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A BILL TO BE ENTITLED
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AN ACT
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relating to retirement and health insurance benefits of school |
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district peace officers under the Teacher Retirement System of |
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Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 821.001, Government Code, is amended by |
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adding Subdivision (11-a) to read as follows: |
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(11-a) "Peace officer" means a member of the |
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retirement system who has been commissioned by a public school |
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district as a law enforcement officer under Section 37.081, |
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Education Code. |
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SECTION 2. Section 824.202, Government Code, is amended by |
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adding Subsection (d-2) to read as follows: |
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(d-2) A member who is at least 55 years old and who has at |
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least 10 years of service credit as a commissioned peace officer for |
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a public school district is eligible to retire and receive a service |
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retirement annuity. |
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SECTION 3. Subchapter C, Chapter 824, Government Code, is |
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amended by adding Section 824.207 to read as follows: |
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Sec. 824.207. SERVICE RETIREMENT BENEFITS FOR CERTAIN PEACE |
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OFFICERS. (a) A member who has at least 20 years of service credit |
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as a peace officer is eligible to retire regardless of age and |
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receive a standard service retirement annuity in an amount and to be |
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funded as provided by this section. |
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(b) The standard service retirement annuity payable for at |
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least 20 years of service credit as a peace officer is an amount |
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computed on the basis of the member's average monthly compensation |
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for the 36 highest months of compensation times the sum of the |
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percentage factor used in the computation of a standard service |
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retirement annuity under Section 824.203(a) plus .5 percent. |
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(c) The standard combined service retirement annuity that |
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is payable under this section is based on retirement on or after the |
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attainment of the normal retirement age, which for purposes of this |
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section is the earlier of either the age of 50 or the age at which |
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the sum of the member's age and amount of service credit equals the |
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number 80. A peace officer who retires before attaining the normal |
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retirement age is entitled to an annuity that is actuarially |
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reduced from the annuity available at the normal retirement age to |
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the peace officer service credit annuity amount available at the |
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sum of the member's age and amount of service credit. The annuity |
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is payable from the peace officer supplemental retirement fund. |
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(d) Benefits for service as a peace officer become payable |
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from the retired reserve account established by Section 825.309 at |
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the normal retirement age under the computation provided by Section |
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824.203. Optional retirement annuities provided by Section 824.204 |
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are available to a member eligible to receive a service retirement |
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annuity under this section, but the same optional plan and designee |
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must be selected for the portion of the annuity payable from the |
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peace officer supplemental retirement fund and the portion payable |
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from the retired reserve account established by Section 825.309. |
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(e) The amount payable from the peace officer supplemental |
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retirement fund is reducible by the amount paid from the retired |
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reserve account established by Section 825.309 for service as a |
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peace officer. The total combined amount of an annuity under this |
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section may not be less than the authorized benefit under |
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Subsection (b) subtracted by any amount necessary because of |
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selection of an optional annuity, because of retirement before the |
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normal retirement age, or as provided by Subsection (f). |
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(f) The standard combined service retirement annuity |
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payable for at least 20 years of service credit as a peace officer |
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may not exceed 100 percent of the average compensation computed |
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under Subsection (b). |
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(g) For purposes of this section, service as a peace officer |
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is creditable as provided by rule of the board of trustees or on a |
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month-to-month basis, whichever is greater. |
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SECTION 4. Subchapter D, Chapter 824, Government Code, is |
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amended by adding Section 824.311 to read as follows: |
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Sec. 824.311. DISABILITY RETIREMENT BENEFITS FOR CERTAIN |
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PEACE OFFICERS. (a) An annuity payable for an occupational |
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disability resulting from a risk to which peace officers are |
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exposed because of the nature of peace officer duties is payable |
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under the same terms and conditions that apply to other |
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occupational disability retirement annuities under this subtitle, |
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except that the source and amount of the annuity are as provided by |
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this section. |
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(b) Except as provided by Subsection (c), an occupational |
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disability retirement annuity under this section is an amount, but |
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not more than 100 percent, computed on the basis of the officer's |
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average monthly compensation, times a percentage derived by |
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application of Section 824.207(b). |
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(c) A disability retirement annuity under this section is |
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not reducible because of age and may not be less than 50 percent of |
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the officer's average monthly compensation regardless of the amount |
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of service credited to the officer. |
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(d) The portions of the annuity under this section payable |
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from the peace officer supplemental retirement fund are the amount |
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remaining after deduction of any amount payable under Section |
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824.304, except the portion of an amount that exceeds the minimum |
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payments provided by Section 824.304(b) and that is made for |
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service other than as a peace officer and any amount by which an |
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annuity is increased under Subsection (e). |
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(e) If a retiring member or retiree under this section |
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presents evidence satisfactory to the retirement system that the |
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person's occupational disability makes the person incapable of |
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substantial gainful activity solely because of the disability and |
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is considered a total disability under federal social security law, |
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the retirement system shall increase the person's occupational |
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disability retirement annuity to 100 percent of the officer's |
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average monthly compensation. |
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(f) An annuity increase under Subsection (e) is not payable |
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before the first month following the month in which the |
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satisfactory evidence is received by the retirement system under |
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Subsection (e). |
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SECTION 5. Subchapter E, Chapter 824, Government Code, is |
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amended by adding Section 824.408 to read as follows: |
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Sec. 824.408. ANNUITY FOR SURVIVOR OF PEACE OFFICER. If a |
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member who has at least 20 years of service credit as a peace |
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officer dies, the amount of the death benefit annuity payable for |
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the member's service as a peace officer is an amount computed and |
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funded as provided by Section 824.207, including any applicable |
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reduction factors. |
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SECTION 6. Section 825.102, Government Code, is amended to |
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read as follows: |
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Sec. 825.102. RULEMAKING. Subject to the limitations of |
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this subtitle, the board of trustees may adopt rules for: |
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(1) eligibility for membership; |
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(2) the administration of the funds of the retirement |
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system; [and] |
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(3) the program of supplemental benefits for peace |
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officers; and |
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(4) the transaction of business of the board. |
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SECTION 7. Section 825.103, Government Code, is amended by |
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adding Subsection (b-1) to read as follows: |
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(b-1) The board of trustees may authorize the executive |
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director to acquire, hold, manage, purchase, sell, assign, trade, |
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transfer, and dispose of any security, evidence of debt, or other |
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investment in which assets of the peace officer supplemental |
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retirement fund may be invested. |
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SECTION 8. Section 825.208, Government Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) The board of trustees shall make payments from the peace |
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officer supplemental retirement fund for services rendered by the |
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actuary for that fund and approved by the board. |
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SECTION 9. Section 825.301, Government Code, is amended by |
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adding Subsection (a-4) to read as follows: |
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(a-4) The board of trustees shall hold securities purchased |
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with the assets described by Subsection (a) collectively for the |
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proportionate benefit of: |
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(1) all accounts that are listed in Section 825.306; |
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and |
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(2) the peace officer supplemental retirement fund. |
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SECTION 10. Section 825.305, Government Code, is amended to |
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read as follows: |
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Sec. 825.305. AVAILABLE CASH. The board of trustees may |
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keep on deposit with the comptroller available cash not exceeding |
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10 percent of the total assets of the retirement system, excluding |
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the assets of the peace officer supplemental retirement fund, to |
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pay annuity and other disbursements. |
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SECTION 11. Section 825.306, Government Code, is amended to |
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read as follows: |
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Sec. 825.306. CREDITING SYSTEM ASSETS. The assets of the |
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retirement system, except assets of the peace officer supplemental |
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retirement fund, shall be credited, according to the purpose for |
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which they are held, to one of the following accounts: |
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(1) member savings account; |
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(2) state contribution account; |
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(3) retired reserve account; |
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(4) interest account; |
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(5) expense account; or |
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(6) deferred retirement option account. |
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SECTION 12. Subchapter D, Chapter 825, Government Code, is |
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amended by adding Section 825.3122 to read as follows: |
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Sec. 825.3122. PEACE OFFICER SUPPLEMENTAL RETIREMENT FUND. |
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(a) The retirement system shall deposit in the peace officer |
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supplemental retirement fund state contributions and other |
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appropriations made by the legislature to the fund and proceeds |
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from investment of the fund. |
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(b) The retirement system may use money from the fund only |
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to pay supplemental retirement and death benefits to peace officers |
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as provided by this subtitle and to pay for the administration of |
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the fund. |
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(c) Money appropriated to pay benefits from the fund as |
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provided by this subtitle may not be diverted or used to pay any |
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other benefits. |
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SECTION 13. Section 825.402(a), Government Code, is amended |
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to read as follows: |
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(a) The rate of contributions for each member of the |
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retirement system is: |
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(1) five percent of the member's annual compensation |
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or $180, whichever is less, for service rendered after August 31, |
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1937, and before September 1, 1957; |
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(2) six percent of the first $8,400 of the member's |
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annual compensation for service rendered after August 31, 1957, and |
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before September 1, 1969; |
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(3) six percent of the member's annual compensation |
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for service rendered after August 31, 1969, and before the first day |
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of the 1977-78 school year; |
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(4) 6.65 percent of the member's annual compensation |
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for service rendered after the last day of the period described by |
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Subdivision (3) and before September 1, 1985; [and] |
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(5) 6.4 percent of the member's annual compensation |
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for service rendered after August 31, 1985, other than service |
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rendered as a peace officer and subject to Subsection (b); and |
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(6) seven percent of the member's annual compensation |
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for service rendered as a peace officer after August 31, 1985. |
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SECTION 14. Section 825.404, Government Code, is amended by |
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amending Subsections (a), (b), and (e) and adding Subsection (a-2) |
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to read as follows: |
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(a) During each fiscal year, the state shall contribute to |
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the retirement system: |
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(1) an amount equal to at least six and not more than |
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10 percent of the aggregate annual compensation of all members of |
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the retirement system during that fiscal year; |
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(2) an amount for the peace officer supplemental |
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retirement fund equal to 2.13 percent of the aggregate state |
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compensation of all peace officers for that year; and |
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(3) money necessary for the administration of the |
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peace officer supplemental retirement fund. |
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(a-2) The amount of the state contribution made under |
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Subsection (a)(1) [this section] may not be less than the amount |
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contributed by members during that fiscal year in accordance with |
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Section 825.402. |
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(b) Before November 2 of each even-numbered year, the board |
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of trustees shall certify to the comptroller of public accounts for |
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review and adoption: |
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(1) an estimate of the amount necessary to pay the |
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state's contributions to the retirement system for the following |
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biennium; and |
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(2) as a separate item, an estimate of the amount |
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required to administer the peace officer supplemental retirement |
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fund for the following biennium. |
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(e) All money appropriated by the state to the retirement |
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system shall be paid to the state contribution account in equal |
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monthly installments as provided by Section 403.093(c), Government |
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Code, except: |
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(1) money appropriated under Subsection (d), which |
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remains in the general revenue fund until expenses are approved |
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under Chapter 2103; and |
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(2) money for the payment of benefits from the peace |
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officer supplemental retirement fund. |
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SECTION 15. Subchapter F, Chapter 825, Government Code, is |
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amended by adding Section 825.521 to read as follows: |
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Sec. 825.521. CERTIFICATION OF NAMES OF PEACE OFFICERS. |
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Not later than the 12th day of the month following the month in |
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which a person begins or ceases employment as a peace officer, the |
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public school district that commissioned the officer shall certify |
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to the retirement system, in the manner prescribed by the system, |
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the name of the employee and such other information as the system |
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determines is necessary for the crediting of service and financing |
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of benefits under this subtitle. |
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SECTION 16. Subchapter A, Chapter 1575, Insurance Code, is |
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amended by adding Section 1575.009 to read as follows: |
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Sec. 1575.009. COVERAGE FOR RETIRED PEACE OFFICERS. (a) |
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The trustee shall implement for those retirees who qualify for a |
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benefit under Subtitle C, Title 8, Government Code, as a peace |
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officer, a program under this subtitle that provides health |
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benefits at least as comprehensive as the benefits provided by the |
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Employees Retirement System of Texas for basic coverage provided to |
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an annuitant eligible to participate under Section 1551.102. |
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(b) The trustee may require that a retiree eligible to |
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participate in the program implemented under Subsection (a) make an |
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additional contribution as determined by the trustee under Section |
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1575.212. |
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SECTION 17. (a) The change in law made by this Act applies |
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to a benefit payment made by the Teacher Retirement System of Texas |
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that becomes payable on or after the effective date of this Act. |
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(b) Not later than the 30th day after the effective date of |
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this Act, a school district shall provide the certified names of all |
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peace officers commissioned and employed by the district on the |
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effective date of this Act to the Teacher Retirement System of Texas |
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as required by Section 825.521, Government Code, as added by this |
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Act. |
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SECTION 18. (a) Except as provided by Subsection (b) of |
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this section, this Act takes effect September 1, 2009, and applies |
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beginning with the 2009-2010 school year. |
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(b) Section 1575.009, Insurance Code, as added by this Act, |
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takes effect September 1, 2010, and applies beginning with the |
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2010-2011 school year. |