By: Turner of Harris	H.B. No. 2572

	A BILL TO BE ENTITLED
	AN ACT
	relating to the firefighters relief and retirement fund in certain
	municipalities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	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.
	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.
	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 Year Employee (% of salary) Employer (% of payroll)
	2016 12% 25.8%
	2017 12% 24.0%
	2018 12% 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.
	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.