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A BILL TO BE ENTITLED
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AN ACT
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relating to member contributions to certain retirement, |
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disability, and death benefit systems provided by certain cities |
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and towns. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2, Chapter 426, Acts of the 64th |
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Legislature, Regular Session, 1975 (Article 6243k, Vernon's Texas |
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Civil Statutes), is amended to read as follows: |
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Sec. 2. (a) An incorporated city or town may create a |
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retirement, disability, and death benefit system for its appointive |
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officers and employees if a majority of the qualified voters of the |
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city or town voting on the proposition approve the creation at an |
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election called for that purpose. Each member of the system shall |
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contribute to the system an amount determined by the city or town, |
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which, except as provided by Subsection (b), may not exceed 10 |
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percent of the member's annual compensation paid by the city or |
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town, and the city or town shall contribute for each member an |
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amount that at least equals but is not more than twice the amount of |
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the member's contribution. A member of a municipal system is |
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eligible for disability benefits if he is disabled in the course of |
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his employment with the city or town. A member is eligible for |
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retirement benefits if he is 65 years old or older, or he is 60 years |
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old but less than 65 years old and has been employed by the city or |
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town for 25 years or more. |
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(b) If a city or town with a population of 500,000 or more |
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provides a retirement, disability, and death benefit system under |
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this section, each member of the system shall contribute an amount |
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determined by the city or town that may exceed 10 percent of the |
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annual compensation paid to the member by the city or town. |
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SECTION 2. This Act takes effect September 1, 2007. |