department, the member shall be
6-15 given full credit for the period the member was an active member
6-16 plus the time the member was actively engaged in service with any
6-17 uniformed service in accordance with Section 4.03 of this Act and
6-18 for absences taken under the Family and Medical Leave Act (29
6-19 U.S.C. Section 2601 et seq.), in accordance with Section 4.02 of
6-20 this Act. Disciplinary suspensions of 15 days or less may not be
6-21 subtracted from a member's service credit under this Act if the
6-22 member has paid into the fund, within 30 days after the later of
6-23 the termination date of each suspension or the exhaustion of any
6-24 appeal with respect to the suspension, a sum of money equal to the
6-25 amount of money that would have been deducted from that person's
6-26 salary during that period of suspension if it had not been for that
7-1 suspension. A municipality to which this Act applies shall
7-2 double-match a payment made under this subsection. Members of the
7-3 fund at the time of their retirement shall also receive service
7-4 credit for all unused sick leave accumulated by them under Chapter
7-5 143, Local Government Code, but only to the extent the unused sick
7-6 leave exceeds 90 days. Service credit for unused sick leave shall
7-7 be prorated based on each full month of sick leave.
7-8 (g) [(f)] All monthly pensions being paid by the fund to
7-9 retirees who retired before October 1, 1989, are increased,
7-10 effective with the first monthly payment due on or after October 1,
7-11 1999 [1997]. The amount of the increase depends on the fiscal year
7-12 ending September 30 in which the retiree retired and is a
7-13 percentage of the pension payment that would have been payable on
7-14 October 1, 1999 [1997], except for this increase. The amount of
7-15 the percentage increase is [set forth in the following schedule]:
7-16 Municipality Fiscal Year Percentage
7-17 of Retirement Increase
7-18 1988 1.0%
7-19 1987 2.0%
7-20 1986 3.0%
7-21 1985 4.0%
7-22 1984 5.0%
7-23 1983 6.0%
7-24 1982 7.0%
7-25 1981 8.0%
7-26 1980 9.0%
8-1 1979 or earlier 10.0%
8-2 SECTION 9. Subsection (b), Section 5.015, Chapter 824, Acts
8-3 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
8-4 Vernon's Texas Civil Statutes), is amended to read as follows:
8-5 (b) The Back DROP election:
8-6 (1) results in a lump-sum payment for a number of full
8-7 months of service elected by the member that does not exceed the
8-8 lesser of the number of months of service credit the member has in
8-9 excess of 20 years or 36 [24] months; [and]
8-10 (2) is available only to a member who takes a service
8-11 retirement; and
8-12 (3) must be made at the time of application for
8-13 retirement.
8-14 SECTION 10. Subsection (a), Section 5.02, Chapter 824, Acts
8-15 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
8-16 Vernon's Texas Civil Statutes), is amended to read as follows:
8-17 (a) A person who has qualified for a retirement annuity
8-18 under this Act but who has subsequently ceased to be a member of
8-19 the fund or a properly enrolled member of the fire or police
8-20 department, by whatever means or for whatever reason, is entitled
8-21 to a retirement annuity from the fund that accrued to that person
8-22 before the time that person ceased to be a member of the fund or a
8-23 properly enrolled member of the fire or police department if the
8-24 person or the person's beneficiary, in the event of the person's
8-25 death, files an application for the retirement annuity with the
8-26 board [within four years after the date that person ceased to be a
9-1 member of the fund or a properly enrolled member of the fire or
9-2 police department].
9-3 SECTION 11. The heading to Section 5.08, Chapter 824, Acts
9-4 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
9-5 Vernon's Texas Civil Statutes), is amended to read as follows:
9-6 Sec. 5.08. REASONABLE ACCOMMODATION [DISCRETION OF
9-7 DEPARTMENT CHIEF FOR EMPLOYMENT OF DISABILITY RETIREE].
9-8 SECTION 12. Section 5.09, Chapter 824, Acts of the 73rd
9-9 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
9-10 Civil Statutes), is amended to read as follows:
9-11 Sec. 5.09. COST-OF-LIVING INCREASES. (a) At or before its
9-12 regular meeting in the month of March, the board annually shall
9-13 review the Consumer's Price Index for All Urban Consumers (CPI-U),
9-14 U.S. City Average or the nearest equivalent published by the United
9-15 States Bureau of Labor Statistics for the preceding calendar year.
9-16 If that index shows an increase during the preceding calendar year
9-17 in the cost of living as compared with that index at the close of
9-18 the previous year, the board shall order an increase of all
9-19 service, disability, and death benefit retirement annuities [of all
9-20 retirees and beneficiaries] by a percentage that varies by the date
9-21 of the member's service or disability retirement [on which the
9-22 member retired], or, in the case of a member who died before
9-23 retirement, the date on which the member died. If the member's
9-24 service retirement, disability retirement, or death before
9-25 retirement occurred before August 30, 1971, the annuity shall be
9-26 increased by a percentage equal to the percentage increase in the
10-1 cost of living index. If the member's service retirement,
10-2 disability retirement, or death before retirement occurred on or
10-3 after August 30, 1971, but before October 1, 1989, the [retirement]
10-4 annuity shall be increased by a percentage that is 87.5 percent of
10-5 the percentage increase in the cost of living index, for any year
10-6 in which the cost of living index increases by eight percent or
10-7 less and by 75 percent of the percentage increase in the cost of
10-8 living index if the cost of living index increases by more than
10-9 eight percent. If the member's service retirement, disability
10-10 retirement, or death before retirement occurred on or after October
10-11 1, 1989, the [retirement] annuity shall be increased by a
10-12 percentage that is 75 percent of the percentage increase in the
10-13 cost of living index. A percentage increase in [retirement]
10-14 annuities shall be rounded to the nearest one-tenth percentage
10-15 point for a cost of living increase.
10-16 (b) The [retirement] annuities to which this section applies
10-17 shall be computed as of the month of January before that March
10-18 board meeting and shall continue in effect for at least one full
10-19 year until there has been an additional increase to that
10-20 cost-of-living index and the board enters another order as provided
10-21 by this section.
10-22 (c) The cost-of-living increase paid to any retiree or
10-23 beneficiary [of a member or retiree] during the first full year
10-24 after the effective date of the service retirement, disability
10-25 retirement, or death shall be prorated on the basis of full months
10-26 from the date of the member's service retirement, disability
11-1 retirement, or death [retired].
11-2 SECTION 13. Subsection (b), Section 5.11, Chapter 824, Acts
11-3 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
11-4 Vernon's Texas Civil Statutes), is amended to read as follows:
11-5 (b) Any member or beneficiary who is entitled to receive
11-6 [receives] any distribution [from any plan within the system] that
11-7 is an eligible rollover distribution as defined by Section
11-8 402(c)(4) of the code is entitled to have that distribution
11-9 transferred directly to another eligible retirement plan of the
11-10 member's or beneficiary's choice on providing direction to the fund
11-11 regarding that transfer in accordance with procedures established
11-12 by the board.
11-13 SECTION 14. The heading to Section 5.12, Chapter 824, Acts
11-14 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
11-15 Vernon's Texas Civil Statutes), is amended to read as follows:
11-16 Sec. 5.12. 13TH CHECK FOR RETIREES.
11-17 SECTION 15. Subsection (b), Section 5.12, Chapter 824, Acts
11-18 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
11-19 Vernon's Texas Civil Statutes), is amended to read as follows:
11-20 (b) The 13th pension check is paid to each retiree entitled
11-21 to receive [receiving] an annuity in the last month of the fiscal
11-22 year preceding the fiscal year in which the check is disbursed [at
11-23 the time of disbursement] and is in an amount equal to the amount
11-24 of the annuity payment made in the last month of the preceding
11-25 fiscal year [pension check paid immediately before the disbursement
11-26 of the retiree's 13th check], except the amount of any such check
12-1 shall be prorated for any retiree who has been receiving an annuity
12-2 for less than one year so that the amount of the check is
12-3 one-twelfth of the check that would have been paid to the [a]
12-4 retiree receiving an annuity for a full year times the number of
12-5 full months [the retiree has received] an annuity has been paid.
12-6 SECTION 16. The heading to Article 6, Chapter 824, Acts of
12-7 the 73rd Legislature, Regular Session, 1993 (Article 6243o,
12-8 Vernon's Texas Civil Statutes), is amended to read as follows:
12-9 ARTICLE 6. BENEFICIARY'S [DEPENDENT'S] BENEFITS
12-10 SECTION 17. Section 6.01, Chapter 824, Acts of the 73rd
12-11 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
12-12 Civil Statutes), is amended to read as follows:
12-13 Sec. 6.01. MEMBER'S BENEFICIARY AND DEPENDENT CHILD'S
12-14 RIGHTS. (a) A member of the fund has, in addition to all rights
12-15 accruing from the person's membership, the same right to receive
12-16 benefits as a beneficiary that a nonmember who is a beneficiary has
12-17 in similar circumstances if the member's spouse also is a member of
12-18 the fund.
12-19 (b) A dependent child is entitled to receive benefits based
12-20 on the service of any parent who is a member of the fund.
12-21 SECTION 18. Section 6.02, Chapter 824, Acts of the 73rd
12-22 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
12-23 Civil Statutes), is amended to read as follows:
12-24 Sec. 6.02. DEATH BENEFIT ANNUITY FOR SURVIVING SPOUSES AND
12-25 CHILDREN. (a) Subject to Section [Sections] 6.03 of this Act and
12-26 Subsections (h), (i), (j), (k), and (l) [6.08] of this section
13-1 [Act], if a [an active] member [or a retiree] dies leaving a
13-2 surviving spouse or at least one dependent child [or more children
13-3 under the age of 18 years], the surviving spouse and the children
13-4 are entitled to receive from the fund an aggregate death benefit
13-5 annuity, computed and payable from the date of the member's death,
13-6 in an amount that is equal to the greater of:
13-7 (1) 50 percent of the member's average total salary;
13-8 or
13-9 (2) the same percentage of the member's average total
13-10 salary that the member would have been entitled to receive as a
13-11 retirement annuity if the member could have retired on the date of
13-12 death.
13-13 (b) The amount of a death benefit annuity computed under
13-14 Subsection (a) of this section[, except that the percentage] may
13-15 not exceed the service retirement annuity [percentage] to which a
13-16 member with the same average total salary and with 26 [25] years of
13-17 service credit would be entitled.
13-18 (c) Subject to Section 6.08 of this Act and Subsections (h),
13-19 (i), (j), (k), and (l) of this section, if a retiree dies leaving a
13-20 surviving spouse or at least one dependent child, the surviving
13-21 spouse and dependent children are entitled to receive from the fund
13-22 an aggregate death benefit annuity, computed and payable from the
13-23 date of the member's death, in an amount that is equal to the same
13-24 percentage of the retiree's average total salary that the retiree
13-25 would have been entitled to receive as a retirement annuity if the
13-26 retiree had retired on the date of death less the amount of time,
14-1 if any, elected by the retiree under Section 5.015(b)(1) of this
14-2 Act.
14-3 (d) The amount of a death benefit annuity computed under
14-4 Subsection (c) of this section may not exceed the lesser of:
14-5 (1) the retirement annuity to which a member with the
14-6 same average total salary and 26 years of service credit would be
14-7 entitled; or
14-8 (2) the retirement annuity the retiree was receiving
14-9 at the time of the retiree's death.
14-10 (e) If, at the time a death benefit annuity becomes payable
14-11 under Subsection (a) or (c) of this section, the deceased leaves a
14-12 surviving spouse and at least one dependent child, the board shall
14-13 award:
14-14 (1) one-half [One-half] of the [death benefit] annuity
14-15 [under this subsection shall be awarded] to the surviving spouse;
14-16 and
14-17 (2) one-half of the annuity:
14-18 (A) to the dependent child, if there is only
14-19 one; or
14-20 (B) if there is more than one dependent child,
14-21 in equal shares to each child [children].
14-22 (f) If, at the time a death benefit annuity under Subsection
14-23 (a) or (c) of this section becomes payable, the deceased leaves a
14-24 surviving spouse and no dependent child, the board shall award the
14-25 annuity to the surviving spouse.
14-26 (g) If, at the time a death benefit annuity under Subsection
15-1 (a) or (c) of this section becomes payable, the deceased leaves no
15-2 surviving spouse and at least one dependent child, the board shall
15-3 award the annuity:
15-4 (1) to the dependent child, if there is only one; or
15-5 (2) if there is more than one child, in equal shares
15-6 to each child.
15-7 (h) [(b)] A child who is born after the date of retirement
15-8 of the member is not entitled to a death benefit annuity under this
15-9 Act unless the retiree [member] was married to the other parent of
15-10 the child on the date of retirement. A surviving spouse of a
15-11 retiree who was not married to the retiree until after the
15-12 retiree's retirement is entitled to receive only the benefit, if
15-13 any, provided under Section 6.08 of this Act.
15-14 [(c) If there are no children, the surviving spouse is
15-15 entitled to receive from the fund a death benefit annuity in the
15-16 same amount the member would have been entitled to receive as a
15-17 retirement annuity if the member could have retired on the date of
15-18 death, except that the percentage used in computing the amount the
15-19 member would have been entitled to receive may not exceed the
15-20 percentage to which a member with 25 years of service would have
15-21 been entitled.]
15-22 [(d) If there is no surviving spouse, the dependent children
15-23 are entitled to receive from the fund an aggregate death benefit
15-24 annuity of one-half of the amount the member would have been
15-25 entitled to receive as a retirement annuity if the member could
15-26 have retired on the date of death, except that the percentage used
16-1 in computing the amount the member would have been entitled to
16-2 receive may not exceed the percentage to which a member with 25
16-3 years of service would have been entitled. However, if the board
16-4 determines on investigation that the eligible children are
16-5 destitute, the board may increase the death benefit annuity under
16-6 this subsection to two-thirds of the amount the member would have
16-7 been entitled to receive as a retirement annuity if the member
16-8 could have retired on the date of death, except that the percentage
16-9 used in computing the amount the member would have been entitled to
16-10 receive may not exceed the percentage to which a member with 25
16-11 years of service would have been entitled. The amount awarded
16-12 under this subsection to any child shall be paid by the board to
16-13 the legal guardian of the child.]
16-14 (i) If a member or retiree dies leaving a surviving spouse
16-15 and at least one dependent child, the death benefit annuity payable
16-16 to the surviving spouse shall be increased as of the day no child
16-17 is entitled to receive benefits to the amount the spouse would have
16-18 received had there been no dependent child.
16-19 (j) If a member or retiree dies leaving a surviving spouse
16-20 and at least one dependent child, the death benefit annuity payable
16-21 to the dependent children shall be increased as of the day the
16-22 surviving spouse dies to the amount the children would have
16-23 received had there been no surviving spouse.
16-24 (k) [(e)] A child of the member who is so mentally or
16-25 physically disabled as to be incapable of being self-supporting to
16-26 any extent, if otherwise qualified and regardless of age, has the
17-1 rights of a child under 18 years of age, except that any death
17-2 benefit annuity paid under this subsection to any mentally or
17-3 physically disabled child shall be reduced to the extent of any
17-4 state pension or aid, including Medicaid, or any state-funded
17-5 assistance received by the child, regardless of whether the funds
17-6 were made available to the state by the federal government. In no
17-7 other instance under this Act is a child entitled to any benefit
17-8 after becoming 18 years of age.
17-9 (l) The board shall increase a death benefit annuity payable
17-10 on October 1, 1999, to a dependent child or children who do not
17-11 have a living parent on that date to the entire amount of the death
17-12 benefit annuity that would have been awarded had the retiree or
17-13 member died leaving no surviving spouse if a surviving spouse of
17-14 the member or retiree is not entitled to receive benefits from the
17-15 fund on October 1, 1999.
17-16 SECTION 19. Section 6.11, Chapter 824, Acts of the 73rd
17-17 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
17-18 Civil Statutes), is amended to read as follows:
17-19 Sec. 6.11. DEATH BENEFIT FOR ACTIVE MEMBER'S ESTATE.
17-20 [(a)] If an active member dies and does not leave a beneficiary
17-21 [surviving spouse, a child under 18 years of age, a mentally or
17-22 physically disabled child, or a dependent father or mother], the
17-23 estate of the deceased member is entitled to a death benefit
17-24 payment from the fund in the amount of $10,000 or the refund of the
17-25 member's contributions that were picked up by the municipality,
17-26 whichever amount is greater.
18-1 [(b) The death benefit under this section is not payable if
18-2 the deceased member of the fund is survived by one or more
18-3 beneficiaries.]
18-4 SECTION 20. Chapter 824, Acts of the 73rd Legislature,
18-5 Regular Session, 1993 (Article 6243o, Vernon's Texas Civil
18-6 Statutes), is amended by adding Section 6.115 to read as follows:
18-7 Sec. 6.115. DEATH BENEFIT FOR RETIREE'S ESTATE. If a
18-8 retiree dies and does not leave a beneficiary, the estate of the
18-9 retiree is entitled to a death benefit payment from the fund in the
18-10 amount of the retiree's contributions that were picked up by the
18-11 municipality less any retirement or disability annuity and any lump
18-12 sum under Section 5.015 of this Act paid to the retiree.
18-13 SECTION 21. Section 6.12, Chapter 824, Acts of the 73rd
18-14 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
18-15 Civil Statutes), is amended to read as follows:
18-16 Sec. 6.12. 13TH CHECK FOR BENEFICIARIES. (a) For any year
18-17 in which the board authorizes disbursement of a 13th pension check
18-18 to retirees under Section 5.12 of this Act, the board shall also
18-19 authorize disbursement of a 13th check to each beneficiary entitled
18-20 to receive [receiving] an annuity in the last month of the fiscal
18-21 year preceding the fiscal year in which the check is disbursed [at
18-22 the time of the disbursement].
18-23 (b) The amount of the 13th check is equal to the amount of
18-24 the annuity payment made in the last month of the preceding fiscal
18-25 year, except the amount of the check shall be prorated for any
18-26 beneficiary who has been receiving an annuity for less than one
19-1 year so that the amount of the check is one-twelfth of the check
19-2 that would have been paid to the beneficiary receiving an annuity
19-3 for a full year times the number of full months an annuity has been
19-4 paid [is determined in the same manner as the amount of a 13th
19-5 check is determined for a retiree].
19-6 SECTION 22. Chapter 824, Acts of the 73rd Legislature,
19-7 Regular Session, 1993 (Article 6243o, Vernon's Texas Civil
19-8 Statutes), is amended by adding Section 6.13 to read as follows:
19-9 Sec. 6.13. GUARDIANSHIP. Any benefit payable under this
19-10 article to a dependent child may be paid only to a guardian who is
19-11 appointed in accordance with Chapter XIII, Texas Probate Code.
19-12 SECTION 23. Subsection (a), Section 7.01, Chapter 824, Acts
19-13 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
19-14 Vernon's Texas Civil Statutes), is amended to read as follows:
19-15 (a) All money of the fund that is paid [payable] to the
19-16 treasurer of the fund is for the use of the fund.
19-17 SECTION 24. Subsection (a), Section 7.51, Chapter 824, Acts
19-18 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
19-19 Vernon's Texas Civil Statutes), is amended to read as follows:
19-20 (a) A member of the board, [or] the executive director, or
19-21 another employee of the fund may not buy, sell, or exchange any
19-22 property to or from the fund, deal with the assets of the fund in
19-23 the person's own interest or for the person's own account, or
19-24 receive any consideration for the person's personal account from
19-25 any person dealing with the fund in connection with the income or
19-26 assets of the fund.
20-1 SECTION 25. This Act takes effect October 1, 1999.
20-2 SECTION 26. The importance of this legislation and the
20-3 crowded condition of the calendars in both houses create an
20-4 emergency and an imperative public necessity that the
20-5 constitutional rule requiring bills to be read on three several
20-6 days in each house be suspended, and this rule is hereby suspended.