By: Kuempel (Senate Sponsor - Williams) H.B. No. 1244
         (In the Senate - Received from the House April 23, 2007;
  April 24, 2007, read first time and referred to Committee on State
  Affairs; May 4, 2007, reported favorably by the following vote:  
  Yeas 8, Nays 0; May 4, 2007, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to contributions to, benefits from, and the administration
  of the Texas Municipal Retirement System.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 851.006, Government Code, is amended to
  read as follows:
         Sec. 851.006.  EXEMPTION FROM EXECUTION.  (a)  Except as
  provided by Subsection (b), all [All] retirement annuity payments,
  other benefit payments, and a member's accumulated contributions
  are unassignable and are exempt from execution, garnishment,
  attachment, and state and local taxation.
         (b)  The board of trustees by rule may authorize the
  retirement system to make distributions to pay the qualified health
  insurance premiums of a public safety officer in accordance with
  the provisions of Section 845, Pension Protection Act of 2006, Pub.
  L. No. 109-280.
         SECTION 2.  Section 853.402, Government Code, is amended by
  adding Subsection (a-1) to read as follows:
         (a-1)  The board of trustees by rule may limit the increase
  in a member's average updated service compensation from year to
  year.
         SECTION 3.  Section 855.110, Government Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  The board of trustees, after consultation with the
  actuary, by rule may set open or closed amortization periods not to
  exceed 25 years.
         SECTION 4.  Subchapter E, Chapter 855, Government Code, is
  amended by adding Section 855.4065 to read as follows:
         Sec. 855.4065.  ADDITIONAL EMPLOYER CONTRIBUTIONS. (a)  In
  addition to the contributions a participating municipality is
  required to make under this subtitle, the board of trustees, after
  consultation with the actuary, by rule may authorize a
  participating municipality to make lump-sum or periodic employer
  contributions to the retirement system to be deposited in the
  municipality's account in the municipality accumulation fund.
         (b)  A contribution made under this section is not subject to
  the maximum contribution rates under Sections 855.407 and 855.501.
         SECTION 5.  Section 853.402(g), Government Code, is
  repealed.
         SECTION 6.  The change in law made by the repeal of Section
  853.402(g), Government Code, by this Act applies only to the
  computation of the updated service compensation of a person whose
  effective date of retirement under the Texas Municipal Retirement
  System is on or after September 1, 2007. The updated service
  compensation of a person whose effective date of retirement is
  before September 1, 2007, is computed according to the law in effect
  on the effective date of the person's retirement, and that law is
  continued in effect for that purpose.
         SECTION 7.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect September 1, 2007.
         (b)  The following sections take effect January 1, 2008:
               (1)  Section 851.006, Government Code, as amended by
  this Act; and
               (2)  Sections 853.402(a-1), 855.110(c), and 855.4065,
  Government Code, as added by this Act.
 
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