C.S.H.B. 2561 78(R)    BILL ANALYSIS


C.S.H.B. 2561
By: Rose
Pensions & Investments
Committee Report (Substituted)



BACKGROUND AND PURPOSE 
    
The Fire and Police Fund was created to provide retirement security for
members of the police and fire departments and their beneficiaries. As
proposed, CSHB 2561 would provide greater clarity to retirement and
disability benefits for both fire and police employees. 



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 2, Texas Local Fire Fighters Retirement Act
(Article 6243e, VTCS) by adding subdivisions (10) and (11) which define
"determination date" and  "vested  accrued benefit." 

SECTION 2:Amends Section 7(e), Texas Local Fire Fighters Retirement Act
(Article 6243e, VTCS) which adds language stating changes may not be made
without that written consent by the member, retiree or eligible survivor
under Section 15 of a right to receive a vested accrued benefit. 

SECTION 3:Amends Section 14, Texas Local Fire Fighters Retirement Act,
(Art. 6243e, VTCS) by adding Subsection (g) and (h) which state that a
vested accrued benefit of a retiree who is retired as of the determination
date is subject to the terms of the benefit as they existed at the time
and is payable only if board approved eligibility requirements are met.
As stipulated, a disability retirement benefit is not a vested accrued
benefit until the member becomes disabled as stipulated by the retirement
system. 

SECTION 4:Section 15, Texas Local Fire Fighters Retirement Act (Art.
6243e, VTCS) by adding Subsections (f) and (g).  It stipulates that a
vested accrued benefit an eligible survivor receives resulting from a
member's death is subject to retirement system terms.  Also states that a
death benefit is not a vested accrued benefit until the member/retiree
dies. 

SECTION 5:Effective date.

EFFECTIVE DATE

September 1, 2003 or immediate effect if 2/3 vote is received in both
houses. 


COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute bill is a Texas Legislative Council draft and does not
change the meaning or intent of the original bill.  It has simply been put
in Council language for statute conformity.