80R14615 SGA-F
 
  By: McClendon H.B. No. 2752
 
Substitute the following for H.B. No. 2752:
 
  By:  Villarreal C.S.H.B. No. 2752
 
A BILL TO BE ENTITLED
AN ACT
relating to the pension retirement system in certain municipalities
for firefighters and police.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 1.02, Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended by amending Subdivision (15) and adding
Subdivisions (4-a), (8-a), and (12-a) to read as follows:
             (4-a)  "Catastrophic injury" means irreparable
physical bodily injury sustained by a member as a direct and
immediate result of the member's engaging in an activity that:
                   (A)  constitutes the performance of the member's
duties as a firefighter or police officer;
                   (B)  involves an extraordinary degree of risk of
bodily injury or death; and
                   (C)  does not result in death.
             (8-a)  "Disability" means a regular disability under
Section 5.03(a) of this Act or a catastrophic injury disability
under Section 5.03(a-1) of this Act.
             (12-a)  "Qualified mayoral designee" means an
individual designated by the mayor of a municipality to which this
Act applies who is a member or former member of the city council of,
or an employee of, a municipality to which this Act applies.
             (15)  "Retirement annuity" means [monthly] pension
benefits payable to a retiree on an annual basis in accordance with
this Act.
       SECTION 2.  Section 2.01(a), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended to read as follows:
       (a)  The fund is governed by a board of trustees consisting
of the following nine members:
             (1)  the mayor of a municipality to which this Act
applies or a qualified mayoral designee;
             (2)  two members of the governing body of a
municipality to which this Act applies, appointed by that governing
body;
             (3)  two active members who are fire fighters below the
rank of fire chief, elected by secret ballot by a majority of the
votes cast by the members of the fire department;
             (4)  two active members who are police officers below
the rank of police chief, elected by secret ballot by a majority of
the votes cast by the members of the police department;
             (5)  a retiree representative of the fire department,
elected by secret ballot by a majority of the votes cast by the
retirees of the fire department and the surviving spouses who are
receiving benefits with respect to deceased members or retirees of
the fire department; and
             (6)  a retiree representative of the police department,
elected by secret ballot by a majority of the votes cast by the
retirees of the police department and the surviving spouses who are
receiving benefits with respect to deceased members or retirees of
the police department.
       SECTION 3.  Section 2.02(a), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended to read as follows:
       (a)  The mayor of a municipality to which this Act applies,
or a qualified mayoral designee, serves on the board for the term of
the mayor's office except that, if the mayor appoints a mayoral
designee, the mayor may replace or remove that mayoral designee at
the mayor's discretion. An individual designated by the mayor to
serve on the board under this subsection may only serve on the board
while the individual is a qualified mayoral designee.
       SECTION 4.  Section 4.07(b), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended to read as follows:
       (b)  A member of the fund who terminates employment before
the member's right to benefits under the fund has vested [but who
has contributed to the fund for at least five years] is entitled to
a refund of the member's contributions that were picked up by the
municipality. That refund shall be paid without interest. A refund
under this section is not available to a member who terminates
employment to receive a disability pension or to a survivor
beneficiary under this Act. Except as provided by Section 4.08 of
this Act, a person's acceptance of a refund under this subsection
precludes the person from any other right or benefit under this Act.
       SECTION 5.  Section 5.01, Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended by amending Subsection (f) and adding
Subsections (f-1), (i), and (j) to read as follows:
       (f)  The board shall compute the retirement annuity of a
member who retires after September 30, 2001, but before October 1,
2007, at the rate of 2-1/4 percent of the member's average total
salary for each of the first 20 years of service, plus 4-1/2 percent
of the member's average total salary for each of the next seven
years of service, plus three percent of the member's average total
salary for each of the next three years of service, plus one-half
percent of the member's average total salary for each of the next
four years of service, with fractional years of service prorated
based on full months served as a contributing member. In making the
computation for a year, the year is considered to begin on the first
day a contribution is made. A retirement annuity under this
subsection may not exceed, as of the date of retirement, 87-1/2
percent of the member's average total salary.
       (f-1)  The board shall compute the retirement annuity of a
member who retires after September 30, 2007, at the rate of 2-1/4
percent of the member's average total salary for each of the first
20 years of service, plus five percent of the member's average total
salary for each of the next seven years of service, plus two percent
of the member's average total salary for each of the next three
years of service, plus one-half percent of the member's average
total salary for each of the next three years of service, with
fractional years of service prorated based on full months served as
a contributing member. In making the computation for a year, the
year is considered to begin on the first day a contribution is made.
A retirement annuity under this subsection may not exceed, as of the
date of retirement, 87-1/2 percent of the member's average total
salary.
       (i)  Beginning with the first monthly benefit payable by the
fund after October 1, 2007:
             (1)  the monthly benefit payable by the fund to a
retiree or a beneficiary of a deceased retiree or active member as a
result of a service retirement, disability retirement, or death of
an active member that occurred before October 1, 1989, increases by
$200; and
             (2)  a monthly benefit that is divided and payable to
more than one beneficiary in accordance with Section 6.02 of this
Act increases by a total amount of $200.
       (j)  Beginning with the first monthly benefit payable by the
fund after October 1, 2007:
             (1)  a monthly benefit payable by the fund to a retiree
or a beneficiary of a deceased retiree or active member that is less
than $1,850 per month, after taking into account the increase
provided for in Subsection (i) of this section, increases to $1,850
per month; and
             (2)  a monthly benefit that is divided and payable to
more than one beneficiary in accordance with Section 6.02 of this
Act increases to a total amount of $1,850.
       SECTION 6.  Section 5.015(b), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended to read as follows:
       (b)  The Back DROP election:
             (1)  results in a lump-sum payment for a number of full
months of service elected by the member that does not exceed the
lesser of the number of months of service credit the member has in
excess of 20 years or 48 [36] months;
             (2)  is available only to a member who takes a service
retirement; and
             (3)  must be made at the time of application for
retirement.
       SECTION 7.  Section 5.03, Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended by amending Subsections (a) and (c) and
adding Subsections (a-1), (a-2), and (g) to read as follows:
       (a)  An active member of the fund who is not eligible to
receive a catastrophic injury disability annuity under Subsection
(a-1) of this section is eligible to retire and receive a regular
disability retirement annuity if the member:
             (1)  makes a written application for regular disability
retirement with the board;
             (2)  is permanently disabled through injury or disease
so as to be unable to perform the duties of any available position
in the department and has been off active duty for a continuous
period of not less than 30 days before the date of the application
for disability retirement;
             (3)  has had all member contributions required by this
Act made on the member's behalf;
             (4)  is not on indefinite suspension as described in
Subsection (d) of this section; and
             (5)  has authorized the release to the board of all
medical records dated on or after the date of initial application
for employment with the department.
       (a-1)  An active member of the fund is eligible to retire and
receive a catastrophic injury disability retirement annuity if the
member:
             (1)  makes a written application for catastrophic
injury disability retirement with the board;
             (2)  is permanently so disabled as a result of a
catastrophic injury as to:
                   (A)  be unable to secure any type of third-party
employment, or engage in any self-employment, other than sporadic
third-party or self-employment; and
                   (B)  have, as a result of the lack of third-party
employment or self-employment, an annual income less than the
poverty level for one person in the 48 contiguous states of the
United States as provided under the poverty guidelines published
from time to time by the United States Department of Health and
Human Services, or similar guidelines selected by the board;
             (3)  has had all member contributions required by this
Act made on the member's behalf;
             (4)  is not on indefinite suspension as described in
Subsection (e) of this section; and
             (5)  has authorized the release to the board of all
medical records dated on or after the date of initial application
for employment with the department.
       (a-2)  The following diseases, disorders, or injuries are
not catastrophic injuries:
             (1)  heart disease or lung disease contracted as a
result of repeated exposure to occupational environmental
conditions over a period of months or years;
             (2)  an anxiety disorder, including post-traumatic
stress disorder; or
             (3)  a soft-tissue back, neck, or spine injury,
including a sprain, strain, subluxation, or repetitive stress
injury, that does not result in paralysis, as determined by a
physician authorized or appointed by the board.
       (c)  Except as provided by Subsection (d) of this section, a
member of the fund who is on suspension and who becomes disabled as
a result of [receives a total and permanent disability resulting
from] an injury sustained or disease contracted [incurred] while
the member is on suspension is eligible for a disability retirement
annuity under Subsection (a) or (a-1) of this section, as
applicable, if the suspended member makes up each deducted
contribution lost by reason of the suspension not later than the
30th day after the later of the termination date of the suspension
or the exhaustion of any appeal with respect to the suspension. A
municipality to which this Act applies shall double-match all
contributions made by a member under this subsection.
       (g)  A disability retiree who becomes disabled before
October 1, 2007, and who is otherwise qualified to receive a
catastrophic injury disability retirement annuity under Subsection
(a-1) of this section is eligible to receive an annuity under that
subsection, subject to Section 5.04(a-2) of this Act.
       SECTION 8.  Section 5.04, Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended by amending Subsections (a) and (b) and
adding Subsections (a-1) and (a-2) to read as follows:
       (a)  A member who is eligible to retire and receive a
[monthly] disability retirement annuity under Section 5.03(a) of
this Act is entitled to receive an annuity from the fund equal to:
             (1)  50 percent of [the average of] the member's average
total salary, if the member has served three years or more before
the date of retirement [for the highest three years of the last five
years, computed from the date of retirement, divided by 12]; [or]
             (2)  [if the member has served less than three years
before the date of retirement,] 50 percent of the member's average
monthly [total] salary as of the date of retirement multiplied by
12, if the member has served at least two months and less than three
years before the date of retirement; or
             (3)  50 percent of the member's average daily salary as
of the date of retirement multiplied by 360, if the member has
served less than two months before the date of retirement.
       (a-1)  Subject to Subsection (a-2) of this section a member
who is eligible to retire and receive a catastrophic injury
disability retirement annuity under Section 5.03(a-1) of this Act
is entitled to receive an annuity from the fund equal to:
             (1)  87.5 percent of the member's average total salary,
if the member has served three years or more before the date of
retirement;
             (2)  87.5 percent of the member's average monthly
salary as of the date of retirement multiplied by 12, if the member
has served at least two months and less than three years before the
date of retirement; or
             (3)  87.5 percent of the member's average daily salary
as of the date of retirement multiplied by 360, if the member has
served less than two months before the date of retirement.
       (a-2)  An annuity awarded by the board under Subsection (a-1)
of this section to a member who was previously awarded an annuity
under Subsection (a) of this section shall be increased to equal the
amount the annuity awarded under Subsection (a) of this section
would have been if the annuity had been awarded under Subsection
(a-1) of this section, taking into account the cost of living
adjustment increases provided for in Section 5.09 of this Act.  This
subsection does not entitle the member to any additional payment
for the period before the effective date of the award under
Subsection (a-1) of this section [, or a theoretical monthly
average if service is less than a full month].
       (b)  In making computations under this section, all [All]
fractional years must be [under this section are] prorated based on
full months served in [on] the [fire or police] department as a
contributing member of the fund.
       SECTION 9.  Section 5.05, Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended by amending Subsections (a) and (c) and
adding Subsections (a-1), (a-2), (a-3), and (c-1) to read as
follows:
       (a)  The board may cause a disability retiree to undergo a
medical examination or examinations by any reputable physician or
physicians selected by the board[. Based on the examination, the
board shall determine whether the disability retirement annuity
shall be continued, decreased, restored to the original amount if
it had been decreased, or discontinued, except that a disability
retirement annuity may not be completely discontinued unless the
disability retiree has first been accepted for reinstatement in
that person's former position or status in the fire or police
department by the chief of the respective department].
       (a-1)  A disability retiree who is awarded a catastrophic
injury disability annuity under Section 5.03(a-1) of this Act shall
undergo a medical examination by any reputable physician or
physicians selected by the board:
             (1)  not later than 60 months after the date of the
award of the annuity by the board; and
             (2)  thereafter, not later than 60 months following the
last required medical examination of the disability retiree under
this subsection.
       (a-2)  The board may require one or more medical examinations
under Subsection (a) of this section in addition to those required
under Subsection (a-1) of this section.
       (a-3)  Subject to Subsection (c) of this section, based on an
examination under Subsections (a), (a-1), or (a-2) of this section,
the board shall determine whether the disability retirement annuity
shall be continued, decreased, restored to the original amount if
it had been decreased, or discontinued.
       (c)  For those retired because of disability on or after
August 30, 1971, the [monthly] disability retirement annuity may
not be reduced to an amount that is less than the product of:
             (1)  2.25 percent multiplied by the number of years
that the retiree served in the department and contributed a portion
of salary as a member of the fund multiplied by the retiree's
average total salary, if the retiree served three years or more
before the date of retirement;
             (2)  2.25 percent multiplied by the number of years
that the retiree served in the department and contributed a portion
of salary as a member of the fund multiplied by the retiree's
average monthly salary as of the date of retirement multiplied by
12, if the retiree served at least two months and less than three
years before the date of retirement; or
             (3)  2.25 percent multiplied by the number of years
that the retiree served in the department and contributed a portion
of salary as a member of the fund multiplied by the retiree's
average daily salary as of the date of retirement multiplied by 360,
if the member has served less than two months before the date of
retirement.
       (c-1)  In making the computation under Subsection (c) of this
section, all [two percent, for each year that the retiree has served
and contributed a portion of salary, of the average of the member's
total salary for the highest three years of the last five years,
computed from the date of retirement, divided by 12, or if the
member has served less than three years before the date of
retirement, 50 percent of the member's average monthly total
salary, or a theoretical monthly average if service is less than a
full month. All] fractional years shall be prorated based on full
months served in [on] the [fire or police] department as a
contributing member of the fund before the date of retirement.
       SECTION 10.  Section 5.07(b), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended to read as follows:
       (b)  If the retiree received income from other employment,
including self-employment, during the preceding year, the board may
reduce the retiree's disability retirement annuity by the amount of
$1 for each month for each $2 of income earned by the retiree from
the other employment during each month of the previous year, except
that the disability retirement annuity may not be decreased below
the [an] amount determined [based on 2-1/4 percent of the retiree's
average total salary computed at the time of retirement] under
Section 5.05(c) [5.04] of this Act [for each year of service in the
department].
       SECTION 11.  Section 5.09(a), Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended to read as follows:
       (a)  At or before its regular meeting in the month of March,
the board annually shall review the Consumer's Price Index for All
Urban Consumers (CPI-U), U.S. City Average or the nearest
equivalent published by the United States Bureau of Labor
Statistics for the preceding calendar year. If that index shows an
increase during the preceding calendar year in the cost of living as
compared with that index at the close of the previous year, the
board shall order an increase of all service, disability, and death
benefit retirement annuities by a percentage that varies by the
date of the member's service or disability retirement, or, in the
case of a member who died before retirement, the date on which the
member died. If the member's service retirement, disability
retirement, or death before retirement occurred before August 30,
1971, the annuity shall be increased by a percentage equal to the
percentage increase in the cost of living index. If the member's
service retirement, disability retirement, or death before
retirement occurred on or after August 30, 1971, but before October
1, 1997 [1993], the annuity shall be increased as follows: if the
percentage increase in the cost of living index is eight percent or
less, the annuity shall be increased by a percentage equal to the
percentage increase, and if the percentage increase in the cost of
living index is more than eight percent, the annuity shall be
increased by eight percent plus a percentage equal to 75 percent of
the percentage increase that is more than eight percent. If the
member's service retirement, disability retirement, or death
before retirement occurred on or after October 1, 1997 [1993], the
annuity shall be increased by a percentage equal to 75 percent of
the percentage increase in the cost of living index. A percentage
increase in annuities shall be rounded to the nearest one-tenth
percentage point for a cost of living increase.
       SECTION 12.  Section 6.02, Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended by amending Subsections (a), (c), (g),
and (m) and adding Subsections (g-1), (g-2), and (o) to read as
follows:
       (a)  Subject to Section 6.03 of this Act and the provisions
of this section, if a member or [disability] retiree receiving a
disability pension under Section 5.03(a) of this Act dies leaving a
surviving spouse or at least one dependent child, the surviving
spouse and the children are entitled to receive from the fund an
aggregate death benefit annuity, computed and payable from the date
of the member's death. The surviving spouse may elect the annuity
in an amount that is equal to either:
             (1)  50 percent of the member's average total salary; or
             (2)  the same percentage of the member's average total
salary that the member would have been entitled to receive as a
retirement annuity if the member could have retired on the date of
death.
       (c)  Subject to [Section 6.08 of this Act and] the provisions
of this section, if a retiree other than a [disability] retiree
receiving a disability pension under Section 5.03(a) of this Act
dies leaving a surviving spouse or at least one dependent child, the
surviving spouse and dependent children are entitled to receive
from the fund an aggregate death benefit annuity, computed and
payable from the date of the member's death, in an amount that is
equal to the lesser of:
             (1)  the retirement annuity to which a member with the
same average total salary as the deceased retiree and 27 years of
service credit would be entitled if the member retired on the date
of the deceased retiree's death; or
             (2)  the retirement annuity the retiree was receiving
at the time of the retiree's death.
       (g)  A child who is born after the date of retirement of the
member is not entitled to a death benefit annuity under this Act
unless the retiree was married to the other parent of the child on
the date of retirement. A surviving spouse of a retiree who was not
married to the retiree until after the retiree's retirement is
entitled to receive only the benefits, if any, provided under
Subsection (g-1) [(m)] of this section or [and] Section 6.08 of this
Act.
       (g-1)  A surviving spouse of a retiree who was not married to
the retiree until after the date of the retiree's retirement is
entitled to receive the entire death benefit of a surviving spouse
in this section if the surviving spouse was married to the retiree
for a period of at least the five consecutive years preceding the
date of the retiree's death. A surviving spouse of a retiree who
was not married to the retiree until after the retiree's retirement
and was not married to the retiree for a period of the five
consecutive years preceding the date of the retiree's death is
entitled to receive only the benefits, if any, provided under
Section 6.08 of this Act. The benefit provided by this subsection
applies only with respect to a retiree death that occurs on or after
October 1, 2007.
       (g-2)  The surviving spouse of a retiree who made an election
under Subsection (m) of this section before October 1, 2007, and who
does not cancel that election in accordance with Subsection (m) of
this section is not entitled to receive the death benefit annuity
provided for under Subsection (g-1) of this section.
       (m)  Subject to Subsections [Subsection] (n) and (o) of this
section, a service retiree who marries after the date of retirement
may elect to receive a reduced annuity during the retiree's
lifetime and provide for a death benefit annuity to the retiree's
surviving spouse. The amount of the reduced annuity and spousal
death benefit shall be determined by the fund's actuary and shall be
actuarially equivalent to the annuity the retiree was receiving
immediately before the election under this subsection. An election
made under this subsection may be canceled by the retiree before the
retiree's death [on the divorce of the retiree or the death of the
retiree's spouse]. After the election is canceled, the retiree
shall be entitled to receive the same annuity to which the retiree
would have been entitled if the election had not been made. A
retiree who cancels an election under this subsection is not
entitled to any additional benefits for the period of time before
the cancellation. The board shall adopt policies and procedures
governing elections and cancellation of elections under this
subsection. An election or cancellation of an election made under
this subsection must be made in accordance with the board's
policies and procedures.
       (o)  A retiree may not make an election under Subsection (m)
of this section after September 30, 2007. A cancellation of an
election by a retiree under Subsection (m) of this section must be
made on or before December 31, 2007.
       SECTION 13.  Section 6.08, Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended by amending Subsections (a) and (b) to
read as follows:
       (a)  Except as provided by Subsection (b) of this section, a
surviving spouse of a retiree whose status as such resulted from any
marriage after the date of the retirement of the retiree and who has
been married to the retiree for a period of at least the 2-1/2 but
less than the five consecutive years preceding the date of the
retiree's death, [member] is entitled to a lump-sum death benefit
because of the retiree's [member's] death in the amount of $2,500 [:
             [(1)  $10,000 if the marriage occurred 10 years or more
before the member's death;
             [(2)  $7,500 if the marriage occurred 7-1/2 years
before but less than 10 years before the member's death;
             [(3)  $5,000 if the marriage occurred five years or
more but less than 7-1/2 years before the member's death; and
             [(4)  $2,500 if the marriage occurred 2-1/2 years or
more but less than five years before the member's death].
       (b)  A surviving spouse is not entitled to a lump-sum death
benefit under this section if a child is entitled to receive death
benefits under this Act as a result of the retiree's death.
       SECTION 14.  Section 6.11, Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended to read as follows:
       Sec. 6.11.  DEATH BENEFIT FOR ACTIVE MEMBER'S ESTATE. If an
active member dies and does not leave a beneficiary, the estate of
the deceased member is entitled to a death benefit payment from the
fund in an amount equal to the greater of:
             (1)  10 [five] times the amount of an annuity computed
in accordance with Section 5.01(f-1) [5.01(f)] of this Act using
the deceased member's service credit and average total salary as of
the date of death; or
             (2)  the refund of the member's contributions that were
picked up by the municipality.
       SECTION 15.  Section 6.115, Chapter 824, Acts of the 73rd
Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
Civil Statutes), is amended to read as follows:
       Sec. 6.115.  DEATH BENEFIT FOR RETIREE'S ESTATE. If a
retiree dies and does not leave a beneficiary, the estate of the
retiree is entitled to a death benefit payment from the fund in an
amount equal to 10 [five] times the amount of the annuity awarded by
the board effective on the retiree's date of retirement, less any
retirement or disability annuity and any lump sum under Section
5.015 of this Act paid to the retiree.
       SECTION 16.  Sections 6.14(e), (f), (h), and (j), Chapter
824, Acts of the 73rd Legislature, Regular Session, 1993 (Article
6243o, Vernon's Texas Civil Statutes), are amended to read as
follows:
       (e)  The annuity used to compute the lump-sum payment is
determined in the manner provided by Section 5.01(f-1) [5.01(f)] of
this Act for retired members, using:
             (1)  the deceased member's average total salary for all
months, excluding the number of months immediately preceding the
member's date of death that equal the number of months elected by
the surviving spouse under Subsection (f) of this section; and
             (2)  the amount of service credit as determined by
Subsection (g) or (h) of this section.
       (f)  The surviving spouse must elect the number of months
used in computing the lump-sum payment. The number of months may
not exceed the lesser of:
             (1)  the number of months of service credit in excess of
20 years that the deceased member has on the date of death; or
             (2)  48 [36] months.
       (h)  In determining the annuity under Subsection (e) of this
section for a surviving spouse whose death benefit annuity is
limited by Section 6.02(b) of this Act, the deceased member's
service credit is the lesser of:
             (1)  the deceased member's service credit computed as
provided by Section 5.01(g) of this Act, less the number of months
elected by the surviving spouse under Subsection (f) of this
section and less any service credit for unused sick leave to which
the member would have been entitled; or
             (2)  27 years.
       (j)  The reduced annuity is determined in the manner provided
by Section 5.01(f-1) [5.01(f)] of this Act for retired members,
using:
             (1)  the deceased member's average total salary for all
months, excluding the number of months immediately preceding the
member's date of death that equal the number of months elected by
the surviving spouse under Subsection (f) of this section; and
             (2)  the amount of service credit as determined by
Subsection (k) or (l) of this section.
       SECTION 17.  Sections 4.07(a), 5.04(c), and 6.08(c), Chapter
824, Acts of the 73rd Legislature, Regular Session, 1993 (Article
6243o, Vernon's Texas Civil Statutes), are repealed.
       SECTION 18.  This Act takes effect October 1, 2007.