CSHB 2400 would amend the state statute governing the Texas Emergency Services Retirement System (TESRS), a statewide retirement system for volunteer fire departments and emergency services personnel. The provisions of the bill make a number of changes that would clarify and improve the procedures for the delivery of the benefits provided by TESRS. The provisions include the following:

• Changes the procedures for disability benefits, reduces the maximum period for a temporary disability benefit from two years to one year and requires that members who are classified as permanently disabled be recertified after five years.
• Changes the death benefit for members who die while on active duty to provide for a payment of 100% of service retirement annuity for all surviving spouses, whereas the current benefit is two-thirds of the service retirement annuity for a surviving spouse without dependants and 100% of service retirement annuity for a surviving spouse with dependants.
• Provides that death benefits for deaths not resulting from the performance of emergency service duties would be determined by board rule.
• Allows departments to make either one or more supplemental payments or to increase monthly benefits payable to retirees and beneficiaries. Electing departments would be required to fund these additional benefits through additional contributions.
• Provides that a member receiving temporary disability benefits as of September 1, 2007 will continue to receive disability benefits in accordance with prior law until September 1, 2008, but the member must be certified as permanently disabled prior to September 1, 2008 in order to receive disability benefits on or after that date.
• Provides immunity from liability for the board, commissioner and employees for any action taken or omission made or suffered by them in good faith in the performance of any duty in connection with the administration of TESRS.

The bill would make relatively minor changes in some of the benefits provided by TESRS. According to the actuarial analysis by the TESRS actuary, the provisions in the bill would not have a material impact on the actuarial condition of TESRS.

SOURCES:

Actuarial Analysis by Mark R. Fenlaw, Actuary, & Robert M. May, Actuary, Rudd and Wisdom, Inc., March 19, 2007.

Actuarial Review by Mr. Richard E. White, & Robert L. Schmidt, Actuaries, Milliman, March 20, 2007.