By:  Armbrister                                                   S.B. No. 289


A BILL TO BE ENTITLED

AN ACT

relating to changes in the eligibility requirements, benefit 
structure, or other requirements of local public retirement systems 
governed by state statute.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 4(t), Chapter 451, Acts of the 72nd 
Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas 
Civil Statutes), is amended to read as follows:
	(t)  The retirement board shall have charge of and administer 
the fund as trustee of the fund and[,] shall order payments from the 
fund in accordance with this Act[, and may increase, under Section 
10(g) of this Act, the benefits and allowances the board pays from 
the fund].  If practicable, the retirement board shall collect 
underpayments and refund overpayments.  The retirement board shall 
report annually to the members on the condition of the fund and the 
receipts and disbursements on account of the fund.
	SECTION 2.  Section 6.01(a), Chapter 824, Acts of the 73rd 
Legislature, Regular Session, 1993 (Article 6243n-1, Vernon's 
Texas Civil Statutes), is amended to read as follows:
	(a)  On retirement after having reached the member's normal 
retirement date, members entitled thereto shall receive a service 
retirement benefit in the form of a life annuity (modified cash 
refund).  Each monthly payment of the life annuity (modified cash 
refund) shall be equal to one-twelfth of the product of 2.88 percent 
of a member's average final compensation multiplied by the number 
of months of creditable service.  [The retirement benefit percent 
specified by this section to calculate the amount of the monthly 
payment of the life annuity (modified cash refund) may be changed 
after 1997 if:
		[(1)  the change is approved by the board's actuary;         
		[(2)  the change is adopted by the board as a board 
rule;  
		[(3)  the change applies to all present members, all 
retired members, and all who become members after the effective 
date of the change in the retirement benefit percent;
		[(4)  a member's vested interest as of the last day of 
the month immediately preceding the effective date of the change in 
the retirement benefit percent is not reduced; and
		[(5)  a retirement annuity being paid by the police 
retirement system to members or to the surviving spouses or 
beneficiaries of members who retired before the effective date of 
the change in the retirement benefit percent is changed as 
prescribed by Subsection (d)(6) of this section, except that a 
reduction in annuities may not cause the member's, surviving 
spouse's, or beneficiary's annuity payment to be reduced below the 
base retirement amount calculated under this Act.]
	SECTION 3.  The following laws are repealed:                                   
		(1)  Section 7.01, Article 6243a-1, Revised Statutes;                         
		(2)  Section 10A, Chapter 101, Acts of the 43rd 
Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's 
Texas Civil Statutes);
		(3)  Section 10, Article 6243e.1, Revised Statutes;                           
		(4)  Section 27, Article 6243g-4, Revised Statutes;                           
		(5)  Section 10(g), Chapter 451, Acts of the 72nd 
Legislature, Regular Session, 1991 (Article 6243n, Vernon's Texas 
Civil Statutes); and
		(6)  Article XI, Chapter 325, Acts of the 75th 
Legislature, Regular Session, 1997 (Article 6243p, Vernon's Texas 
Civil Statutes).
	SECTION 4.  A change in the eligibility requirements, 
benefit structure, or other requirements of a public retirement 
system that was made under the authority of law being amended or 
repealed by this Act before the effective date of this Act is valid 
for the period for which it was made.
	SECTION 5.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.