SRC-TJG H.B. 601 78(R)    BILL ANALYSIS


Senate Research CenterH.B. 601
By: Thompson (Gallegos)
Administration
4-23-2003
Engrossed

DIGEST AND PURPOSE 

The Houston Municipal Employees Pension System (HMEPS), established by
Article 6243h, Texas Revised Civil Statutes Annotated, is a benefit
pension plan with approximately 20,000 active and retired participants.
HMEPS provides retirement, disability, and survivor benefits for eligible
City of Houston and pension system employees, not including police
officers or firefighters.  HMEPS board, staff, active municipal members,
retirees, and the City of Houston continually review programs administered
by HMEPS as well as the sytem's enabling legislation and make
recommendations resulting from this process.  H.B. 601 revises the
composition of the board of trustees and revises the powers and duties of
the system and programs under the HMEPS. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 2(c) and (j), Article 6243h, V.T.C.S., as
follows: 

(c) Provides that the pension board for the retirement systems of certain
municipalities consists of nine, rather than 11, trustees and lists
certain individuals. 

(j) Requires the public member of the pension board (appointed trustee) to
be appointed by a vote of a majority of the elected trustees of the board.
Provides that the appointed trustee serves a two-year term.  Requires the
appointment or reappointment of the appointed trustee to take place in
January of each even-numbered year.  Authorizes the appointed trustee to
be removed at any time by a vote of a majority of the elected trustees of
the pension board.  Requires a vacancy caused by the appointed trustee's
death, resignation, or removal to be filled by the elected trustees of the
pension board.  Provides that the appointee serves for the remainder of
the unexpired term of the replaced trustee. Prohibits an appointed trustee
from serving beyond the expiration of the two-year term other than by
appointment for a new term by the elected trustees of the pension board. 

SECTION 2.  Amends Section 3, Article 6243h, V.T.C.S., by adding
Subsection (n), to authorize the pension board to enter into a written
agreement with the city regarding pension issues and benefits,
notwithstanding any other law.  Requires the agreement to be approved by
the pension board and signed by the mayor and by the pension board or the
pension board's designee. Provides that the agreement is enforceable
against and binding on the city and the pension system's members,
retirees, deferred participants, beneficiaries, eligible survivors, and
alternate payees.  Prohibits the agreement from altering the composition
of the pension board, reducing the amount of an earned benefit under this
article, reducing the benefit accrual rates or maximum allowable pension
under Section 10 of this article, or lengthening the schedule for
retirement eligibility under Section 10 (b) of this article. 

SECTION 3.  Amends the heading to Section 15, Article 6243h, V.T.C.S., to
read as follows: 

 Sec. 15.  INCREASE IN BENEFITS.

 SECTION 4.  Amends Section 15, Article 6243h, V.T.C.S., by adding
Subsection (d), to authorize a pension benefit or allowance provided by
this article to be increased if certain conditions are met. 

SECTION 5.  Provides for the expiration of the terms of three current
members and the appointment or reappointment of one public member of the
pension board in accordance with this Act. 

SECTION 6.  Effective date:  upon passage or September 1, 2003.