By: Madla S.B. No. 708
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the retirement system for firefighters and police
1-3 officers in certain municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subdivision (18), Section 1.02, Chapter 824, Acts
1-6 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
1-7 Vernon's Texas Civil Statutes), is amended to read as follows:
1-8 (18) "Years of service" means a member's total years
1-9 of service, including fractional years or full months of service,
1-10 computed as provided by Section 5.01 [5.01(e)] of this Act.
1-11 SECTION 2. Article 1, Chapter 824, Acts of the 73rd
1-12 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
1-13 Civil Statutes), is amended by adding Section 1.07 to read as
1-14 follows:
1-15 Sec. 1.07. CONSTRUCTION OF ACT. This Act does not provide
1-16 any benefit that is not specifically provided by this Act.
1-17 SECTION 3. Subsection (e), Section 2.03, Chapter 824, Acts
1-18 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
1-19 Vernon's Texas Civil Statutes), is amended to read as follows:
1-20 (e) On the date the board enters an order under Subsection
1-21 (d) of this section, the board shall call a special election to be
1-22 held not less than 20 nor more than 30 days after that date to fill
1-23 the vacancy for the unexpired term of the trustee who was removed.
1-24 The trustee who was removed is not eligible to run in the special
1-25 election but is eligible to run in all subsequent board elections
2-1 [for the category in which the trustee was removed].
2-2 SECTION 4. Section 3.02, Chapter 824, Acts of the 73rd
2-3 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
2-4 Civil Statutes), is amended by adding Subsection (e) to read as
2-5 follows:
2-6 (e) A person's failure to give truthful information to the
2-7 board in an application or in testimony at a hearing may result in
2-8 a referral for criminal investigation.
2-9 SECTION 5. Section 4.01, Chapter 824, Acts of the 73rd
2-10 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
2-11 Civil Statutes), is amended to read as follows:
2-12 Sec. 4.01. MEMBERSHIP. (a) A person is eligible to become
2-13 [becomes] a member of the fund as a condition of continued
2-14 employment two months after the person has received state
2-15 certification as a fire fighter or police officer, completed all
2-16 other requirements for membership in the fund, and:
2-17 (1) graduated from [if the person has served eight
2-18 months as a fire fighter or police officer or as a trainee in] a
2-19 fire fighter or police officer training academy of a municipality
2-20 to which this Act applies and passed the municipality's fire
2-21 fighter's or police officer's probationary exam; or
2-22 (2) otherwise satisfied the requirements for
2-23 employment as a fire fighter or police officer in a municipality to
2-24 which this Act applies.
2-25 (b) A person may not become eligible for disability
2-26 retirement benefits unless the person has provided an authorization
3-1 for release of medical information for any medical records dated on
3-2 or after the date of initial application for employment or has
3-3 agreed in writing to provide that authorization when requested by
3-4 the board or, in the alternative if required by the board, has
3-5 submitted to a physical examination by a physician selected by the
3-6 board.
3-7 [(b) Notwithstanding Subsection (a) of this section, a
3-8 person duly appointed and enrolled in a classified position in
3-9 either the fire department or police department who was barred from
3-10 entry in the fund solely because the person had attained the age of
3-11 36 on the date that the person would have otherwise become eligible
3-12 after October 15, 1990, to be a member of the fund and for that
3-13 reason became a member of the Texas Municipal Retirement System and
3-14 who is otherwise eligible for and complies with each requirement
3-15 for membership in the fund shall become a member of the fund as a
3-16 condition of continued employment. The person must make
3-17 application to the fund not later than the 90th day after the date
3-18 on which the person receives notification of this provision.]
3-19 (c) [A person who becomes a member of the fund under
3-20 Subsection (b) of this section shall be given service credit from
3-21 the date the person would have become eligible to be a member of
3-22 the fund if not for the age requirement and must pay into the fund,
3-23 in accordance with procedures established by the board, pension
3-24 contributions for all service credit allowed based on amounts that
3-25 would have been deducted if the person had been allowed to enter
3-26 the fund on that date.]
4-1 [(d) A person who became a member of the Texas Municipal
4-2 Retirement System on or before October 15, 1990, may elect to
4-3 become a member of the fund on or before the 90th day after the
4-4 date the person receives notice of this provision. If the person
4-5 does not elect to become a member during that period, the person
4-6 may not become a member of the fund and waives any claim against
4-7 the fund. If the person elects to become a member of the fund, the
4-8 person must comply with each requirement for membership and must
4-9 pay into the fund, in accordance with procedures established by the
4-10 board, a sum of money equal to the amount of money that would have
4-11 been deducted from that person's salary during the period beginning
4-12 October 16, 1990, and ending on the date the person becomes a
4-13 member of the fund. The person also may purchase service credit
4-14 for the period beginning on the date the person would have
4-15 otherwise become eligible to be a member of the fund if not for the
4-16 age prohibition, through October 15, 1990. Service credit may be
4-17 obtained only in increments of full months, with the minimum being
4-18 one month.]
4-19 [(e) A person who becomes a member of the fund under
4-20 Subsection (b) or (d) of this section must, as a condition of
4-21 employment, provide an authorization for release of medical
4-22 information for any medical records dated on or after the date of
4-23 initial application for employment when requested by the board or
4-24 in the alternative, as required by the board, must submit to a
4-25 physical examination by a physician selected by the board.]
4-26 [(f)] A municipality to which this Act applies shall match
5-1 an amount equal to twice the amount of each payment a member makes
5-2 to the fund under this section.
5-3 (d) [(g)] The drawing of compensation by an officer or
5-4 employee in the fire or police department for service in that
5-5 department does not of itself make that person a member of the
5-6 fund.
5-7 (e) [(h)] The regularity of an appointment as a fire fighter
5-8 or police officer of a municipality to which this Act applies may
5-9 not be presumed from the serving of the full probationary period,
5-10 if any. The service of the probationary period by an officer or
5-11 employee as a fire fighter or police officer of a municipality to
5-12 which this Act applies does not constitute the creation of a
5-13 position or office to which a proper appointment has been made for
5-14 purposes of this Act.
5-15 SECTION 6. Subsection (a), Section 4.04, Chapter 824, Acts
5-16 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
5-17 Vernon's Texas Civil Statutes), is amended to read as follows:
5-18 (a) There shall be deducted from the total salary of each
5-19 fire fighter and police officer in the employment of a municipality
5-20 to which this Act applies a percentage of the member's total salary
5-21 according to the following schedule:
5-22 (1) 11.16 percent for full pay periods after September
5-23 30, 1993, but before October 1, 1994;
5-24 (2) 11.32 percent for full pay periods after September
5-25 30, 1994, but before October 1, 1995;
5-26 (3) 11.50 percent for full pay periods after September
6-1 30, 1995, but before October 1, 1996;
6-2 (4) 11.66 percent for full pay periods after September
6-3 30, 1996, but before October 1, 1997;
6-4 (5) 11.82 percent for full pay periods after September
6-5 30, 1997, but before October 1, 1998;
6-6 (6) 12 percent for full pay periods after September
6-7 30, 1998, but before October 1, 1999;
6-8 (7) 12.16 percent for full pay periods after September
6-9 30, 1999, but before October 1, 2000; and
6-10 (8) 12.32 percent for full pay periods after September
6-11 30, 2000[, but before October 1, 2001; and]
6-12 [(9) 12.50 percent for full pay periods after
6-13 September 30, 2001].
6-14 SECTION 7. Section 5.01, Chapter 824, Acts of the 73rd
6-15 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
6-16 Civil Statutes), is amended by amending Subsection (e), adding a
6-17 new Subsection (f), amending and relettering existing Subsection
6-18 (f), and relettering the subsequent subsections accordingly to read
6-19 as follows:
6-20 (e) The board shall compute the retirement annuity of a
6-21 member who retires after September 30, 1999, but before October 1,
6-22 2001, at the rate of 2 1/8 percent of the member's average total
6-23 salary for each of the first 20 years of service, plus four percent
6-24 of the member's average total salary for each of the next 10 years
6-25 of service, plus one percent of the member's average total salary
6-26 for each of the next five years of service, with fractional years
7-1 of service prorated based on full months served as a contributing
7-2 member. In making the computation for a year, the year is
7-3 considered to begin on the first day a contribution is made. A
7-4 retirement annuity under this subsection may not exceed, as of the
7-5 date of retirement, 87 1/2 percent of the member's average total
7-6 salary.
7-7 (f) The board shall compute the retirement annuity of a
7-8 member who retires after September 30, 2001, at the rate of 2-1/4
7-9 percent of the member's average total salary for each of the first
7-10 20 years of service, plus 4-1/2 percent of the member's average
7-11 total salary for each of the next seven years of service, plus
7-12 three percent of the member's average total salary for each of the
7-13 next three years of service, plus one-half percent of the member's
7-14 average total salary for each of the next four years of service,
7-15 with fractional years of service prorated based on full months
7-16 served as a contributing member. In making the computation for a
7-17 year, the year is considered to begin on the first day a
7-18 contribution is made. A retirement annuity under this subsection
7-19 may not exceed, as of the date of retirement, 87-1/2 percent of the
7-20 member's average total salary.
7-21 (g) A member may not receive an award from the fund for
7-22 service retirement until the member has at least 20 years of
7-23 service in the fire or police department and has also contributed
7-24 the required amount of money for at least 20 years. In determining
7-25 the number of years of service in a department, the member shall be
7-26 given full credit for the period the member was an active member
8-1 plus the time the member was actively engaged in service with any
8-2 uniformed service in accordance with Section 4.03 of this Act and
8-3 for absences taken under the Family and Medical Leave Act of 1993
8-4 (29 U.S.C. Section 2601 et seq.), in accordance with Section 4.02
8-5 of this Act. Disciplinary suspensions of 15 days or less may not
8-6 be subtracted from a member's service credit under this Act if the
8-7 member has paid into the fund, within 30 days after the later of
8-8 the termination date of each suspension or the exhaustion of any
8-9 appeal with respect to the suspension, a sum of money equal to the
8-10 amount of money that would have been deducted from that person's
8-11 salary during that period of suspension if it had not been for that
8-12 suspension. A municipality to which this Act applies shall
8-13 double-match a payment made under this subsection. Members of the
8-14 fund at the time of their retirement shall also receive service
8-15 credit for all unused sick leave accumulated by them under Chapter
8-16 143, Local Government Code, but only to the extent the unused sick
8-17 leave exceeds 90 days. Service credit for unused sick leave shall
8-18 be prorated based on each full month of sick leave.
8-19 (h) [(g)] All monthly pensions being paid by the fund to
8-20 retirees who retired before October 1, 1989, are increased,
8-21 effective with the first monthly payment due on or after October 1,
8-22 1999. The amount of the increase depends on the fiscal year ending
8-23 September 30 in which the retiree retired and is a percentage of
8-24 the pension payment that would have been payable on October 1,
8-25 1999, except for this increase. The amount of the percentage
8-26 increase is:
9-1 Municipality Fiscal Year Percentage
9-2 of Retirement Increase
9-3 1988 1.0%
9-4 1987 2.0%
9-5 1986 3.0%
9-6 1985 4.0%
9-7 1984 5.0%
9-8 1983 6.0%
9-9 1982 7.0%
9-10 1981 8.0%
9-11 1980 9.0%
9-12 1979 or earlier 10.0%
9-13 SECTION 8. Subsections (d) and (e), Section 5.015, Chapter
9-14 824, Acts of the 73rd Legislature, Regular Session, 1993 (Article
9-15 6243o, Vernon's Texas Civil Statutes), are amended to read as
9-16 follows:
9-17 (d) The amount of a lump-sum payment to which a member
9-18 making a Back DROP election is entitled shall be computed in the
9-19 manner provided by this subsection. The member's retirement
9-20 annuity shall be computed in the manner provided by Section 5.01
9-21 [5.01(c) or (d)] of this Act, [as applicable,] except that the
9-22 retirement date used in making that computation is the retirement
9-23 date computed as provided by this subsection. The member's
9-24 retirement annuity as so computed shall be divided by 12 to compute
9-25 the member's monthly pension. The member's monthly pension
9-26 multiplied by the number of full months elected by the member under
10-1 Subsection (b)(1) of this section is the amount of the lump-sum
10-2 payment to which the member is entitled. Solely for purposes of
10-3 computing the member's monthly pension under this subsection, the
10-4 member's retirement date is the member's Back DROP retirement date,
10-5 which is the member's actual retirement date less the amount of
10-6 time for:
10-7 (1) any service in excess of 34 [35] years of service;
10-8 (2) any service given for sick leave unused on the
10-9 date of actual retirement; and
10-10 (3) any service in excess of 20 years but not in
10-11 excess of the amount permitted under Subsection (b)(1) of this
10-12 section that the member elects for computing the amount of the
10-13 lump-sum payment.
10-14 (e) For purposes of computing the monthly pension of a
10-15 member making a Back DROP election, the member's retirement annuity
10-16 shall be computed in the manner provided by Section 5.01 [5.01(c)
10-17 or (d)] of this Act, [as applicable,] except that the retirement
10-18 date used in making that computation is the member's actual
10-19 retirement date less the amount of time the member elects under
10-20 Subsection (b)(1) of this section. The annuity may not exceed the
10-21 applicable limitations [limitation] provided by Section 5.01
10-22 [5.01(c) or (d)] of this Act[, as applicable]. The member's
10-23 retirement annuity shall be divided by 12 to compute the member's
10-24 monthly pension.
10-25 SECTION 9. Subsection (b), Section 5.07, Chapter 824, Acts
10-26 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
11-1 Vernon's Texas Civil Statutes), is amended to read as follows:
11-2 (b) If the retiree received income from other employment,
11-3 including self-employment, during the preceding year, the board may
11-4 reduce the retiree's disability retirement annuity by the amount of
11-5 $1 for each month for each $2 of income earned by the retiree from
11-6 the other employment during each month of the previous year, except
11-7 that the disability retirement annuity may not be decreased below
11-8 an amount based on 2-1/4 [two] percent of the retiree's average
11-9 total salary computed at the time of retirement under Section 5.04
11-10 of this Act for each year of service in the department.
11-11 SECTION 10. Subsection (a), Section 5.09, Chapter 824, Acts
11-12 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
11-13 Vernon's Texas Civil Statutes), is amended to read as follows:
11-14 (a) At or before its regular meeting in the month of March,
11-15 the board annually shall review the Consumer's Price Index for All
11-16 Urban Consumers (CPI-U), U.S. City Average or the nearest
11-17 equivalent published by the United States Bureau of Labor
11-18 Statistics for the preceding calendar year. If that index shows an
11-19 increase during the preceding calendar year in the cost of living
11-20 as compared with that index at the close of the previous year, the
11-21 board shall order an increase of all service, disability, and death
11-22 benefit retirement annuities by a percentage that varies by the
11-23 date of the member's service or disability retirement, or, in the
11-24 case of a member who died before retirement, the date on which the
11-25 member died. If the member's service retirement, disability
11-26 retirement, or death before retirement occurred before August 30,
12-1 1971, the annuity shall be increased by a percentage equal to the
12-2 percentage increase in the cost of living index. If the member's
12-3 service retirement, disability retirement, or death before
12-4 retirement occurred on or after August 30, 1971, but before October
12-5 1, 1991 [1989], the annuity shall be increased as follows: if the
12-6 percentage increase in the cost of living index is eight percent or
12-7 less, the annuity shall be increased by a percentage equal to the
12-8 percentage increase, and if the percentage increase in the cost of
12-9 living index is more than eight percent, the annuity shall be
12-10 increased by eight percent plus a percentage equal to 75 percent of
12-11 the percentage increase that is more than eight percent [by a
12-12 percentage that is 87.5 percent of the percentage increase in the
12-13 cost of living index, for any year in which the cost of living
12-14 index increases by eight percent or less and by 75 percent of the
12-15 percentage increase in the cost of living index if the cost of
12-16 living index increases by more than eight percent]. If the
12-17 member's service retirement, disability retirement, or death before
12-18 retirement occurred on or after October 1, 1991 [1989], the annuity
12-19 shall be increased by a percentage equal to [that is] 75 percent of
12-20 the percentage increase in the cost of living index. A percentage
12-21 increase in annuities shall be rounded to the nearest one-tenth
12-22 percentage point for a cost of living increase.
12-23 SECTION 11. Section 5.11, Chapter 824, Acts of the 73rd
12-24 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
12-25 Civil Statutes), is redesignated as Section 5.10 and amended to
12-26 read as follows:
13-1 Sec. 5.10 [5.11]. COORDINATION WITH FEDERAL LAW. (a) A
13-2 member or beneficiary of a member of the fund may not accrue a
13-3 service retirement annuity, disability retirement annuity, death
13-4 benefit, whether death occurs in the line of duty or otherwise, or
13-5 any other benefit under this Act in excess of the benefit limits
13-6 applicable to the fund under Section 415 of the code. The board
13-7 shall reduce the amount of any benefit that exceeds those limits by
13-8 the amount of the excess. If the total benefits under this fund
13-9 and the benefits and contributions to which any member is entitled
13-10 under any other qualified defined benefit plan [plans] maintained
13-11 by the municipality that employs the member would otherwise exceed
13-12 the applicable limits under Section 415 of the code, the benefits
13-13 the member would otherwise receive from the fund shall be reduced
13-14 to the extent necessary to enable the benefits to comply with
13-15 Section 415 of the code.
13-16 (b) Any member or beneficiary who is entitled to receive any
13-17 distribution that is an eligible rollover distribution as defined
13-18 by Section 402(c)(4) of the code is entitled to have that
13-19 distribution transferred directly to another eligible retirement
13-20 plan of the member's or beneficiary's choice on providing direction
13-21 to the fund regarding that transfer in accordance with procedures
13-22 established by the board.
13-23 (c) The total salary taken into account for any purpose for
13-24 any member of the fund may not exceed $200,000 per year for an
13-25 eligible participant or $150,000 per year for an ineligible
13-26 participant. These dollar limits shall be periodically adjusted in
14-1 accordance with guidelines provided by the United States secretary
14-2 of the treasury. For purposes of this subsection, an eligible
14-3 participant is any person who first became a member before 1996,
14-4 and an ineligible participant is any member who is not an eligible
14-5 participant.
14-6 (d) Accrued benefits under this Act become 100 percent
14-7 vested for a member on:
14-8 (1) the date the member has completed 20 years of
14-9 service;
14-10 (2) the earlier termination or partial termination of
14-11 the pension plan created by this Act, if it affects the member[, of
14-12 the fund]; or
14-13 (3) the complete discontinuance of contributions by
14-14 the municipality to the fund.
14-15 (e) Amounts representing forfeited nonvested benefits of
14-16 terminated members may not be used to increase benefits payable
14-17 from the fund but may be used to reduce contributions for future
14-18 plan years.
14-19 (f) Distribution of benefits must begin not later than April
14-20 1 of the year following the calendar year during which the member
14-21 becomes 70 1/2 years of age and must otherwise conform to Section
14-22 401(a)(9) of the code.
14-23 (g) If the amount of any benefit is to be determined on the
14-24 basis of actuarial assumptions that are not otherwise specifically
14-25 set forth for that purpose in this Act, the actuarial assumptions
14-26 to be used are those earnings and mortality assumptions being used
15-1 on the date of the determination by the fund's actuary and approved
15-2 by the board. The actuarial assumptions being used at any
15-3 particular time shall be attached as an addendum to a copy of this
15-4 Act and treated for all purposes as a part of this Act. The
15-5 actuarial assumptions may be changed by the fund's actuary at any
15-6 time if approved by the board, but a change in actuarial
15-7 assumptions may not result in any decrease in benefits accrued as
15-8 of the effective date of the change.
15-9 (h) This section applies to any benefit regardless of when
15-10 accrued.
15-11 (i) The board may adopt rules to administer this section. A
15-12 rule adopted by the board under this subsection is final and
15-13 binding.
15-14 (j) To the extent permitted by law, the board may adjust the
15-15 benefits of retired members and beneficiaries by increasing any
15-16 retirement benefit that was reduced because of Section 415 of the
15-17 code. If Section 415 of the code is amended to permit the payment
15-18 of amounts previously precluded under Section 415 of the code, the
15-19 board may adjust the benefits of retired members and beneficiaries,
15-20 including the restoration of benefits previously denied. Benefits
15-21 paid under this subsection are not considered as extra compensation
15-22 earned after retirement but as the delayed payment of benefits
15-23 earned before retirement.
15-24 (k) The board by rule shall implement this Act in a manner
15-25 that preserves the tax qualification of the fund under the code and
15-26 may revise any provision or program to the extent necessary to
16-1 retain tax qualification.
16-2 (l) In this section, "qualified plan" has the meaning
16-3 assigned by Section 8.02 of this Act.
16-4 SECTION 12. Section 5.12, Chapter 824, Acts of the 73rd
16-5 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
16-6 Civil Statutes), is redesignated as Section 5.11 and amended to
16-7 read as follows:
16-8 Sec. 5.11 [5.12]. 13TH CHECK FOR RETIREES. (a) In any
16-9 fiscal year ending after 1996 for which the board determines that
16-10 the average annual investment yield on the market value of fund
16-11 investments for the preceding five fiscal years exceeded the annual
16-12 investment yield projected by the actuary for that preceding
16-13 five-fiscal-year period by at least 100 basis points, the board may
16-14 authorize the disbursement of a 13th pension check.
16-15 (b) The 13th pension check is paid to each retiree who is
16-16 entitled to receive an annuity in the last month of the fiscal year
16-17 preceding the fiscal year in which the check is disbursed and is in
16-18 an amount equal to the amount of the annuity payment made in the
16-19 last month of the preceding fiscal year, except the amount of any
16-20 such check shall be prorated for any retiree who has been receiving
16-21 an annuity for less than one year so that the amount of the check
16-22 is one-twelfth of the check that would have been paid to the
16-23 retiree receiving an annuity for a full year times the number of
16-24 full months an annuity has been paid.
16-25 (c) Authorization of a 13th check for any year is subject to
16-26 the discretion of the board. Authorization for one year does not
17-1 obligate the board to authorize a 13th check for any other year.
17-2 The 13th check shall be paid as the board directs.
17-3 (d) In this section, "annual investment yield" means the
17-4 yield on the fund's investment portfolio for a particular year, as
17-5 a percentage of the portfolio, after reduction for costs of
17-6 investing the portfolio, but without reduction for the fund's
17-7 operating expenses.
17-8 SECTION 13. Article 5, Chapter 824, Acts of the 73rd
17-9 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
17-10 Civil Statutes), is amended by adding Section 5.12 to read as
17-11 follows:
17-12 Sec. 5.12. 14TH CHECK FOR RETIREES. (a) In this section,
17-13 "annual investment yield" has the meaning assigned by Section
17-14 5.11(d) of this Act.
17-15 (b) In a fiscal year ending after September 1, 2000, for
17-16 which the board determines that the average annual investment yield
17-17 on the market value of fund investments for the preceding five
17-18 fiscal years exceeded the annual investment yield projected by the
17-19 actuary for that five-fiscal-year period by at least 300 basis
17-20 points, the board may authorize the disbursement of a 14th pension
17-21 check.
17-22 (c) The 14th pension check is paid to each retiree who is
17-23 entitled to receive an annuity in the last month of the fiscal year
17-24 preceding the fiscal year in which the check is disbursed. Except
17-25 as provided by Subsection (d) of this section, the check is in an
17-26 amount equal to the amount of the annuity payment made in the last
18-1 month of the preceding fiscal year.
18-2 (d) For a retiree who has received an annuity for less than
18-3 one year, the amount of the 14th pension check is prorated so that
18-4 the amount of the check is one-twelfth of the check that would have
18-5 been paid to a retiree receiving an annuity for a full year times
18-6 the number of full months an annuity has been paid.
18-7 (e) Authorization of a 14th check for any year is subject to
18-8 the discretion of the board. Authorization for one year does not
18-9 obligate the board to authorize a 14th check for any other year.
18-10 The 14th check shall be paid as the board directs.
18-11 SECTION 14. Section 6.02, Chapter 824, Acts of the 73rd
18-12 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
18-13 Civil Statutes), is amended to read as follows:
18-14 Sec. 6.02. DEATH BENEFIT ANNUITY FOR SURVIVING SPOUSES AND
18-15 CHILDREN. (a) Subject to Section 6.03 of this Act and the
18-16 provisions of this section [Subsections (h), (i), (j), (k), and (l)
18-17 of this section], if a member dies leaving a surviving spouse or at
18-18 least one dependent child, the surviving spouse and the children
18-19 are entitled to receive from the fund an aggregate death benefit
18-20 annuity, computed and payable from the date of the member's death.
18-21 The surviving spouse may elect the annuity[,] in an amount that is
18-22 equal to either [the greater of]:
18-23 (1) 50 percent of the member's average total salary;
18-24 or
18-25 (2) the same percentage of the member's average total
18-26 salary that the member would have been entitled to receive as a
19-1 retirement annuity if the member could have retired on the date of
19-2 death.
19-3 (b) The amount of a death benefit annuity computed under
19-4 Subsection (a) of this section may not exceed the service
19-5 retirement annuity to which a member with the same average total
19-6 salary and with 27 [26] years of service credit would be entitled.
19-7 (c) Subject to Section 6.08 of this Act and the provisions
19-8 of this section [Subsections (h), (i), (j), (k), and (l) of this
19-9 section], if a retiree dies leaving a surviving spouse or at least
19-10 one dependent child, the surviving spouse and dependent children
19-11 are entitled to receive from the fund an aggregate death benefit
19-12 annuity, computed and payable from the date of the member's death,
19-13 in an amount that is equal to the [same percentage of the retiree's
19-14 average total salary that the retiree would have been entitled to
19-15 receive as a retirement annuity if the retiree had retired on the
19-16 date of death less the amount of time, if any, elected by the
19-17 retiree under Section 5.015(b)(1) of this Act.]
19-18 [(d) The amount of a death benefit annuity computed under
19-19 Subsection (c) of this section may not exceed the] lesser of:
19-20 (1) the retirement annuity to which a member with the
19-21 same average total salary as the deceased retiree and 27 [26] years
19-22 of service credit would be entitled if the member retired on the
19-23 date of the deceased retiree's death; or
19-24 (2) the retirement annuity the retiree was receiving
19-25 at the time of the retiree's death.
19-26 (d) [(e)] If, at the time a death benefit annuity becomes
20-1 payable under Subsection (a) or (c) of this section, the deceased
20-2 leaves a surviving spouse and at least one dependent child, the
20-3 board shall award:
20-4 (1) one-half of the annuity to the surviving spouse;
20-5 and
20-6 (2) one-half of the annuity:
20-7 (A) to the dependent child, if there is only
20-8 one; or
20-9 (B) if there is more than one dependent child,
20-10 in equal shares to each child.
20-11 (e) [(f)] If, at the time a death benefit annuity under
20-12 Subsection (a) or (c) of this section becomes payable, the
20-13 deceased leaves a surviving spouse and no dependent child, the
20-14 board shall award the annuity to the surviving spouse.
20-15 (f) [(g)] If, at the time a death benefit annuity under
20-16 Subsection (a) or (c) of this section becomes payable, the
20-17 deceased leaves no surviving spouse and at least one dependent
20-18 child, the board shall award the annuity:
20-19 (1) to the dependent child, if there is only one; or
20-20 (2) if there is more than one child, in equal shares
20-21 to each child.
20-22 (g) [(h)] A child who is born after the date of retirement
20-23 of the member is not entitled to a death benefit annuity under this
20-24 Act unless the retiree was married to the other parent of the child
20-25 on the date of retirement. A surviving spouse of a retiree who was
20-26 not married to the retiree until after the retiree's retirement is
21-1 entitled to receive only the benefit, if any, provided under
21-2 Section 6.08 of this Act.
21-3 (h) [(i)] If a member or retiree dies leaving a surviving
21-4 spouse and at least one dependent child, the death benefit annuity
21-5 payable to the surviving spouse shall be increased as of the day no
21-6 child is entitled to receive benefits to the amount the spouse
21-7 would have received had there been no dependent child.
21-8 (i) [(j)] If a member or retiree dies leaving a surviving
21-9 spouse and at least one dependent child, the death benefit annuity
21-10 payable to the dependent children shall be increased as of the day
21-11 the surviving spouse dies to the amount the children would have
21-12 received had there been no surviving spouse.
21-13 (j) [(k)] A child of the member who is so mentally or
21-14 physically disabled as to be incapable of being self-supporting to
21-15 any extent, if otherwise qualified and regardless of age, has the
21-16 rights of a child under 18 years of age, except that any death
21-17 benefit annuity paid under this subsection to any mentally or
21-18 physically disabled child may, at the discretion of the board,
21-19 [shall] be reduced to the extent of any state pension or aid,
21-20 including Medicaid, or any state-funded assistance received by the
21-21 child, regardless of whether the funds were made available to the
21-22 state by the federal government. In no other instance under this
21-23 Act is a child entitled to any benefit after becoming 18 years of
21-24 age.
21-25 (k) [(l)] The board shall increase a death benefit annuity
21-26 payable on October 1, 1999, to a dependent child or children who do
22-1 not have a living parent on that date to the entire amount of the
22-2 death benefit annuity that would have been awarded had the retiree
22-3 or member died leaving no surviving spouse if a surviving spouse of
22-4 the member or retiree is not entitled to receive benefits from the
22-5 fund on October 1, 1999.
22-6 (l) A former spouse of a deceased member or retiree who is
22-7 not the spouse of the member or retiree on the date of death of the
22-8 member or retiree is not entitled to a benefit under this section.
22-9 SECTION 15. Subsection (c), Section 6.03, Chapter 824, Acts
22-10 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
22-11 Vernon's Texas Civil Statutes), is amended to read as follows:
22-12 (c) Notwithstanding the formulas for computing the total
22-13 amounts of annuities otherwise provided by this Act, if a member is
22-14 killed in the line of duty, the member's surviving spouse and
22-15 dependent children are entitled to a death benefit annuity equal to
22-16 the total salary of the member at the time of death. Rules
22-17 provided by this section relating to qualification and
22-18 disqualification for and apportionment of benefits apply to a death
22-19 benefit annuity computed under this subsection. A death benefit
22-20 annuity computed under this subsection is divided in the manner
22-21 described by Section 6.02 [6.02(a)] of this Act and is subject to
22-22 the same cost-of-living adjustments that apply to pensions for
22-23 service retirement.
22-24 SECTION 16. Section 6.04, Chapter 824, Acts of the 73rd
22-25 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
22-26 Civil Statutes), is amended to read as follows:
23-1 Sec. 6.04. REMARRIAGE; BENEFITS AFTER TERMINATION OF
23-2 MARRIAGE. (a) [If a surviving spouse remarries or a dependent
23-3 child marries before October 1, 1995, the right of a surviving
23-4 spouse or dependent child to annuity payments under this Act
23-5 terminates on the remarriage of the surviving spouse or on the
23-6 marriage of the child, as applicable, under either statutory law or
23-7 under common law as prescribed by Section 6.06 of this Act.]
23-8 [(b)] The right of a surviving spouse or dependent child to
23-9 annuity payments under this Act is not affected by the surviving
23-10 spouse's remarriage or dependent child's marriage under either
23-11 statutory or common law if the marriage or remarriage takes place
23-12 on or after October 1, 1995.
23-13 (b) [(c)] If after October 1, 1995, there is a termination
23-14 of the remarriage of a surviving spouse or of the marriage of a
23-15 dependent child, that person is entitled, on application, to 100
23-16 percent of the annuity that was in effect on the date of
23-17 termination of benefits.
23-18 (c) [(d)] A surviving spouse or dependent child who is
23-19 unmarried but receiving reduced benefits because of a prior
23-20 marriage that caused the benefits to be terminated is entitled to
23-21 100 percent of the annuity that was in effect on the original date
23-22 of termination of benefits.
23-23 (d) [(e)] The benefit provided under Subsections (b) and (c)
23-24 [and (d)] of this section shall be provided prospectively beginning
23-25 October 1, 1995, and the surviving spouse or dependent child is not
23-26 entitled to receive any benefits or increases in benefits relating
24-1 to any period before October 1, 1995.
24-2 SECTION 17. Subsection (a), Section 6.09, Chapter 824, Acts
24-3 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
24-4 Vernon's Texas Civil Statutes), is amended to read as follows:
24-5 (a) If a contributing member in good standing of the fire or
24-6 police department or a retiree dies before or after retirement and
24-7 leaves no surviving spouse or child but leaves surviving a father
24-8 and mother wholly dependent on that person for support, the
24-9 dependent father and mother are entitled to receive one-third of
24-10 the average total salary of the deceased member based on the same
24-11 number of years of the member's pay as is currently provided for
24-12 computations of retirement annuities under Section 5.01 [5.01(a)]
24-13 of this Act, the annuity to be equally divided between the father
24-14 and mother as long as they are wholly dependent. If there is only
24-15 one dependent, either father or mother, the board shall grant the
24-16 surviving dependent an annuity not to exceed one-fourth that
24-17 average total salary as computed under this subsection.
24-18 SECTION 18. Section 6.12, Chapter 824, Acts of the 73rd
24-19 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
24-20 Civil Statutes), is amended to read as follows:
24-21 Sec. 6.12. 13TH AND 14TH CHECKS [CHECK] FOR BENEFICIARIES.
24-22 (a) For any year in which the board authorizes disbursement of a
24-23 13th or 14th pension check to retirees under Section 5.11 or 5.12
24-24 of this Act, the board shall also authorize disbursement of a 13th
24-25 or 14th check to each beneficiary entitled to receive an annuity in
24-26 the last month of the fiscal year preceding the fiscal year in
25-1 which the check is disbursed.
25-2 (b) The amount of the 13th or 14th check is equal to the
25-3 amount of the annuity payment made in the last month of the
25-4 preceding fiscal year, except the amount of the check shall be
25-5 prorated for any beneficiary who has been receiving an annuity for
25-6 less than one year so that the amount of the check is one-twelfth
25-7 of the check that would have been paid to the beneficiary receiving
25-8 an annuity for a full year times the number of full months an
25-9 annuity has been paid.
25-10 SECTION 19. Article 6, Chapter 824, Acts of the 73rd
25-11 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
25-12 Civil Statutes), is amended by adding Section 6.14 to read as
25-13 follows:
25-14 Sec. 6.14. LUMP-SUM PAYMENT ELECTION FOR SURVIVING SPOUSES.
25-15 (a) A surviving spouse of a member who is entitled to receive a
25-16 death benefit under Section 6.02 of this Act may elect to receive a
25-17 portion of the benefit in a lump-sum payment under this section.
25-18 (b) The lump-sum payment may be elected only by a surviving
25-19 spouse:
25-20 (1) of a member who, on the date of death, is
25-21 eligible:
25-22 (A) for service retirement; and
25-23 (B) to elect a Backward Deferred Retirement
25-24 Option Plan; and
25-25 (2) who elects to receive a death benefit under
25-26 Section 6.02(a)(2) of this Act.
26-1 (c) If a member is killed in the line of duty and the
26-2 deceased member's surviving spouse is entitled to a death benefit
26-3 annuity under Section 6.03 of this Act, the surviving spouse may
26-4 not elect a lump-sum payment under this section.
26-5 (d) The lump-sum payment is computed by dividing the annuity
26-6 determined under Subsection (e) by 12 and multiplying the result by
26-7 the number of months the surviving spouse elects under Subsection
26-8 (f) of this section.
26-9 (e) The annuity used to compute the lump-sum payment is
26-10 determined in the manner provided by Section 5.01(f) of this Act
26-11 for retired members, using:
26-12 (1) the deceased member's average total salary for all
26-13 months, excluding the number of months immediately preceding the
26-14 member's date of death that equal the number of months elected by
26-15 the surviving spouse under Subsection (f) of this section; and
26-16 (2) the amount of service credit as determined by
26-17 Subsection (g) or (h) of this section.
26-18 (f) The surviving spouse must elect the number of months
26-19 used in computing the lump-sum payment. The number of months may
26-20 not exceed the lesser of:
26-21 (1) the number of months of service credit in excess
26-22 of 20 years that the deceased member has on the date of death; or
26-23 (2) 36 months.
26-24 (g) Except as provided by Subsection (h) of this section, in
26-25 determining the annuity under Subsection (e) of this section, the
26-26 deceased member's service credit is computed as provided by Section
27-1 5.01(g) of this Act, less:
27-2 (1) the number of months elected by the surviving
27-3 spouse under Subsection (f) of this section; and
27-4 (2) any service credit for unused sick leave to which
27-5 the member would have been entitled.
27-6 (h) In determining the annuity under Subsection (e) of this
27-7 section for a surviving spouse whose death benefit annuity is
27-8 limited by Section 6.02(b) of this Act, the deceased member's
27-9 service credit is 27 years, less the number of months elected by
27-10 the surviving spouse under Subsection (f) of this section.
27-11 (i) If a surviving spouse elects to receive a lump-sum
27-12 payment under this section, the total death benefit annuity payable
27-13 to the surviving spouse under Section 6.02 of this Act is reduced
27-14 as provided by Subsection (j) of this section. The lump-sum
27-15 election does not affect the amount of a death benefit annuity
27-16 payable to a dependent child of a deceased member under Section
27-17 6.02 of this Act.
27-18 (j) The reduced annuity is determined in the manner provided
27-19 by Section 5.01(f) of this Act for retired members, using:
27-20 (1) the deceased member's average total salary for all
27-21 months, excluding the number of months immediately preceding the
27-22 member's date of death that equal the number of months elected by
27-23 the surviving spouse under Subsection (f) of this section; and
27-24 (2) the amount of service credit as determined by
27-25 Subsection (k) or (l) of this section.
27-26 (k) Except as provided by Subsection (l) of this section, in
28-1 determining the reduced annuity under Subsection (j) of this
28-2 section, the deceased member's service credit is computed as
28-3 provided by Section 5.01(g) of this Act, less the number of months
28-4 elected by the surviving spouse under Subsection (f) of this
28-5 section.
28-6 (l) In determining the reduced annuity under Subsection (j)
28-7 of this section for a surviving spouse whose death benefit annuity
28-8 is limited by Section 6.02(b) of this Act, the deceased member's
28-9 service credit is 27 years, less the number of months elected by
28-10 the surviving spouse under Subsection (f) of this section.
28-11 SECTION 20. Subdivisions (1), (3), and (5), Section 8.02,
28-12 Chapter 824, Acts of the 73rd Legislature, Regular Session, 1993
28-13 (Article 6243o, Vernon's Texas Civil Statutes), are amended to read
28-14 as follows:
28-15 (1) "Excess benefit participant" means any member
28-16 whose retirement benefits as determined on the basis of all
28-17 qualified plans, without regard to the limitations of Section
28-18 5.10(a) [5.11(a)] of this Act and comparable provisions of other
28-19 qualified plans, would exceed the maximum benefit under Section 415
28-20 of the code.
28-21 (3) "Maximum benefit" means the retirement benefit a
28-22 member or the member's spouse, dependent child, or dependent parent
28-23 is entitled to receive from all qualified plans in any month after
28-24 applying Section 5.10(a) [5.11(a)] of this Act and any similar
28-25 provisions of any other qualified plans designed to conform to
28-26 Section 415 of the code.
29-1 (5) "Unrestricted benefit" means the monthly
29-2 retirement benefit a member or the member's spouse, dependent
29-3 child, or dependent parent would have received under the terms of
29-4 all qualified plans except for the restrictions of Section 5.10(a)
29-5 [5.11(a)] of this Act and any similar provisions of any other
29-6 qualified plans designed to conform to Section 415 of the code.
29-7 SECTION 21. Subsections (b) and (c), Section 8.03, Chapter
29-8 824, Acts of the 73rd Legislature, Regular Session, 1993 (Article
29-9 6243o, Vernon's Texas Civil Statutes), are amended to read as
29-10 follows:
29-11 (b) In the case of the death of an excess benefit
29-12 participant whose spouse, dependent child, or dependent parent is
29-13 entitled to preretirement or postretirement death benefits under a
29-14 qualified plan, the spouse, dependent child, or dependent parent is
29-15 entitled to a monthly benefit under the excess benefit plan equal
29-16 to the benefit determined in accordance with Article 6 of this Act
29-17 without regard to the limitations under Section 5.10(a) [5.11(a)]
29-18 of this Act or Section 415 of the code, less the maximum benefit.
29-19 (c) Any benefit to which any person is entitled under this
29-20 section shall be paid at the same time and in the same manner as
29-21 the benefit would have been paid from the fund if payment of the
29-22 benefit from the fund had not been precluded by Section 5.10(a)
29-23 [5.11(a)] of this Act. An excess benefit participant or any
29-24 beneficiary may not elect to defer the receipt of all or any part
29-25 of a payment due under this article.
29-26 SECTION 22. Section 5.10, Chapter 824, Acts of the 73rd
30-1 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
30-2 Civil Statutes), is repealed.
30-3 SECTION 23. This Act takes effect October 1, 2001.