SRC-JBJ S.B. 1068 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1068
77R4515 SMJ-DBy: Armbrister
State Affairs
4/18/2001
As Filed


DIGEST AND PURPOSE 

Under current Texas law, the monthly retirement annuity for a member
receiving benefits from the Texas Statewide Emergency Services Personnel
Retirement Fund (fund) is six times the average monthly contribution made
by the governing body, increased by seven percent for each year of
qualified service in excess of 15 years.  As proposed, S.B. 1068 increases
benefits for certain emergency services retirees and makes technical and
administrative changes to the Texas Statewide Emergency Retirement Act. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 3(b) and (c), Texas Statewide Emergency
Services Retirement Act (Article 6243e.3, V.T.C.S.), to provide that the
monthly retirement annuity is equal to seven, rather than six, times the
governing body's average monthly contribution over the member's term of
qualified service under this Act.  Provides that for each year of
additional qualified service in excess of 15 years, a member is entitled to
receive an additional 7.5, rather than seven, percent of the member's
monthly pension compounded annually. 

SECTION 2.  Amends Sections 14(c) and (d), Article 6243e.3, V.T.C.S., to
require the state board of trustees to employ a professional investment
manager, rather than counselor, a legal reserve life insurance company
licensed to do business in the State of Texas, or a bank with trust powers
under the laws of the State of Texas.  Makes conforming changes. 

SECTION 3.  Amends Section 19, Article 6243e.3, V.T.C.S., to redesignate
Subsections (c) - (p) as Subsections (b) - (o). 

SECTION 4.  Amends Section 20(a), Article 6243e.3, V.T.C.S., to provide
that there is a state board of trustees (board) composed of nine members,
rather than active members.  Requires six trustees to be active members of
the fund, and three trustees to be person who have experience in the fields
of finance, securities investment, or pension administration. 

SECTION 5.  Amends Section 21(c), Article 6243e.3, V.T.C.S., to require the
board, after a hearing conducted by the State Office of Administrative
Hearings on the appeal of a decision of a local board of trustees, to
determine each appeal from a fire fighters' pension commissioner's decision
based on the hearing record. 

SECTION 6.  Amends Section 22(a), Article 6243e.3, V.T.C.S., to provide
that the composition of the local board of trustees includes, among others,
five active members representing a participating department chosen by a
majority of the emergency services personnel in the department who are
eligible to participate in the pension system. 
 
SECTION 7.  Makes application of Sections 3(b) and (c), Article 6243e.3,
V.T.C.S., as amended by this Act, prospective.   

SECTION 8.  (a)  Makes application of Sections 20(a) and 21(c), Article
6243e.3, V.T.C.S., as amended by this Act, prospective.  

 (b)  Sets forth provisions regarding the prospective application of this
Act to a trustee. 

SECTION 9.  Effective date: September 1, 2001.