By Armbrister S.B. No. 1068
77R4515 SMJ-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the benefits and administration of a statewide
1-3 retirement system for volunteer firefighters and other emergency
1-4 services personnel.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Sections 3(b) and (c), Texas Statewide Emergency
1-7 Services Retirement Act (Article 6243e.3, Vernon's Texas Civil
1-8 Statutes), are amended to read as follows:
1-9 (b) The monthly retirement annuity is equal to seven [six]
1-10 times the governing body's average monthly contribution over the
1-11 member's term of qualified service under this Act.
1-12 (c) For each year of additional qualified service in excess
1-13 of 15 years, a member is entitled to receive an additional 7.5
1-14 [seven] percent of the member's monthly pension compounded
1-15 annually. A member may receive a proportional credit for days or
1-16 months of qualified service that make up less than a year.
1-17 SECTION 2. Sections 14(c) and (d), Texas Statewide Emergency
1-18 Services Retirement Act (Article 6243e.3, Vernon's Texas Civil
1-19 Statutes), are amended to read as follows:
1-20 (c) The state board of trustees shall employ a professional
1-21 investment manager [counselor], a legal reserve life insurance
1-22 company licensed to do business in the State of Texas, or a bank
1-23 with trust powers under the laws of the State of Texas. The
1-24 investment manager [counselor] or bank employed by the board must
2-1 be a nationally known organization whose business includes managing
2-2 investments [investment counseling] for public pension and
2-3 retirement funds. A life insurance company employed by the board
2-4 must provide a group annuity contract that guarantees expenses and
2-5 provides a formula for determining the amount of funds available
2-6 for transfer at the end of a contract period. The contract may not
2-7 include requirements that guaranteed life annuities be purchased.
2-8 (d) The cost of the investment management services
2-9 [counseling service] may be paid from income earned by investments.
2-10 SECTION 3. Section 19, Texas Statewide Emergency Services
2-11 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
2-12 is amended to read as follows:
2-13 Sec. 19. COMMISSIONER'S DUTIES. (a) The commissioner may
2-14 not administer any pension plan other than the pension system
2-15 created by this Act and the system created by Chapter 125, Acts of
2-16 the 45th Legislature, Regular Session, 1937, as amended (Article
2-17 6243e, Vernon's Texas Civil Statutes).
2-18 (b) [(c)] The commissioner and the state board of trustees
2-19 shall assemble and disseminate the information necessary for the
2-20 disclosure requirements concerning the pension system as outlined
2-21 in Section 16 of this Act.
2-22 (c) [(d)] The commissioner is responsible for recovering any
2-23 fraudulently acquired benefits. If it appears that fraud has
2-24 occurred, the commissioner shall notify the local board and the
2-25 claimant and hold a hearing. If after the hearing the commissioner
2-26 decides that benefits have been or are being fraudulently acquired,
2-27 he shall seek action in a court of appropriate jurisdiction.
3-1 (d) [(e)] The commissioner shall collect the revenues for
3-2 the fund from the local boards of trustees or the governing bodies.
3-3 (e) [(f)] The commissioner may request and administer
3-4 additional state funds in an emergency.
3-5 (f) [(g)] The commissioner shall require annual reports from
3-6 the local boards of trustees.
3-7 (g) [(h)] The commissioner may at any reasonable time
3-8 examine the records and accounts of local boards of trustees.
3-9 (h) [(i)] The commissioner may recommend to the state board
3-10 of trustees rules to implement this Act.
3-11 (i) [(j)] The commissioner shall keep a copy of all rules
3-12 promulgated under this Act on file in the commissioner's office. A
3-13 copy of the rules shall be placed with each local board of trustees
3-14 and shall be made available for public inspection at any reasonable
3-15 time.
3-16 (j) [(k)] The commissioner shall prepare the necessary forms
3-17 for use by local boards of trustees.
3-18 (k) [(l)] The commissioner shall prepare an annual report on
3-19 the activity and status of the fund. The report shall go to the
3-20 governor, the lieutenant governor, and the speaker of the house.
3-21 (l) [(m)] The commissioner shall oversee the distribution of
3-22 all benefits. The commissioner shall make benefit payments to
3-23 claimants after receiving a copy of a local board of trustees'
3-24 decision in favor of a claim and reviewing that decision.
3-25 (m) [(n)] If the commissioner overrules a local board's
3-26 decision, he shall immediately notify the local board and the
3-27 claimant.
4-1 (n) [(o)] After a hearing conducted by the State Office of
4-2 Administrative Hearings, the commissioner shall determine each
4-3 appeal from a local board of trustees decision and issue a written
4-4 opinion in compliance with the procedures required by this Act.
4-5 (o) [(p)] The commissioner shall keep a written transcript
4-6 of all proceedings and hearings required by this Act.
4-7 SECTION 4. Section 20(a), Texas Statewide Emergency Services
4-8 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
4-9 is amended to read as follows:
4-10 (a) There is a state board of trustees composed of nine
4-11 [active] members. Six trustees must be active members of the fund,
4-12 and three trustees must be persons who have experience in the
4-13 fields of finance, securities investment, or pension
4-14 administration.
4-15 SECTION 5. Section 21(c), Texas Statewide Emergency Services
4-16 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
4-17 is amended to read as follows:
4-18 (c) After a hearing conducted by the State Office of
4-19 Administrative Hearings on the appeal of a decision of a local
4-20 board of trustees, the board shall determine each appeal from a
4-21 commissioner's decision based on the hearing record.
4-22 SECTION 6. Section 22(a), Texas Statewide Emergency Services
4-23 Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes),
4-24 is amended to read as follows:
4-25 (a) The local board of trustees is composed of the
4-26 following:
4-27 (1) one representative selected by the governing body;
5-1 (2) five active members representing a participating
5-2 department chosen by a majority of the emergency services personnel
5-3 in the department who are eligible to participate in the pension
5-4 system; and
5-5 (3) two residents of a participating political
5-6 subdivision who are chosen by the other members of the board.
5-7 SECTION 7. Sections 3(b) and (c), Texas Statewide Emergency
5-8 Services Retirement Act (Article 6243e.3, Vernon's Texas Civil
5-9 Statutes), as amended by this Act, apply only to the annuity of a
5-10 member who terminates service on or after the effective date of
5-11 this Act. The annuity of a member who terminates service before
5-12 the effective date of this Act is governed by the law in effect
5-13 immediately before the effective date of this Act, and that law is
5-14 continued in effect for that purpose.
5-15 SECTION 8. (a) Sections 20(a) and 21(c), Texas Statewide
5-16 Emergency Services Retirement Act (Article 6243e.3, Vernon's Texas
5-17 Civil Statutes), as amended by this Act, apply only to the
5-18 selection of a trustee of a board of trustees under the Texas
5-19 Statewide Emergency Services Retirement Act that occurs on or after
5-20 the effective date of this Act.
5-21 (b) A person who is serving as a trustee immediately before
5-22 the effective date of this Act may complete the trustee's term of
5-23 office, and the trustee's qualifications for serving as a trustee
5-24 are governed by the law in effect immediately before the effective
5-25 date of this Act until the date that trustee's term expires.
5-26 SECTION 9. This Act takes effect September 1, 2001.