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|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to participation and credit in, contributions to, benefits |
|
from, and administration of the Texas County and District |
|
Retirement System. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 841.001, Government Code, is amended by |
|
amending Subdivisions (1), (6), and (17) and adding Subdivision |
|
(1-a) to read as follows: |
|
(1) "Actuarial equivalent" means a benefit that, at |
|
the time it is begun, has the same present value as the benefit it |
|
replaces, based on seven percent annual interest and either: |
|
(A) the mortality table published by the |
|
Conference of Actuaries in Public Practice and known as the UP-1984 |
|
table with an age setback of five years for retired or disabled |
|
annuitants and an age setback of 10 years for beneficiaries, with a |
|
30-percent reserve refund assumption for the standard benefit; or |
|
(B) a mortality basis adopted under Section |
|
845.110(c). |
|
(1-a) "Accrued benefit" means the sum of a member's |
|
accumulated contributions and service credit calculated as of a |
|
specified date. |
|
(6) "Compensation" means the sum of payments that are |
|
made to an employee for performance of personal services as |
|
certified by a participating subdivision, including nonmonetary |
|
compensation, the value of which is determined by the governing |
|
body of the subdivision, on which contributions by an employee to |
|
the retirement system are based [that do not exceed the amount
|
|
established by board rule], which may not exceed either the limit |
|
provided by Section 401(a)(17) of the Internal Revenue Code of 1986 |
|
[(26 U.S.C. Section 417)], as indexed in the manner provided by that |
|
section, or a lesser amount established by rule of the board of |
|
trustees. The term includes amounts by which payment for earnings |
|
is reduced because of employer pick-up of employee contributions to |
|
the retirement system under Section 845.403, deferral of |
|
compensation under benefit plans or tax-sheltered annuity programs |
|
adopted by the subdivision under Section 401(k), 403(b), or 457 of |
|
the Internal Revenue Code of 1986, the costs of benefits furnished |
|
under qualified cafeteria plans adopted by the subdivision under |
|
Section 125 of the Internal Revenue Code of 1986, and deductions for |
|
Federal Insurance Contribution Act taxes, federal income taxes, or |
|
other obligations of the employee [and that are made to an employee
|
|
of a participating subdivision by the subdivision for service,
|
|
including nonmonetary compensation, the value of which is
|
|
determined by the governing body of the subdivision]. The term does |
|
not include workers' compensation benefits received by a member |
|
under Section 504.011, Labor Code. |
|
(17) "Subdivision" means a political subdivision of |
|
the state that is not eligible to participate in any other statewide |
|
retirement system or that is not currently participating in a |
|
retirement system established by the legislature. The term |
|
includes the Texas Association of Counties, the retirement system |
|
[Texas County and District Retirement System], and a city-county |
|
hospital jointly managed under Subchapter B, Chapter 265, Health |
|
and Safety Code. The term does not include a branch, division, |
|
department, employee classification group, or other separately |
|
identified component of a political subdivision. |
|
SECTION 2. Section 841.006, Government Code, is amended to |
|
read as follows: |
|
Sec. 841.006. EXEMPTION FROM EXECUTION. (a) 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) Notwithstanding Subsection (a), the board of trustees |
|
by rule may authorize the retirement system, in accordance with a |
|
retiree's voluntary election, to: |
|
(1) deduct qualified health insurance premiums from |
|
the retirement annuity otherwise distributable to a retiree who is |
|
an eligible public safety officer or a retiree who meets any |
|
expanded eligibility provision for a similar tax exemption under |
|
subsequent federal legislation; and |
|
(2) pay the deducted amount directly to the health |
|
plan provider, subject to the requirements of Section 402(l), |
|
Internal Revenue Code of 1986, or other applicable federal law, and |
|
the rules adopted by the board. |
|
SECTION 3. Subchapter A, Chapter 841, Government Code, is |
|
amended by adding Section 841.0091 to read as follows: |
|
Sec. 841.0091. DIVISION OF BENEFITS ON DIVORCE OF MEMBER. |
|
(a) On receipt of a qualified domestic relations order incident to |
|
a divorce that awards a portion of a member's accrued benefit to a |
|
former spouse of the member and that strictly follows the terms and |
|
format of the model qualified domestic relations order, as well as |
|
any other requirements, adopted by the board of trustees for this |
|
purpose, the retirement system shall divide the accrued benefit |
|
into two separate benefits that, in combination at the time of |
|
division, are actuarially equivalent to the undivided accrued |
|
benefit. |
|
(b) Following a division described by Subsection (a), the |
|
portion of the accrued benefit awarded the alternate payee is |
|
considered the alternate payee's sole and separate property in |
|
which the member has no interest. The board of trustees by rule |
|
shall define and specify the rights and responsibilities of the |
|
alternate payee and the terms and features of the benefit awarded |
|
the alternate payee under the order, but in no event may the |
|
alternate payee vest in the accrued benefit before the member vests |
|
or attain greater rights than are attained by the member or the |
|
member's beneficiary. |
|
(c) Notwithstanding Section 804.101, the board of trustees |
|
by rule may prescribe terms on which the interest awarded the |
|
alternate payee under a qualified domestic relations order |
|
described by this section may be transferred at the alternate |
|
payee's death. |
|
(d) The board of trustees has sole authority and discretion |
|
to: |
|
(1) specify the terms and format that are required for |
|
a qualified domestic relations order to be acceptable for purposes |
|
of Subsection (a); |
|
(2) require strict compliance for qualification; |
|
(3) specify the dates on which a distribution to an |
|
alternate payee may or must begin; and |
|
(4) establish rules for the administration of this |
|
section. |
|
(e) This section applies to all domestic relations orders |
|
described by this section that the retirement system first |
|
determines to be qualified on or after September 1, 2009, and to |
|
those domestic relations orders determined to be qualified before |
|
September 1, 2009, that the system further determines can be |
|
construed to allow a division described by this section without |
|
harm or injury to the member's interest awarded under the original |
|
qualified order. The actuarial equivalent value of the accrued |
|
benefit payable to an alternate payee may not be greater than the |
|
actuarial equivalent value of the accrued benefit as if there had |
|
been no division and the accrued benefit had been payable to the |
|
member in the form of an annuity. |
|
SECTION 4. Section 842.108, Government Code, is amended to |
|
read as follows: |
|
Sec. 842.108. WITHDRAWAL OF ACCUMULATED CONTRIBUTIONS. |
|
(b) A member who has separated from employment with a |
|
participating subdivision may submit an application to withdraw the |
|
member's accumulated contributions attributable to service with |
|
that subdivision. A withdrawal cancels the person's [credited
|
|
service and] service credit attributable to service with that |
|
subdivision on the date the retirement system makes payment of any |
|
portion of the member's accumulated contributions. [Credited
|
|
service that has been canceled may not be used to determine
|
|
eligibility for a later retirement unless it is reestablished under
|
|
Section 803.203, 843.003, or 843.0031.] |
|
(c) Except for a [terminated] membership terminated under |
|
prior law or in accordance with Section 842.109(b) [described by
|
|
Subsection (a)], interest is computed on the balance in the |
|
member's individual account in the employees saving fund on January |
|
1 of the year of withdrawal through the month before the month in |
|
which the withdrawal occurs [for a person described by Subsection
|
|
(b)]. |
|
(d) If a person eligible to receive a withdrawal or another |
|
non-periodic distribution [under this section or Section 844.401] |
|
elects to have all or a portion of the distribution [accumulated
|
|
contributions] paid directly to an eligible retirement plan and |
|
specifies the plan to which the distribution is [contributions are] |
|
to be paid on forms approved by the board of trustees, the |
|
retirement system shall make the payment in the form of a direct |
|
trustee-to-trustee transfer but is under no obligation to determine |
|
whether the other plan in fact is an eligible retirement plan for |
|
that purpose. |
|
(e) Notwithstanding Subsection (d), the board of trustees |
|
shall adopt rules to administer this section as necessary to |
|
maintain the retirement system as a qualified plan under Section |
|
401(a) of the Internal Revenue Code of 1986. The rules may include |
|
the adoption of definitions and limitations relating to |
|
distributions, eligible recipients, and eligible retirement plans. |
|
SECTION 5. The heading to Section 842.110, Government Code, |
|
is amended to read as follows: |
|
Sec. 842.110. RESUMPTION OF SERVICE AFTER WITHDRAWAL OR |
|
RETIREMENT [BY RETIREE]. |
|
SECTION 6. Sections 842.110(a) and (b), Government Code, |
|
are amended to read as follows: |
|
(a) Except as provided by Subsection (b), a person who has |
|
withdrawn the person's accumulated contributions or who has retired |
|
from a participating subdivision with a service retirement annuity |
|
based on a bona fide termination of employment and with a break in |
|
service of not less than one calendar month resumes membership in |
|
the retirement system without repayment of the amount distributed |
|
or cancellation [suspension] of the person's annuity if the person |
|
becomes an employee of any participating subdivision. |
|
(b) A person who resumes employment with the same |
|
subdivision from which the person was previously employed and does |
|
not meet the requirements of Subsection (a) is considered not to |
|
have been eligible for a withdrawal and not to have retired with |
|
respect to that subdivision. The person's membership will be |
|
restored, the person's service retirement annuity will be canceled |
|
[discontinued, the person's membership will be restored], and the |
|
person must return any amounts distributed and payments |
|
received. Appropriate adjustments will be made for any amounts not |
|
returned. |
|
SECTION 7. Section 843.001, Government Code, is amended to |
|
read as follows: |
|
Sec. 843.001. TYPES OF CREDITABLE SERVICE. The types of |
|
service creditable as credited service in the retirement system are |
|
prior service, current service, and optional service. A member may |
|
not be credited in this system with more than one month of credited |
|
service for a specific calendar month, regardless of the number of |
|
employers of the member, the positions held, or the types of |
|
service. |
|
SECTION 8. The heading to Section 843.0031, Government |
|
Code, is amended to read as follows: |
|
Sec. 843.0031. [REESTABLISHMENT OF CREDITED SERVICE;] |
|
OPTION TO PAY LUMP-SUM AMOUNT. |
|
SECTION 9. Section 843.0031(b), Government Code, is amended |
|
to read as follows: |
|
(b) A member who has withdrawn accumulated contributions |
|
from the retirement system and who subsequently resumes employment |
|
with a subdivision may at any time before retirement pay to the |
|
system a lump sum in any amount that does not exceed the actuarial |
|
present value of the additional benefits that would have been |
|
attributable to the withdrawn contributions. Any amount paid |
|
under this subsection and interest accrued on the amount may not be |
|
considered in the computation of service credit [credits]. |
|
SECTION 10. Section 843.004, Government Code, is amended to |
|
read as follows: |
|
Sec. 843.004. COMPOSITION OF SERVICE CREDIT. Service |
|
credit consists of allocated prior service credit, current service |
|
credit, and multiple matching credit as authorized by a |
|
participating subdivision [and accumulated interest under this
|
|
subtitle]. |
|
SECTION 11. Section 843.201, Government Code, is amended to |
|
read as follows: |
|
Sec. 843.201. SERVICE CREDIT FOR CERTAIN PUBLIC |
|
EMPLOYMENT. [(a)] In accordance with rules adopted by the board |
|
of trustees, the governing body of a participating subdivision by |
|
order may authorize the establishment of credited service and prior |
|
service credit in the retirement system for service performed in a |
|
public hospital, utility, or other public facility or governmental |
|
function during a time the facility was operated or function was |
|
performed by a unit of government other than the subdivision and |
|
before the date that the public hospital, utility, or other public |
|
facility or governmental function was taken over by the subdivision |
|
[:
|
|
[(1)
the effective date of the subdivision's
|
|
participation in the retirement system, if the facility was
|
|
acquired or the governmental function was taken over by the
|
|
subdivision before that date; or
|
|
[(2)
the date of acquisition of the facility or the
|
|
date the governmental function was taken over, if the facility was
|
|
acquired or the governmental function was taken over after the
|
|
effective date of the subdivision's participation in the retirement
|
|
system]. |
|
[(b)
A member eligible to establish credited service and
|
|
prior service credit under this section after an order under
|
|
Subsection (a) is one who was employed by a public facility or by an
|
|
entity performing the governmental function:
|
|
[(1)
on the effective date of subdivision
|
|
participation, for service under Subsection (a)(1); or
|
|
[(2)
on the date of acquisition of the facility or the
|
|
date the governmental function was taken over, for service under
|
|
Subsection (a)(2).
|
|
[(c)
The allocated prior service credit percentage
|
|
allowable under this section may be limited by the order of the
|
|
governing body to zero or to any percentage that is a multiple of
|
|
five percent.] |
|
SECTION 12. Section 843.401, Government Code, is amended to |
|
read as follows: |
|
Sec. 843.401. CURRENT SERVICE GENERALLY. Current service |
|
is service performed by an employee of a participating subdivision |
|
while a member of the retirement system and credited as provided |
|
under this subtitle and in accordance with rules adopted by the |
|
board of trustees [section]. [The retirement system shall credit a
|
|
member with one month of current service for each month for which
|
|
the required contributions are made, reported, and certified by the
|
|
employing subdivision.] |
|
SECTION 13. Sections 843.502(a), (b), and (c), Government |
|
Code, are amended to read as follows: |
|
(a) In this section: |
|
(1) "Qualified [,"qualified] military service" means |
|
service in the uniformed services, as that term is defined in the |
|
Uniformed Services Employment and Reemployment Rights Act of 1994 |
|
(38 U.S.C. Section 4301 et seq.), that meets the requirements of |
|
that Act as it now exists or is amended as to the character of |
|
service performed. |
|
(2) "USERRA" means the Uniformed Services Employment |
|
and Reemployment Rights Act of 1994 (38 U.S.C. Section 4301 et |
|
seq.). |
|
(b) All members of the retirement system are entitled to be |
|
credited with service for qualified military service that is |
|
subject to USERRA [the Uniformed Services Employment and
|
|
Reemployment Rights Act of 1994 (38 U.S.C. Section 4301 et seq.)]. |
|
Notwithstanding any provision of this subtitle to the contrary, |
|
contributions, benefits, credited service, and service credit for |
|
qualified military service will be provided in accordance with |
|
USERRA and Section 414(u) of the Internal Revenue Code of |
|
1986. The board of trustees may adopt rules for the administration |
|
of this section, including rules that modify the terms of this |
|
subtitle for the purpose of compliance with the provisions of |
|
USERRA [that Act]. |
|
(c) An eligible member may establish [The governing body of
|
|
a participating subdivision also may, on the terms provided by
|
|
Section 844.704, authorize the establishment of] credited service |
|
in the retirement system for qualified active duty military service |
|
not creditable under Subsection (b) [as provided by this
|
|
subsection]. Qualified military service includes military service |
|
before becoming an employee of the subdivision. A member eligible |
|
to establish credited service under this subsection is one who is |
|
vested, based on credited service only in this system and without |
|
regard to service that may be established under this subsection, in |
|
a service retirement annuity that may begin at the age of 60 [has
|
|
credited service in the retirement system for at least the minimum
|
|
period required to receive a service retirement annuity at the age
|
|
of 60 from the subdivision from which credit under this subsection
|
|
is sought]. An eligible member may establish not more than five |
|
years of credited service under this subsection by filing an |
|
application with the retirement system. |
|
SECTION 14. Section 843.504, Government Code, is amended to |
|
read as follows: |
|
Sec. 843.504. NO DOUBLE CREDITING OF SERVICE. Except as |
|
provided by Chapter 803, only one month of credited service may |
|
[not] be established in the retirement system [under this
|
|
subchapter] for any calendar month for all [of] service that is |
|
creditable [credited] under [another section of] this subtitle [or
|
|
by another retirement system or program established or governed by
|
|
state law]. |
|
SECTION 15. Subchapter F, Chapter 843, Government Code, is |
|
amended by adding Section 843.505 to read as follows: |
|
Sec. 843.505. CREDITED SERVICE PREVIOUSLY ELIGIBLE FOR |
|
RECOGNITION UNDER PROPORTIONATE RETIREMENT PROGRAM. The board of |
|
trustees by rule may authorize the retirement system, on |
|
application by a member and for the sole purpose of determining |
|
eligibility for retirement from this system, to recognize service |
|
performed under another system participating under Chapter 803 that |
|
would have been recognized by this system under that chapter if the |
|
service had not been canceled by a withdrawal of contributions. |
|
SECTION 16. Section 844.003, Government Code, is amended by |
|
amending Subsections (c) and (e) and adding Subsection (f) to read |
|
as follows: |
|
(c) The effective date of a member's disability retirement |
|
is the date the member designates at the time the member applies for |
|
retirement under Section 844.301, but the date must be the last day |
|
of a calendar month and may not precede the later of the date the |
|
member became disabled or the date the member terminated |
|
[terminates] employment with all participating subdivisions. |
|
(e) Notwithstanding Subsections (a), (b), (b-1), [and] (c), |
|
and (f), the effective retirement date of a member may not precede |
|
the first anniversary of the effective date of participation of the |
|
subdivision. |
|
(f) The board of trustees by rule may authorize a retiring |
|
member to designate an effective service or disability retirement |
|
date that is not more than six months before the date the retirement |
|
system receives the retirement application. A rule adopted under |
|
this section may not suspend another requirement provided by this |
|
section for retirement. |
|
SECTION 17. Sections 844.006(d) and (f), Government Code, |
|
are amended to read as follows: |
|
(d) The [If a qualified domestic relations order, as that
|
|
term is defined by Section 804.001, so provides, the] benefit |
|
payable to a retiree who is receiving payments of a standard or |
|
optional retirement annuity [computed on the joint lives of the
|
|
retiree and the person designated as beneficiary by the retiree] |
|
may be divided by the retirement system into two annuities in |
|
accordance with the terms of a model qualified domestic relations |
|
order adopted by the board of trustees by rule [if:
|
|
[(1)
the person who was designated as beneficiary by
|
|
the retiree is the same person as the alternate payee;
|
|
[(2)
the order specifies that one of the two annuities
|
|
is payable over the remaining life of the retiree, with no payments
|
|
to be made under that annuity after the death of the retiree; and
|
|
[(3)
the order specifies that the annuity payable to
|
|
the alternate payee is payable over the remaining life of that
|
|
person, with no payments to be made under that annuity after the
|
|
death of the alternate payee named in the order]. |
|
(f) The board of trustees has sole authority and discretion |
|
to specify the terms and format that are required for a domestic |
|
relations order to be acceptable for purposes of this section, to |
|
require strict compliance for qualification, and to define the |
|
terms and features of the benefit awarded an alternate payee under |
|
the order. The board [retirement system] by rule may establish |
|
requirements for forms, documentation, and procedures necessary or |
|
desirable for the administration of this section. |
|
SECTION 18. Section 844.008, Government Code, is amended to |
|
read as follows: |
|
Sec. 844.008. LIMITATION ON PAYMENT OF BENEFITS. |
|
(a) Notwithstanding any other provision of this subtitle, the |
|
benefit payable to a retiree of the retirement system may not exceed |
|
the maximum benefit permitted under Section 415(b) of the Internal |
|
Revenue Code of 1986 [(26 U.S.C. Section 415(b))] as adjusted in |
|
accordance with Section 415(d) of that code. Any adjustments are |
|
applicable to the postretirement benefits of retirees as well as to |
|
the benefits of retiring members. For the purpose of determining |
|
whether the benefit of a retiring member or retiree exceeds the |
|
limitations provided in this section, all defined benefit plans of |
|
the employer and of entities required to be aggregated with the |
|
employer for purposes of Section 415 of the Internal Revenue Code of |
|
1986 are to be treated as one defined benefit plan [and all defined
|
|
contribution plans of the employer and of entities required to be
|
|
aggregated with the employer] for purposes of Section 415 of that |
|
code [are to be treated as one defined contribution plan]. The |
|
limitation year for determining maximum benefits is the calendar |
|
year. |
|
(b) An employer may not provide employee retirement [or
|
|
deferred] benefits under a defined benefit plan other than the |
|
retirement system to the extent that the provision of the benefits, |
|
when considered together with the benefits provided under the |
|
retirement system, would result in the failure of the retirement |
|
system to meet any of the limitation requirements of Section 415 of |
|
the Internal Revenue Code of 1986 [(26 U.S.C. Section 415)], and the |
|
benefits of the other plan will automatically be reduced, |
|
eliminated, or adjusted to the extent necessary to prevent the |
|
failure. |
|
SECTION 19. Section 844.101, Government Code, is amended to |
|
read as follows: |
|
Sec. 844.101. APPLICATION FOR SERVICE RETIREMENT |
|
ANNUITY. To receive a retirement annuity for service, an eligible |
|
member must apply by filing a valid application with the retirement |
|
system [on or before the member's effective retirement date
|
|
designated on the application]. |
|
SECTION 20. Section 844.301(a), Government Code, is amended |
|
to read as follows: |
|
(a) A member may apply for disability retirement by filing a |
|
valid application for retirement with the retirement system [on or
|
|
before the member's effective retirement date designated on the
|
|
application]. |
|
SECTION 21. Section 844.404, Government Code, is amended to |
|
read as follows: |
|
Sec. 844.404. PERSON CAUSING DEATH OF MEMBER OR ANNUITANT. |
|
(a) A benefit, including any optional group term life benefit, |
|
payable on the death of a member or annuitant may not be paid to a |
|
person convicted of causing that death but instead is payable to a |
|
person who would be entitled under this subtitle to the benefit had |
|
the convicted person predeceased the decedent. If no person would |
|
be entitled to the benefit, the benefit is payable to the decedent's |
|
estate. |
|
(b) The retirement system is not required to change the |
|
recipient of benefits under this section [pay a benefit under
|
|
Subsection (a)] unless it receives actual notice of the conviction |
|
of a beneficiary [the person who would have been entitled to the
|
|
benefits]. However, the retirement system may delay payment of a |
|
benefit payable on the death of a member or annuitant pending the |
|
results of a criminal investigation and of legal proceedings |
|
relating to the cause of death. |
|
(b-1) The retirement system is not liable for any benefit |
|
paid to a convicted person before the date the system receives |
|
actual notice of the conviction, and any payment made before that |
|
date is a complete discharge of the system's obligation with regard |
|
to that benefit payment. The convicted person holds all payments |
|
received in constructive trust for the rightful recipient. |
|
(c) If an annuity is in pay status, the [The] retirement |
|
system shall pay in a lump sum the actuarial equivalent of [convert] |
|
the remainder of any annuity or payments that would otherwise have |
|
been payable to [throughout the life of] the convicted person to the |
|
person entitled to the benefit under Subsection (a) or to the |
|
decedent's estate [an actuarially equivalent annuity payable to the
|
|
decedent's estate in 60 monthly annuity payments]. The time of the |
|
actuarial equivalence is the earlier of the time the retirement |
|
system receives the notice of the conviction under Subsection (b) |
|
or the time the retirement system begins the delay in payment of a |
|
benefit under Subsection (b). |
|
(d) For the purposes of this section, a person has been |
|
convicted of causing the death of a member or annuitant if the |
|
person: |
|
(1) has pleaded guilty or nolo contendere to or has |
|
been found guilty by a court of competent jurisdiction of an offense |
|
at the trial of which it is established that the person's |
|
intentional, knowing, or reckless act or omission resulted in the |
|
death of a person who was a member or annuitant, regardless of |
|
whether sentence is imposed or probated; and |
|
(2) has no appeal of the conviction pending and the |
|
time provided for appeal has expired. |
|
SECTION 22. Subchapter G, Chapter 844, Government Code, is |
|
amended by adding Section 844.601 to read as follows: |
|
Sec. 844.601. PLAN FUNDING BY NON-ADOPTING COUNTY. (a) |
|
This section applies only to a county that began participation in |
|
the retirement system before January 1, 1992, and has not adopted |
|
the provisions of Subchapter H. |
|
(b) Except as provided by Subsections (c) and (d), the |
|
county shall contribute to its account in the subdivision |
|
accumulation fund at the same rate of current service compensation |
|
as the employee contribution rate for the county. |
|
(c) If in any year the retirement system's actuary |
|
determines that the contributions of the county to the subdivision |
|
accumulation fund under Subsection (b) will not finance the |
|
county's obligations to the fund within the closed or open |
|
amortization period recommended by the actuary and adopted by the |
|
board of trustees for all subdivisions, the governing body of the |
|
county shall adopt an order to reduce the amortization period to the |
|
maximum period established by the board. The actuary shall |
|
determine appropriate remedies for review and adoption by the |
|
county. An order adopted under this subsection must first be |
|
approved by the board of trustees and must require: |
|
(1) a reduction in the employee contribution rate to a |
|
rate not less than four percent of current service compensation; |
|
(2) additional employer contributions under a |
|
supplemental contribution rate as provided by Subsection (e); |
|
(3) a reduction in the percentage for determining |
|
multiple matching credits in five percent increments for |
|
contributions made after the effective date of the reduction; or |
|
(4) any combination of these actions. |
|
(d) An order adopted under Subsection (c) takes effect on |
|
the first day of the calendar year that begins after the date the |
|
retirement system's actuary makes a determination described by |
|
Subsection (c). |
|
(e) A supplemental contribution rate under this section is |
|
the rate of contribution by the county to its account in the |
|
subdivision accumulation fund, in addition to the contributions |
|
required under Subsection (b), that the retirement system's actuary |
|
determines and certifies is required to amortize the obligations of |
|
the county to the subdivision accumulation fund within the |
|
established amortization period. |
|
(f) A county that has not adopted the provisions of |
|
Subchapter H may not adopt additional options and may not increase |
|
service credits or benefits otherwise allowable under this subtitle |
|
except for an increase in the rate of employee contributions or an |
|
increase in the percentage of multiple matching credits to a rate or |
|
percentage that does not exceed the rate or percentage in effect on |
|
January 1, 2010. |
|
SECTION 23. Section 844.701, Government Code, is amended to |
|
read as follows: |
|
Sec. 844.701. APPLICABILITY. Except for a county |
|
described by Section 844.601, this [(a) This] subchapter applies |
|
to each subdivision that participates [begins participation] in the |
|
retirement system [after December 31, 1991]. |
|
[(b)
The governing body of any subdivision participating
|
|
before January 1, 1992, by order or resolution may adopt the plan
|
|
provisions of this subchapter to be effective on January 1 of the
|
|
year following the year in which the order or resolution is received
|
|
by the system.
|
|
[(c)
Other provisions of this subtitle apply to the plan
|
|
provisions of this subchapter except as modified by this
|
|
subchapter.] |
|
SECTION 24. Section 844.704, Government Code, is amended to |
|
read as follows: |
|
Sec. 844.704. BENEFITS. (a) The [On the adoption of the
|
|
plan provisions of this subchapter, the] governing body of a [the] |
|
subdivision shall select a percentage for determining multiple |
|
matching credits [under Section 843.402.
The governing body shall
|
|
select a percentage] of zero or any percentage that is a multiple of |
|
five percent and that does not exceed 150 percent[, or it may select
|
|
the multiple matching percentage that the subdivision has in effect
|
|
on the date of its adoption of the plan provisions of this
|
|
subchapter]. The governing body may later increase the percentage |
|
used in determining multiple matching credits under Section 843.402 |
|
to any percentage that is a multiple of five percent and that does |
|
not exceed 150 percent, to take effect on the next January 1 after |
|
the date the increase is adopted[, except that the sum of the
|
|
percentage for current service credits under Section 843.402 and
|
|
the percentage for multiple matching credits may not exceed 250
|
|
percent]. In its order or resolution, the governing body may |
|
provide that the increased percentage will be used in determining |
|
multiple matching credits [under Section 843.402] only for employee |
|
contributions made after the effective date of the increase or that |
|
the increased percentage will be used both prospectively and |
|
retroactively in determining the multiple matching credits for all |
|
employee contributions not otherwise matched at a higher |
|
percentage. The governing body may thereafter reduce the |
|
percentage used in determining multiple matching credits [under
|
|
Section 843.402] for contributions made after the effective date of |
|
the reduction to zero or any percentage that is a multiple of five |
|
percent, to take effect on the next January 1 after the date of the |
|
reduction. |
|
(b) The [On the adoption of the plan provisions of this
|
|
subchapter, the] governing body shall select a percentage for |
|
determining allocated prior service credits of zero or any |
|
percentage [under Section 843.105.
The governing body shall
|
|
select a percentage] that is a multiple of five percent. [For a
|
|
subdivision that began participation before January 1, 1992, the
|
|
percentage cannot be less than the percentage in effect immediately
|
|
before the adoption of the plan.] The governing body may increase |
|
the percentage used in determining allocated prior service credits |
|
[under Section 843.105], to take effect on the next January 1 after |
|
the date of the increase. The percentage may not exceed one-half |
|
of the percentage that results from adding 200 percent to the lowest |
|
percentage for determining multiple matching credit currently |
|
applicable to any employee contribution with respect to the |
|
subdivision. |
|
(c) The subdivision shall provide current service credits |
|
in accordance with Section 843.402. |
|
(d) With the approval of the board of trustees, the [The] |
|
governing body of a subdivision may adopt any benefit increase or |
|
additional benefit, option, right, or feature as authorized under |
|
this subtitle [or authorize:
|
|
[(1)
an increase in retirement annuities under Section
|
|
844.209;
|
|
[(2)
an increase in retirement annuities under Section
|
|
844.208;
|
|
[(3)
the reestablishment of service credit previously
|
|
forfeited under Section 843.003;
|
|
[(4)
the establishment of credited service for
|
|
military service under Section 843.502(c);
|
|
[(5)
an optional service retirement eligibility
|
|
provision described by Section 844.1021; or
|
|
[(6)
the partial lump-sum distribution on service
|
|
retirement under Section 844.009]. |
|
(e) The governing body may not adopt an increase or addition |
|
to the subdivision's plan [the benefits of this section] if the |
|
adoption would result in the combined rates of the subdivision's |
|
normal contributions and prior service contributions for the first |
|
calendar year following the adoption exceeding the maximum rate |
|
prescribed by Section 844.703(c), unless a waiver under that |
|
section is in effect. |
|
(f) Other than an order or resolution of initial |
|
participation in the retirement system and except as otherwise |
|
authorized by the board of trustees, an [An] order or resolution |
|
under this section must be filed with the retirement system not |
|
later than December 15 of the year preceding the year in which it |
|
will take effect and may not take effect until the order or |
|
resolution is approved by the board of trustees as meeting the |
|
requirements of this section. An [After approval by the board, an] |
|
order or resolution adopted after participation begins may take |
|
effect only on January 1 of a year[, except that an order or
|
|
resolution for a subdivision that begins participation after
|
|
January 1, 1992, may take effect on the date the subdivision begins
|
|
participation]. |
|
SECTION 25. Section 845.107, Government Code, is amended to |
|
read as follows: |
|
Sec. 845.107. AUDITS AND REVIEWS [AUDIT]. (a) In this |
|
section: |
|
(1) "Audit" means an audit authorized or required by a |
|
statute of this state or of the United States or initiated or |
|
commissioned by the board of trustees. The term includes a |
|
financial audit, compliance audit, economy and efficiency audit, |
|
effectiveness audit, performance audit, risk audit, and |
|
investigation. |
|
(2) "Audit working paper" includes all information, |
|
documentary or otherwise, prepared or maintained in conducting an |
|
audit or preparing an audit report, including: |
|
(A) internal or external communications relating |
|
to the audit that are made or received in the course of the audit; |
|
and |
|
(B) drafts of an audit report or portions of |
|
those drafts. |
|
(b) Annually, or more often, the board of trustees shall |
|
have the accounts of the retirement system audited by a certified |
|
public accountant. |
|
(c) In addition to the financial audit required by |
|
Subsection (b), the board of trustees may initiate or commission an |
|
audit or investigation of activities, functions, or operations of |
|
the retirement system as the board determines appropriate. |
|
(d) Audit working papers prepared, maintained, or assembled |
|
by the retirement system or an agent of the system are not a record |
|
of the board of trustees for purposes of Section 845.112, and are |
|
confidential and excepted from the disclosure requirements of |
|
Chapter 552. |
|
(e) Unless made confidential under other law, an audit |
|
report, when accepted by the board of trustees in its final form, is |
|
a record of the board and public information. |
|
(f) A review or investigation initiated by the director on |
|
the director's own motion concerning internal processes and |
|
procedures of the retirement system for internal management |
|
purposes only is confidential and excepted from the disclosure |
|
requirements of Chapter 552. |
|
SECTION 26. Section 845.110, Government Code, is amended by |
|
adding Subsection (c) to read as follows: |
|
(c) On recommendation of the retirement system's actuary, |
|
the board of trustees by rule may adopt a mortality basis to be used |
|
in determining actuarial equivalents. |
|
SECTION 27. Section 845.114(a), Government Code, is amended |
|
to read as follows: |
|
(a) In this chapter [section], "participant" means a |
|
member, former member, retiree, annuitant, beneficiary, or |
|
alternate payee of the retirement system. |
|
SECTION 28. Section 845.1151, Government Code, is amended |
|
to read as follows: |
|
Sec. 845.1151. ELECTRONIC INFORMATION. [(a)
In this
|
|
section, "participant" has the meaning assigned by Section
|
|
845.114(a).
|
|
[(b)] The retirement system may provide confidential |
|
information electronically to a participant and to a subdivision |
|
and receive information electronically from those persons, |
|
including by use of an electronic signature or certification in a |
|
form acceptable to the retirement system. An unintentional |
|
disclosure to, or unauthorized access by, a third party related to |
|
the transmission or receipt of information under this section is |
|
not a violation by the retirement system of any law, including a |
|
rule relating to the protection of confidential information. |
|
SECTION 29. Section 845.305(b), Government Code, is amended |
|
to read as follows: |
|
(b) All assets of the pension trust of the retirement system |
|
shall be credited according to the purpose for which they are held |
|
to one of the following funds: |
|
(1) employees saving fund; |
|
(2) subdivision accumulation fund; |
|
(3) current service annuity reserve fund; |
|
(4) income [interest] fund; |
|
(5) endowment fund; or |
|
(6) expense fund. |
|
SECTION 30. The heading to Section 845.309, Government |
|
Code, is amended to read as follows: |
|
Sec. 845.309. INCOME [INTEREST] FUND. |
|
SECTION 31. Section 845.309(a), Government Code, is amended |
|
to read as follows: |
|
(a) The income [interest] fund shall account for the |
|
determination and allocation of net investment income or loss. |
|
SECTION 32. Section 845.314, Government Code, is amended to |
|
read as follows: |
|
Sec. 845.314. INTEREST RATES. Unless this subtitle |
|
expressly states another specified rate of interest and except as |
|
otherwise adopted by the board of trustees for specified periods |
|
under Section 845.315(c), for periods beginning after December 31, |
|
1996, the annual rate of interest is seven percent. |
|
SECTION 33. Section 845.315, Government Code, is amended by |
|
amending Subsection (a) and adding Subsection (c) to read as |
|
follows: |
|
(a) As of December 31 of each year, the board of trustees |
|
shall make the following allocations that in the aggregate equal |
|
the net investment income or loss for the year: |
|
(1) to the current service annuity reserve fund, |
|
interest as allowed under this subtitle on the mean amount in the |
|
current service annuity reserve fund during that year; |
|
(2) to the optional group term life [supplemental
|
|
death benefits] fund, interest as allowed under this subtitle on |
|
the mean amount in the optional group term life [supplemental death
|
|
benefits] fund during that year; |
|
(3) to the general reserves account of the endowment |
|
fund, a positive or negative amount determined by the board; |
|
(4) to the employees saving fund, current interest as |
|
allowed under this subtitle on the member account balances on |
|
January 1 of that year of all persons who are members on December 31 |
|
of that year; |
|
(5) to the accounts of subdivisions, other than |
|
subdivisions otherwise described by this section, an amount derived |
|
by applying a positive or negative rate, as determined by the board, |
|
to the January 1 balances of that year; and |
|
(6) to the accounts of subdivisions to which Section |
|
842.052 or 842.053 applies, positive or negative amounts as |
|
determined by the board. |
|
(c) At times the board of trustees considers appropriate |
|
during any year and before determining the positive or negative |
|
allocations to the endowment fund and to the subdivision accounts |
|
in the subdivision accumulation fund, the board shall consider all |
|
existing economic and financial circumstances and the probable |
|
income to and stability of the trust. If the board determines it |
|
appropriate under the circumstances, the board by order may adopt |
|
differing rates of interest to be credited to the funds of the |
|
retirement system and under Sections 842.108, 844.007, and 844.401. |
|
Rates adopted under this subsection supercede the rate provided |
|
under Section 845.314 for the periods specified by the board. |
|
SECTION 34. Sections 845.402(b) and (c), Government Code, |
|
are amended to read as follows: |
|
(b) After timely notice to the board of trustees, the [The] |
|
governing body of a participating subdivision may increase the rate |
|
of its member contributions effective with [on] the first pay |
|
period beginning in the following [day of any] calendar year. |
|
(c) After timely notice to the board of trustees, the [The] |
|
governing body of a participating subdivision may reduce the rate |
|
of its member contributions effective with [on] the first pay |
|
period beginning in the following [day of any] calendar year [if, at
|
|
least 90 days before the date of the reduction, the subdivision has
|
|
given written notice of the reduction to the board of trustees and
|
|
if the actuary determines that the reduction would not impair the
|
|
ability of the subdivision to fund all obligations against its
|
|
account in the subdivision accumulation fund before the 20th
|
|
anniversary of the subdivision's most recent actuarial valuation
|
|
date]. |
|
SECTION 35. Subchapter E, Chapter 845, Government Code, is |
|
amended by adding Section 845.405 to read as follows: |
|
Sec. 845.405. ALTERNATIVE PERIODS FOR ADMINISTRATIVE |
|
COMPLIANCE. (a) Notwithstanding any other provision of this |
|
subtitle, the board of trustees may authorize a subdivision to |
|
remit to the retirement system contributions, deposits, and other |
|
payments on the basis of a period that is less than a month, |
|
including weekly, bi-weekly, or another semi-monthly period. A |
|
subdivision authorized to remit amounts more frequently than |
|
monthly shall make reports and filings and perform other actions |
|
accordingly, and the retirement system shall credit payments |
|
accordingly. |
|
(b) The board of trustees may make an authorization under |
|
Subsection (a) by rule applicable to all subdivisions similarly |
|
situated or by order applicable to designated subdivisions. A rule |
|
adopted under this subsection is amendable or revocable in the |
|
manner provided for adoption, amendment, or repeal of rules |
|
generally. An order adopted under this subsection is revocable |
|
wholly or partly by subsequent board order. |
|
(c) If the board of trustees adopts a rule or order under |
|
Subsection (b), the board shall also adopt rules, applicable to a |
|
subdivision electing or designated to take actions described by |
|
this section more frequently than monthly, to alter the periods |
|
required for submission of payments and reports, including the |
|
period when a late penalty begins to accrue or is deducted from a |
|
subdivision's account in the subdivision accumulation fund, in a |
|
manner consistent with the periods provided by this subtitle. |
|
(d) A participant may not receive less credited service, |
|
service credit, or benefits due to an authorization under this |
|
section than the participant would have received on a monthly |
|
basis. |
|
SECTION 36. Section 845.407(a), Government Code, is amended |
|
to read as follows: |
|
(a) Except as provided by Subsections (c), (d), and (e), a |
|
participating subdivision that fails to provide the information |
|
required by Section 845.403 or to pay all contributions required by |
|
this subchapter to be made and remitted to the retirement system not |
|
later than the 15th day of the month in which they become due shall |
|
pay a penalty under this section. The penalty for a past-due |
|
monthly remission is equal to interest on the past-due amounts for |
|
each day past due at a nominal interest rate of 12 percent, plus a |
|
$500 administrative fee. If the penalty is not paid within three |
|
months after the date notice of the penalty has been sent to the |
|
subdivision, the retirement system shall deduct the penalty from |
|
the subdivision's account in the subdivision accumulation fund. |
|
The interest portion of the penalty shall be deposited by the |
|
retirement system in the distributable income account of the income |
|
[interest] fund. The administrative fee portion of the penalty |
|
shall be deposited by the retirement system in the expense fund. |
|
SECTION 37. Sections 845.503(a) and (b), Government Code, |
|
are amended to read as follows: |
|
(a) The retirement system may reduce future payments of |
|
benefits based on the account of a member, a retiree, or other |
|
former member to recoup an amount overpaid or otherwise paid in |
|
error to or on the behalf of a participant [the member, former
|
|
member, retiree, annuitant, or beneficiary]. If no future |
|
payments are due, the retirement system may recover the overpayment |
|
in any manner that is permitted for the collection of any other |
|
debt. |
|
(b) The retirement system may not recover from a participant |
|
[member, former member, retiree, annuitant, or beneficiary] any |
|
overpayment made more than three years before the date the |
|
overpayment is discovered. This subsection does not apply to an |
|
overpayment a reasonable person should know the person is not |
|
entitled to receive. |
|
SECTION 38. The following laws are repealed: |
|
(1) Section 843.0031(a), Government Code; |
|
(2) Sections 843.502(d) and (e), Government Code; |
|
(3) Sections 844.605, 844.606, 844.607, 844.608, and |
|
844.609, Government Code; |
|
(4) Section 845.115(f), Government Code; and |
|
(5) Section 95, Chapter 873, Acts of the 80th |
|
Legislature, Regular Session, 2007. |
|
SECTION 39. This Act takes effect January 1, 2010, except |
|
that Section 841.0091, Government Code, as added by this Act, and |
|
Sections 845.314 and 845.315, Government Code, as amended by this |
|
Act, take effect September 1, 2009. |