1-1 By: Madla S.B. No. 455
1-2 (In the Senate - Filed February 10, 1999; February 15, 1999,
1-3 read first time and referred to Committee on Intergovernmental
1-4 Relations; March 8, 1999, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 5, Nays 0;
1-6 March 8, 1999, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 455 By: Madla
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the retirement system for firefighters and police
1-11 officers in certain municipalities.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 1.05, Chapter 824, Acts of the 73rd
1-14 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
1-15 Civil Statutes), is amended to read as follows:
1-16 Sec. 1.05. EXEMPTIONS. (a) An amount payable [A retirement
1-17 annuity] from the fund is exempt from garnishment, assignment,
1-18 attachment, judgments, other legal process, and inheritance or
1-19 other taxes established by this state.
1-20 (b) Fund assets are exempt from attachment, execution,
1-21 alienation, and forced sale. A judgment lien or abstract of
1-22 judgment may not be filed or perfected against the fund on fund
1-23 assets. A judgment lien or abstract of judgment filed against the
1-24 fund on fund assets is void.
1-25 SECTION 2. Subsection (a), Section 2.04, Chapter 824, Acts
1-26 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
1-27 Vernon's Texas Civil Statutes), is amended to read as follows:
1-28 (a) The board shall elect from [among] the trustees a
1-29 presiding officer [chairman], an assistant presiding officer [a
1-30 vice-chairman], and a secretary.
1-31 SECTION 3. Subsection (a), Section 2.06, Chapter 824, Acts
1-32 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
1-33 Vernon's Texas Civil Statutes), is amended to read as follows:
1-34 (a) The board shall hold regular monthly meetings and
1-35 special meetings at the call of the presiding officer [chairman] or
1-36 on written demand by a majority of the members of the board.
1-37 SECTION 4. Subsection (a), Section 2.07, Chapter 824, Acts
1-38 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
1-39 Vernon's Texas Civil Statutes), is amended to read as follows:
1-40 (a) The presiding officer [chairman] of the board may
1-41 appoint committees that report to the board.
1-42 SECTION 5. Section 3.01, Chapter 824, Acts of the 73rd
1-43 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
1-44 Civil Statutes), is amended to read as follows:
1-45 Sec. 3.01. GENERAL POWERS AND DUTIES OF BOARD. (a) The
1-46 board has complete authority and power to:
1-47 (1) administer the fund for the exclusive benefit of
1-48 all members, retirees, and beneficiaries;
1-49 (2) order payments from the fund as required by this
1-50 Act;
1-51 (3) control the fund independently;
1-52 (4) conduct all litigation on behalf of the fund; and
1-53 (5) purchase with fund assets from one or more
1-54 insurers licensed to do business in this state one or more
1-55 insurance policies that provide for reimbursement of the fund and
1-56 any trustee, officer, or employee of the board for liability
1-57 imposed or damages because of an alleged act, error, or omission
1-58 committed in the trustee's, officer's, or employee's capacity as a
1-59 fiduciary officer or employee [of assets] of the fund and for costs
1-60 and expenses incurred as a trustee, officer, or employee in defense
1-61 of a claim for an alleged act, error, or omission, as long as the
1-62 insurance policy does not provide for reimbursement of a trustee,
1-63 officer, or employee for liability imposed or expenses incurred
1-64 because of the trustee's, officer's, or employee's personal
2-1 dishonesty, fraud, lack of good faith, or intentional failure to
2-2 act prudently.
2-3 (b) If the insurance coverage described by Subsection (a)(5)
2-4 of this section is insufficient or is not in effect, the board may
2-5 indemnify a person for liability, damages, and reasonable legal
2-6 expenses that result from an alleged act, error, or omission
2-7 occurring in the person's capacity as a trustee, officer, or
2-8 employee of the fund without regard to the time of the occurrence
2-9 of the allegation or whether the person continues to serve in that
2-10 capacity. The board may not indemnify an individual because of the
2-11 individual's dishonesty, fraudulent act, lack of good faith, or
2-12 intentional failure to act prudently.
2-13 (c) Indemnification under Subsection (b) of this section
2-14 shall be determined by a majority vote of trustees who are not the
2-15 subject of the indemnification. The board may adopt a policy for
2-16 the presentation, approval, and payment of indemnification claims
2-17 covered under Subsection (b) of this section.
2-18 (d) The board shall adopt rules necessary for the board's
2-19 effective operation, including rules relating to:
2-20 (1) the disbursement of the fund's assets;
2-21 (2) the designation of beneficiaries of the fund; and
2-22 (3) the name of the board and the fund.
2-23 (e) [(c)] The board shall report annually to the governing
2-24 body of the municipality regarding the condition of the fund and
2-25 the receipts and disbursements of the fund.
2-26 SECTION 6. Subsection (d), Section 3.02, Chapter 824, Acts
2-27 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
2-28 Vernon's Texas Civil Statutes), is amended to read as follows:
2-29 (d) The presiding officer [chairman] of the board may issue
2-30 process for witnesses, administer oaths to those witnesses, and
2-31 examine any witness in any manner affecting retirement or a benefit
2-32 under this Act. The process for witnesses may be served on any
2-33 member of the fire or police department or any other person the
2-34 board considers to be an appropriate person. On the failure of any
2-35 witness to attend and testify, that person may be compelled to
2-36 attend and testify as in any judicial proceeding.
2-37 SECTION 7. Section 3.03, Chapter 824, Acts of the 73rd
2-38 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
2-39 Civil Statutes), is amended to read as follows:
2-40 Sec. 3.03. ORDERS FOR DISBURSEMENTS OF BENEFITS. (a) The
2-41 board shall issue orders for disbursements signed by the presiding
2-42 officer [chairman] or assistant presiding officer [vice-chairman]
2-43 of the board and the secretary of the board to the appropriate
2-44 persons. The order shall state the purposes for the payments. The
2-45 board shall keep a record of those orders.
2-46 (b) Disbursements may not be made without a record vote of
2-47 the board.
2-48 (c) Each member, retiree, and beneficiary shall provide bank
2-49 depository information to the board so that the board can disburse
2-50 benefits by electronic transfer.
2-51 (d) The board may reduce the amount of a benefit to which a
2-52 retiree or beneficiary is otherwise entitled in order to reimburse
2-53 the fund for an overpayment or incorrect payment of benefits to the
2-54 retiree or beneficiary.
2-55 SECTION 8. Section 5.01, Chapter 824, Acts of the 73rd
2-56 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
2-57 Civil Statutes), is amended by amending Subsections (d), (e), and
2-58 (f) and adding Subsection (g) to read as follows:
2-59 (d) The board shall compute the retirement annuity of a
2-60 member who retires after September 30, 1997, but before October 1,
2-61 1999, at the rate of two percent of the member's average total
2-62 salary for each of the first 20 years of service, plus four percent
2-63 of average total salary for each of the next 10 years of service,
2-64 plus one percent of average total salary for each of the next five
2-65 years of service, with fractional years of service prorated based
2-66 on full months served as a contributing member. In making the
2-67 computation for a year, the year is considered to begin on the
2-68 first day a contribution is made. A retirement annuity under this
2-69 subsection may not exceed, as of the date of retirement, 85 percent
3-1 of the member's average total salary.
3-2 (e) The board shall compute the retirement annuity of a
3-3 member who retires after September 30, 1999, at the rate of 2-1/8
3-4 percent of the member's average total salary for each of the first
3-5 20 years of service, plus four percent of the member's average
3-6 total salary for each of the next 10 years of service, plus one
3-7 percent of the member's average total salary for each of the next
3-8 five years of service, with fractional years of service prorated
3-9 based on full months served as a contributing member. In making
3-10 the computation for a year, the year is considered to begin on the
3-11 first day a contribution is made. A retirement annuity under this
3-12 subsection may not exceed, as of the date of retirement, 87-1/2
3-13 percent of the member's average total salary.
3-14 (f) A member may not receive an award from the fund for
3-15 service retirement until the member has at least 20 years of
3-16 service in the fire or police department and has also contributed
3-17 the required amount of money for at least 20 years. In determining
3-18 the number of years of service in a department, the member shall be
3-19 given full credit for the period the member was an active member
3-20 plus the time the member was actively engaged in service with any
3-21 uniformed service in accordance with Section 4.03 of this Act and
3-22 for absences taken under the Family and Medical Leave Act (29
3-23 U.S.C. Section 2601 et seq.), in accordance with Section 4.02 of
3-24 this Act. Disciplinary suspensions of 15 days or less may not be
3-25 subtracted from a member's service credit under this Act if the
3-26 member has paid into the fund, within 30 days after the later of
3-27 the termination date of each suspension or the exhaustion of any
3-28 appeal with respect to the suspension, a sum of money equal to the
3-29 amount of money that would have been deducted from that person's
3-30 salary during that period of suspension if it had not been for that
3-31 suspension. A municipality to which this Act applies shall
3-32 double-match a payment made under this subsection. Members of the
3-33 fund at the time of their retirement shall also receive service
3-34 credit for all unused sick leave accumulated by them under Chapter
3-35 143, Local Government Code, but only to the extent the unused sick
3-36 leave exceeds 90 days. Service credit for unused sick leave shall
3-37 be prorated based on each full month of sick leave.
3-38 (g) [(f)] All monthly pensions being paid by the fund to
3-39 retirees who retired before October 1, 1989, are increased,
3-40 effective with the first monthly payment due on or after October 1,
3-41 1999 [1997]. The amount of the increase depends on the fiscal year
3-42 ending September 30 in which the retiree retired and is a
3-43 percentage of the pension payment that would have been payable on
3-44 October 1, 1999 [1997], except for this increase. The amount of
3-45 the percentage increase is [set forth in the following schedule]:
3-46 Municipality Fiscal Year Percentage
3-47 of Retirement Increase
3-48 1988 1.0%
3-49 1987 2.0%
3-50 1986 3.0%
3-51 1985 4.0%
3-52 1984 5.0%
3-53 1983 6.0%
3-54 1982 7.0%
3-55 1981 8.0%
3-56 1980 9.0%
3-57 1979 or earlier 10.0%
3-58 SECTION 9. Subsection (b), Section 5.015, Chapter 824, Acts
3-59 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
3-60 Vernon's Texas Civil Statutes), is amended to read as follows:
3-61 (b) The Back DROP election:
3-62 (1) results in a lump-sum payment for a number of full
3-63 months of service elected by the member that does not exceed the
3-64 lesser of the number of months of service credit the member has in
3-65 excess of 20 years or 36 [24] months; [and]
3-66 (2) is available only to a member who takes a service
3-67 retirement; and
3-68 (3) must be made at the time of application for
3-69 retirement.
4-1 SECTION 10. Subsection (a), Section 5.02, Chapter 824, Acts
4-2 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
4-3 Vernon's Texas Civil Statutes), is amended to read as follows:
4-4 (a) A person who has qualified for a retirement annuity
4-5 under this Act but who has subsequently ceased to be a member of
4-6 the fund or a properly enrolled member of the fire or police
4-7 department, by whatever means or for whatever reason, is entitled
4-8 to a retirement annuity from the fund that accrued to that person
4-9 before the time that person ceased to be a member of the fund or a
4-10 properly enrolled member of the fire or police department if the
4-11 person or the person's beneficiary, in the event of the person's
4-12 death, files an application for the retirement annuity with the
4-13 board [within four years after the date that person ceased to be a
4-14 member of the fund or a properly enrolled member of the fire or
4-15 police department].
4-16 SECTION 11. The heading to Section 5.08, Chapter 824, Acts
4-17 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
4-18 Vernon's Texas Civil Statutes), is amended to read as follows:
4-19 Sec. 5.08. REASONABLE ACCOMMODATION [DISCRETION OF
4-20 DEPARTMENT CHIEF FOR EMPLOYMENT OF DISABILITY RETIREE].
4-21 SECTION 12. Section 5.09, Chapter 824, Acts of the 73rd
4-22 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
4-23 Civil Statutes), is amended to read as follows:
4-24 Sec. 5.09. COST-OF-LIVING INCREASES. (a) At or before its
4-25 regular meeting in the month of March, the board annually shall
4-26 review the Consumer's Price Index for All Urban Consumers (CPI-U),
4-27 U.S. City Average or the nearest equivalent published by the United
4-28 States Bureau of Labor Statistics for the preceding calendar year.
4-29 If that index shows an increase during the preceding calendar year
4-30 in the cost of living as compared with that index at the close of
4-31 the previous year, the board shall order an increase of all
4-32 service, disability, and death benefit retirement annuities [of all
4-33 retirees and beneficiaries] by a percentage that varies by the date
4-34 of the member's service or disability retirement [on which the
4-35 member retired], or, in the case of a member who died before
4-36 retirement, the date on which the member died. If the member's
4-37 service retirement, disability retirement, or death before
4-38 retirement occurred before August 30, 1971, the annuity shall be
4-39 increased by a percentage equal to the percentage increase in the
4-40 cost of living index. If the member's service retirement,
4-41 disability retirement, or death before retirement occurred on or
4-42 after August 30, 1971, but before October 1, 1989, the [retirement]
4-43 annuity shall be increased by a percentage that is 87.5 percent of
4-44 the percentage increase in the cost of living index, for any year
4-45 in which the cost of living index increases by eight percent or
4-46 less and by 75 percent of the percentage increase in the cost of
4-47 living index if the cost of living index increases by more than
4-48 eight percent. If the member's service retirement, disability
4-49 retirement, or death before retirement occurred on or after October
4-50 1, 1989, the [retirement] annuity shall be increased by a
4-51 percentage that is 75 percent of the percentage increase in the
4-52 cost of living index. A percentage increase in [retirement]
4-53 annuities shall be rounded to the nearest one-tenth percentage
4-54 point for a cost of living increase.
4-55 (b) The [retirement] annuities to which this section applies
4-56 shall be computed as of the month of January before that March
4-57 board meeting and shall continue in effect for at least one full
4-58 year until there has been an additional increase to that
4-59 cost-of-living index and the board enters another order as provided
4-60 by this section.
4-61 (c) The cost-of-living increase paid to any retiree or
4-62 beneficiary [of a member or retiree] during the first full year
4-63 after the effective date of the service retirement, disability
4-64 retirement, or death shall be prorated on the basis of full months
4-65 from the date of the member's service retirement, disability
4-66 retirement, or death [retired].
4-67 SECTION 13. Subsection (b), Section 5.11, Chapter 824, Acts
4-68 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
4-69 Vernon's Texas Civil Statutes), is amended to read as follows:
5-1 (b) Any member or beneficiary who is entitled to receive
5-2 [receives] any distribution [from any plan within the system] that
5-3 is an eligible rollover distribution as defined by Section
5-4 402(c)(4) of the code is entitled to have that distribution
5-5 transferred directly to another eligible retirement plan of the
5-6 member's or beneficiary's choice on providing direction to the fund
5-7 regarding that transfer in accordance with procedures established
5-8 by the board.
5-9 SECTION 14. The heading to Section 5.12, Chapter 824, Acts
5-10 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
5-11 Vernon's Texas Civil Statutes), is amended to read as follows:
5-12 Sec. 5.12. 13TH CHECK FOR RETIREES.
5-13 SECTION 15. Subsection (b), Section 5.12, Chapter 824, Acts
5-14 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
5-15 Vernon's Texas Civil Statutes), is amended to read as follows:
5-16 (b) The 13th pension check is paid to each retiree entitled
5-17 to receive [receiving] an annuity in the last month of the fiscal
5-18 year preceding the fiscal year in which the check is disbursed [at
5-19 the time of disbursement] and is in an amount equal to the amount
5-20 of the annuity payment made in the last month of the preceding
5-21 fiscal year [pension check paid immediately before the disbursement
5-22 of the retiree's 13th check], except the amount of any such check
5-23 shall be prorated for any retiree who has been receiving an annuity
5-24 for less than one year so that the amount of the check is
5-25 one-twelfth of the check that would have been paid to the [a]
5-26 retiree receiving an annuity for a full year times the number of
5-27 full months [the retiree has received] an annuity has been paid.
5-28 SECTION 16. The heading to Article 6, Chapter 824, Acts of
5-29 the 73rd Legislature, Regular Session, 1993 (Article 6243o,
5-30 Vernon's Texas Civil Statutes), is amended to read as follows:
5-31 ARTICLE 6. BENEFICIARY'S [DEPENDENT'S] BENEFITS
5-32 SECTION 17. Section 6.01, Chapter 824, Acts of the 73rd
5-33 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
5-34 Civil Statutes), is amended to read as follows:
5-35 Sec. 6.01. MEMBER'S BENEFICIARY AND DEPENDENT CHILD'S
5-36 RIGHTS. (a) A member of the fund has, in addition to all rights
5-37 accruing from the person's membership, the same right to receive
5-38 benefits as a beneficiary that a nonmember who is a beneficiary has
5-39 in similar circumstances if the member's spouse also is a member of
5-40 the fund.
5-41 (b) A dependent child is entitled to receive benefits based
5-42 on the service of any parent who is a member of the fund.
5-43 SECTION 18. Section 6.02, Chapter 824, Acts of the 73rd
5-44 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
5-45 Civil Statutes), is amended to read as follows:
5-46 Sec. 6.02. DEATH BENEFIT ANNUITY FOR SURVIVING SPOUSES AND
5-47 CHILDREN. (a) Subject to Section [Sections] 6.03 of this Act and
5-48 Subsections (h), (i), (j), (k), and (l) [6.08] of this section
5-49 [Act], if a [an active] member [or a retiree] dies leaving a
5-50 surviving spouse or at least one dependent child [or more children
5-51 under the age of 18 years], the surviving spouse and the children
5-52 are entitled to receive from the fund an aggregate death benefit
5-53 annuity, computed and payable from the date of the member's death,
5-54 in an amount that is equal to the greater of:
5-55 (1) 50 percent of the member's average total salary;
5-56 or
5-57 (2) the same percentage of the member's average total
5-58 salary that the member would have been entitled to receive as a
5-59 retirement annuity if the member could have retired on the date of
5-60 death.
5-61 (b) The amount of a death benefit annuity computed under
5-62 Subsection (a) of this section[, except that the percentage] may
5-63 not exceed the service retirement annuity [percentage] to which a
5-64 member with the same average total salary and with 26 [25] years of
5-65 service credit would be entitled.
5-66 (c) Subject to Section 6.08 of this Act and Subsections (h),
5-67 (i), (j), (k), and (l) of this section, if a retiree dies leaving a
5-68 surviving spouse or at least one dependent child, the surviving
5-69 spouse and dependent children are entitled to receive from the fund
6-1 an aggregate death benefit annuity, computed and payable from the
6-2 date of the member's death, in an amount that is equal to the same
6-3 percentage of the retiree's average total salary that the retiree
6-4 would have been entitled to receive as a retirement annuity if the
6-5 retiree had retired on the date of death less the amount of time,
6-6 if any, elected by the retiree under Section 5.015(b)(1) of this
6-7 Act.
6-8 (d) The amount of a death benefit annuity computed under
6-9 Subsection (c) of this section may not exceed the lesser of:
6-10 (1) the retirement annuity to which a member with the
6-11 same average total salary and 26 years of service credit would be
6-12 entitled; or
6-13 (2) the retirement annuity the retiree was receiving
6-14 at the time of the retiree's death.
6-15 (e) If, at the time a death benefit annuity becomes payable
6-16 under Subsection (a) or (c) of this section, the deceased leaves a
6-17 surviving spouse and at least one dependent child, the board shall
6-18 award:
6-19 (1) one-half [One-half] of the [death benefit] annuity
6-20 [under this subsection shall be awarded] to the surviving spouse;
6-21 and
6-22 (2) one-half of the annuity:
6-23 (A) to the dependent child, if there is only
6-24 one; or
6-25 (B) if there is more than one dependent child,
6-26 in equal shares to each child [children].
6-27 (f) If, at the time a death benefit annuity under Subsection
6-28 (a) or (c) of this section becomes payable, the deceased leaves a
6-29 surviving spouse and no dependent child, the board shall award the
6-30 annuity to the surviving spouse.
6-31 (g) If, at the time a death benefit annuity under Subsection
6-32 (a) or (c) of this section becomes payable, the deceased leaves no
6-33 surviving spouse and at least one dependent child, the board shall
6-34 award the annuity:
6-35 (1) to the dependent child, if there is only one; or
6-36 (2) if there is more than one child, in equal shares
6-37 to each child.
6-38 (h) [(b)] A child who is born after the date of retirement
6-39 of the member is not entitled to a death benefit annuity under this
6-40 Act unless the retiree [member] was married to the other parent of
6-41 the child on the date of retirement. A surviving spouse of a
6-42 retiree who was not married to the retiree until after the
6-43 retiree's retirement is entitled to receive only the benefit, if
6-44 any, provided under Section 6.08 of this Act.
6-45 [(c) If there are no children, the surviving spouse is
6-46 entitled to receive from the fund a death benefit annuity in the
6-47 same amount the member would have been entitled to receive as a
6-48 retirement annuity if the member could have retired on the date of
6-49 death, except that the percentage used in computing the amount the
6-50 member would have been entitled to receive may not exceed the
6-51 percentage to which a member with 25 years of service would have
6-52 been entitled.]
6-53 [(d) If there is no surviving spouse, the dependent children
6-54 are entitled to receive from the fund an aggregate death benefit
6-55 annuity of one-half of the amount the member would have been
6-56 entitled to receive as a retirement annuity if the member could
6-57 have retired on the date of death, except that the percentage used
6-58 in computing the amount the member would have been entitled to
6-59 receive may not exceed the percentage to which a member with 25
6-60 years of service would have been entitled. However, if the board
6-61 determines on investigation that the eligible children are
6-62 destitute, the board may increase the death benefit annuity under
6-63 this subsection to two-thirds of the amount the member would have
6-64 been entitled to receive as a retirement annuity if the member
6-65 could have retired on the date of death, except that the percentage
6-66 used in computing the amount the member would have been entitled to
6-67 receive may not exceed the percentage to which a member with 25
6-68 years of service would have been entitled. The amount awarded
6-69 under this subsection to any child shall be paid by the board to
7-1 the legal guardian of the child.]
7-2 (i) If a member or retiree dies leaving a surviving spouse
7-3 and at least one dependent child, the death benefit annuity payable
7-4 to the surviving spouse shall be increased as of the day no child
7-5 is entitled to receive benefits to the amount the spouse would have
7-6 received had there been no dependent child.
7-7 (j) If a member or retiree dies leaving a surviving spouse
7-8 and at least one dependent child, the death benefit annuity payable
7-9 to the dependent children shall be increased as of the day the
7-10 surviving spouse dies to the amount the children would have
7-11 received had there been no surviving spouse.
7-12 (k) [(e)] A child of the member who is so mentally or
7-13 physically disabled as to be incapable of being self-supporting to
7-14 any extent, if otherwise qualified and regardless of age, has the
7-15 rights of a child under 18 years of age, except that any death
7-16 benefit annuity paid under this subsection to any mentally or
7-17 physically disabled child shall be reduced to the extent of any
7-18 state pension or aid, including Medicaid, or any state-funded
7-19 assistance received by the child, regardless of whether the funds
7-20 were made available to the state by the federal government. In no
7-21 other instance under this Act is a child entitled to any benefit
7-22 after becoming 18 years of age.
7-23 (l) The board shall increase a death benefit annuity payable
7-24 on October 1, 1999, to a dependent child or children who do not
7-25 have a living parent on that date to the entire amount of the death
7-26 benefit annuity that would have been awarded had the retiree or
7-27 member died leaving no surviving spouse if a surviving spouse of
7-28 the member or retiree is not entitled to receive benefits from the
7-29 fund on October 1, 1999.
7-30 SECTION 19. Section 6.11, Chapter 824, Acts of the 73rd
7-31 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
7-32 Civil Statutes), is amended to read as follows:
7-33 Sec. 6.11. DEATH BENEFIT FOR ACTIVE MEMBER'S ESTATE.
7-34 [(a)] If an active member dies and does not leave a beneficiary
7-35 [surviving spouse, a child under 18 years of age, a mentally or
7-36 physically disabled child, or a dependent father or mother], the
7-37 estate of the deceased member is entitled to a death benefit
7-38 payment from the fund in the amount of $10,000 or the refund of the
7-39 member's contributions that were picked up by the municipality,
7-40 whichever amount is greater.
7-41 [(b) The death benefit under this section is not payable if
7-42 the deceased member of the fund is survived by one or more
7-43 beneficiaries.]
7-44 SECTION 20. Chapter 824, Acts of the 73rd Legislature,
7-45 Regular Session, 1993 (Article 6243o, Vernon's Texas Civil
7-46 Statutes), is amended by adding Section 6.115 to read as follows:
7-47 Sec. 6.115. DEATH BENEFIT FOR RETIREE'S ESTATE. If a
7-48 retiree dies and does not leave a beneficiary, the estate of the
7-49 retiree is entitled to a death benefit payment from the fund in the
7-50 amount of the retiree's contributions that were picked up by the
7-51 municipality less any retirement or disability annuity and any lump
7-52 sum under Section 5.015 of this Act paid to the retiree.
7-53 SECTION 21. Section 6.12, Chapter 824, Acts of the 73rd
7-54 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
7-55 Civil Statutes), is amended to read as follows:
7-56 Sec. 6.12. 13TH CHECK FOR BENEFICIARIES. (a) For any year
7-57 in which the board authorizes disbursement of a 13th pension check
7-58 to retirees under Section 5.12 of this Act, the board shall also
7-59 authorize disbursement of a 13th check to each beneficiary entitled
7-60 to receive [receiving] an annuity in the last month of the fiscal
7-61 year preceding the fiscal year in which the check is disbursed [at
7-62 the time of the disbursement].
7-63 (b) The amount of the 13th check is equal to the amount of
7-64 the annuity payment made in the last month of the preceding fiscal
7-65 year, except the amount of the check shall be prorated for any
7-66 beneficiary who has been receiving an annuity for less than one
7-67 year so that the amount of the check is one-twelfth of the check
7-68 that would have been paid to the beneficiary receiving an annuity
7-69 for a full year times the number of full months an annuity has been
8-1 paid [is determined in the same manner as the amount of a 13th
8-2 check is determined for a retiree].
8-3 SECTION 22. Chapter 824, Acts of the 73rd Legislature,
8-4 Regular Session, 1993 (Article 6243o, Vernon's Texas Civil
8-5 Statutes), is amended by adding Section 6.13 to read as follows:
8-6 Sec. 6.13. GUARDIANSHIP. Any benefit payable under this
8-7 article to a dependent child may be paid only to a guardian who is
8-8 appointed in accordance with Chapter XIII, Texas Probate Code.
8-9 SECTION 23. Subsection (a), Section 7.01, Chapter 824, Acts
8-10 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
8-11 Vernon's Texas Civil Statutes), is amended to read as follows:
8-12 (a) All money of the fund that is paid [payable] to the
8-13 treasurer of the fund is for the use of the fund.
8-14 SECTION 24. Subsection (a), Section 7.51, 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 member of the board, [or] the executive director, or
8-18 another employee of the fund may not buy, sell, or exchange any
8-19 property to or from the fund, deal with the assets of the fund in
8-20 the person's own interest or for the person's own account, or
8-21 receive any consideration for the person's personal account from
8-22 any person dealing with the fund in connection with the income or
8-23 assets of the fund.
8-24 SECTION 25. This Act takes effect October 1, 1999.
8-25 SECTION 26. The importance of this legislation and the
8-26 crowded condition of the calendars in both houses create an
8-27 emergency and an imperative public necessity that the
8-28 constitutional rule requiring bills to be read on three several
8-29 days in each house be suspended, and this rule is hereby suspended.
8-30 * * * * *