By Madla S.B. No. 708
77R6561 SMJ-D
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. Section 1.02(18), Chapter 824, Acts of the 73rd
1-6 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
1-7 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. Section 2.03(e), Chapter 824, Acts of the 73rd
1-18 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
1-19 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
2-1 election but is eligible to run in all subsequent board elections
2-2 [for the category in which the trustee was removed].
2-3 SECTION 4. Section 3.02, Chapter 824, Acts of the 73rd
2-4 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
2-5 Civil Statutes), is amended by adding Subsection (e) to read as
2-6 follows:
2-7 (e) A person's failure to give truthful information to the
2-8 board in an application or in testimony at a hearing may result in
2-9 a referral for criminal investigation.
2-10 SECTION 5. Section 4.01, Chapter 824, Acts of the 73rd
2-11 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
2-12 Civil Statutes), is amended to read as follows:
2-13 Sec. 4.01. MEMBERSHIP. (a) A person is eligible to become
2-14 [becomes] a member of the fund as a condition of continued
2-15 employment two months after the person has received state
2-16 certification as a fire fighter or police officer, completed all
2-17 other requirements for membership in the fund, and:
2-18 (1) graduated from [if the person has: served eight
2-19 months as a fire fighter or police officer or as a trainee in] a
2-20 fire fighter or police officer training academy of a municipality
2-21 to which this Act applies and passed the municipality's fire
2-22 fighter's or police officer's probationary exam; or
2-23 (2) otherwise satisfied the requirements for
2-24 employment as a fire fighter or police officer in a municipality to
2-25 which this Act applies.
2-26 (b) A person may not become eligible for disability
2-27 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.]
3-27 [(d) A person who became a member of the Texas Municipal
4-1 Retirement System on or before October 15, 1990, may elect to
4-2 become a member of the fund on or before the 90th day after the
4-3 date the person receives notice of this provision. If the person
4-4 does not elect to become a member during that period, the person
4-5 may not become a member of the fund and waives any claim against
4-6 the fund. If the person elects to become a member of the fund, the
4-7 person must comply with each requirement for membership and must
4-8 pay into the fund, in accordance with procedures established by the
4-9 board, a sum of money equal to the amount of money that would have
4-10 been deducted from that person's salary during the period beginning
4-11 October 16, 1990, and ending on the date the person becomes a
4-12 member of the fund. The person also may purchase service credit
4-13 for the period beginning on the date the person would have
4-14 otherwise become eligible to be a member of the fund if not for the
4-15 age prohibition, through October 15, 1990. Service credit may be
4-16 obtained only in increments of full months, with the minimum being
4-17 one month.]
4-18 [(e) A person who becomes a member of the fund under
4-19 Subsection (b) or (d) of this section must, as a condition of
4-20 employment, provide an authorization for release of medical
4-21 information for any medical records dated on or after the date of
4-22 initial application for employment when requested by the board or
4-23 in the alternative, as required by the board, must submit to a
4-24 physical examination by a physician selected by the board.]
4-25 [(f)] A municipality to which this Act applies shall match
4-26 an amount equal to twice the amount of each payment a member makes
4-27 to the fund under this section.
5-1 (d) [(g)] The drawing of compensation by an officer or
5-2 employee in the fire or police department for service in that
5-3 department does not of itself make that person a member of the
5-4 fund.
5-5 (e) [(h)] The regularity of an appointment as a fire fighter
5-6 or police officer of a municipality to which this Act applies may
5-7 not be presumed from the serving of the full probationary period,
5-8 if any. The service of the probationary period by an officer or
5-9 employee as a fire fighter or police officer of a municipality to
5-10 which this Act applies does not constitute the creation of a
5-11 position or office to which a proper appointment has been made for
5-12 purposes of this Act.
5-13 SECTION 6. Section 4.04(a), Chapter 824, Acts of the 73rd
5-14 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
5-15 Civil Statutes), is amended to read as follows:
5-16 (a) There shall be deducted from the total salary of each
5-17 fire fighter and police officer in the employment of a municipality
5-18 to which this Act applies a percentage of the member's total salary
5-19 according to the following schedule:
5-20 (1) 11.16 percent for full pay periods after September
5-21 30, 1993, but before October 1, 1994;
5-22 (2) 11.32 percent for full pay periods after September
5-23 30, 1994, but before October 1, 1995;
5-24 (3) 11.50 percent for full pay periods after September
5-25 30, 1995, but before October 1, 1996;
5-26 (4) 11.66 percent for full pay periods after September
5-27 30, 1996, but before October 1, 1997;
6-1 (5) 11.82 percent for full pay periods after September
6-2 30, 1997, but before October 1, 1998;
6-3 (6) 12 percent for full pay periods after September
6-4 30, 1998, but before October 1, 1999;
6-5 (7) 12.16 percent for full pay periods after September
6-6 30, 1999, but before October 1, 2000; and
6-7 (8) 12.32 percent for full pay periods after September
6-8 30, 2000[, but before October 1, 2001; and]
6-9 [(9) 12.50 percent for full pay periods after
6-10 September 30, 2001].
6-11 SECTION 7. Section 5.01, Chapter 824, Acts of the 73rd
6-12 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
6-13 Civil Statutes), is amended by amending Subsection (e), adding a
6-14 new Subsection (f), and relettering the subsequent subsections
6-15 accordingly to read as follows:
6-16 (e) The board shall compute the retirement annuity of a
6-17 member who retires after September 30, 1999, but before October 1,
6-18 2001, at the rate of 2 1/8 percent of the member's average total
6-19 salary for each of the first 20 years of service, plus four percent
6-20 of the member's average total salary for each of the next 10 years
6-21 of service, plus one percent of the member's average total salary
6-22 for each of the next five years of service, with fractional years
6-23 of service prorated based on full months served as a contributing
6-24 member. In making the computation for a year, the year is
6-25 considered to begin on the first day a contribution is made. A
6-26 retirement annuity under this subsection may not exceed, as of the
6-27 date of retirement, 87 1/2 percent of the member's average total
7-1 salary.
7-2 (f) The board shall compute the retirement annuity of a
7-3 member who retires after September 30, 2001, at the rate of 2-1/4
7-4 percent of the member's average total salary for each of the first
7-5 20 years of service, plus 4-1/2 percent of the member's average
7-6 total salary for each of the next seven years of service, plus
7-7 three percent of the member's average total salary for each of the
7-8 next three years of service, plus one-half percent of the member's
7-9 average total salary for each of the next four years of service,
7-10 with fractional years of service prorated based on full months
7-11 served as a contributing member. In making the computation for a
7-12 year, the year is considered to begin on the first day a
7-13 contribution is made. A retirement annuity under this subsection
7-14 may not exceed, as of the date of retirement, 87-1/2 percent of the
7-15 member's average total salary.
7-16 (g) A member may not receive an award from the fund for
7-17 service retirement until the member has at least 20 years of
7-18 service in the fire or police department and has also contributed
7-19 the required amount of money for at least 20 years. In determining
7-20 the number of years of service in a department, the member shall be
7-21 given full credit for the period the member was an active member
7-22 plus the time the member was actively engaged in service with any
7-23 uniformed service in accordance with Section 4.03 of this Act and
7-24 for absences taken under the Family and Medical Leave Act of 1993
7-25 (29 U.S.C. Section 2601 et seq.), in accordance with Section 4.02
7-26 of this Act. Disciplinary suspensions of 15 days or less may not
7-27 be subtracted from a member's service credit under this Act if the
8-1 member has paid into the fund, within 30 days after the later of
8-2 the termination date of each suspension or the exhaustion of any
8-3 appeal with respect to the suspension, a sum of money equal to the
8-4 amount of money that would have been deducted from that person's
8-5 salary during that period of suspension if it had not been for that
8-6 suspension. A municipality to which this Act applies shall
8-7 double-match a payment made under this subsection. Members of the
8-8 fund at the time of their retirement shall also receive service
8-9 credit for all unused sick leave accumulated by them under Chapter
8-10 143, Local Government Code, but only to the extent the unused sick
8-11 leave exceeds 90 days. Service credit for unused sick leave shall
8-12 be prorated based on each full month of sick leave.
8-13 (h) [(g)] All monthly pensions being paid by the fund to
8-14 retirees who retired before October 1, 1989, are increased,
8-15 effective with the first monthly payment due on or after October 1,
8-16 1999. The amount of the increase depends on the fiscal year ending
8-17 September 30 in which the retiree retired and is a percentage of
8-18 the pension payment that would have been payable on October 1,
8-19 1999, except for this increase. The amount of the percentage
8-20 increase is:
8-21 Municipality Fiscal Year Percentage
8-22 of Retirement Increase
8-23 1988 1.0%
8-24 1987 2.0%
8-25 1986 3.0%
8-26 1985 4.0%
8-27 1984 5.0%
9-1 1983 6.0%
9-2 1982 7.0%
9-3 1981 8.0%
9-4 1980 9.0%
9-5 1979 or earlier 10.0%
9-6 SECTION 8. Sections 5.015(d) and (e), Chapter 824, Acts of
9-7 the 73rd Legislature, Regular Session, 1993 (Article 6243o,
9-8 Vernon's Texas Civil Statutes), are amended to read as follows:
9-9 (d) The amount of a lump-sum payment to which a member
9-10 making a Back DROP election is entitled shall be computed in the
9-11 manner provided by this subsection. The member's retirement
9-12 annuity shall be computed in the manner provided by Section 5.01
9-13 [5.01(c) or (d)] of this Act, [as applicable,] except that the
9-14 retirement date used in making that computation is the retirement
9-15 date computed as provided by this subsection. The member's
9-16 retirement annuity as so computed shall be divided by 12 to compute
9-17 the member's monthly pension. The member's monthly pension
9-18 multiplied by the number of full months elected by the member under
9-19 Subsection (b)(1) of this section is the amount of the lump-sum
9-20 payment to which the member is entitled. Solely for purposes of
9-21 computing the member's monthly pension under this subsection, the
9-22 member's retirement date is the member's Back DROP retirement date,
9-23 which is the member's actual retirement date less the amount of
9-24 time for:
9-25 (1) any service in excess of 34 [35] years of service;
9-26 (2) any service given for sick leave unused on the
9-27 date of actual retirement; and
10-1 (3) any service in excess of 20 years but not in
10-2 excess of the amount permitted under Subsection (b)(1) of this
10-3 section that the member elects for computing the amount of the
10-4 lump-sum payment.
10-5 (e) For purposes of computing the monthly pension of a
10-6 member making a Back DROP election, the member's retirement annuity
10-7 shall be computed in the manner provided by Section 5.01 [5.01(c)
10-8 or (d)] of this Act, [as applicable,] except that the retirement
10-9 date used in making that computation is the member's actual
10-10 retirement date less the amount of time the member elects under
10-11 Subsection (b)(1) of this section. The annuity may not exceed the
10-12 applicable limitations [limitation] provided by Section 5.01
10-13 [5.01(c) or (d)] of this Act[, as applicable]. The member's
10-14 retirement annuity shall be divided by 12 to compute the member's
10-15 monthly pension.
10-16 SECTION 9. Section 5.07(b), Chapter 824, Acts of the 73rd
10-17 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
10-18 Civil Statutes), is amended to read as follows:
10-19 (b) If the retiree received income from other employment,
10-20 including self-employment, during the preceding year, the board may
10-21 reduce the retiree's disability retirement annuity by the amount of
10-22 $1 for each month for each $2 of income earned by the retiree from
10-23 the other employment during each month of the previous year, except
10-24 that the disability retirement annuity may not be decreased below
10-25 an amount based on 2-1/4 [two] percent of the retiree's average
10-26 total salary computed at the time of retirement under Section 5.04
10-27 of this Act for each year of service in the department.
11-1 SECTION 10. Section 5.09(a), Chapter 824, Acts of the 73rd
11-2 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
11-3 Civil Statutes), is amended to read as follows:
11-4 (a) At or before its regular meeting in the month of March,
11-5 the board annually shall review the Consumer's Price Index for All
11-6 Urban Consumers (CPI-U), U.S. City Average or the nearest
11-7 equivalent published by the United States Bureau of Labor
11-8 Statistics for the preceding calendar year. If that index shows an
11-9 increase during the preceding calendar year in the cost of living
11-10 as compared with that index at the close of the previous year, the
11-11 board shall order an increase of all service, disability, and death
11-12 benefit retirement annuities by a percentage that varies by the
11-13 date of the member's service or disability retirement, or, in the
11-14 case of a member who died before retirement, the date on which the
11-15 member died. If the member's service retirement, disability
11-16 retirement, or death before retirement occurred before August 30,
11-17 1971, the annuity shall be increased by a percentage equal to the
11-18 percentage increase in the cost of living index. If the member's
11-19 service retirement, disability retirement, or death before
11-20 retirement occurred on or after August 30, 1971, but before October
11-21 1, 1991 [1989], the annuity shall be increased as follows: if the
11-22 percentage increase in the cost of living index is eight percent or
11-23 less, the annuity shall be increased by a percentage equal to the
11-24 percentage increase, and if the percentage increase in the cost of
11-25 living index is more than eight percent, the annuity shall be
11-26 increased by eight percent plus a percentage equal to 75 percent of
11-27 the percentage increase that is more than eight percent. [by a
12-1 percentage that is 87.5 percent of the percentage increase in the
12-2 cost of living index, for any year in which the cost of living
12-3 index increases by eight percent or less and by 75 percent of the
12-4 percentage increase in the cost of living index if the cost of
12-5 living index increases by more than eight percent.] If the
12-6 member's service retirement, disability retirement, or death before
12-7 retirement occurred on or after October 1, 1991 [1989], the annuity
12-8 shall be increased by a percentage equal to [that is] 75 percent of
12-9 the percentage increase in the cost of living index. A percentage
12-10 increase in annuities shall be rounded to the nearest one-tenth
12-11 percentage point for a cost of living increase.
12-12 SECTION 11. Section 5.11, Chapter 824, Acts of the 73rd
12-13 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
12-14 Civil Statutes), is redesignated as Section 5.10 and amended to
12-15 read as follows:
12-16 Sec. 5.10 [5.11]. COORDINATION WITH FEDERAL LAW. (a) A
12-17 member or beneficiary of a member of the fund may not accrue a
12-18 service retirement annuity, disability retirement annuity, death
12-19 benefit, whether death occurs in the line of duty or otherwise, or
12-20 any other benefit under this Act in excess of the benefit limits
12-21 applicable to the fund under Section 415 of the code. The board
12-22 shall reduce the amount of any benefit that exceeds those limits by
12-23 the amount of the excess. If the total benefits under this fund
12-24 and the benefits and contributions to which any member is entitled
12-25 under any other qualified defined benefit plan [plans] maintained
12-26 by the municipality that employs the member would otherwise exceed
12-27 the applicable limits under Section 415 of the code, the benefits
13-1 the member would otherwise receive from the fund shall be reduced
13-2 to the extent necessary to enable the benefits to comply with
13-3 Section 415 of the code.
13-4 (b) Any member or beneficiary who is entitled to receive any
13-5 distribution that is an eligible rollover distribution as defined
13-6 by Section 402(c)(4) of the code is entitled to have that
13-7 distribution transferred directly to another eligible retirement
13-8 plan of the member's or beneficiary's choice on providing direction
13-9 to the fund regarding that transfer in accordance with procedures
13-10 established by the board.
13-11 (c) The total salary taken into account for any purpose for
13-12 any member of the fund may not exceed $200,000 per year for an
13-13 eligible participant or $150,000 per year for an ineligible
13-14 participant. These dollar limits shall be periodically adjusted in
13-15 accordance with guidelines provided by the United States secretary
13-16 of the treasury. For purposes of this subsection, an eligible
13-17 participant is any person who first became a member before 1996,
13-18 and an ineligible participant is any member who is not an eligible
13-19 participant.
13-20 (d) Accrued benefits under this Act become 100 percent
13-21 vested for a member on:
13-22 (1) the date the member has completed 20 years of
13-23 service;
13-24 (2) the earlier termination or partial termination of
13-25 the pension plan created by this Act, if it affects the member[, of
13-26 the fund]; or
13-27 (3) the complete discontinuance of contributions by
14-1 the municipality to the fund.
14-2 (e) Amounts representing forfeited nonvested benefits of
14-3 terminated members may not be used to increase benefits payable
14-4 from the fund but may be used to reduce contributions for future
14-5 plan years.
14-6 (f) Distribution of benefits must begin not later than April
14-7 1 of the year following the calendar year during which the member
14-8 becomes 70 1/2 years of age and must otherwise conform to Section
14-9 401(a)(9) of the code.
14-10 (g) If the amount of any benefit is to be determined on the
14-11 basis of actuarial assumptions that are not otherwise specifically
14-12 set forth for that purpose in this Act, the actuarial assumptions
14-13 to be used are those earnings and mortality assumptions being used
14-14 on the date of the determination by the fund's actuary and approved
14-15 by the board. The actuarial assumptions being used at any
14-16 particular time shall be attached as an addendum to a copy of this
14-17 Act and treated for all purposes as a part of this Act. The
14-18 actuarial assumptions may be changed by the fund's actuary at any
14-19 time if approved by the board, but a change in actuarial
14-20 assumptions may not result in any decrease in benefits accrued as
14-21 of the effective date of the change.
14-22 (h) This section applies to any benefit regardless of when
14-23 accrued.
14-24 (i) The board may adopt rules to administer this section. A
14-25 rule adopted by the board under this subsection is final and
14-26 binding.
14-27 (j) To the extent permitted by law, the board may adjust the
15-1 benefits of retired members and beneficiaries by increasing any
15-2 retirement benefit that was reduced because of Section 415 of the
15-3 code. If Section 415 of the code is amended to permit the payment
15-4 of amounts previously precluded under Section 415 of the code, the
15-5 board may adjust the benefits of retired members and beneficiaries,
15-6 including the restoration of benefits previously denied. Benefits
15-7 paid under this subsection are not considered as extra compensation
15-8 earned after retirement but as the delayed payment of benefits
15-9 earned before retirement.
15-10 (k) The board by rule shall implement this Act in a manner
15-11 that preserves the tax qualification of the fund under the code and
15-12 may revise any provision or program to the extent necessary to
15-13 retain tax qualification.
15-14 (l) In this section, "qualified plan" has the meaning
15-15 assigned by Section 8.02 of this Act.
15-16 SECTION 12. Section 5.12, Chapter 824, Acts of the 73rd
15-17 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
15-18 Civil Statutes), is redesignated as Section 5.11 and amended to
15-19 read as follows:
15-20 Sec. 5.11 [5.12]. 13TH CHECK FOR RETIREES. (a) In any
15-21 fiscal year ending after 1996 for which the board determines that
15-22 the average annual investment yield on the market value of fund
15-23 investments for the preceding five fiscal years exceeded the annual
15-24 investment yield projected by the actuary for that preceding
15-25 five-fiscal-year period by at least 100 basis points, the board may
15-26 authorize the disbursement of a 13th pension check.
15-27 (b) The 13th pension check is paid to each retiree who is
16-1 entitled to receive an annuity in the last month of the fiscal year
16-2 preceding the fiscal year in which the check is disbursed and is in
16-3 an amount equal to the amount of the annuity payment made in the
16-4 last month of the preceding fiscal year, except the amount of any
16-5 such check shall be prorated for any retiree who has been receiving
16-6 an annuity for less than one year so that the amount of the check
16-7 is one-twelfth of the check that would have been paid to the
16-8 retiree receiving an annuity for a full year times the number of
16-9 full months an annuity has been paid.
16-10 (c) Authorization of a 13th check for any year is subject to
16-11 the discretion of the board. Authorization for one year does not
16-12 obligate the board to authorize a 13th check for any other year.
16-13 The 13th check shall be paid as the board directs.
16-14 (d) In this section, "annual investment yield" means the
16-15 yield on the fund's investment portfolio for a particular year, as
16-16 a percentage of the portfolio, after reduction for costs of
16-17 investing the portfolio, but without reduction for the fund's
16-18 operating expenses.
16-19 SECTION 13. Article 5, Chapter 824, Acts of the 73rd
16-20 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
16-21 Civil Statutes), is amended by adding Section 5.12 to read as
16-22 follows:
16-23 Sec. 5.12. 14TH CHECK FOR RETIREES. (a) In this section,
16-24 "annual investment yield" has the meaning assigned by Section
16-25 5.11(d) of this Act.
16-26 (b) In a fiscal year ending after September 1, 2000, for
16-27 which the board determines that the average annual investment yield
17-1 on the market value of fund investments for the preceding five
17-2 fiscal years exceeded the annual investment yield projected by the
17-3 actuary for that five-fiscal-year period by at least 300 basis
17-4 points, the board may authorize the disbursement of a 14th pension
17-5 check.
17-6 (c) The 14th pension check is paid to each retiree who is
17-7 entitled to receive an annuity in the last month of the fiscal year
17-8 preceding the fiscal year in which the check is disbursed. Except
17-9 as provided by Subsection (d) of this section, the check is in an
17-10 amount equal to the amount of the annuity payment made in the last
17-11 month of the preceding fiscal year.
17-12 (d) For a retiree who has received an annuity for less than
17-13 one year, the amount of the 14th pension check is prorated so that
17-14 the amount of the check is one-twelfth of the check that would have
17-15 been paid to a retiree receiving an annuity for a full year times
17-16 the number of full months an annuity has been paid.
17-17 (e) Authorization of a 14th check for any year is subject to
17-18 the discretion of the board. Authorization for one year does not
17-19 obligate the board to authorize a 14th check for any other year.
17-20 The 14th check shall be paid as the board directs.
17-21 SECTION 14. Section 6.02, Chapter 824, Acts of the 73rd
17-22 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
17-23 Civil Statutes), is amended to read as follows:
17-24 Sec. 6.02. DEATH BENEFIT ANNUITY FOR SURVIVING SPOUSES AND
17-25 CHILDREN. (a) Subject to Section 6.03 of this Act and the
17-26 provisions of this section [Subsections (h), (i), (j), (k), and (l)
17-27 of this section], if a member dies leaving a surviving spouse or at
18-1 least one dependent child, the surviving spouse and the children
18-2 are entitled to receive from the fund an aggregate death benefit
18-3 annuity, computed and payable from the date of the member's death.
18-4 The surviving spouse may elect the annuity[,] in an amount that is
18-5 equal to either [the greater of]:
18-6 (1) 50 percent of the member's average total salary;
18-7 or
18-8 (2) the same percentage of the member's average total
18-9 salary that the member would have been entitled to receive as a
18-10 retirement annuity if the member could have retired on the date of
18-11 death.
18-12 (b) The amount of a death benefit annuity computed under
18-13 Subsection (a) of this section may not exceed the service
18-14 retirement annuity to which a member with the same average total
18-15 salary and with 27 [26] years of service credit would be entitled.
18-16 (c) Subject to Section 6.08 of this Act and the provisions
18-17 of this section [Subsections (h), (i), (j), (k), and (l) of this
18-18 section], if a retiree dies leaving a surviving spouse or at least
18-19 one dependent child, the surviving spouse and dependent children
18-20 are entitled to receive from the fund an aggregate death benefit
18-21 annuity, computed and payable from the date of the member's death,
18-22 in an amount that is equal to the [same percentage of the retiree's
18-23 average total salary that the retiree would have been entitled to
18-24 receive as a retirement annuity if the retiree had retired on the
18-25 date of death less the amount of time, if any, elected by the
18-26 retiree under Section 5.015(b)(1) of this Act.]
18-27 [(d) The amount of a death benefit annuity computed under
19-1 Subsection (c) of this section may not exceed the] lesser of:
19-2 (1) the retirement annuity to which a member with the
19-3 same average total salary as the deceased retiree and 27 [26] years
19-4 of service credit would be entitled if the member retired on the
19-5 date of the deceased retiree's death; or
19-6 (2) the retirement annuity the retiree was receiving
19-7 at the time of the retiree's death.
19-8 (d) [(e)] If, at the time a death benefit annuity becomes
19-9 payable under Subsection (a) or (c) of this section, the deceased
19-10 leaves a surviving spouse and at least one dependent child, the
19-11 board shall award:
19-12 (1) one-half of the annuity to the surviving spouse;
19-13 and
19-14 (2) one-half of the annuity:
19-15 (A) to the dependent child, if there is only
19-16 one; or
19-17 (B) if there is more than one dependent child,
19-18 in equal shares to each child.
19-19 (e) [(f)] If, at the time a death benefit annuity under
19-20 Subsection (a) or (c) of this section becomes payable, the
19-21 deceased leaves a surviving spouse and no dependent child, the
19-22 board shall award the annuity to the surviving spouse.
19-23 (f) [(g)] If, at the time a death benefit annuity under
19-24 Subsection (a) or (c) of this section becomes payable, the
19-25 deceased leaves no surviving spouse and at least one dependent
19-26 child, the board shall award the annuity:
19-27 (1) to the dependent child, if there is only one; or
20-1 (2) if there is more than one child, in equal shares
20-2 to each child.
20-3 (g) [(h)] A child who is born after the date of retirement
20-4 of the member is not entitled to a death benefit annuity under this
20-5 Act unless the retiree was married to the other parent of the child
20-6 on the date of retirement. A surviving spouse of a retiree who was
20-7 not married to the retiree until after the retiree's retirement is
20-8 entitled to receive only the benefit, if any, provided under
20-9 Section 6.08 of this Act.
20-10 (h) [(i)] If a member or retiree dies leaving a surviving
20-11 spouse and at least one dependent child, the death benefit annuity
20-12 payable to the surviving spouse shall be increased as of the day no
20-13 child is entitled to receive benefits to the amount the spouse
20-14 would have received had there been no dependent child.
20-15 (i) [(j)] If a member or retiree dies leaving a surviving
20-16 spouse and at least one dependent child, the death benefit annuity
20-17 payable to the dependent children shall be increased as of the day
20-18 the surviving spouse dies to the amount the children would have
20-19 received had there been no surviving spouse.
20-20 (j) [(k)] A child of the member who is so mentally or
20-21 physically disabled as to be incapable of being self-supporting to
20-22 any extent, if otherwise qualified and regardless of age, has the
20-23 rights of a child under 18 years of age, except that any death
20-24 benefit annuity paid under this subsection to any mentally or
20-25 physically disabled child may, at the discretion of the board,
20-26 [shall] be reduced to the extent of any state pension or aid,
20-27 including Medicaid, or any state-funded assistance received by the
21-1 child, regardless of whether the funds were made available to the
21-2 state by the federal government. In no other instance under this
21-3 Act is a child entitled to any benefit after becoming 18 years of
21-4 age.
21-5 (k) [(l)] The board shall increase a death benefit annuity
21-6 payable on October 1, 1999, to a dependent child or children who do
21-7 not have a living parent on that date to the entire amount of the
21-8 death benefit annuity that would have been awarded had the retiree
21-9 or member died leaving no surviving spouse if a surviving spouse of
21-10 the member or retiree is not entitled to receive benefits from the
21-11 fund on October 1, 1999.
21-12 (l) A former spouse of a deceased member or retiree who is
21-13 not the spouse of the member or retiree on the date of death of the
21-14 member or retiree is not entitled to a benefit under this section.
21-15 SECTION 15. Section 6.03(c), Chapter 824, Acts of the 73rd
21-16 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
21-17 Civil Statutes), is amended to read as follows:
21-18 (c) Notwithstanding the formulas for computing the total
21-19 amounts of annuities otherwise provided by this Act, if a member is
21-20 killed in the line of duty, the member's surviving spouse and
21-21 dependent children are entitled to a death benefit annuity equal to
21-22 the total salary of the member at the time of death. Rules
21-23 provided by this section relating to qualification and
21-24 disqualification for and apportionment of benefits apply to a death
21-25 benefit annuity computed under this subsection. A death benefit
21-26 annuity computed under this subsection is divided in the manner
21-27 described by Section 6.02 [6.02(a)] of this Act and is subject to
22-1 the same cost-of-living adjustments that apply to pensions for
22-2 service retirement.
22-3 SECTION 16. Section 6.04, Chapter 824, Acts of the 73rd
22-4 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
22-5 Civil Statutes), is amended to read as follows:
22-6 Sec. 6.04. REMARRIAGE; BENEFITS AFTER TERMINATION OF
22-7 MARRIAGE. (a) [If a surviving spouse remarries or a dependent
22-8 child marries before October 1, 1995, the right of a surviving
22-9 spouse or dependent child to annuity payments under this Act
22-10 terminates on the remarriage of the surviving spouse or on the
22-11 marriage of the child, as applicable, under either statutory law or
22-12 under common law as prescribed by Section 6.06 of this Act.]
22-13 [(b)] The right of a surviving spouse or dependent child to
22-14 annuity payments under this Act is not affected by the surviving
22-15 spouse's remarriage or dependent child's marriage under either
22-16 statutory or common law if the marriage or remarriage takes place
22-17 on or after October 1, 1995.
22-18 (b) [(c)] If after October 1, 1995, there is a termination
22-19 of the remarriage of a surviving spouse or of the marriage of a
22-20 dependent child, that person is entitled, on application, to 100
22-21 percent of the annuity that was in effect on the date of
22-22 termination of benefits.
22-23 (c) [(d)] A surviving spouse or dependent child who is
22-24 unmarried but receiving reduced benefits because of a prior
22-25 marriage that caused the benefits to be terminated is entitled to
22-26 100 percent of the annuity that was in effect on the original date
22-27 of termination of benefits.
23-1 (d) [(e)] The benefit provided under Subsections (b) and (c)
23-2 [and (d)] of this section shall be provided prospectively beginning
23-3 October 1, 1995, and the surviving spouse or dependent child is not
23-4 entitled to receive any benefits or increases in benefits relating
23-5 to any period before October 1, 1995.
23-6 SECTION 17. Section 6.09(a), Chapter 824, Acts of the 73rd
23-7 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
23-8 Civil Statutes), is amended to read as follows:
23-9 (a) If a contributing member in good standing of the fire or
23-10 police department or a retiree dies before or after retirement and
23-11 leaves no surviving spouse or child but leaves surviving a father
23-12 and mother wholly dependent on that person for support, the
23-13 dependent father and mother are entitled to receive one-third of
23-14 the average total salary of the deceased member based on the same
23-15 number of years of the member's pay as is currently provided for
23-16 computations of retirement annuities under Section 5.01 [5.01(a)]
23-17 of this Act, the annuity to be equally divided between the father
23-18 and mother as long as they are wholly dependent. If there is only
23-19 one dependent, either father or mother, the board shall grant the
23-20 surviving dependent an annuity not to exceed one-fourth that
23-21 average total salary as computed under this subsection.
23-22 SECTION 18. Section 6.12, Chapter 824, Acts of the 73rd
23-23 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
23-24 Civil Statutes), is amended to read as follows:
23-25 Sec. 6.12. 13TH AND 14TH CHECKS [CHECK] FOR BENEFICIARIES.
23-26 (a) For any year in which the board authorizes disbursement of a
23-27 13th or 14th pension check to retirees under Section 5.11 or 5.12
24-1 of this Act, the board shall also authorize disbursement of a 13th
24-2 or 14th check to each beneficiary entitled to receive an annuity in
24-3 the last month of the fiscal year preceding the fiscal year in
24-4 which the check is disbursed.
24-5 (b) The amount of the 13th or 14th check is equal to the
24-6 amount of the annuity payment made in the last month of the
24-7 preceding fiscal year, except the amount of the check shall be
24-8 prorated for any beneficiary who has been receiving an annuity for
24-9 less than one year so that the amount of the check is one-twelfth
24-10 of the check that would have been paid to the beneficiary receiving
24-11 an annuity for a full year times the number of full months an
24-12 annuity has been paid.
24-13 SECTION 19. Article 6, Chapter 824, Acts of the 73rd
24-14 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
24-15 Civil Statutes), is amended by adding Section 6.14 to read as
24-16 follows:
24-17 Sec. 6.14. LUMP-SUM PAYMENT ELECTION FOR SURVIVING SPOUSES.
24-18 (a) A surviving spouse of a member who is entitled to receive a
24-19 death benefit under Section 6.02 of this Act may elect to receive a
24-20 portion of the benefit in a lump-sum payment under this section.
24-21 (b) The lump-sum payment may be elected only by a surviving
24-22 spouse:
24-23 (1) of a member who, on the date of death, is
24-24 eligible:
24-25 (A) for service retirement; and
24-26 (B) to elect a Backward Deferred Retirement
24-27 Option Plan; and
25-1 (2) who elects to receive a death benefit under
25-2 Section 6.02(a)(2) of this Act.
25-3 (c) If a member is killed in the line of duty and the
25-4 deceased member's surviving spouse is entitled to a death benefit
25-5 annuity under Section 6.03 of this Act, the surviving spouse may
25-6 not elect a lump-sum payment under this section.
25-7 (d) The lump-sum payment is computed by dividing the annuity
25-8 determined under Subsection (e) by 12 and multiplying the result by
25-9 the number of months the surviving spouse elects under Subsection
25-10 (f) of this section.
25-11 (e) The annuity used to compute the lump-sum payment is
25-12 determined in the manner provided by Section 5.01(f) of this Act
25-13 for retired members, using:
25-14 (1) the deceased member's average total salary for all
25-15 months, excluding the number of months immediately preceding the
25-16 member's date of death that equal the number of months elected by
25-17 the surviving spouse under Subsection (f) of this section; and
25-18 (2) the amount of service credit as determined by
25-19 Subsection (g) or (h) of this section.
25-20 (f) The surviving spouse must elect the number of months
25-21 used in computing the lump-sum payment. The number of months may
25-22 not exceed the lesser of:
25-23 (1) the number of months of service credit in excess
25-24 of 20 years that the deceased member has on the date of death; or
25-25 (2) 36 months.
25-26 (g) Except as provided by Subsection (h) of this section, in
25-27 determining the annuity under Subsection (e) of this section, the
26-1 deceased member's service credit is computed as provided by Section
26-2 5.01(g) of this Act, less:
26-3 (1) the number of months elected by the surviving
26-4 spouse under Subsection (f) of this section; and
26-5 (2) any service credit for unused sick leave to which
26-6 the member would have been entitled.
26-7 (h) In determining the annuity under Subsection (e) of this
26-8 section for a surviving spouse whose death benefit annuity is
26-9 limited by Section 6.02(b) of this Act, the deceased member's
26-10 service credit is 27 years, less the number of months elected by
26-11 the surviving spouse under Subsection (f) of this section.
26-12 (i) If a surviving spouse elects to receive a lump-sum
26-13 payment under this section, the total death benefit annuity payable
26-14 to the surviving spouse under Section 6.02 of this Act is reduced
26-15 as provided by Subsection (j) of this section. The lump-sum
26-16 election does not affect the amount of a death benefit annuity
26-17 payable to a dependent child of a deceased member under Section
26-18 6.02 of this Act.
26-19 (j) The reduced annuity is determined in the manner provided
26-20 by Section 5.01(f) of this Act for retired members, using:
26-21 (1) the deceased member's average total salary for all
26-22 months, excluding the number of months immediately preceding the
26-23 member's date of death that equal the number of months elected by
26-24 the surviving spouse under Subsection (f) of this section; and
26-25 (2) the amount of service credit as determined by
26-26 Subsection (k) or (l) of this section.
26-27 (k) Except as provided by Subsection (l) of this section, in
27-1 determining the reduced annuity under Subsection (j) of this
27-2 section, the deceased member's service credit is computed as
27-3 provided by Section 5.01(g) of this Act, less the number of months
27-4 elected by the surviving spouse under Subsection (f) of this
27-5 section.
27-6 (l) In determining the reduced annuity under Subsection (j)
27-7 of this section for a surviving spouse whose death benefit annuity
27-8 is 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 SECTION 20. Sections 8.02(1), (3), and (5), Chapter 824, Acts
27-12 of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
27-13 Vernon's Texas Civil Statutes), are amended to read as follows:
27-14 (1) "Excess benefit participant" means any member
27-15 whose retirement benefits as determined on the basis of all
27-16 qualified plans, without regard to the limitations of Section
27-17 5.10(a) [5.11(a)] of this Act and comparable provisions of other
27-18 qualified plans, would exceed the maximum benefit under Section 415
27-19 of the code.
27-20 (3) "Maximum benefit" means the retirement benefit a
27-21 member or the member's spouse, dependent child, or dependent parent
27-22 is entitled to receive from all qualified plans in any month after
27-23 applying Section 5.10(a) [5.11(a)] of this Act and any similar
27-24 provisions of any other qualified plans designed to conform to
27-25 Section 415 of the code.
27-26 (5) "Unrestricted benefit" means the monthly
27-27 retirement benefit a member or the member's spouse, dependent
28-1 child, or dependent parent would have received under the terms of
28-2 all qualified plans except for the restrictions of Section 5.10(a)
28-3 [5.11(a)] of this Act and any similar provisions of any other
28-4 qualified plans designed to conform to Section 415 of the code.
28-5 SECTION 21. Sections 8.03(b) and (c), Chapter 824, Acts of
28-6 the 73rd Legislature, Regular Session, 1993 (Article 6243o,
28-7 Vernon's Texas Civil Statutes), are amended to read as follows:
28-8 (b) In the case of the death of an excess benefit
28-9 participant whose spouse, dependent child, or dependent parent is
28-10 entitled to preretirement or postretirement death benefits under a
28-11 qualified plan, the spouse, dependent child, or dependent parent is
28-12 entitled to a monthly benefit under the excess benefit plan equal
28-13 to the benefit determined in accordance with Article 6 of this Act
28-14 without regard to the limitations under Section 5.10(a) [5.11(a)]
28-15 of this Act or Section 415 of the code, less the maximum benefit.
28-16 (c) Any benefit to which any person is entitled under this
28-17 section shall be paid at the same time and in the same manner as
28-18 the benefit would have been paid from the fund if payment of the
28-19 benefit from the fund had not been precluded by Section 5.10(a)
28-20 [5.11(a)] of this Act. An excess benefit participant or any
28-21 beneficiary may not elect to defer the receipt of all or any part
28-22 of a payment due under this article.
28-23 SECTION 22. Section 5.10, Chapter 824, Acts of the 73rd
28-24 Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
28-25 Civil Statutes), is repealed.
28-26 SECTION 23. This Act takes effect October 1, 2001.