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SECTION 1. Section 1,
Article 6243e.2(1), Revised Statutes, is amended by adding a new subsection
(16-a) to read as follows:
(16-a) "Unused leave
pay" means the accrued value of unused leave time due to the employee at separation from service.
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SECTION 1. Section 1,
Article 6243e.2(1), Revised Statutes, is amended by adding Subdivision
(16-a) to read as follows:
(16-a) "Unused leave
pay" means the accrued value of unused leave time payable to an employee after separation from service in accordance with applicable law and agreements.
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SECTION 2. Section 5,
Article 6243e.2(1), Revised Statutes, is amended by amending subsection (b)
and adding a new subsection (c-1) to read as follows:
(b) A member may elect to
participate in the DROP by complying with the election process established
by the board. The member's election may be made at any time beginning on
the date the member has completed 20 years of participation in the fund and
is otherwise eligible for a service pension under Section 4 of this
article. The election becomes effective on the first day of the month
following the month in which the board approves the member's DROP election.
Beginning on the effective date of the member's DROP election, amounts
equal to the deductions made from the member's salary under Sections
13(c) and 13(e-1) of this
article shall be credited to the member's DROP account. A member may not
participate in the DROP for more than 10 years. If a DROP participant
remains in active service after the 10th anniversary of the effective date
of the member's DROP election, subsequent deductions from the member's
salary under Section 13(c) of this article may not be credited to the
member's DROP account and may not otherwise increase any benefit payable
from the fund for the member's service.
(c-1) Notwithstanding anything to the contrary in
Subsections (b) and (c) of this section, upon separation from service, an
amount equal to a DROP participant's entire unused leave pay
received as a contribution from the municipality by the fund shall be credited to the DROP
participant's DROP account in accordance with Section 13(c) of this
article.
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SECTION 2. Section 5,
Article 6243e.2(1), Revised Statutes, is amended by amending Subsection (b)
and adding Subsection (b-1) to read as follows:
(b) A member may elect to
participate in the DROP by complying with the election process established
by the board. The member's election may be made at any time beginning on
the date the member has completed 20 years of participation in the fund and
is otherwise eligible for a service pension under Section 4 of this
article. The election becomes effective on the first day of the month following
the month in which the board approves the member's DROP election.
Beginning on the effective date of the member's DROP election, amounts
equal to the deductions made from the member's salary under Section 13(c) or 13(e-1) of this article, as applicable, shall be credited to
the member's DROP account. A member may not participate in the DROP for
more than 10 years. If a DROP participant remains in active service after
the 10th anniversary of the effective date of the member's DROP election,
subsequent deductions from the member's salary under Section 13(c) of this
article, except for unused leave pay,
may not be credited to the member's DROP account and may not otherwise
increase any benefit payable from the fund for the member's service.
(b-1) For an employee who
is a DROP participant and in accordance with Section 13(c) of this article,
the fund shall credit to the
employee's DROP account the amount of
unused leave pay that is due to the employee and received as a
contribution to the fund from the municipality.
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SECTION 3. Section 13,
Article 6243e.2(1), Revised Statutes, is amended by amending subsections
(c) and (d) and adding a new subsection (e-1) to read as follows:
(c) Each member in active
service shall make contributions to the fund in an amount equal to 9
[8.35] percent of the member's salary at the time of the
contribution[, and as of July 1, 2004, in an amount equal to nine
percent of the member's salary at the time of the contribution]. In
addition, each DROP participant, as identified by the fund to the
municipality for purposes of this section, shall make contributions to the
fund in an amount equal to 100% of the DROP participant's unused leave pay,
and the unused leave pay amounts
contributed as to DROP participants shall be credited to the DROP accounts
of such DROP participants.
The governing body of the
municipality shall deduct the member's
contributions [from the member's salary] and shall forward the
contributions to the fund as soon as practicable.
(d) The municipality shall
make contributions to the fund once every two weeks in an amount equal to
the product of the contribution rate certified by the board and the
aggregate salaries paid to members of the fund during the period for which
the contribution is made. The board shall certify the municipality's
contribution rate for each year or portion of a year based on the results
of actuarial valuations made at least every three years. The municipality's
contribution rate shall be composed of the normal cost plus the level percentage
of salary payment required to amortize the unfunded actuarial liability
over a constant period of 30 years computed on the basis of an acceptable
actuarial reserve funding method approved by the board. Notwithstanding any
other provision of this article, the contributions by the municipality,
when added to any contributions with respect to a qualified governmental
excess benefit arrangement maintained in accordance with Section 14(c) of
this article, may not be less than twice the amount paid into the fund by
contributions of the members, without
regard to the member contributions of unused leave pay.
(e-1) Notwithstanding
anything to the contrary in Subsections (c) and (d) of this section, or in
section 3(d) of this article, as of the effective date of the Act adding
this Subsection, the following employee and employer contribution rates,
other than with regard to unused leave pay which shall be contributed in
accordance with Subsection (c), shall be placed in effect for the fund's
fiscal years 2016, 2017 and 2018 as indicated in the schedule below:
Fiscal YearEmployee (% of
salary)Employer (% of payroll)
201612%25.8%
201712%24.0%
201812%24.0%
If the fund's fiscal year 2016 begins after the effective date of
the Act adding this subsection, the employee and employer contribution
percentages for fiscal year 2016 shall only be applied as of the effective
date of the Act. This subsection expires July 1, 2018.
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SECTION 3. Section 13,
Article 6243e.2(1), Revised Statutes, is amended by amending Subsections
(c) and (d) and adding Subsections (e-1) and (e-2) to read as follows:
(c) Each member in active
service shall make contributions to the fund in an amount equal to nine
[8.35] percent of the member's salary at the time of the
contribution[, and as of July 1, 2004, in an amount equal to nine
percent of the member's salary at the time of the contribution]. In
addition to contributing the percentage of
salary required by this subsection, each DROP participant, as
identified by the fund to the municipality for purposes of this section,
shall contribute to the fund an amount equal to 100 percent of the DROP
participant's unused leave pay as it
becomes payable to the employee. The fund shall credit any unused leave
pay amount contributed by a DROP participant to the participant's DROP
account.
The governing body of the
municipality shall deduct each member's [the] contributions [from the
member's salary] and shall forward the contributions to the fund as
soon as practicable.
(d) The municipality shall
make contributions to the fund once every two weeks in an amount equal to
the product of the contribution rate certified by the board and the
aggregate salaries paid to members of the fund during the period for which
the contribution is made. The board shall certify the municipality's
contribution rate for each year or portion of a year based on the results
of actuarial valuations made at least every three years. The
municipality's contribution rate shall be composed of the normal cost plus
the level percentage of salary payment required to amortize the unfunded
actuarial liability over a constant period of 30 years computed on the
basis of an acceptable actuarial reserve funding method approved by the
board. Notwithstanding any other provision of this article, the
contributions by the municipality, when added to any contributions with
respect to a qualified governmental excess benefit arrangement maintained
in accordance with Section 14(c) of this article, may not be less than
twice the amount paid into the fund by contributions of the members, not including member contributions of
unused leave pay.
(e-1) Except as provided by Subsection (e-2) of this
section and notwithstanding contribution provisions under Subsection
(c) or (d) of this section or Section 3(d) of this article, and not
including any contributions of unused leave pay, the employee and employer
contribution rates that are in effect for the fund's fiscal years 2016,
2017, and 2018 are as follows:
Fiscal YearEmployee (% of
salary)Employer (% of payroll)
201612%25.8%
201712%24%
201812%24%
(e-2) If the effective date of the Act enacting Subsection (e-1)
of this section is on or before July 1, 2015, the employee and employer
contribution percentages under Subsection (e-1) for fiscal year 2016 apply
only to contributions made on or after the first day of that fiscal year.
If the effective date of the Act enacting Subsection (e-1) of this section
is later than July 1, 2015, the employee and employer contribution
percentages under that subsection for fiscal year 2016 apply only to
contributions made on or after the effective date of the Act. Subsection
(e-1) of this section and this subsection expire July 1, 2018.
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SECTION 4. This Act takes
effect immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for immediate
effect, this Act takes effect August 31,
2015.
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SECTION 4. This Act takes
effect immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If the Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1,
2015.
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