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