78R1079 SGA-D
By: Dutton H.B. No. 377
A BILL TO BE ENTITLED
AN ACT
relating to service retirement and death benefits for certain peace
officers under the Teacher Retirement System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 821.001, Government Code, is amended by
adding Subdivision (20) to read as follows:
(20) "Peace officer" means a member of the retirement
system who has been commissioned as a peace officer under Section
51.203, Education Code, by a state institution of higher education
or public technical institute.
SECTION 2. Subchapter C, Chapter 824, Government Code, is
amended by adding Section 824.2032 to read as follows:
Sec. 824.2032. SUPPLEMENTED SERVICE RETIREMENT ANNUITY FOR
CERTAIN PEACE OFFICERS. (a) In this section:
(1) "Average monthly compensation" means the member's
average monthly compensation for the 36 months of service, whether
or not consecutive, for which the member received the highest
monthly compensation as a peace officer.
(2) "Multiplier" means the percentage used to compute
the standard service retirement annuity under Section 824.203. The
term does not include years of service credit.
(b) An employer may elect to fund the .5 percent that is the
employer's portion of the standard supplemented service retirement
annuity described by Subsection (d) for peace officers it employs.
(c) An employer that elects to fund the standard
supplemented service retirement annuity for qualifying peace
officers under this section is not required to provide money to fund
the annuity until a peace officer files an application for the
annuity and the application is approved by the retirement system.
(d) The standard supplemented service retirement annuity is
the amount computed by multiplying:
(1) the member's number of years of service credit for
service as a peace officer in the retirement system; times
(2) the member's average monthly compensation; times
(3) the sum of the multiplier plus .5 percent.
(e) Subsections (f), (g), and (h) apply only to a member:
(1) whose employer elects to fund the standard
supplemented retirement annuity;
(2) who has at least 25 years of service credit as a
peace officer in the retirement system; and
(3) who is a paid, full-time peace officer.
(f) A member is eligible to retire and receive the standard
supplemented retirement annuity under Subsection (d) if the sum of
the member's age plus the member's amount of service credit,
including months of age and credit, equals or exceeds the number 80.
(g) If a member is at least 50 years old, the member is
eligible to retire and receive a service retirement annuity reduced
from the standard supplemented service retirement annuity under
Subsection (d) to a percentage of the standard supplemented annuity
derived from the following table:
Years of Service
Age at Date of Retirement
50
51
52
53
54
55
at least 25 but less than 26
90%
92%
94%
96%
98%
100%
at least 26 but less than 27
92%
94%
96%
98%
100%
100%
at lease 27 but less than 28
94%
96%
98%
100%
100%
100%
at least 28 but less than 29
96%
98%
100%
100%
100%
100%
at least 29 but less than 30
98%
100%
100%
100%
100%
100%
(h) The supplemented service retirement annuity that is
payable under this section is based on retirement at the age of 50
or older. A peace officer who retires before attaining the age of
50 is entitled to an annuity that is actuarially reduced from the
annuity available at the age of 50 to the earlier retirement age.
(i) The supplemented service retirement annuity payable for
at least 25 years of service credit as a peace officer may not
exceed 100 percent of the higher of the average compensation
computed under Section 824.203 or the average compensation computed
under Subsection (d).
(j) For purposes of this section, service as a peace officer
is creditable as provided by rule of the board of trustees or on a
month-to-month basis, whichever is greater.
(k) A member retiring under this section is not eligible for
a partial lump sum option under Section 824.2045.
(l) An employer that elects to fund the standard
supplemented retirement annuity for an eligible member who retires
under this section shall provide as the employer's portion of that
annuity .5 percent of the monthly amount due the employee under
Subsection (f), (g), or (h). The retirement system shall provide
the remainder of the monthly amount due.
SECTION 3. Section 824.204(a), Government Code, is amended
to read as follows:
(a) Instead of the standard service retirement annuity
payable under Section 824.203, the standard supplemented service
retirement annuity for certain peace officers payable under Section
824.2032, or an annuity reduced because of age under Section
824.202, a retiring member may elect to receive an optional service
retirement annuity, reduced for early retirement if applicable,
under this section. An election to receive an optional service
retirement annuity must be filed with the board of trustees not
later than the effective date of retirement.
SECTION 4. Section 824.402(a), Government Code, is amended
to read as follows:
(a) Except as provided by Section 824.401 or Section
824.4061, the designated beneficiary of a member who dies during a
school year in which the member has performed service is eligible to
receive at the beneficiary's election the greatest of the following
amounts:
(1) an amount equal to twice the member's annual
compensation for the school year immediately preceding the school
year in which the member dies, or $80,000, whichever is less;
(2) an amount equal to twice the member's rate of
annual compensation for the school year in which the member dies, or
$80,000, whichever is less;
(3) 60 monthly payments of a standard service
retirement annuity, computed as provided by Section 824.203;
(4) an optional retirement annuity for the designated
beneficiary's life in an amount computed as provided by Section
824.204(c)(1) as if the member had retired on the last day of the
month immediately preceding the month in which the member dies; or
(5) an amount equal to the amount of accumulated
contributions in the member's individual account in the member
savings account.
SECTION 5. Subchapter E, Chapter 824, Government Code, is
amended by adding Section 824.4061 to read as follows:
Sec. 824.4061. ANNUITY FOR SURVIVOR OF PEACE OFFICER. If a
member who has at least 25 years of service credit as a peace
officer dies, the amount of the death benefit annuity payable for
the member's service as a peace officer is an amount computed and
funded as provided by Section 824.2032, including any applicable
reduction factors.
SECTION 6. (a) This Act takes effect September 1, 2003.
(b) This Act applies only to a peace officer who retires on
or after the effective date of this Act.