H.B. 1153 78(R)    BILL ANALYSIS


H.B. 1153
By: Puente
Pensions & Investments
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

The Fire and Police Fund was established to provide retirement security
(including line of duty deaths and disability) for members of the police
and fire departments in the City of San Antonio and their beneficiaries. 

HB 1153 provides greater clarity to retirement and disability benefits and
some specific benefits to public safety employees, both fire and police,
in the City of San Antonio. Specifically, these changes provide:  
*immediate coverage for new recruits rather than imposing a 60-day waiting
period *disability benefits for a member who is disabled as a result of
military service *re-entry into the fund upon certain conditions,
including paying to the fund the refunded    member contributions plus
interest *clarity in the definition of a "dependent child" *additional
clarifications to make the Act clearer to the members. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 
  
ANALYSIS

SECTION 1.  Amends Section 1.02(7), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, VTCS) by providing a
technical correction to provide a clear definition of "dependent
children." 

SECTION 2.  Amends Sections 4.01(a) and (c), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, VTCS) by allowing
membership to all recruits immediately upon fulfillment of statutory
requirements rather than a two month waiting period and applying Section
4.05 of this Act. 

SECTION 3.  Amends Section 4.05, Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, VTCS), is amended by
adding language to state that Subsection (a-1) applies to Subsection (a). 
 
 Adds Subsection (a-1) addressing the funding of municipal contribution
for recruits for the first two years resulting from the change provided in
Section 2.   

SECTION 4.  Amends Section 4.07(b), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, VTCS) by applying
Section 4.08 of this Act to the terms of a refund of member's
contribution. 
 
SECTION 5.  Amends Article 4, Chapter 824, Acts of the 73rd Legislature,
Regular Session, 1993 (Article 6243o, VTCS), as follows: 

Adds Section 4.08 (a) provides a mechanism for a member who cashed in
their account to reestablish service credit repaying the money in a lump
sum with actuarial interest included. 

 Adds Section 4.08 (b) stipulates the time frame the repayment may be made.

Adds Section 4.08 (c) states the requirement of receiving a repurchase
intent in writing and the time frame it is to be received. 

SECTION 6.  Amends Section 5.03(b), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, VTCS) by allowing
disability benefits under the statute to members who are disabled as a
result of military service. 

SECTION 7.  Amends Section 5.05(b), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, VTCS) by increasing the
minimum disability pension for prior disability retirees from 2 percent to
2.25 percent. 

SECTION 8.  Amends Section 6.02(a), (c), and (j), Chapter 824, Acts of the
73rd Legislature, Regular Session, 1993 (Article 6243o, VTCS) by applying
Section 1.02 (7) (B) of this Act for increased clarity in the definition
of dependent children. 

SECTION 9.  Amends Section 6.13, Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, VTCS) by allowing the
Board the discretion to require guardianships for minor dependent
children. 

SECTION 10.  Section 4.03(g), Chapter 824, Acts of the 73rd Legislature,
Regular Session, 1993 (Article 6243o, VTCS) is repealed. 

SECTION 11.  Effective date.

EFFECTIVE DATE

This Act takes effect October 1, 2003.