By: Armbrister S.B. No. 523
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to participation and credit in, contributions to, and
1-3 benefits and administration of the Texas County and District
1-4 Retirement System.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 841.001, Government Code, is amended to
1-7 read as follows:
1-8 Sec. 841.001. DEFINITIONS. In this subtitle:
1-9 (1) "Actuarial equivalent" means a benefit that, at
1-10 the time it is begun [entered upon], has the same present value as
1-11 the benefit it replaces, based on seven percent annual interest and
1-12 the mortality table published by the Conference of Actuaries in
1-13 Public Practice and known as the UP-1984 table with an age setback
1-14 of five years for retired or disabled annuitants and an age setback
1-15 of 10 years for beneficiaries, with a 30-percent reserve refund
1-16 assumption for the standard benefit.
1-17 (2) "Accumulated contributions" means the
1-18 contributions, other member deposits, and interest credited to a
1-19 member's individual account in the employees saving fund. ["Annual
1-20 compensation" means the compensation that is paid to an employee of
1-21 a participating subdivision by the subdivision that does not exceed
1-22 the rate of compensation fixed by the subdivision governing body as
1-23 the maximum compensation for a year on which contributions by the
1-24 employee to the retirement system may be based.]
1-25 (3) "Annuity" means an amount of money payable in
2-1 equal monthly installments at the end of each month for a period
2-2 determined under this subtitle.
2-3 (4) "Beneficiary" means an individual or entity
2-4 designated by a member or annuitant or by statute to receive a
2-5 benefit payable under this subtitle because of the death of a
2-6 member or an annuitant. The term does not include an "alternate
2-7 payee" as defined by Section 804.001.
2-8 (5) "Board of trustees" means the persons appointed
2-9 under this subtitle to administer the retirement system.
2-10 (6) [(5)] "Compensation" means the payments on which
2-11 contributions by an employee to the retirement system are based
2-12 that do not exceed $150,000 in a calendar year, indexed in the same
2-13 manner as is provided by Section 401(a)(17) of the Internal Revenue
2-14 Code of 1986 (26 U.S.C. Section 417) and that are made to an
2-15 employee of a participating subdivision by the subdivision for
2-16 service, including nonmonetary compensation, the value of which is
2-17 determined by the governing body of the subdivision. The term does
2-18 not include workers' compensation benefits received by a member
2-19 under Section 504.011, Labor Code.
2-20 (7) "Credited service" means the number of months of
2-21 prior and current service ascribed to a member in the retirement
2-22 system or included in a prior service certificate in effect for the
2-23 member.
2-24 (8) [(6)] "Employee" means a person, other than a
2-25 temporary employee, who is certified by a subdivision as being
2-26 employed in, or elected or appointed to, a position or office in
3-1 the subdivision that normally requires services from the person for
3-2 not less than 900 hours a year and for which the person is
3-3 compensated by the subdivision. The term includes a person
3-4 employed on a probationary basis except as provided by Section
3-5 842.107 [842.107(c)].
3-6 (9) [(7)] "Governing body" means the commissioners
3-7 court of a county or, in any other subdivision, the body that is
3-8 authorized to raise and expend revenue.
3-9 (10) [(8)] "Initial deposit rate" means the percentage
3-10 of the annual compensation of an employee of a participating
3-11 subdivision that is required by the subdivision on the effective
3-12 date of subdivision participation in the retirement system as the
3-13 rate for employee contributions to the retirement system.
3-14 (11) [(9)] "Local pension system" means a public
3-15 retirement benefit program of less than statewide scope.
3-16 (12) [(10)] "Retirement" means the withdrawal from
3-17 service with a retirement benefit granted under this subtitle.
3-18 (13) "Retirement annuity" means the service,
3-19 disability, or survivor benefit paid under this subtitle in the
3-20 form of an annuity.
3-21 (14) [(11)] "Retirement system" means the Texas County
3-22 and District Retirement System.
3-23 (15) [(12)] "Service" means the time a person is an
3-24 employee.
3-25 (16) "Service credit" means the monetary credits
3-26 allowed a member for service for a participating subdivision.
4-1 (17) [(13) "Credited service" means the number of
4-2 months of prior and current service ascribed to a member in the
4-3 retirement system or included in a prior service certificate in
4-4 effect for the member.]
4-5 [(14)] "Subdivision" means a county, a political unit
4-6 that consists of all of the geographical area of one county or of
4-7 all or part of more than one county, a political unit of a county
4-8 that has taxing authority, an authority created by the state [State
4-9 of Texas] to conduct redevelopment activities on or related to
4-10 closed military installations of the United States, a crime control
4-11 and prevention district, the Texas Association of Counties, the
4-12 Texas County and District Retirement System, or a city and county
4-13 that jointly operate a city-county hospital under Subchapter B,
4-14 Chapter 265, Health and Safety Code, but does not include an
4-15 incorporated city or town, a school district, or a junior college
4-16 district.
4-17 (18) "Supplemental death benefit program" means the
4-18 optional death benefit program established under Subchapter F,
4-19 Chapter 844.
4-20 (19) [(15)] "Temporary employee" means a person who is
4-21 scheduled to hold a position for less than six months and only:
4-22 (A) until another person can be hired;
4-23 (B) for the duration of a project scheduled to
4-24 end less than six months after the date of hiring;
4-25 (C) until a specific date less than six months
4-26 after the date of hiring; or
5-1 (D) until a volume of work is completed that is
5-2 estimated to be completed in less than six months after the date of
5-3 hiring.
5-4 (20) [(16)] "Supplemental death benefit program" means
5-5 the voluntary, employer-funded optional death benefits program
5-6 under Subchapter F, Chapter 844. The program constitutes
5-7 "group-term life insurance purchased for employees" as described by
5-8 Section 79 of the Internal Revenue Code of 1986.
5-9 (21) [(17)] "Vested member" means a member who may
5-10 withdraw from employment with all participating subdivisions, leave
5-11 the member's accumulated contributions on deposit with the
5-12 retirement system, and, on meeting the age and length-of-service
5-13 requirements for service retirement, file an application for
5-14 retirement and begin to receive a service retirement annuity
5-15 [benefit].
5-16 SECTION 2. Section 841.008, Government Code, is amended to
5-17 read as follows:
5-18 Sec. 841.008. APPLICATIONS BY, AND PAYMENTS TO, PERSONS
5-19 OTHER THAN MEMBERS, BENEFICIARIES, AND ANNUITANTS [THE MEMBER].
5-20 (a) The board of trustees may accept an application for any
5-21 benefit under this subtitle that is signed on behalf of a person
5-22 entitled to the benefit [the member] by:
5-23 (1) an [a duly] appointed guardian of the person and
5-24 estate of the person [member]; or
5-25 (2) an attorney in fact [a person] authorized to act
5-26 on behalf of the person [member] by a written power of attorney
6-1 that provides that the power is not revoked by disability of the
6-2 person [member], except that an attorney in fact who is not the
6-3 person's spouse may not select a benefit in which the attorney in
6-4 fact is a named beneficiary, unless the attorney in fact designates
6-5 as the person's beneficiary each individual who would be entitled
6-6 to the entire benefit if the person had died intestate [is the
6-7 spouse of the member].
6-8 (b) If it is made to appear to the director by affidavit of
6-9 a [duly] licensed physician that a person entitled to a benefit
6-10 [member] is not mentally capable of managing the person's
6-11 [member's] own affairs, and if it is further established to the
6-12 satisfaction of the director that the estate of the person [member]
6-13 is insufficient to justify the expense of establishing a
6-14 guardianship or continuing a guardianship after letters of
6-15 guardianship have expired, the director may make payment of any
6-16 annuity or other benefit:
6-17 (1) to the spouse of the person [member], as trustee
6-18 for the person [member]; or
6-19 (2) [if there is no spouse,] to an individual or
6-20 entity [a person] actually providing for the needs of and caring
6-21 for the person [member], as trustee for the person until current
6-22 letters of guardianship are filed with the retirement system
6-23 [member].
6-24 (c) If requested by the person entitled to the benefit or
6-25 the guardian, attorney in fact, or trustee of the person, the
6-26 director may, if the director determines that it is in the best
7-1 interest of the person entitled to the benefit, make payments
7-2 directly to the trustee of:
7-3 (1) a trust described by Section 867, Texas Probate
7-4 Code, that has been created for the management of guardianship
7-5 funds for the benefit of the person; or
7-6 (2) a trust described by 42 U.S.C. Section
7-7 1396p(d)(4)(A), (B), or (C) that has been established to qualify
7-8 the person for benefits or other assistance under a state or
7-9 federal program or to supplement the benefits or other assistance
7-10 provided under the program.
7-11 (d) The director may require proof of [such] facts used to
7-12 establish a right under this section by evidence the director
7-13 determines is satisfactory [to the director].
7-14 SECTION 3. Section 841.010, Government Code, is amended to
7-15 read as follows:
7-16 Sec. 841.010. DISTRIBUTION REQUIREMENTS. (a)
7-17 Notwithstanding any other provision of this subtitle, all
7-18 distributions under this subtitle must be determined and made in
7-19 accordance with Section 401(a)(9) of the Internal Revenue Code of
7-20 1986 (26 U.S.C. Section 401) and the regulations adopted under that
7-21 provision, including the minimum incidental death benefit
7-22 distribution requirement of Section 401(a)(9)(G) of that code. The
7-23 board of trustees may adopt rules relating to the selection,
7-24 payment, and distribution of benefits to ensure compliance with
7-25 federal statutes and regulations.
7-26 (b) The entire vested interest of a participant must be
8-1 distributed or begin to be distributed not later than April 1
8-2 following the later of the year in which the participant attains
8-3 age 70-1/2 or the year in which the participant separates from
8-4 service with all participating subdivisions. If the participant
8-5 dies after distribution of the participant's interest has begun,
8-6 the remaining portion of the interest will continue to be
8-7 distributed at least as rapidly as the method of distribution being
8-8 used before the participant's death. If the participant dies
8-9 before distribution of the participant's interest begins,
8-10 distribution of the participant's entire interest must be made in a
8-11 manner complying with Section 401(a)(9)(B) of the code.
8-12 SECTION 4. Section 841.101, Government Code, is amended by
8-13 adding a new Subsection (c) and redesignating current Subsection
8-14 (c) as Subsection (d) to read as follows:
8-15 (c) A person commits an offense if the person knowingly
8-16 fails to return money received from the retirement system to which
8-17 the person is not entitled.
8-18 (d) An offense under this section is a misdemeanor
8-19 punishable by a fine of not less than $100 nor more than $1,000, by
8-20 confinement in jail for not less than 30 days nor more than one
8-21 year, or both.
8-22 SECTION 5. Section 842.002, Government Code, is amended to
8-23 read as follows:
8-24 Sec. 842.002. RULES FOR PARTICIPATING SUBDIVISIONS. The
8-25 board of trustees may adopt rules concerning:
8-26 (1) notices, information, and reports the board of
9-1 trustees requires from a subdivision that elects to participate in
9-2 the retirement system; [and]
9-3 (2) the time that a subdivision that elects to
9-4 participate in the retirement system may begin participation; and
9-5 (3) the powers and duties of a participating
9-6 subdivision to adopt orders or resolutions, make elections, and
9-7 otherwise exercise decision-making authority concerning the rights
9-8 and benefits of the members and annuitants under a plan adopted or
9-9 assumed by the subdivision.
9-10 SECTION 6. Subsections (a) and (d), Section 842.004,
9-11 Government Code, are amended to read as follows:
9-12 (a) A [If a] subdivision [is] participating in the
9-13 retirement system [on a full salary basis, the subdivision] may
9-14 elect to participate in the supplemental death benefits fund.
9-15 (d) A subdivision that elects to participate in the fund
9-16 [after the operative date of the fund] may begin participation on
9-17 the first day of any month after the month in which the subdivision
9-18 gives notice of its election to the board of trustees.
9-19 SECTION 7. Section 842.104, Government Code, is amended by
9-20 amending Subsection (a) and adding Subsection (e) to read as
9-21 follows:
9-22 (a) If a county elects to participate in the retirement
9-23 system, the commissioners court of the county may elect to deny
9-24 membership to the employees of a county hospital governed by
9-25 Chapter 263, Health and Safety Code [5, Title 71, Revised
9-26 Statutes].
10-1 (e) The commissioners court is the governing body of a
10-2 county hospital for the purposes of this subtitle.
10-3 SECTION 8. Sections 842.106, 842.107, 842.108, 842.109,
10-4 842.110, and 842.111, Government Code, are amended to read as
10-5 follows:
10-6 Sec. 842.106. MULTIPLE RETIREMENT SYSTEM MEMBERSHIP. (a) A
10-7 [Except as provided by this section, a] person who is an employee
10-8 eligible for membership and [is] eligible to receive credit in this
10-9 retirement system for service performed for a participating
10-10 subdivision is not eligible for credit for that service in another
10-11 public [pension fund or] retirement system described by Section
10-12 801.001 that is at least partly supported by the subdivision at
10-13 public expense. It is the responsibility of the subdivision to
10-14 enforce this provision.
10-15 (b) A person may simultaneously be a member of this
10-16 retirement system and another state or local retirement system
10-17 authorized under Section 67, Article XVI, Texas Constitution.
10-18 However, a person may receive a benefit from this system only to
10-19 the extent that the amount of the benefit is computed solely on the
10-20 member's compensation and accumulated contributions in the system.
10-21 Service credited by another retirement system may not be used to
10-22 determine eligibility for a benefit in this retirement system
10-23 except as provided by Chapter 803[, and receive credit for service
10-24 performed during the same period in the retirement system, the
10-25 federal program providing old age and survivors insurance, the
10-26 Employees Retirement System of Texas if the service is performed by
11-1 a prosecuting attorney, and either the Judicial Retirement System
11-2 of Texas Plan One or the Judicial Retirement System of Texas Plan
11-3 Two].
11-4 [(c) In this section, "prosecuting attorney" means a person
11-5 who holds the office of district attorney, criminal district
11-6 attorney, or county attorney performing the duties of a district
11-7 attorney and who is compensated by the state in an amount set by
11-8 appropriation.]
11-9 Sec. 842.107. EXCEPTION TO GENERAL MEMBERSHIP REQUIREMENT.
11-10 [(a) If on the date a subdivision's participation in the
11-11 retirement system becomes effective a person has a basis of
11-12 employment with the subdivision that would be violated by a
11-13 membership requirement of this subchapter, the person may elect not
11-14 to become a member of the retirement system.]
11-15 [(b) If a person qualified to make an election under this
11-16 section has been notified that the subdivision will begin
11-17 participation in the retirement system, the person is considered to
11-18 have elected membership in the retirement system unless before the
11-19 date the subdivision's participation becomes effective the person
11-20 files with the governing body of the subdivision written notice of
11-21 an election not to become a member.]
11-22 [(c)] A subdivision that was participating in the retirement
11-23 system before January 1, 1987, and that had in effect before that
11-24 date and continues to have a policy of hiring new personnel on a
11-25 probationary basis for a specified period may exclude new personnel
11-26 from membership during the probationary period but may not, for
12-1 purposes of retirement system membership, increase the length of
12-2 the probationary period beyond the length of the period in effect
12-3 on January 1, 1987. The subdivision may reduce or eliminate the
12-4 period.
12-5 Sec. 842.108. WITHDRAWAL OF ACCUMULATED CONTRIBUTIONS.
12-6 (a) A person, or the beneficiary of a person, whose membership
12-7 terminated as a result of absence from service may submit an
12-8 application to withdraw all of the person's accumulated
12-9 contributions [who is not an employee of any participating
12-10 subdivision and who has not retired may, by written application,
12-11 withdraw from membership in the retirement system, and the person's
12-12 account will be closed and the person will be paid:]
12-13 [(1) the accumulated contributions in the member's
12-14 individual account in the employees saving fund; plus]
12-15 [(2) interest computed from the beginning of the
12-16 calendar year of withdrawal through the end of the month before the
12-17 month in which withdrawal occurs on the balance in the member's
12-18 individual account in the employees saving fund on January 1 of the
12-19 year of withdrawal].
12-20 (b) A member who has separated from employment with a
12-21 participating subdivision may submit an application to withdraw the
12-22 member's accumulated contributions attributable to service with
12-23 that subdivision. A withdrawal cancels the person's credited
12-24 service and service credit attributable to service with that
12-25 subdivision on the date the retirement system makes payment of any
12-26 portion of the member's accumulated contributions. Credited
13-1 service that has been canceled may not be used to determine
13-2 eligibility for a later retirement unless it is reestablished under
13-3 Section 843.003.
13-4 (c) Interest is computed on the balance in the member's
13-5 individual account in the employees saving fund on January 1 of the
13-6 year of withdrawal through the month before the month in which the
13-7 withdrawal occurs for a person described by Subsection (b) and on
13-8 January l of the year of membership termination through the month
13-9 before the month in which the membership terminates for a person
13-10 described by Subsection (a) whose membership terminates after
13-11 December 31, 1999.
13-12 (d) If a person eligible to receive [to whom] a withdrawal
13-13 [would be paid] under this section or Section 844.401 elects to
13-14 have all or a portion of the accumulated contributions paid
13-15 directly to an eligible retirement plan and specifies the [eligible
13-16 retirement] plan to which the contributions are to be paid on forms
13-17 approved [for that purpose] by the board of trustees, the
13-18 retirement system shall make the payment in the form of a direct
13-19 trustee-to-trustee transfer but is under no obligation to determine
13-20 whether the other plan in fact is an eligible retirement plan for
13-21 that purpose.
13-22 Sec. 842.109. TERMINATION OF MEMBERSHIP. (a) A person
13-23 terminates membership in the retirement system by:
13-24 (1) death;
13-25 (2) retirement from all participating subdivisions
13-26 with which the person has service credit;
14-1 (3) withdrawal of all of the person's accumulated
14-2 contributions [while absent from service]; or
14-3 (4) absence from service for five consecutive years
14-4 before accumulating four or more years of credited service.
14-5 (b) A person's membership in the retirement system may not
14-6 extend beyond March 31 of the year following the later of the year
14-7 in which the person attains age 70-1/2 or the year in which the
14-8 person is no longer an employee of any participating subdivision.
14-9 (c) A member of the retirement system who [is not absent
14-10 from service and continues to accumulate membership credited
14-11 service if the person] leaves employment with a participating
14-12 subdivision to perform and does perform qualified military service
14-13 in the uniformed services, as that term is defined in the Uniformed
14-14 Services Employment and Reemployment Rights Act of 1994 (38 U.S.C.
14-15 Section 4301 et seq.), that meets the requirements of that Act is
14-16 not absent from service and continues to accumulate credited
14-17 service with that subdivision if:
14-18 (1) the person applies for reemployment with the same
14-19 subdivision not later than the 90th day after the date the person
14-20 is discharged from military service under honorable conditions or
14-21 released from hospitalization continuing after being discharged
14-22 under honorable conditions for a period of not more than two years;
14-23 and
14-24 (2) the person is reemployed by the same participating
14-25 subdivision.
14-26 (d) [(c)] On any termination of membership in the retirement
15-1 system, a person forfeits all credited service established in the
15-2 retirement system.
15-3 Sec. 842.110. RESUMPTION OF SERVICE WITH SAME EMPLOYER BY
15-4 RETIREE. (a) In this section, "reemploying subdivision" is a
15-5 subdivision for which a person previously has performed creditable
15-6 service and is receiving or would receive a retirement annuity
15-7 except for this section.
15-8 (b) A person who has retired with a service retirement
15-9 annuity [benefit] under this subtitle shall, if the person later
15-10 becomes an employee of a reemploying subdivision, become a member
15-11 of the system on the date of reemployment, but credits and benefits
15-12 payable [allowable] to the person under this subtitle are limited
15-13 as provided by this section.
15-14 (c) [(b)] The retirement system shall [discontinue and]
15-15 suspend payments of each service retirement annuity allowed because
15-16 of the person's previous service with a reemploying subdivision,
15-17 beginning with the month the retirement system determines that the
15-18 person has resumed employment with the reemploying subdivision.
15-19 After the determination, the retirement system may not make
15-20 payments of the annuity for any month during which the person
15-21 remains an employee of the reemploying subdivision. The retirement
15-22 system shall transfer annuity payments that become due and would be
15-23 payable to the retiree except for the suspension to a
15-24 non-interest-bearing account in the endowment fund. The suspension
15-25 of a benefit under this section does not suspend payment of a
15-26 benefit to an alternate payee under a qualified domestic relations
16-1 order.
16-2 (d) The retirement system shall establish an individual
16-3 account for the member in the employees saving fund for accumulated
16-4 contributions credited after reemployment with the subdivision.
16-5 After terminating employment with the reemploying subdivision, a
16-6 member may elect either an additional standard or optional service
16-7 retirement annuity based on the additional service with the
16-8 reemploying subdivision or a refund of the member's accumulated
16-9 contributions since reemployment [(c) Member contributions under
16-10 Section 845.403 shall be made on all compensation paid to the
16-11 employee by the subdivision at the same rate as required of other
16-12 employees of the subdivision. The contributions shall be deposited
16-13 by the retirement system on receipt in an individual account for
16-14 the member in the employees saving fund and shall be credited with
16-15 interest annually at the same rate and manner as are the accounts
16-16 of other members. The compensation paid to the employee by the
16-17 subdivision shall be included in computing the monthly
16-18 contributions the subdivision makes to the subdivision accumulation
16-19 fund].
16-20 (e) [(d)] After termination of employment with the
16-21 reemploying subdivision [all participating subdivisions] and
16-22 [after] filing with the retirement system [of] an application for
16-23 resumption of the suspended annuity [retirement with the board of
16-24 trustees], a person described by Subsection (b) [(a)] is entitled
16-25 to receive the payments of the suspended annuity that had been
16-26 transferred to the endowment fund and future payments of the
17-1 suspended annuity[, as provided by Subsection (e), and to the
17-2 additional benefits as provided by Subsections (f) and (g)].
17-3 (f) Beginning with [(e) Monthly payments of the suspended
17-4 annuity shall be resumed in] the month following the month in which
17-5 a retiree's employment is terminated with a reemploying subdivision
17-6 by death or other separation from service, future payments of the
17-7 suspended annuity become payable to each person entitled to the
17-8 annuity in the same amounts that would be payable if the annuity
17-9 had not been suspended [all participating subdivisions, without
17-10 change in the amount except for any increase allowed under Section
17-11 844.208 or the duration of or other condition pertaining to the
17-12 suspended benefit. Payment of the resumed benefit may not be made
17-13 for any month during which the payment was suspended under this
17-14 section].
17-15 (g) [(f)] If a person with credited service under this
17-16 section dies before a payment under Subsection (e) [(g)] is made,
17-17 monthly payments of a suspended annuity will resume under the terms
17-18 of the retirement annuity originally selected by the decedent, or a
17-19 person may make an election under Subsection (d) in the order of
17-20 preference provided by Section 844.407 [the person's beneficiary,
17-21 or if there is no beneficiary surviving, the person's spouse, or if
17-22 there is no surviving spouse, the executor or administrator of the
17-23 person's estate, may elect payment as provided by Section 844.407].
17-24 [(g) The additional service retirement benefit allowable to
17-25 a person to whom this section applies is, at the option of that
17-26 person, either a refund of accumulated contributions made since
18-1 reemployment plus any accrued interest on the accumulated
18-2 contributions allowed by the retirement system or a benefit
18-3 consisting of a basic annuity actuarially determined from the sum
18-4 of the member's deposits made and accumulated since the date of
18-5 last becoming a member and current service credit computed on the
18-6 amount of the deposits and a supplemental annuity actuarially
18-7 determined from the multiple matching credit applicable to the
18-8 amount of contributions made and accumulated with interest in the
18-9 person's individual account since last becoming a member. The
18-10 additional benefit is payable as a standard service retirement
18-11 benefit or, at the election of the member, any optional benefit
18-12 authorized under this subtitle that is the actuarial equivalent of
18-13 the standard retirement benefit. The first benefit payment date
18-14 under this section is the later of the end of the month following
18-15 the last month of employment or the end of the first month that
18-16 ends after the expiration of 45 days since the date the person
18-17 filed an application for payment. The first payment may not be
18-18 made if the person has resumed employment with a reemploying
18-19 subdivision in a position that would make the person an employee.]
18-20 [(h) If a person becomes an employee of a reemploying
18-21 subdivision within one calendar month after that person's effective
18-22 date of retirement from that reemploying subdivision, the person is
18-23 considered not to have retired, and the person's membership shall
18-24 be restored. The retirement system shall deduct the sum of
18-25 one-half of the basic annuity payments made before the membership
18-26 is restored from the person's individual account in the employees
19-1 saving fund and shall transfer that amount to the current service
19-2 annuity reserve fund. The retirement system shall reduce the
19-3 person's maximum prior service credit by an amount equal to the sum
19-4 of the prior service annuity payments made before the membership is
19-5 restored, divided by the product of the subdivision's allocated
19-6 prior service credit percentage multiplied by the interest factor
19-7 for interest from the subdivision's participation date to the
19-8 person's effective retirement date, both of which were used in
19-9 computing the amount of the prior service annuity.]
19-10 [(i) In this section, "reemploying subdivision" is a
19-11 subdivision for which a person previously has performed creditable
19-12 service and is receiving or would receive a retirement benefit
19-13 except for this section.]
19-14 Sec. 842.111. RESUMPTION OF SERVICE WITH DIFFERENT EMPLOYER
19-15 BY RETIREE. (a) If a person becomes an employee of a
19-16 participating subdivision after beginning to receive a service
19-17 retirement annuity [benefit], no portion of which is based on
19-18 service with that subdivision, the person resumes membership in the
19-19 retirement system without suspension of the person's retirement
19-20 annuity.
19-21 (b) After terminating employment with a participating
19-22 subdivision, a member described by Subsection (a) is eligible to
19-23 apply for and receive an additional standard or optional service
19-24 retirement annuity or a refund of the member's accumulated
19-25 contributions based on service with the subdivision, without regard
19-26 to any age or credited service requirement. [Member contributions
20-1 under Section 845.403 shall be made on all compensation paid to the
20-2 employee by the subdivision at the same rate as is required of
20-3 other employees of the subdivision. The retirement system shall
20-4 deposit the contributions on receipt in an individual account for
20-5 the member in the employees saving fund and shall credit the
20-6 account with interest at the same rate and in the same manner as
20-7 the accounts of other members are credited. The compensation paid
20-8 to the employee by the subdivision shall be included in computing
20-9 the monthly contributions the subdivision makes to the subdivision
20-10 accumulation fund.]
20-11 (c) On the death of a member described by Subsection (a), a
20-12 person may apply for and receive an optional service retirement
20-13 annuity or a refund of the decedent's accumulated contributions
20-14 with the subdivision, without regard to any age or credited service
20-15 requirement. [If a person with credited service under this section
20-16 dies before a payment under Subsection (d) is made, the person's
20-17 beneficiary or, if no beneficiary survives, the person's spouse, or
20-18 if there is no surviving spouse, the executor or administrator of
20-19 the person's estate, may elect payment as provided by Section
20-20 844.407.]
20-21 [(d) The additional service retirement benefit allowable to
20-22 a person to whom this section applies is, at the option of that
20-23 person, either a refund of accumulated contributions made since
20-24 reemployment plus any accrued interest on the accumulated
20-25 contributions allowed by the retirement system or a benefit
20-26 consisting of a basic annuity actuarially determined from the sum
21-1 of the member's deposits made and accumulated since the date of
21-2 last becoming a member and current service credit computed on the
21-3 amount of the deposits and a supplemental annuity actuarially
21-4 determined from the multiple matching credit applicable to the
21-5 amount of contributions made and accumulated with interest in the
21-6 person's individual account since last becoming a member. The
21-7 additional benefit is payable as a standard service retirement
21-8 benefit or, at the election of the member, any optional benefit
21-9 authorized under this subtitle that is the actuarial equivalent of
21-10 the standard retirement benefit. The first benefit payment date
21-11 under this section is the later of the end of the month following
21-12 the last month of employment or the end of the first month that
21-13 ends after the expiration of 45 days since the date the person
21-14 filed an application for payment. The first payment may not be
21-15 made if the person has resumed employment that would result in
21-16 suspension of a benefit.]
21-17 [(e) If a person becomes an employee of a subdivision after
21-18 beginning to receive a retirement benefit, no portion of which
21-19 benefit is based on service with that subdivision, and the person's
21-20 service retirement annuity is suspended under Section 842.110, as
21-21 it existed at the time service is resumed, the person may, on
21-22 written application to the retirement system, resume receiving the
21-23 suspended annuity.]
21-24 SECTION 9. Subsections (b), (j), and (k), Section 842.112,
21-25 Government Code, are amended to read as follows:
21-26 (b) Except as provided by Subsection (j) or Section 843.005,
22-1 a [A] correction may not be made as to current service performed,
22-2 or current service credit that should have been received, more than
22-3 four years before the date an application, on forms approved by the
22-4 retirement system's board of trustees, for the correction is
22-5 received by the retirement system.
22-6 (j) If, as a result of a suit against a participating
22-7 subdivision in a court of competent jurisdiction or as a result of
22-8 a complaint or grievance against a participating subdivision filed
22-9 with the United States Equal Employment Opportunity Commission, the
22-10 Commission on Human Rights, or a county civil service commission, a
22-11 judgment or order is issued or a settlement agreement is executed,
22-12 the terms of which require that an employee receive back pay or
22-13 that a person be employed or reemployed for a specified period[, a
22-14 person receives a judgment against a subdivision ordering that the
22-15 person be reinstated as an employee of the subdivision
22-16 retroactively to the date the person's employment was terminated]
22-17 and require [ordering] that the person receive service credit
22-18 toward retirement based on the back pay or both service credit and
22-19 credited service for the specified period of employment or
22-20 reemployment [for the reinstated service], on written application
22-21 to the retirement system, the system shall grant the service credit
22-22 and credited service if:
22-23 (1) the judgment or order has become final and is no
22-24 longer subject to appeal;
22-25 (2) a certified copy of the judgment, order, or
22-26 settlement agreement accompanies the application;
23-1 (3) the retirement system receives payment on behalf
23-2 of [from] the person in an amount equal to the contributions the
23-3 person would have made to the system if the back pay or additional
23-4 service [employment] had [not] been [terminated and the service]
23-5 reported to the system; and
23-6 (4) the retirement system receives payment from the
23-7 subdivision in an amount equal to the additional contributions that
23-8 the subdivision would have made to the system for the additional
23-9 [credited] service credit.
23-10 (k) If a person to whom Subsection (j) applies has forfeited
23-11 service credit as a result of withdrawal of contributions during
23-12 the time between the termination of employment and the date of
23-13 reinstatement, the person is eligible to reestablish credit under
23-14 Section 843.003. For purposes of this subsection, forfeited credit
23-15 based on service performed for more than one participating
23-16 subdivision is considered to have been credit for service performed
23-17 only for the subdivision that is subject to the judgment, order, or
23-18 settlement agreement, except that credit may not be reinstated
23-19 under this subsection for service performed after the date of the
23-20 termination of employment that resulted in the judgment, order, or
23-21 settlement agreement.
23-22 SECTION 10. Subsection (e), Section 842.201, Government
23-23 Code, is amended to read as follows:
23-24 (e) In this section, "prosecuting attorney" means a person
23-25 who holds the office of district attorney, criminal district
23-26 attorney, or county attorney performing the duties of a district
24-1 attorney and who is compensated by the state in an amount set by
24-2 appropriation [has the meaning assigned by Section 842.106(c)].
24-3 SECTION 11. Section 843.002, Government Code, is amended to
24-4 read as follows:
24-5 Sec. 843.002. BENEFIT ELIGIBILITY AND AMOUNT [BASED ON
24-6 CREDITED SERVICE]. A member's eligibility to receive a benefit is
24-7 based on the member's amount of credited service and attained age
24-8 on the effective date [at the time] of retirement. The monthly
24-9 amount of a standard retirement annuity is based on the sum of the
24-10 member's service credit and accumulated contributions and is
24-11 computed using the member's attained age and the actuarial
24-12 assumptions described by Section 841.001(1).
24-13 SECTION 12. Subchapter A, Chapter 843, Government Code, is
24-14 amended by adding Sections 843.004 and 843.005 to read as follows:
24-15 Sec. 843.004. COMPOSITION OF SERVICE CREDIT. Service credit
24-16 consists of allocated prior service credit, current service credit,
24-17 and multiple matching credit as authorized by a participating
24-18 subdivision and accumulated interest under this subtitle.
24-19 Sec. 843.005. ADJUSTMENT TO CREDITED SERVICE AND CURRENT
24-20 SERVICE CREDIT. (a) The governing body of a participating
24-21 subdivision by order or resolution may authorize the establishment
24-22 of credited service and current service credit for a particular
24-23 person who has not received the correct amount of credited service
24-24 or current service credit for all current service performed for the
24-25 subdivision and who is barred from doing so by the limitation
24-26 period provided by Section 842.112(b).
25-1 (b) To authorize the establishment of credited service and
25-2 current service credit under this section, the governing body must
25-3 determine that the reporting error occurred without the knowledge
25-4 or fault of the person and that the authorization is in the best
25-5 interests of the subdivision. The subdivision shall verify the
25-6 amounts of service and the compensation received by the person for
25-7 those months for which credited service and current service credit
25-8 may be established under this section.
25-9 (c) The order or resolution must include the findings of the
25-10 governing body, the name of the person to whom the authorization
25-11 relates, and the months for which credited service and current
25-12 service credit may be established and must state the total
25-13 compensation paid to the person for those months.
25-14 (d) The service credit attributable to the member
25-15 contributions deposited under this section is determined using the
25-16 credit percentages in effect for the month in which a deposit is
25-17 made.
25-18 (e) For credited service and service credit under this
25-19 section, the retirement system must receive, not later than the
25-20 last day of the calendar year in which an order or resolution is
25-21 adopted by the governing body of a participating subdivision:
25-22 (1) for deposit in the member's individual account,
25-23 all contributions the member would have made to the retirement
25-24 system if the current service had been correctly reported; and
25-25 (2) for deposit in the subdivision's account, an
25-26 amount determined by the retirement system's actuary as necessary
26-1 to fully offset the actuarial liability resulting from the
26-2 additional credited service and service credit.
26-3 SECTION 13. Section 843.103, Government Code, is amended to
26-4 read as follows:
26-5 Sec. 843.103. STATEMENT OF PRIOR SERVICE. Before the fifth
26-6 anniversary of the date a member becomes eligible to claim prior
26-7 service credit, a [A] member claiming credit for prior service
26-8 shall file a detailed statement of the service with the treasurer
26-9 or other disbursing officer of the subdivision for which the
26-10 service was performed.
26-11 SECTION 14. Subsection (c), Section 843.105, Government
26-12 Code, is amended to read as follows:
26-13 (c) The allocated prior service credit is the percentage of
26-14 the maximum prior service credit granted by the subdivision to all
26-15 members who performed prior service for the subdivision. [The
26-16 total allocated prior service credits for members claiming prior
26-17 service with the subdivision may not exceed an amount for which the
26-18 prospective subdivision contributions to the retirement system will
26-19 be adequate to amortize, before the 25th anniversary of the
26-20 effective date of subdivision participation in the retirement
26-21 system:]
26-22 [(1) all obligations charged to its account in the
26-23 subdivision accumulation fund; and]
26-24 [(2) all basic and supplemental annuities derived from
26-25 credits granted by the subdivision.]
26-26 SECTION 15. Section 843.304, Government Code, is amended to
27-1 read as follows:
27-2 Sec. 843.304. CERTIFICATION OF SERVICE AND AVERAGE
27-3 COMPENSATION FOR MEMBER OF OPTIONAL CLASS[; DETERMINATION OF
27-4 ALLOCATED LOCAL SERVICE CREDIT]. (a) A member claiming credit for
27-5 prior service under this subchapter shall file a statement of prior
27-6 service in the manner required by Section 843.103.
27-7 (b) [After a member described in Section 843.301(a) files a
27-8 statement of prior service, the subdivision employing the officer
27-9 receiving the statement shall certify to the board of trustees the
27-10 amount of prior service approved and the average local
27-11 compensation, determined in the manner provided for computing the
27-12 average local compensation for employees of the subdivision who
27-13 became members on the effective date of merger of the local pension
27-14 system into the retirement system. After the board of trustees
27-15 receives a certification under this subsection, it shall determine
27-16 the maximum and allocated local service credits for the member in
27-17 the manner and using the percentages provided for employees of the
27-18 subdivision who became members on the effective date of merger.]
27-19 [(c)] After a member described in Section 843.302 files a
27-20 statement of prior service, the subdivision employing the officer
27-21 receiving the statement shall certify to the board of trustees the
27-22 amount of prior service approved and the average monthly
27-23 compensation paid by the subdivision, determined in the manner
27-24 provided for computing the average prior service compensation for
27-25 employees of the subdivision who became members on the effective
27-26 date of subdivision participation in the retirement system. After
28-1 the board of trustees receives a certification under this
28-2 subsection, it shall determine the maximum and allocated prior
28-3 service credits for the member in the manner and using the
28-4 percentages provided for computing the maximum and allocated prior
28-5 service credits for employees of the subdivision who became members
28-6 on the effective date of subdivision participation.
28-7 SECTION 16. Subsections (b) and (c), Section 843.403,
28-8 Government Code, are amended to read as follows:
28-9 (b) The current service credit of a member is an amount
28-10 equal to a percentage of the [accumulated] contributions made by
28-11 the member to the retirement system during a calendar year. The
28-12 percentage is determined by the governing body of the employing
28-13 subdivision at the time of its election to participate in the
28-14 retirement system, except that the percentage for a subdivision
28-15 that begins participation after December 31, 1977, is 100 percent.
28-16 (c) The multiple matching credit of a member is an amount
28-17 equal to a percentage of the [accumulated] contributions made by
28-18 the member to the retirement system during a calendar year. The
28-19 percentage is 0 percent until a greater percentage is adopted as
28-20 provided by Section 843.703 or, for a subdivision whose
28-21 participation in the retirement system began after October 31,
28-22 1980, unless a greater percentage is adopted by its governing body
28-23 before the first anniversary of the subdivision's effective date of
28-24 retirement system participation, after the actuary has determined
28-25 and certified that the greater percentage would not impair the
28-26 ability of the subdivision to amortize, before the 25th anniversary
29-1 of the participation date, all obligations that are charges against
29-2 its account in the subdivision accumulation fund. A multiple
29-3 matching credit includes any portion of a current service credit in
29-4 effect on January 1, 1978, that exceeds the member's current
29-5 service credit determined under Subsection (b).
29-6 SECTION 17. Section 843.501, Government Code, is amended to
29-7 read as follows:
29-8 Sec. 843.501. LEGISLATIVE SERVICE. (a) A member may
29-9 establish credited [credit for current] service in the retirement
29-10 system for service performed as a member of the legislature. A
29-11 member claiming credited service [credit] for previous legislative
29-12 service shall file a detailed statement of the service with the
29-13 [treasurer or other disbursing officer of the] subdivision by which
29-14 the member is currently employed. As soon as practicable after the
29-15 filing of a statement, the employing subdivision shall verify the
29-16 service claimed and certify to the board of trustees the amount of
29-17 service approved.
29-18 (b) Credited service [Credit] may not be established under
29-19 this section for service that is credited by another retirement
29-20 system or program established or governed by state law.
29-21 SECTION 18. Subsection (e), Section 843.601, Government
29-22 Code, is amended to read as follows:
29-23 (e) Except for credited service [credit] established with
29-24 the retirement system before December 31, 1999, the maximum amount
29-25 of credited service that a person may receive under this section is
29-26 five years. If a person would receive more than five years of
30-1 credited service [credit] as a result of having received credit
30-2 under Subsection (c) before receiving credit under Subsection (b),
30-3 the retirement system shall cancel credited service [credit] under
30-4 Subsection (c) [shall be canceled] to the extent necessary to
30-5 reduce the total to five years of credit.
30-6 SECTION 19. Subsection (d), Section 843.602, Government
30-7 Code, is amended to read as follows:
30-8 (d) In this section, "prosecuting attorney" has the meaning
30-9 assigned by Section 842.201(e) [842.106(c)].
30-10 SECTION 20. Section 844.001, Government Code, is amended to
30-11 read as follows:
30-12 Sec. 844.001. TYPES OF BENEFITS. The types of benefits
30-13 payable by the retirement system are:
30-14 (1) service retirement annuities [benefits];
30-15 (2) disability retirement annuities [benefits]; [and]
30-16 (3) survivor annuity death benefits;
30-17 (4) supplemental death benefits; and
30-18 (5) refunds of accumulated contributions.
30-19 SECTION 21. Section 844.002, Government Code, is amended by
30-20 adding Subsection (e) to read as follows:
30-21 (e) A separate retirement annuity is payable for each
30-22 participating subdivision from which a person retires under this
30-23 subtitle or is considered to have retired.
30-24 SECTION 22. Subsections (a) and (d), Section 844.003,
30-25 Government Code, are amended to read as follows:
30-26 (a) Except as provided by Subsections (b) and (d), the
31-1 effective date of a member's service retirement is the date the
31-2 member designates at the time the member applies for retirement
31-3 under Section 844.101, but the date must be the last day of a
31-4 calendar month and may not precede the date the member terminates
31-5 employment with the subdivision from which the member seeks to
31-6 retire [all participating subdivisions].
31-7 (d) A member who is eligible for service retirement and who
31-8 [on the day the member] terminates employment with a participating
31-9 subdivision may apply for and receive a service retirement annuity
31-10 based on service for that subdivision despite the fact that the
31-11 member is or becomes an employee of another participating
31-12 subdivision. Credited service [Service] with the member's new
31-13 employer may [not] be used in determining eligibility for service
31-14 retirement [the annuity, and contributions for the service may not
31-15 be used in determining the amount of the annuity]. A member who is
31-16 eligible for service retirement using combined credited service for
31-17 two or more subdivisions may simultaneously apply for and receive a
31-18 service retirement annuity for service to one subdivision and a
31-19 refund of accumulated contributions for service to another
31-20 subdivision. [The effective date of a retirement under this
31-21 subsection is the last day of the month in which the retirement
31-22 system receives the application, and that date may not be later
31-23 than the last day of the third month following the month in which
31-24 the member begins employment with the new employer.] A person who
31-25 retires under this subsection is considered for all purposes to be
31-26 a retiree who resumes service with a different employer under
32-1 Section 842.111.
32-2 SECTION 23. Section 844.005, Government Code, is amended to
32-3 read as follows:
32-4 Sec. 844.005. WHEN ANNUITY IS PAYABLE; CHANGES BEFORE FIRST
32-5 PAYMENT. (a) A retiree may revoke an application for retirement,
32-6 change the retiree's choice of retirement annuity payment plans, or
32-7 change the designation of beneficiary after the retiree's effective
32-8 date of retirement by filing written notice with the retirement
32-9 system not later than the last day of the month following the month
32-10 that includes the effective date of retirement [board of trustees
32-11 before the later of the date on which the retirement system makes
32-12 the first payment or the date the first annuity payment becomes
32-13 due]. After that day [the first payment has been made by the
32-14 retirement system or has become due], a retiree may not revoke the
32-15 application for retirement, change the annuity payment plan
32-16 selected, or [and may not] change the designated beneficiary except
32-17 under Section 844.006.
32-18 (b) A retiree who dies before the first day of the second
32-19 month following the month that includes the effective date of
32-20 retirement and who did not select an optional retirement annuity is
32-21 considered to have selected an optional annuity under Section
32-22 844.104(c)(7) or Section 844.305(c)(7), as applicable.
32-23 Alternatively, the decedent's beneficiary may elect to receive a
32-24 refund of the decedent's accumulated contributions under Section
32-25 844.401. [For purposes of this section, the term "makes payment"
32-26 includes the depositing in the mail of a payment or the crediting
33-1 of an account with payment through electronic funds transfer.]
33-2 (c) An annuity under this subtitle is payable to a retiree
33-3 or beneficiary through [for a period beginning on the last day of
33-4 the first month following] the month in which the retiree or
33-5 beneficiary dies. A continuation of an optional annuity begins
33-6 with payment for the month following [retirement occurs and ending,
33-7 except as otherwise provided by this subtitle, on the last day of
33-8 the month immediately preceding] the month in which death occurs.
33-9 SECTION 24. Subsection (d), Section 844.006, Government
33-10 Code, is amended to read as follows:
33-11 (d) If a qualified domestic relations order, as that term is
33-12 defined by Section 804.001, so provides, the benefit payable to a
33-13 retiree who is receiving payments of an annuity for the retiree's
33-14 life with payments to continue after the retiree's death until the
33-15 death of another person [under Option 1, 2, 4B, or 4C, as defined
33-16 by Section 103.2, Title 34, Texas Administrative Code,] may be
33-17 divided by the retirement system into two annuities if:
33-18 (1) the person who was designated to receive the
33-19 continued payment after the retiree's death is the same person as
33-20 the alternate payee;
33-21 (2) the [domestic relations] order specifies that one
33-22 of the two annuities is payable over the remaining life of the
33-23 retiree, with no payments to be made under that annuity after the
33-24 death of the retiree;
33-25 (3) the [domestic relations] order specifies that the
33-26 annuity payable to the alternate payee is payable over the
34-1 remaining life of that person, with no payments to be made under
34-2 that annuity after the death of the alternate payee named in the
34-3 order; and
34-4 (4) the annuity that would be payable to the person as
34-5 the alternate payee under the order would not exceed the annuity
34-6 that would be payable to that person as the retiree's surviving
34-7 beneficiary under the option selected if the retiree were deceased
34-8 [domestic relations order specifies that the portion of the benefit
34-9 payable to the alternate payee is stated as a fixed percentage of
34-10 the present benefit payable to the retiree, which percentage may
34-11 not exceed, as applicable:]
34-12 [(A) 25 percent of an Option 4B benefit;]
34-13 [(B) 50 percent of an Option 2 benefit; or]
34-14 [(C) 75 percent of an Option 4C benefit].
34-15 SECTION 25. Subsections (a), (c), and (h), Section 844.009,
34-16 Government Code, are amended to read as follows:
34-17 (a) [This section applies to all subdivisions that elect
34-18 after December 31, 1999, to begin participation in the retirement
34-19 system.] The governing body of a contributing [any] subdivision
34-20 with a member contribution rate of at least four percent that has
34-21 not elected to discontinue enrolling employees [participating as of
34-22 December 31, 1999,] may adopt the provisions of this section:
34-23 (1) on the terms provided by Subchapter H; or
34-24 (2) if the board of trustees determines that, based on
34-25 computations by the retirement system's actuary, the adoption would
34-26 not impair the ability of the subdivision to fund all obligations
35-1 against its account in the subdivision accumulation fund before the
35-2 25th anniversary of the subdivision's most recent actuarial
35-3 valuation date.
35-4 (c) The amount of a lump-sum distribution under this section
35-5 may not exceed 100 percent of the total accumulated contributions
35-6 [and accumulated interest] in the member's individual account in
35-7 the employees saving fund attributable to the credited service on
35-8 which the member has applied for retirement.
35-9 (h) No portion of a benefit awarded to an alternate payee
35-10 under a qualified domestic relations order may be distributed in
35-11 the form of a lump sum under this section, except that if the
35-12 member and the alternate payee agree in writing that the alternate
35-13 payee will receive all or a portion of the [a] lump-sum
35-14 distribution payable under this section [payment] instead of
35-15 benefits awarded under the qualified domestic relations order, the
35-16 amount of the lump-sum distribution described in the agreement may
35-17 be paid directly to the alternate payee in complete satisfaction of
35-18 the alternate payee's marital property rights and interest in the
35-19 member's benefit.
35-20 SECTION 26. Sections 844.101 and 844.102, Government Code,
35-21 are amended to read as follows:
35-22 Sec. 844.101. APPLICATION FOR SERVICE RETIREMENT ANNUITY. A
35-23 member may apply for a service retirement annuity by filing an
35-24 application for retirement with the retirement system [board of
35-25 trustees] on or before the member's effective retirement date
35-26 designated on the application.
36-1 Sec. 844.102. ELIGIBILITY FOR SERVICE RETIREMENT ANNUITY.
36-2 (a) A member is eligible to apply for and receive a service
36-3 retirement annuity[,] if the member:
36-4 (1) is at least 60 years old and has at least 12 years
36-5 of credited service in the retirement system;
36-6 (2) has at least 30 years of credited service in the
36-7 retirement system; or
36-8 (3) has met the eligibility requirements for service
36-9 retirement under Section 844.207, 844.210, or 844.211.
36-10 (b) A person who has retired with a service retirement
36-11 annuity is eligible, without regard to any age or credited service
36-12 requirement, to apply for and receive a service retirement annuity
36-13 based on service for another participating subdivision from which
36-14 the person has terminated employment.
36-15 SECTION 27. Subsection (c), Section 844.104, Government
36-16 Code, is amended to read as follows:
36-17 (c) An eligible person may select any of the following
36-18 optional annuities that[, which] are the actuarial equivalent of
36-19 the annuity to which the person is entitled and that [which]
36-20 provide that:
36-21 (1) after the retiree's death, the reduced annuity is
36-22 payable throughout the life of a person designated by the retiree;
36-23 (2) after the retiree's death, one-half of the reduced
36-24 annuity is payable throughout the life of a person designated by
36-25 the retiree;
36-26 (3) if the retiree dies before 60 monthly annuity
37-1 payments have been made, the remainder of the 60 payments are
37-2 payable to the retiree's beneficiary or, if one does not exist, to
37-3 the retiree's estate;
37-4 (4) if the retiree dies before 120 monthly annuity
37-5 payments have been made, the remainder of the 120 payments are
37-6 payable to the retiree's beneficiary or, if one does not exist, to
37-7 the retiree's estate;
37-8 (5) after the retiree's death, [one-fourth of] the
37-9 reduced annuity is payable throughout the life of a person
37-10 designated by the retiree, except that if the beneficiary
37-11 predeceases the retiree, the annuity payable throughout the
37-12 remaining life of the retiree is the annuity that would be payable
37-13 if the retiree had chosen a standard service retirement annuity;
37-14 (6) after the retiree's death, three-fourths of the
37-15 reduced annuity is payable throughout the life of a person
37-16 designated by the retiree; or
37-17 (7) if the retiree dies before 180 monthly annuity
37-18 payments have been made, the remainder of the 180 payments are
37-19 payable to the retiree's beneficiary or, if one does not exist, to
37-20 the retiree's estate.
37-21 SECTION 28. Sections 844.207, 844.210, and 844.211,
37-22 Government Code, are amended to read as follows:
37-23 Sec. 844.207. OPTIONAL BENEFIT ELIGIBILITY PLAN. (a) This
37-24 [The provisions of this] section applies [shall apply] to all
37-25 subdivisions that [elect after September 1, 1985, to] begin
37-26 participation in the retirement system after September 1, 1985, and
38-1 to all other subdivisions that have adopted the plan provisions of
38-2 this section. The [Subject to the conditions in this section, the]
38-3 governing body of a participating [any] subdivision [participating
38-4 as of September 1, 1985,] may adopt the plan provisions of this
38-5 section only on the terms provided by Subchapter H.
38-6 (b) In this section "eligible credited service" [The term
38-7 "Section 844.207 credited service" as used in this section] means
38-8 credited service performed for one or more participating
38-9 subdivisions that have adopted the plan provisions of this section
38-10 or [the plan provisions of] Section 844.210.
38-11 (c) A member is eligible to apply for and receive a service
38-12 retirement annuity[,] if the member:
38-13 (1) is at least 60 years old and has at least 10 years
38-14 of eligible [Section 844.207] credited service in the retirement
38-15 system; [or]
38-16 (2) is less than 60 years old, except as provided by
38-17 Subsection (e), and has a sufficient amount of eligible [years of
38-18 Section 844.207] credited service in the retirement system that,
38-19 when [that number is] added to the member's [years of] attained age
38-20 [of the member], equals or exceeds [produces a sum equal to or in
38-21 excess of] the number 80; or
38-22 (3) [if the member] is eligible for service retirement
38-23 under any other provision of this subtitle.
38-24 (d) A member who has 10 years or more of eligible [Section
38-25 844.207] credited service is a vested member for purposes of
38-26 Sections 844.202, 844.302, and 844.303.
39-1 (e) A member who on December 31, 1999, had [has] any
39-2 eligible [Section 844.207] credited service, whose membership in
39-3 the retirement system continues after that date without
39-4 interruption, and who accumulates four years or more of eligible
39-5 [Section 844.207] credited service is eligible to receive a service
39-6 retirement annuity regardless of age [benefit] when the amount of
39-7 eligible [number of years of Section 844.207] credited service
39-8 added to the [years of the] member's attained age equals or exceeds
39-9 the number 80.
39-10 [(f) After 1991, the governing body of a subdivision may not
39-11 adopt the plan provisions of this section except on the terms
39-12 provided by Subchapter H.]
39-13 Sec. 844.210. OPTIONAL BENEFIT ELIGIBILITY PLAN TWO.
39-14 (a) The [Subject to Subsection (f), the] governing body of a
39-15 participating subdivision may adopt the plan provisions of this
39-16 section only on the terms provided by Subchapter H.
39-17 (b) In this section "eligible credited service" ["Section
39-18 844.210 credited service"] means credited service performed for one
39-19 or more participating subdivisions that have adopted the plan
39-20 provisions of this section.
39-21 (c) A member is eligible to apply for and receive a service
39-22 retirement annuity if the member:
39-23 (1) is at least 60 years old and has at least eight
39-24 years of eligible [Section 844.210] credited service in the
39-25 retirement system;
39-26 (2) is less than 60 years old, except as provided by
40-1 Subsection (e), and has a sufficient amount of eligible [years of
40-2 Section 844.210] credited service in the retirement system that,
40-3 when added to the [years of the] member's attained age, equals or
40-4 exceeds [produces a sum equal to or in excess of] the number 80; or
40-5 (3) is eligible for service retirement under any other
40-6 provision of this subtitle.
40-7 (d) A member who has eight years or more of eligible
40-8 [Section 844.210] credited service in the retirement system is a
40-9 vested member for purposes of Sections 844.202, 844.302, and
40-10 844.303.
40-11 (e) A member who on December 31, 1999, had [has] any
40-12 eligible [Section 844.210] credited service, whose membership in
40-13 the retirement system continues after that date without
40-14 interruption, and who accumulates four years or more of eligible
40-15 [Section 844.210] credited service is eligible to receive a service
40-16 retirement annuity regardless of age [benefit] when the amount of
40-17 eligible [number of years of Section 844.210] credited service
40-18 added to the [years of the] member's attained age equals or exceeds
40-19 the number 80. For purposes of this subsection, eligible [Section
40-20 844.210] credited service also includes credited service performed
40-21 for one or more subdivisions that have adopted the plan provisions
40-22 of Section 844.207.
40-23 [(f) The governing body of a subdivision may not adopt the
40-24 plan provisions of this section except on the terms provided by
40-25 Subchapter H.]
40-26 Sec. 844.211. OPTIONAL BENEFIT ELIGIBILITY PLAN THREE.
41-1 (a) The [Subject to Subsection (e), the] governing body of a
41-2 participating subdivision may adopt the plan provisions of this
41-3 section only on the terms provided by Subchapter H.
41-4 (b) In this section "eligible credited service" ["Section
41-5 844.211 credited service"] means credited service performed for one
41-6 or more participating subdivisions that have adopted the plan
41-7 provisions of this section.
41-8 (c) A member is eligible to apply for and receive a service
41-9 retirement annuity if the member:
41-10 (1) is less than 60 years old, except as provided by
41-11 Subsection (d), and has a sufficient amount of eligible [years of
41-12 Section 844.211] credited service in the retirement system that,
41-13 when added to the [years of the] member's attained age, equals or
41-14 exceeds [produces a sum equal to or in excess of] the number 75; or
41-15 (2) is eligible for service retirement under any other
41-16 provision of this subtitle.
41-17 (d) A member who on December 31, 1999, had [has] any
41-18 eligible [Section 844.211] credited service, whose membership in
41-19 the retirement system continues after that date without
41-20 interruption, and who accumulates four years or more of eligible
41-21 [Section 844.211] credited service is eligible to receive a service
41-22 retirement annuity regardless of age [benefit] when the amount of
41-23 eligible [number of years of that] credited service added to the
41-24 years of the member's attained age equals or exceeds the number 75.
41-25 [(e) The governing body of a subdivision may not adopt the
41-26 plan provisions of this section except on the terms provided by
42-1 Subchapter H.]
42-2 SECTION 29. Subsection (a), Section 844.301, Government
42-3 Code, is amended to read as follows:
42-4 (a) A member may apply for a disability retirement annuity
42-5 by:
42-6 (1) filing an application for retirement with the
42-7 retirement system [board of trustees]; or
42-8 (2) having an application filed with the system
42-9 [board] by the member's employer or legal representative.
42-10 SECTION 30. Subsection (a), Section 844.304, Government
42-11 Code, is amended to read as follows:
42-12 (a) The standard disability retirement annuity is discounted
42-13 for the possibility of payment of a benefit under Section 844.402
42-14 [844.403] and is the actuarial equivalent of the sum of a member's:
42-15 (1) accumulated contributions;
42-16 (2) current service credit, accumulated at interest as
42-17 provided by Section 843.403(d);
42-18 (3) allocated prior service credit, accumulated at
42-19 interest as provided by Section 843.105(d); and
42-20 (4) multiple matching credit, accumulated at interest
42-21 as provided by Section 843.403(d).
42-22 SECTION 31. Subsection (c), Section 844.305, Government
42-23 Code, is amended to read as follows:
42-24 (c) An eligible person may select any of the following
42-25 optional annuities that [, which] are the actuarial equivalent of
42-26 the annuity to which the person is entitled and that [which]
43-1 provide that:
43-2 (1) after the retiree's death, the reduced annuity is
43-3 payable throughout the life of a person designated by the retiree;
43-4 (2) after the retiree's death, one-half of the reduced
43-5 annuity is payable throughout the life of a person designated by
43-6 the retiree;
43-7 (3) if the retiree dies before 60 monthly annuity
43-8 payments have been made, the remainder of the 60 payments are
43-9 payable to the retiree's beneficiary or, if one does not exist, to
43-10 the retiree's estate;
43-11 (4) if the retiree dies before 120 monthly annuity
43-12 payments have been made, the remainder of the 120 payments are
43-13 payable to the retiree's beneficiary or, if one does not exist, to
43-14 the retiree's estate;
43-15 (5) after the retiree's death, [one-fourth of] the
43-16 reduced annuity is payable throughout the life of a person
43-17 designated by the retiree, except that if the beneficiary
43-18 predeceases the retiree, the annuity payable throughout the
43-19 remaining life of the retiree is the annuity that would be payable
43-20 if the retiree had chosen a standard service retirement annuity;
43-21 (6) after the retiree's death, three-fourths of the
43-22 reduced annuity is payable throughout the life of a person
43-23 designated by the retiree; or
43-24 (7) if the retiree dies before 180 monthly annuity
43-25 payments have been made, the remainder of the 180 payments are
43-26 payable to the retiree's beneficiary or, if one does not exist, to
44-1 the retiree's estate.
44-2 SECTION 32. Subchapter D, Chapter 844, Government Code, is
44-3 amended by adding Section 844.3051 to read as follows:
44-4 Sec. 844.3051. ANNUITIES NOT SUBJECT TO DISCONTINUANCE. (a)
44-5 After the earlier of the date a disability retiree attains age 60
44-6 or the date the disability retiree would otherwise have become
44-7 eligible for service retirement under this subtitle, the retiree's
44-8 disability retirement annuity may not be revoked or discontinued
44-9 under this subtitle, and the retiree is not subject to further
44-10 medical examinations or required to submit annual earnings reports.
44-11 (b) A disability retirement annuity that is not subject to
44-12 revocation or discontinuance is considered a service retirement
44-13 annuity if the retiree returns to employment with a participating
44-14 subdivision.
44-15 SECTION 33. Subsection (a), Section 844.306, Government
44-16 Code, is amended to read as follows:
44-17 (a) Once each year during the first five years after a
44-18 person retires for disability, and once in each three-year period
44-19 after that, the board of trustees may require a disability retiree
44-20 [who is less than 60 years old] to undergo a medical examination.
44-21 SECTION 34. Subsection (a), Section 844.307, Government
44-22 Code, is amended to read as follows:
44-23 (a) If the medical board finds that a disability retiree
44-24 [who is less than 60 years old] is no longer mentally or physically
44-25 incapacitated for the performance of duty or is engaged in or able
44-26 to engage in gainful occupation, it shall certify its findings and
45-1 submit them to the board of trustees.
45-2 SECTION 35. Sections 844.308 and 844.309, Government Code,
45-3 are amended to read as follows:
45-4 Sec. 844.308. RETURN OF DISABILITY RETIREE TO MEMBERSHIP.
45-5 If the disability annuity of a person [who is less than 60 years
45-6 old] is discontinued under Section 844.306(c) or 844.307, the
45-7 person automatically resumes membership in the retirement system,
45-8 and the board of trustees shall terminate the person's annuity
45-9 payments.
45-10 Sec. 844.309. ADJUSTMENTS AT ANNUITY DISCONTINUANCE.
45-11 (a) If a person's membership resumes [is restored] under Section
45-12 844.308, the retirement system shall transfer:
45-13 (1) from the current service annuity reserve fund and
45-14 credit to the person's individual account in the employees saving
45-15 fund an [the] amount equal to the amount of accumulated
45-16 contributions transferred to the current service annuity reserve
45-17 fund at the time of retirement reduced by one percent for each year
45-18 or part of a year during which disability annuity payments were
45-19 made[, if any, by which the amount in the person's individual
45-20 account in the employees saving fund at the time of disability
45-21 retirement exceeds the sum of one-half of all basic annuity
45-22 payments made before the date the annuity was discontinued]; and
45-23 (2) from the current service annuity reserve fund to
45-24 the subdivision accumulation fund an amount equal to the amount
45-25 [sum] transferred from the subdivision accumulation fund to the
45-26 current service annuity reserve fund at the time of retirement
46-1 reduced by one percent for each year or part of a year during which
46-2 disability annuity payments were made [under Subdivision (1) of
46-3 this subsection to the employees saving fund].
46-4 (b) If a person whose [who is restored to] membership
46-5 resumes under Section 844.308 was receiving a supplemental annuity
46-6 based in whole or in part on [allocated] prior service credit, the
46-7 retirement system shall restore to effect as the person's maximum
46-8 [allocated] prior service credit an [the] amount equal to [by
46-9 which] the person's maximum [allocated] prior service credit at the
46-10 time of disability retirement reduced by one percent for each year
46-11 or part of a year during which disability annuity payments were
46-12 made [exceeds the sum of all annuity payments, based on prior
46-13 service credits, that were made before discontinuance of the
46-14 supplemental annuity].
46-15 (c) A person who resumes membership under Section 844.308 is
46-16 entitled to restoration of credited service in the number of months
46-17 accumulated and allowed before disability retirement.
46-18 (d) The board of trustees may adopt rules for the
46-19 computation and transfer of amounts and credits for a membership
46-20 resumed under this subchapter.
46-21 SECTION 36. Subsection (a), Section 844.310, Government
46-22 Code, is amended to read as follows:
46-23 (a) The retirement system may require a disability retiree
46-24 [who is less than 60 years old] to submit annually to the
46-25 retirement system a report of earnings. The retirement system
46-26 shall examine each report and may require at any time that a
47-1 disability retiree undergo a medical examination by one or more
47-2 physicians the retirement system designates, if the retiree has
47-3 reported earnings that the board of trustees considers to show an
47-4 ability to engage in gainful employment.
47-5 SECTION 37. Sections 844.401 and 844.402, Government Code,
47-6 are amended to read as follows:
47-7 Sec. 844.401. RETURN OF ACCUMULATED CONTRIBUTIONS.
47-8 (a) Except as provided by Subsection (c), if a member dies before
47-9 retirement, a lump-sum death benefit is payable from the employees
47-10 saving fund in the amount of:
47-11 (1) the decedent's accumulated contributions [in the
47-12 member's individual account in the fund]; plus
47-13 (2) interest computed on the decedent's accumulated
47-14 contributions on January 1 of the year of death from the beginning
47-15 of that [the] year [in which death occurs] through the end of the
47-16 month before the month in which death occurs [on the balance in the
47-17 member's individual account in the employees saving fund on January
47-18 1 of the year in which the member's death occurs].
47-19 (b) The benefit provided by this section is payable to the
47-20 decedent's beneficiary or, if no surviving beneficiary exists, to
47-21 the decedent's spouse or, if no surviving spouse exists, to the
47-22 decedent's estate [unless the decedent has directed that the
47-23 benefit be paid otherwise].
47-24 (c) A benefit is not payable under this section if an
47-25 annuity based on the same [decedent's] service with the subdivision
47-26 is payable under this subtitle.
48-1 Sec. 844.402. RETURN OF EXCESS CONTRIBUTIONS [OF SERVICE
48-2 RETIREE]. (a) After the death of a member or former member and
48-3 after the final payment has been made under any service,
48-4 disability, or survivor annuity [If a person who receives a
48-5 standard service retirement annuity dies], a lump-sum death benefit
48-6 is payable in an amount, if any, by which the amount in the
48-7 person's [retiree's] individual account in the employees saving
48-8 fund on which the annuity was computed [at the time of service
48-9 retirement] exceeds the amount of annuity payments made [before the
48-10 retiree's death].
48-11 (b) The benefit provided by this section is payable to the
48-12 person entitled to receive the final monthly payment of the annuity
48-13 [decedent's estate unless the decedent has directed that the
48-14 benefit be paid otherwise]. If that person is deceased, the
48-15 benefit provided by this section is payable to the person's
48-16 beneficiary or, if no surviving beneficiary exists, to the person's
48-17 spouse or, if no surviving spouse exists, to the person's estate.
48-18 (c) The benefit provided by this section is payable from the
48-19 current service annuity reserve fund and the subdivision
48-20 accumulation fund in the ratio that the parts of the [service]
48-21 retirement annuity that were payable from the funds bear to the
48-22 entire benefit as determined on the effective date of retirement.
48-23 SECTION 38. Subsections (a), (e), and (h), Section 844.407,
48-24 Government Code, are amended to read as follows:
48-25 (a) In this section "eligible member" means:
48-26 (1) a member who has four or more years of credited
49-1 service with one or more subdivisions that [on September 1, 1999,]
49-2 are participating in the retirement system and that are not
49-3 exempted from the application of this subdivision [or that begin
49-4 participation in the system after that date];
49-5 (2) a vested member described by Section 844.202 who
49-6 is at least 60 years of age or has 20 or more years of credited
49-7 service [with one or more subdivisions participating] in the
49-8 retirement system; or
49-9 (3) a member who is receiving a service retirement
49-10 annuity [at least 60 years of age and has 12 or more years of
49-11 credited service with one or more subdivisions participating in the
49-12 system;]
49-13 [(4) a member who is at least 60 years of age and has
49-14 10 or more years of Section 844.207 credited service; or]
49-15 [(5) a member who is at least 60 years of age and has
49-16 eight or more years of Section 844.210 credited service].
49-17 (e) [An unrevoked application for deferred service
49-18 retirement executed and filed by the member with the retirement
49-19 system before December 31, 1999, shall be considered a selection of
49-20 benefit and a designation of beneficiary under Subsection (c).] If
49-21 no application for deferred service retirement was [is] on file
49-22 with the retirement system on December 31, 1999 [on that date], an
49-23 unrevoked form executed by the member and filed with the system
49-24 naming a beneficiary to whom the member's accumulated contributions
49-25 [deposits] are to be paid in the event of death before retirement
49-26 is [shall be] considered a selection of a beneficiary under
50-1 Subsection (d).
50-2 (h) If no surviving spouse exists, the executor or
50-3 administrator of the member's estate may elect[:]
50-4 [(1)] for an estate beneficiary to receive the
50-5 optional annuity under Section 844.104(c)(7)[; or]
50-6 [(2) for the estate to receive a refund of the
50-7 member's accumulated contributions under Section 844.401].
50-8 SECTION 39. Subsection (b), Section 844.408, Government
50-9 Code, is amended to read as follows:
50-10 (b) If a surviving spouse or the executor or administrator
50-11 of a deceased member's estate would be entitled to make an election
50-12 under Section 842.110 [842.110(f)] or 842.111 [842.111(c)], or if a
50-13 beneficiary or the executor or administrator of a deceased member's
50-14 estate would be entitled to make an election under Section 844.407
50-15 because of the death of the member, the heirs of the deceased
50-16 member may make that election if:
50-17 (1) no surviving spouse exists, or, if Section 844.407
50-18 is applicable, no surviving beneficiary exists;
50-19 (2) no petition for the appointment of a personal
50-20 representative of the member is pending or has been granted;
50-21 (3) 30 days have elapsed since the date of death of
50-22 the member;
50-23 (4) the value of the entire assets of the member's
50-24 estate, excluding homestead and exempt property, does not exceed
50-25 $50,000; and
50-26 (5) on file with the retirement system is a certified
51-1 copy of a small estates affidavit that has been approved and filed
51-2 in accordance with Section 137, Texas Probate Code, or an original
51-3 affidavit described by Subsection (c).
51-4 SECTION 40. Section 844.501, Government Code, is amended by
51-5 adding Subsection (c) to read as follows:
51-6 (c) The supplemental death benefit program constitutes
51-7 "group term life insurance purchased for employees" as described by
51-8 Section 79, Internal Revenue Code of 1986.
51-9 SECTION 41. Subsections (a), (b), and (c), Section 844.503,
51-10 Government Code, are amended to read as follows:
51-11 (a) In this section, the terms "regular rate of pay," "hours
51-12 worked," "salary basis," and "regular salary" have meanings that
51-13 are consistent with the Fair Labor Standards Act of 1938 (29 U.S.C.
51-14 Section 201 et seq.).
51-15 (b) If a person included in the coverage or extended
51-16 coverage of the supplemental death benefit program dies, a lump-sum
51-17 supplemental death benefit is payable from the supplemental death
51-18 benefits fund in an amount equal to the current annual compensation
51-19 [salary] of the member at the time of death.
51-20 (c) The [(b) Except as provided by Subsection (c), the]
51-21 current annual compensation [salary] of a member who is not exempt
51-22 from the minimum wage and maximum hour requirements of the Fair
51-23 Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) is
51-24 computed by converting to an annual basis the regular rate of pay
51-25 of the member for the most recent hour worked and proportionately
51-26 reducing that annual basis if the member is not employed in a
52-1 full-time position. The current annual compensation of a member
52-2 who is exempt from those minimum wage and maximum hour requirements
52-3 and who is paid on a salary basis is computed by converting to an
52-4 annual basis the regular salary paid to the member for the most
52-5 recent pay period of active employment [as the amount paid to the
52-6 member for service on which contributions were made to the
52-7 retirement system during the 12 months immediately preceding the
52-8 month of death. If a member did not receive compensation for
52-9 service in each of the 12 months immediately preceding the month of
52-10 death, the member's current annual salary is computed by converting
52-11 to an annual basis the amount paid to the member on which
52-12 contributions were made to the system during the period of
52-13 employment within the 12-month period. If a member did not receive
52-14 compensation for service in any of the 12 months immediately
52-15 preceding the month of death, or if the member was employed by a
52-16 subdivision that was not participating on a full-salary basis for
52-17 12 calendar months immediately preceding the month of death, the
52-18 member's current annual salary is computed by converting to an
52-19 annual basis the rate of compensation payable to the member during
52-20 the month of death].
52-21 [(c) The current annual salary of a member included in the
52-22 extended coverage of the supplemental death benefit program is
52-23 computed in the manner provided by Subsection (b) but as if the
52-24 member had died during the first month of extended coverage.]
52-25 SECTION 42. Section 844.504, Government Code, is amended to
52-26 read as follows:
53-1 Sec. 844.504. RETIREE SUPPLEMENTAL DEATH BENEFIT. If a
53-2 retiree dies who was receiving a retirement annuity based on [has
53-3 credited] service for [that has not been canceled by a withdrawal
53-4 of contributions and that results from employment with] a
53-5 subdivision that has elected to provide, and continues to provide,
53-6 postretirement supplemental death benefits, a lump-sum supplemental
53-7 death benefit is payable from the fund in the amount of $5,000
53-8 [$2,500]. If a retiree dies who was receiving retirement annuities
53-9 based on service for [employed by] more than one subdivision that
53-10 has elected to provide, and continues to provide, postretirement
53-11 supplemental death benefits, the financing of the lump-sum benefit
53-12 will [shall] be prorated among those [the employing] subdivisions
53-13 [participating in the fund]. If a person dies while payment of a
53-14 retirement annuity to that person is suspended as a result of
53-15 Section 842.110, the supplemental death benefit under this section
53-16 will [shall] be paid if it would have been payable except for the
53-17 suspension, unless a supplemental death benefit is payable under
53-18 Section 844.503 as a result of the member's death.
53-19 SECTION 43. Subsection (d), Section 844.703, Government
53-20 Code, is amended to read as follows:
53-21 (d) The actuary annually shall determine the subdivision
53-22 normal contribution rate and the prior service contribution rate
53-23 for subdivisions adopting the plan provisions of this subchapter
53-24 from the most recent data available at the time of determination.
53-25 Before January 1 of each year, the board of trustees shall certify
53-26 the rates of each subdivision that has adopted the plan provisions
54-1 of this subchapter. If the combined rates of the subdivision's
54-2 normal contributions and prior service contributions under this
54-3 subchapter exceed the rate prescribed by Subsection (c), and if the
54-4 governing body of the subdivision has not waived that maximum rate,
54-5 the rate for prior service contributions must be reduced to the
54-6 rate that equals the difference between the maximum rate prescribed
54-7 by Subsection (c) and the normal contribution rate. The governing
54-8 body may elect to contribute at a rate that is greater than the sum
54-9 of the subdivision's normal contribution rate and prior service
54-10 contribution rate as determined under Subsections (a) and (b). An
54-11 elected rate may [an integer percent but] not exceed [more than]
54-12 the maximum rate prescribed by Subsection (c), unless the governing
54-13 body has elected to waive that maximum rate[, if that elected rate
54-14 exceeds the sum of the subdivision's normal contribution rate and
54-15 its prior service contribution rate as determined under Subsections
54-16 (a) and (b)]. An [This] elected rate remains in effect for each
54-17 subsequent calendar year until it is rescinded by the governing
54-18 body. For years in which [or until] the sum of the rates
54-19 determined under Subsections (a) and (b) exceeds the elected rate,
54-20 [at which time] the governing body must contribute the sum of the
54-21 rates determined under Subsections (a) and (b). For years in which
54-22 the elected rate exceeds the sum of the rates determined under
54-23 Subsections (a) and (b), the prior service contribution rate is
54-24 increased to the rate that equals the difference between the
54-25 elected rate and the normal contribution rate prescribed by
54-26 Subsection (a).
55-1 SECTION 44. Subsections (b) and (d), Section 844.704,
55-2 Government Code, are amended to read as follows:
55-3 (b) On the adoption of the plan provisions of this
55-4 subchapter, the governing body shall select a percentage for
55-5 determining allocated prior service credits under Section 843.105[,
55-6 notwithstanding the limitation in Section 843.105(c)]. The
55-7 governing body shall select a percentage that is a multiple of five
55-8 percent. For a subdivision that began participation before January
55-9 1, 1992, the percentage cannot be less than the percentage in
55-10 effect immediately before the adoption of the plan. The governing
55-11 body may [thereafter] increase the percentage used in determining
55-12 allocated prior service credits under Section 843.105, to take
55-13 effect on the next January 1 after the date of the increase. The
55-14 selection of or increase in the percentage used in determining
55-15 allocated prior service credits may not result in greater benefits
55-16 being provided for completed service than would be provided through
55-17 current service credits and multiple matching credits for service
55-18 that is performed in the future.
55-19 (d) The governing body of a subdivision that has adopted or
55-20 is adopting the plan provisions of this subchapter may adopt or
55-21 authorize:
55-22 (1) an [the alternative optional] increase in
55-23 retirement annuities under Section 844.209;
55-24 (2) an [the optional] increase in retirement annuities
55-25 under Section 844.208;
55-26 (3) the [optional authorization of the]
56-1 reestablishment of credited service previously forfeited under
56-2 Section 843.003;
56-3 (4) the [optional authorization of the] establishment
56-4 of credited service for military service under Section 843.601(c);
56-5 (5) the reduction in the credited service requirement
56-6 for military service under Section 843.601(g);
56-7 (6) the [optional authorization of the] establishment
56-8 of premembership credited service for overage employees under
56-9 Section 843.204;
56-10 (7) [(6)] the [optional] benefit eligibility plan
56-11 described by Section 844.210 or 844.211; or
56-12 (8) the partial lump-sum distribution on service
56-13 retirement under Section 844.009 [(7) the optional benefit
56-14 eligibility plan described by Section 844.211].
56-15 SECTION 45. Section 845.306, Government Code, is amended to
56-16 read as follows:
56-17 Sec. 845.306. EMPLOYEES SAVING FUND. (a) The retirement
56-18 system shall deposit in a member's individual account in the
56-19 employees saving fund:
56-20 (1) the amount of contributions to the retirement
56-21 system deducted from the member's compensation;
56-22 (2) interest allowed on money in the account in
56-23 accordance with this subtitle;
56-24 (3) the portion of a deposit required by Section
56-25 843.003 to reinstate credited service previously terminated that
56-26 represents the amount withdrawn;
57-1 (4) the amount deposited in accordance with this
57-2 subtitle [Section 843.301(b) or 843.402(b)] to establish credit for
57-3 prior or current service for a person who became a member in
57-4 accordance with Subchapter C, Chapter 842;
57-5 (5) the amount, if any, deposited by a member in
57-6 accordance with Section 843.601(b) to establish current service
57-7 credit for military service; and
57-8 (6) the amount deposited by a person to become a
57-9 member in accordance with Section 842.103.
57-10 (b) The retirement system shall establish and maintain a
57-11 separate member individual account for each subdivision with which
57-12 the member has credited service.
57-13 (c) On December 31 of each year, the retirement system shall
57-14 credit to each member's individual account interest as allowed by
57-15 this subtitle on the amount of accumulated contributions [deposits]
57-16 credited to the member's account on January 1 of that year.
57-17 SECTION 46. Subsection (a), Section 845.307, Government
57-18 Code, is amended to read as follows:
57-19 (a) The retirement system shall deposit in the account of a
57-20 participating subdivision in the subdivision accumulation fund:
57-21 (1) all benefit contributions made by the subdivision
57-22 to the system pursuant to Section 845.404(a)(2);
57-23 (2) income allocated to the fund as provided by this
57-24 subtitle;
57-25 (3) amounts deposited by the subdivision under Section
57-26 845.408;
58-1 (4) the withdrawal charge for reinstatement of
58-2 credited service as provided by Section 843.003;
58-3 (5) the amount of matching contributions made by a
58-4 subdivision in accordance with this subtitle [Section 843.301(c) or
58-5 843.402(c)] to establish credit for prior or current service for a
58-6 person who became a member in accordance with Subchapter C, Chapter
58-7 842; and
58-8 (6) the amount deposited by a subdivision for a person
58-9 to become a member in accordance with Section 842.103.
58-10 SECTION 47. Subsection (f), Section 845.310, Government
58-11 Code, is amended to read as follows:
58-12 (f) The retirement system shall deposit and hold in the
58-13 perpetual endowment account funds, gifts, and awards that the
58-14 grantors designate as perpetual endowment for the retirement system
58-15 [and money forfeited to the retirement system as provided by
58-16 Section 845.505].
58-17 SECTION 48. Section 845.313, Government Code, is amended by
58-18 adding Subsection (c) to read as follows:
58-19 (c) The retirement system shall make payments by electronic
58-20 funds transfer to annuitants whose first annuity payment under this
58-21 subtitle occurs after January 1, 2002, except that the system may
58-22 make payment by check to an annuitant if making the payment by
58-23 electronic funds transfer would be impractical for the system or if
58-24 the annuitant properly notifies the system that:
58-25 (1) receiving the payment by electronic funds transfer
58-26 would be impractical for the person;
59-1 (2) receiving the payment by electronic funds transfer
59-2 would be more costly to the person than receiving the payment by
59-3 check; or
59-4 (3) the person is unable to establish a qualifying
59-5 account at a financial institution to receive electronic funds
59-6 transfers.
59-7 SECTION 49. Subsection (a), Section 845.315, Government
59-8 Code, is amended to read as follows:
59-9 (a) On December 31 of each year and after the balance of the
59-10 investment expenses account has been transferred to the
59-11 distributable income account, the board of trustees shall transfer
59-12 from the distributable income account of the interest fund the
59-13 following amounts:
59-14 (1) to the current service annuity reserve fund,
59-15 interest on the mean amount in the current service annuity reserve
59-16 fund during that year;
59-17 (2) to the supplemental death benefits fund, interest
59-18 on the mean amount in the supplemental death benefits fund during
59-19 that year;
59-20 (3) to the general reserves account of the endowment
59-21 fund, a dollar amount determined by the board of trustees as
59-22 necessary to provide adequate funding of the endowment fund,
59-23 including provisions for all special needs, all contingencies,
59-24 replenishment of the amount transferred during the current year to
59-25 the employees saving fund for interest to retiring or deceased
59-26 members plus the matching amount transferred to the subdivision
60-1 accumulation fund, and funding of investment expenses and
60-2 administrative costs for the following year;
60-3 (4) to the employees saving fund, current interest on
60-4 the sum of the accumulated contributions [deposits] in the
60-5 employees saving fund credited on January 1 of that year to all
60-6 persons who are members on December 31 of that year before any
60-7 transfers for retirement effective December 31 of that year are
60-8 made; and
60-9 (5) to the subdivision accumulation fund, the
60-10 remaining balance of the distributable income account in the
60-11 interest fund after transfers provided for by Subdivisions (1),
60-12 (2), (3), and (4) have been made.
60-13 SECTION 50. Subsections (a) and (b), Section 845.316,
60-14 Government Code, are amended to read as follows:
60-15 (a) When a member retires, the retirement system shall
60-16 transfer:
60-17 (1) from the employees saving fund to the current
60-18 service annuity reserve fund, the member's accumulated
60-19 contributions [deposits]; and
60-20 (2) from the subdivision accumulation fund to the
60-21 current service annuity reserve fund, an amount equal to the
60-22 member's accumulated current service credit.
60-23 (b) If the retiring member's accumulated contributions
60-24 [deposits] are the result of service for more than one
60-25 participating subdivision, the retirement system shall reduce the
60-26 amount credited to the account of each subdivision by the amount
61-1 chargeable to the subdivision for the member.
61-2 SECTION 51. Section 845.407, Government Code, is amended to
61-3 read as follows:
61-4 Sec. 845.407. PENALTY FOR LATE CONTRIBUTIONS. (a) Except
61-5 as provided by Subsections (c) and (d), a [A] participating
61-6 subdivision that fails to provide the information required by
61-7 Section 845.403 or to pay all contributions required by this
61-8 subchapter to be made and remitted to the retirement system not
61-9 later than the 15th [before the 16th] day of the month in which
61-10 they become [are] due shall pay a penalty under this section. The
61-11 penalty for a past-due monthly remission is equal to interest on
61-12 the past-due amounts for each day past due at a nominal interest
61-13 rate of 12 percent, plus a $500 administrative fee. If the penalty
61-14 is not paid within three months after the date notice of the
61-15 penalty has been sent to the subdivision, the retirement system
61-16 shall deduct the penalty from the subdivision's account in the
61-17 subdivision accumulation fund. The interest portion of the penalty
61-18 shall be deposited by the retirement system in the distributable
61-19 income account of the interest fund. The administrative fee
61-20 portion of the penalty shall be deposited by the retirement system
61-21 in the expense fund.
61-22 (b) Payments [Payment] and required reports are considered
61-23 to be made when received by the retirement system.
61-24 (c) A penalty will not be assessed under this section for a
61-25 late payment or report made in a document sent to the correct
61-26 address:
62-1 (1) by first-class mail not later than the 10th day of
62-2 the month in which the payment or report becomes due; or
62-3 (2) using a same-day or overnight delivery method,
62-4 approved by the board of trustees, not later than the 14th day of
62-5 the month in which the payment or report becomes due.
62-6 (d) If the retirement system does not receive a payment or
62-7 report, a penalty will not be assessed under this section if the
62-8 subdivision provides proof satisfactory to the system that the
62-9 document containing the payment or report was sent in accordance
62-10 with Subsection (c).
62-11 SECTION 52. Section 845.505, Government Code, is amended to
62-12 read as follows:
62-13 Sec. 845.505. UNCLAIMED BENEFITS [CLOSING OF ACCOUNTS].
62-14 (a) If a person's membership in the retirement system has
62-15 terminated and a valid application for a retirement [an] annuity or
62-16 [for] a refund of [the] accumulated contributions [of a former
62-17 member whose membership has terminated under Section 842.109(a)(1)]
62-18 has not been filed with the retirement system [before the end of
62-19 the year in which the member dies], the retirement system shall
62-20 mail the notice described by Subsection (b) [(d)] to the most
62-21 recent address of the former member [decedent's beneficiary] as
62-22 shown on system records and [or, if there is none, to the
62-23 decedent's most recent address as shown on system records. If the
62-24 notice is returned undelivered, the retirement system will] make
62-25 reasonable efforts to locate any person entitled to apply for the
62-26 benefit [the beneficiary or personal representative. If a valid
63-1 application for an annuity or for a refund of the accumulated
63-2 contributions of a deceased member is not filed with the retirement
63-3 system before the expiration of 180 days after the date the notice
63-4 is sent, the retirement system shall transfer the accumulated
63-5 contributions in the decedent's individual account in the employees
63-6 saving fund to the perpetual endowment account of the endowment
63-7 fund and close the decedent's account].
63-8 [(b) On termination of a person's membership under Section
63-9 842.109(a)(4), the retirement system shall mail the notice
63-10 described by Subsection (d) to the former member's most recent
63-11 address as shown on system records. If the notice is returned
63-12 undelivered, the retirement system will make reasonable efforts to
63-13 locate the former member. If a valid application for a refund of
63-14 the accumulated contributions of the former member is not filed
63-15 with the retirement system before the expiration of 180 days after
63-16 the date the notice is sent, the retirement system shall transfer
63-17 the accumulated contributions in the former member's individual
63-18 account in the employees saving fund to the perpetual endowment
63-19 account of the endowment fund and close the former member's
63-20 account.]
63-21 [(c) If a valid application for retirement or for a refund
63-22 of the accumulated contributions of a member who is no longer in
63-23 covered employment is not filed with the retirement system before
63-24 the end of the later of the year in which the member reaches age
63-25 70-1/2 or the year in which the member terminates covered
63-26 employment, the retirement system shall mail the notice described
64-1 by Subsection (d) to the member at the member's most recent address
64-2 as shown on system records. If the notice is returned undelivered,
64-3 the retirement system will make reasonable efforts to locate the
64-4 member. If a valid application for retirement or for a refund of
64-5 the accumulated contributions of the member is not filed with the
64-6 retirement system before March 15 of the year in which distribution
64-7 must be made under Section 841.010, the person's membership
64-8 terminates as of March 31 of that year, and the retirement system
64-9 shall transfer the accumulated contributions in the member's
64-10 individual account in the employees saving fund to the perpetual
64-11 endowment account of the endowment fund and close the member's
64-12 account].
64-13 (b) [(d)] A notice under this section must include the name
64-14 of the [member or] former member, the name of each subdivision with
64-15 [from] which the former member has an individual account, a
64-16 statement that no additional interest is credited after a
64-17 membership has terminated [person received service credit], a
64-18 statement that a benefit is currently payable, a statement of the
64-19 procedure for obtaining payment of that benefit, and a statement
64-20 that a failure to file a valid application for benefits may cause
64-21 unclaimed benefits to be forfeited to the retirement system.
64-22 (c) [(e)] If a person files with the retirement system a
64-23 valid application for an annuity [retirement] based on a membership
64-24 that terminated under Section 842.109(b) [an account that has been
64-25 closed under Subsection (a) or (c)], the retirement system shall
64-26 [restore the member's individual account in the employees saving
65-1 fund and] pay an [a retirement] annuity computed as of the date on
65-2 which the annuity would have been required to begin under this
65-3 subtitle.
65-4 (d) An applicant who is the former member may select the
65-5 standard service retirement annuity or an optional service
65-6 retirement annuity under Section 844.104. An applicant who is the
65-7 surviving spouse of the former member may select an optional
65-8 service retirement annuity under Section 844.104. If the applicant
65-9 is not the former member or surviving spouse, the annuity will be
65-10 computed as an annuity under Section 844.104(c)(7). All annuity
65-11 payments that previously would have been paid if the annuity had
65-12 begun on the date required under this subtitle will be paid to the
65-13 applicant [person as a single sum].
65-14 (e) [(f)] If a person files with the retirement system a
65-15 valid application for a refund of a former member's accumulated
65-16 contributions [based on an account that has been closed under
65-17 Subsection (a), (b), or (c)], the retirement system shall pay to
65-18 the applicant [from the perpetual endowment account of the
65-19 endowment fund] the amount of the former member's accumulated
65-20 contributions to which the applicant is entitled.
65-21 (f) [(g)] If a person receiving an annuity fails to
65-22 negotiate more than five consecutive annuity payments, the
65-23 retirement system may send a notice to that person, stating that
65-24 unless the previous payments are negotiated not later than the 30th
65-25 day [within 30 days] after the date of the notice, payment of
65-26 benefits will be suspended [and the account closed until the person
66-1 files a written request with the retirement system to resume
66-2 payments]. After receipt of a valid application [written request
66-3 under this subsection], the retirement system shall [will] resume
66-4 making monthly payments. All annuity payments that would have
66-5 otherwise been paid if the annuity had not been suspended will be
66-6 paid to the person or, if the person has died, to the decedent's
66-7 beneficiary or, if no beneficiary exists, to the annuitant's estate
66-8 [as a single sum].
66-9 (g) If a benefit becomes payable as the result of [(h) On]
66-10 the death of a person receiving an annuity, the retirement system
66-11 shall mail a notice similar to the notice described by Subsection
66-12 (b) to the most recent address of the decedent's beneficiary as
66-13 shown on system records and make reasonable efforts to locate each
66-14 [any] person to whom the benefit is payable [annuity payments
66-15 should continue to be made as a result of that death and to notify
66-16 that person of any information necessary in order to make the
66-17 continued payments]. After receipt of a valid application, the
66-18 retirement system shall pay the applicant the benefit to which the
66-19 applicant is entitled. All annuity payments that would previously
66-20 have been paid if the annuity had begun on the date required under
66-21 this subtitle will be paid to the applicant.
66-22 (h) A person entitled to a benefit under this section is
66-23 solely responsible for a tax or penalty relating to the
66-24 distribution of the benefit without regard to whether the person
66-25 received notice from the retirement system.
66-26 (i) The board of trustees may adopt rules concerning the
67-1 notice, distribution, management, transfer, and administration of
67-2 unclaimed benefits and the authority of an applicant to act as
67-3 trustee of an absent beneficiary in the selection of a payment
67-4 option or receipt of an absent beneficiary's benefit under this
67-5 section [If the requested information has not been received by the
67-6 retirement system before the expiration of one year after the
67-7 annuitant's death, the retirement system shall suspend the annuity
67-8 and close the account until all requested information has been
67-9 received by the retirement system. After the retirement system
67-10 receives the requested information, it will resume making monthly
67-11 payments of the annuity and pay in a single sum all payments that
67-12 were suspended.]
67-13 [(i) The retirement system may apply a similar process as
67-14 provided by Subsection (a), (b), (c), (d), (e), or (f) to other
67-15 money it holds for payment, if the system first determines that no
67-16 claim for the money is likely to be filed].
67-17 SECTION 53. (a) Section 844.504, Government Code, as
67-18 amended by this Act, applies only to the death of a retiree
67-19 occurring after December 31, 2001. Section 844.504, Government
67-20 Code, as it existed immediately before the enactment of this Act,
67-21 applies to deaths that occurred on or before that date.
67-22 (b) Sections 844.005 and 844.503, Government Code, as
67-23 amended by this Act, apply only to benefits that become payable
67-24 after December 31, 2001.
67-25 (c) Sections 844.401 and 844.402, Government Code, as
67-26 amended by this Act, apply only to beneficiary determinations made
68-1 after December 31, 2001.
68-2 SECTION 54. The following provisions of the Government Code
68-3 are repealed:
68-4 (1) Section 843.301;
68-5 (2) Subsection (i), Section 844.009;
68-6 (3) Subsections (d), (e), (f), (g), (h), (i), (j),
68-7 (k), (l), (m), and (n), Section 844.104;
68-8 (4) Subsections (d), (e), (f), (g), (h), (i), (j),
68-9 (k), (l), and (m), Section 844.305;
68-10 (5) Section 844.403; and
68-11 (6) Subsection (c), Section 844.502.
68-12 SECTION 55. (a) Except as provided by Subsection (b) of
68-13 this section, this Act takes effect December 31, 2001.
68-14 (b) Sections 12 and 51 of this Act take effect September 1,
68-15 2001.