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INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Section 1.01,
Article 6243a-1, Revised Statutes, is amended.
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SECTION 1. Same as introduced
version.
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SECTION 2. Section 2.01,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 2.01. DEFINITIONS. In
this article:
(1) "415
compensation" means a member's wages, salary, and other amounts
received for personal services rendered in the course of employment with
the city during a limitation year and permitted to be treated as
compensation for purposes of Section 415(c) of the code, including
differential wage payments described in Section 414(u)(12) of the code. The
term does not include amounts picked up under Section 4.03(i) of this
article.
(2) "Active
service" means any period that a member receives compensation as a
police officer or fire fighter from either department for services
rendered.
(3) [(2)] "Actuarial
equivalent" means a form of benefit differing in time, duration, or
manner of payment from a standard benefit payable under this article but
having the same value when computed using the assumptions set forth in this
article.
[(3) "Administrator"
means the person designated by the board to supervise the affairs of the
pension system.]
(4) "Alternate
payee" has the meaning given the term by Section 414(p) [414]
of the code or any successor provision.
(5) "Alternative
investment" means an investment in an asset other than a traditional
asset. The term includes an investment in private equity funds, private
real estate transactions, hedge funds, and infrastructure.
(6) [(5)]
"Annual additions" means the sum of the following amounts
credited to a member's account under any defined contribution plan
maintained by the city for the limitation year:
(A) city contributions;
(B) member contributions,
other than rollover contributions from a plan maintained by any employer
other than the city;
(C) forfeitures; and
(D) amounts allocated after
March 31, 1984, to an individual medical benefit account, as defined
in Section 415(l)(2) [415(1)(2)] of the code, that is part of
a pension or annuity plan maintained by the city.
[The term does not include
amounts described in Paragraph (D) of this subdivision for the purpose of
computing the percentage limitation described in Section 415(c)(1)(B) of
the code.] For any limitation year beginning before January 1, 1987,
only that portion of member contributions equal to the lesser of member
contributions in excess of six percent of 415 compensation or one-half of
member contributions to the combined pension plan or any qualified defined
contribution plan maintained by the city is treated as annual additions.
(7) [(6)]
"Annual benefit" means the aggregate benefit attributable to city
and member contributions payable annually under the combined pension
plan, or any plan maintained by the city, exclusive of any benefit
not required to be considered for purposes of applying the limitations of
Section 415 of the code to the combined pension plan, payable in the form
of a straight life annuity beginning at age 62 with no ancillary benefits.
Solely for purposes of computing the limitations under the combined pension
plan, benefits actually payable to a pensioner are adjusted to the
actuarial equivalent of a straight life annuity pursuant to Section 415(b)
[8.01] of the code [this article] even though no
member may actually receive a benefit in the form of a straight life annuity.
(8) [(7)]
"Article 6243a" means Chapter 4, Acts of the 43rd Legislature,
1st Called Session, 1933 (former Article 6243a, Vernon's Texas Civil
Statutes), pertaining to a pension system for police officers, fire
fighters, and fire alarm operators in certain cities.
(9) [(8)]
"Assignment pay" means monthly pay, in addition to salary,
granted to a Group B member and authorized by the city council for the
performance of certain enumerated duty assignments.
(10) [(9)]
"Base pay" means the maximum monthly civil service pay from time
to time established by the city for a person who holds the rank of
"police officer" in the city's police department or the rank of
"fire and rescue officer" in the city's fire department [a
police officer or fire fighter], exclusive of any other form of
compensation. The term does not include compensation paid by the city
to a person for prior periods of service or compensation that otherwise
constitutes back pay unless the compensation is eligible back pay. The
board may adopt rules and procedures necessary to include eligible back pay
as base pay for purposes of this definition, including rules regarding how
increases in benefits will be determined and administered.
(11) [(10)]
"Base pension" means the amount of retirement, death, or
disability benefits as determined [computed under this article]
at the earliest of the time a Group B member and, solely for the
purposes of Section 6.12 of this article, a Group A member:
(A) begins participation
in DROP;
(B) leaves or left active
service;
(C) [leaves active
service,] dies; [,] or
(D) becomes entitled
to a disability pension under the combined pension plan [disabled].
Solely for purposes of
this definition, when a member becomes entitled to a disability pension,
the base pension shall be determined as of the date on which the disability
pension begins.
(12) [(11)]
"Board" means the board of trustees created under Section 3.01
of this article for the purpose of administering the pension system.
(13) [(12)]
"Child" means a [an unmarried] person [under the
age of 19] whose [natural or adoptive] parent, as recognized
under the laws of this state, is a primary party.
(14) [(13)]
"City" means each municipality having a population of more than
1.18 million and located predominantly in a county that has a total area of
less than 1,000 square miles.
(15) "City
attorney" means the chief legal officer of a city.
(16) [(14)]
"City council" means the governing body of the city.
(17) "City
manager" means the city manager of a city or the city manager's
designee and includes, to the extent of any designation, an interim or
acting city manager, chief financial officer, budget director, or assistant
city manager. If a city does not have an individual serving in a position
otherwise described by this subdivision, "city manager" means the
mayor of that city.
(18) [(15)]
"City service incentive pay" means annual incentive pay,
adjusted by the city from time to time, in addition to the salary of a
member granted to the member under the authority of the city charter and
received by the member during active service.
(19) [(16)]
"Code" means the United States Internal Revenue Code of 1986,
as amended.
(20) [(17)]
"Combined pension plan" means any pension plan created pursuant
to this article.
(21) [(18)]
"Computation pay" shall be used in determining the amount of the
city's contribution under Section 4.02(d) of this article and a Group B
member's contribution under Section 4.03(d) of this article and in
determining the base pension [of any benefits] to be paid to a Group
B member or the benefits to be paid to the member's qualified
survivors and means the sum of the following:
(A) the biweekly [monthly]
rate of pay of a [Group B] member for the highest civil service rank
the person holds, from time to time, as a result of a competitive
examination; plus
(B) the [monthly rate of
pay of a Group B member as] educational incentive pay of a member,
computed on a biweekly basis; plus
(C) the longevity [monthly
rate of] pay of a [Group B] member [as longevity pay], as
authorized by the legislature, computed on a biweekly basis; plus
(D) the city service
incentive pay, computed on a biweekly [monthly] basis, of a [Group
B] member.
The term includes only
amounts actually paid in salary or payments made instead of salary to the
member and member contributions picked up by the city, and does not include
any imputed pay. Furthermore, any [Any] compensation received
by a [Group B] member, other than that noted in Paragraphs (A)-(D)
of this subdivision (for example, compensation for overtime work and the [monthly
rate of]
pay a member would receive
from the city in the form of assignment pay), will not be considered in
determining the computation pay of a [Group B] member. Any lump-sum
payments for compensatory time, unused sick leave, unused vacation time, or
city service incentive pay payable after a [Group B] member leaves
active service, dies [death], becomes disabled [disability],
or resigns [resignation], or after any other type of
termination may not be considered in determining the computation pay of any
[Group B] member. Computation pay for a [Group B] member for
any given period [month] is determined on the biweekly
[monthly] rates of pay due the [Group B] member for the
entire period [month]. Compensation
paid by the city that relates to prior periods of service or compensation
that otherwise constitutes back pay may only be included as computation pay
if the compensation is eligible back pay. The board may adopt rules
and procedures necessary to include eligible back pay as computation pay
for purposes of this definition, including rules regarding how increases in
benefits will be determined and administered. [If a Group B member
works less than the member's assigned schedule for any given month, the
computation pay for the Group B member shall be prorated for the portion of
the month that the Group B member worked.
[(19) "Educational
incentive pay" means incentive pay designed to reward completion of
certain hours of college credit, adjusted by the city from time to time,
that is paid to a member in addition to the member's salary.]
(22) [(20)]
"Department" means either the police department of the city, the
fire department of the city, or both the police and fire departments of the
city together.
(23) [(21)]
"Dependent parent" means a natural parent or parent who adopted a
primary party and who immediately before the death of a primary party
received over half of the parent's financial support from the primary
party.
(24) [(22)]
"Disability retirement" means any period that a pensioner
receives periodic disability compensation or a disability pension.
(25) "DROP"
means the deferred retirement option plan established in accordance with
Section 6.14 of this article.
(26) "Educational
incentive pay" means incentive pay designed to reward completion of
certain hours of college credit, adjusted by the city from time to time,
that is paid to a member in addition to the member's salary.
(27) "Eligible back
pay" means additional compensation paid by the city to a member or
pensioner:
(A) that constitutes back
pay to the member's or pensioner's prior period of service and is otherwise
considered taxable wages paid by the city to the member or pensioner for
federal income tax purposes; and
(B) for which the pension
system receives:
(i) an amount equal to
the aggregate member and city contributions that the pension system would
have collected with respect to the compensation for all time periods
relating to the back pay compensation; and
(ii) interest, calculated
using the pension system's actuarial rate of return assumptions in effect
for the periods relating to the back pay, compounded annually, on the
contribution amounts for the period from the date that the contributions
would have been received if the back pay compensation would have been paid during the
relevant periods of prior service through the date the amount relating to
the contributions for back pay is actually received by the pension system.
The pension system is not
obligated to collect the additional contributions or interest described in
Paragraph (B)(ii) of this subdivision from the member, pensioner, or city.
The pension system may not recognize back pay as eligible back pay until
the contributions and interest described in Paragraph (B) of this
subdivision have been received.
(28) "Executive
director" means the person designated by the board to supervise the
operation of the pension system.
(29) [(23)
"415 compensation" means a member's wages, salary, and other
amounts received for personal services rendered in the course of employment
with the city during a limitation year, but does not include:
[(A) contributions made
by the city to a plan of deferred compensation, or a simplified employee
pension plan, to the extent such contributions are excludable from the
member's gross income;
[(B) any distributions
from a plan of deferred compensation, or a simplified employee pension
plan, to the extent the distributions are excludable from the member's
gross income;
[(C) other amounts that
received special tax benefits, such as premiums for group term life
insurance, to the extent that the premiums are not includable in the gross
income of the member, or contributions made by the city, including
contributions toward the purchase of an annuity described by Section 403(b)
of the code, whether or not contributed pursuant to a salary reduction
agreement and whether or not the amounts are actually excludable from the gross
income of the member; and
[(D) for any limitation
year beginning after December 31, 1988, compensation in excess of $200,000,
adjusted in a manner permitted under Section 415(d) of the code.
[(24)]
"Fund" means all funds and property held to provide benefits
to [for the benefit of] all persons who are or who may become
entitled to any benefits under any plan within the pension system, together
with all income, profits, or other increments.
(30) [(25)]
"Group A member" means any police officer or fire fighter
described by Section 5.01(a)(1) of this article.
(31) [(26)]
"Group B member" means any police officer or fire fighter
described by Section 5.01(a)(2) of this article.
(32) [(27)]
"Health director" means any qualified physician designated from
time to time by the board.
(33) [(28)]
"Limitation year" means the plan year of the combined pension
plan and any defined benefit plan or defined contribution plan of the city
in which a member participates.
(34) [(29)]
"Longevity pay" means pay in addition to the salary of a member
granted under Section 141.032, Local Government Code, for each year of
active service completed by a member in either department.
(35) [(30)]
"Member" means both Group A and Group B members.
(36) [(31)]
"Member's account" means an account established and maintained
for a member with respect to the member's total interest in one or more
defined contribution plans under this article or maintained by the city
resulting in annual additions.
No
equivalent provision.
(37) [(32)]
"Old plan" means any pension plan created pursuant to Section 1
of Article 6243a.
(38) [(33)]
"Pensioner," "Group A pensioner," or "Group B
pensioner" means a former member of the pension system who is on
either a service or disability retirement.
(39) [(34)]
"Pension service" means the time, in years, and prorated for
fractional years, that a member has contributed to the fund under the terms
of the combined pension plan or any plan within the pension system,
reduced to reflect refunds that have been received and not fully repaid.
(40) [(35)]
"Pension system" means the fund and any plans created pursuant to
this article or Article 6243a and that are intended to be qualified
under Section 401(a) of the code.
(41) [(36)]
"Plan A" means any plan created pursuant to Section 11A of
Article 6243a.
(42) [(37)]
"Plan B" means any plan created pursuant to Section 11B of
Article 6243a.
(43) [(38)]
"Police officer" or "fire fighter" means, as
appropriate, a police officer, fire fighter, fire and rescue officer,
fire alarm operator, fire inspector, apprentice police officer, apprentice
fire fighter, or similar employee of either department as defined in the
classifications of the human resources [personnel] department
of the city.
(44) [(39)]
"Primary party," "Group B primary party," or
"Group A primary party" means a member[, former member,]
or pensioner.
(45) [(40)]
"Qualified actuary" means either:
(A) an individual who is a
Fellow of the Society of Actuaries, a Fellow of the Conference of Actuaries
in
Public Practice, or a member
of the American Academy of Actuaries; or
(B) a firm that employs one
or more persons who are Fellows of the Society of Actuaries, Fellows of the
Conference of Consulting Actuaries [in Public Practice], or
members of the American Academy of Actuaries and are providing services to
the pension system.
(46) [(41)]
"Qualified domestic relations order" has the meaning provided by
Section 414(p) [414] of the code.
(47) [(42)]
"Qualified survivor" means a person who is eligible to receive death
[survivor] benefits after the death of a primary party and includes only:
(A) a surviving spouse, if
the spouse was continuously married to the primary party from [both
at] the date when the primary party either voluntarily or involuntarily
left active service as a member through [and at] the date of
the primary party's death;
(B) all surviving,
unmarried[, legitimate, and legally adopted] children who are
either under 19 years of age or have a disability, as determined by
the board under Section 6.06(o-2) of this article, and who were:
(i) born or adopted
before the primary party [as a member] either voluntarily or
involuntarily left active service; or
(ii) [who were]
born after the primary party [a member] left active service
if the mother was pregnant with the child before the primary
party [member] left active service; and
(C) a surviving dependent
parent of a primary party if the primary party is not survived by a spouse
or child eligible for benefits.
(48) [(43)]
"Service retirement" means any period that a pensioner receives a
retirement pension but does not include any period of disability
retirement.
(49) [(44)]
"Spouse" means the person to whom [husband or wife of]
a primary party is legally married [recognized] under the
laws of this state or any other state.
(50) "Traditional
asset" includes stocks, bonds, and cash
[(45) "Total wages
and salaries" means all pay received by a member of any plan within
the pension system from the city, excluding any lump-sum payments for
unused sick time or unused vacation time accrued by any member and payable
as the result of the member's death, disability, resignation, or any other
reason for leaving active service].
(51) [(46)]
"Trustee" means a member of the board.
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SECTION 2. Section 2.01,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 2.01. DEFINITIONS. In
this article:
(1) Same as introduced
version.
(2) Same as
introduced version.
(3) [(2)] Same
as introduced version.
[(3)] Same as
introduced version.
(4) Same as introduced
version.
(5) Same as
introduced version.
(6) [(5)] Same
as introduced version.
(7) [(6)] Same
as introduced version.
(8) [(7)] Same
as introduced version.
(9) [(8)] Same
as introduced version.
(10) [(9)] Same
as introduced version.
(11) [(10)] Same
as introduced version.
(12) [(11)] Same
as introduced version.
(13) [(12)] Same
as introduced version.
(14) [(13)] Same
as introduced version.
(15) Same as
introduced version.
(16) [(14)] Same
as introduced version.
(17) Same as
introduced version.
(18) [(15)] Same
as introduced version.
(19) [(16)] Same
as introduced version.
(20) [(17)]
"Combined pension plan" means any pension plan created pursuant
to this article before September 1,
2017.
(21) [(18)]
"Computation pay" shall be used in determining the amount of the
city's contribution under Section 4.02(d) of this article and a Group B
member's contribution under Section 4.03(d) of this article and in
determining the base pension [of any benefits] to be paid to a Group
B member or the benefits to be paid to the member's qualified
survivors and means the sum of the following:
(A) the biweekly [monthly]
rate of pay of a [Group B] member for the highest civil service rank
the person holds, from time to time, as a result of a competitive
examination; plus
(B) the [monthly rate of
pay of a Group B member as] educational incentive pay of a member,
computed on a biweekly basis; plus
(C) the longevity [monthly
rate of] pay of a [Group B] member [as longevity pay], as
authorized by the legislature, computed on a biweekly basis; plus
(D) the city service
incentive pay, computed on a biweekly [monthly] basis, of a [Group
B] member.
The term includes only
amounts actually paid in salary or payments made instead of salary to the
member and member contributions picked up by the city, and does not include
any imputed pay. Furthermore, any [Any] compensation received
by a [Group B] member, other than that noted in Paragraphs (A)-(D)
of this subdivision (for example, compensation for overtime work, certification pay, and the [monthly
rate of] pay a member would receive from the city in the form of
assignment pay), will not be considered in determining the computation pay
of a [Group B] member. Any lump-sum payments for compensatory time,
unused sick leave, unused vacation time, or city service incentive pay
payable after a [Group B] member leaves active service, dies
[death], becomes disabled [disability], or resigns
[resignation], or after any other type of termination may not
be considered in determining the computation pay of any [Group B]
member. Computation pay for a [Group B] member for any given period
[month] is determined on the biweekly [monthly] rates
of pay due the [Group B] member for the entire period [month].
The term does not include
compensation paid by the city to a person for prior periods of service or
compensation that otherwise constitutes back pay unless the compensation is
eligible back pay. The board may adopt rules and procedures
necessary to include eligible back pay as computation pay for purposes of
this definition, including rules regarding how increases in benefits will
be determined and administered. [If a Group B member works less than
the member's assigned schedule for any given month, the computation pay for
the Group B member shall be prorated for the portion of the month that the
Group B member worked.
[(19)] Same as
introduced version.
(22) [(20)] Same
as introduced version.
(23) [(21)] Same
as introduced version.
(24) [(22)] Same
as introduced version.
(25) Same as
introduced version.
(26) Same as
introduced version.
(27) "Eligible back
pay," except as otherwise provided
by this definition, means additional compensation paid by the city
to a member or pensioner:
(A) that constitutes back
pay to the member's or pensioner's prior period of service and is otherwise
considered taxable wages paid by the city to the member or pensioner for
federal income tax purposes; and
(B) for which the pension
system receives:
(i) an amount equal to
the aggregate member and city contributions that the pension system would
have collected with respect to the compensation for all time periods
relating to the back pay compensation; and
(ii) interest, calculated
using the pension system's actuarial rate of return assumptions in effect
for the periods relating to the back pay, compounded annually, on the
contribution amounts for the period from the date that the contributions
would have been received if the back pay compensation had been paid during the relevant
periods of prior service through the date the amount relating to the
contributions for back pay is actually received by the pension system.
The term does not include any additional compensation paid by
the city to a member or pensioner wholly or partly or directly or
indirectly as the result of litigation instituted to recover back pay.
The pension system is not
obligated to collect the additional contributions or interest described in
Paragraph (B) of this subdivision from the member, pensioner, or city. The
pension system may not recognize back pay as eligible back pay until the
contributions and interest described in Paragraph (B) of this subdivision
have been received.
(28) Same as
introduced version.
(29) [(23)] Same
as introduced version.
[(24)] Same as
introduced version.
(30) [(25)]
"Group A member" means any police officer or fire fighter included in Group A membership under [described by] Section
5.01(a)(1) of this article.
(31) [(26)]
"Group B member" means any police officer or fire fighter included in Group B membership under [described by] Section
5.01(a)(2) of this article.
(32) [(27)] Same
as introduced version.
(33) [(28)] Same
as introduced version.
(34) [(29)] Same
as introduced version.
(35) [(30)] Same
as introduced version.
(36) [(31)] Same
as introduced version.
(37) "Nominations
committee" means the nominations committee established under Section
3.011 of this article.
(38) [(32)] Same
as introduced version.
(39) [(33)] Same
as introduced version.
(40) [(34)] Same
as introduced version.
(41) [(35)] Same
as introduced version.
(42) [(36)] Same
as introduced version.
(43) [(37)] Same
as introduced version.
(44) [(38)] Same
as introduced version.
(45) [(39)] Same
as introduced version.
(46) [(40)]
"Qualified actuary" means either:
(A) an individual who is a
Fellow of the Society of Actuaries, a Fellow of the Conference of Consulting Actuaries [in
Public Practice], or a member of the American Academy of
Actuaries; or
(B) a firm that employs one
or more persons who are Fellows of the Society of Actuaries, Fellows of the
Conference of Consulting Actuaries [in Public Practice], or
members of the American Academy of Actuaries and are providing services to
the pension system.
(47) [(41)] Same
as introduced version.
(48) [(42)] Same
as introduced version.
(49) [(43)] Same
as introduced version.
(50) [(44)] Same
as introduced version.
(51) Same as
introduced version.
[(45)] Same as
introduced version.
(52) [(46)] Same
as introduced version.
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SECTION 3. Sections 2.02(a)
and (b), Article 6243a-1, Revised Statutes, are amended.
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SECTION 3. Same as introduced
version.
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SECTION 4. Part 2, Article
6243a-1, Revised Statutes, is amended.
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SECTION 4. Same as introduced
version.
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SECTION 5. Section 3.01,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (b),
(d), (e), (f), (h), (i), (j), (n), and (o) and adding Subsections (b-1),
(b-2), (j-1), (j-2), (j-3), (j-4), (j-5), (j-6), (j-7), (p), (q), (r), and
(s) to read as follows:
No
equivalent provision.
(b) Subject to
Subsections (b-1) and (b-2), the [The] board consists of 12 [seven] trustees who
shall be selected and shall serve as follows:
(1) three trustees appointed by the mayor;
(2) two trustees appointed by the [The] city council;
(3) two trustees appointed jointly by the executive director and city manager;
(4) the chief financial officer of the city;
(5) one trustee selected in a manner determined by rule by the
board to represent the interests of the police officers who is:
(A) a pensioner who is a former police officer; or
(B) an active member who is a police officer;
(6) one trustee selected in a manner determined by rule by the
board to represent the interests of the fire department who is:
(A) a pensioner who is a former fire fighter; or
(B) an active member who is a fire fighter; and
(7) two trustees appointed by the board.
(b-1) To be appointed a
trustee under Subsection (b)(1), (2),
(3), or (7) of this section, a person:
(1) must have
demonstrated financial, accounting, business, investment, budgeting, real
estate, or actuarial expertise; and
(See Subsection (b-2) below.)
(2) may not be an active
member or pensioner.
(b-2) An elected official
of the city may not be appointed or
selected as a trustee of the board under Subsection (b) of this
section
No
equivalent provision.
No
equivalent provision.
[shall name from among its
members three council members who shall serve as trustees of the board].
[The council member trustees shall be named as soon as possible after
the first Monday in May of each odd-numbered year and shall serve for the
term of office to which they were elected as council members. If there is
a vacancy in any of the council member trustees' seats on the board, the
city council shall name another council member to serve out the remainder
of the unexpired term.
[(2) The police and fire
department members of the pension plans within the pension system shall
separately, by department and not by plan, elect from among their
respective memberships two active police officer and two active fire
fighter members. On their election, each of the trustees under this
subdivision shall execute a written affirmation of the person's undertaking
to faithfully perform duties to the pension system. The police and fire
department trustees shall serve terms of four years each, the terms being
staggered so that one term, but not both from the same department, shall
expire on June 1 of each odd-numbered year. If a vacancy occurs among the
police and fire department trustees, the vacancy shall be filled in
accordance with the provisions of Subsection (d) of this section. The
police and fire department trustees will continue to serve beyond the
expiration of their terms, if their successors have not been elected and
affirmed in writing their undertaking to faithfully perform their duties to
the pension system, until their successors are elected and have affirmed in
writing their undertaking to faithfully perform their duties to the pension
system.]
(d) Except as provided by Subsection (e) of this
section, [If] a vacancy
on the board shall be filled in the same manner as the original
appointment or designation, as
applicable
(See Subsection (e)
below.)
[occurs among the police
or fire department alternate trustees, for reasons other than the failure
to elect a successor alternate trustee or the occurrence of a vacancy among
the regular trustees of either department, the board shall appoint a new
alternate trustee representing the department from which the vacancy occurs
to serve as the alternate trustee for the remainder of the alternate
trustee's term]. [A candidate is not eligible for election to an
alternate trustee position and to a regular trustee position during the
same election.]
(e) The board by rule may determine the manner by which a
vacancy in a trustee position under Subsection (b)(5) or (6) of this
section is filled
No
equivalent provision.
No
equivalent provision. (But see Subsection (f) below.)
[If a vacancy occurs among
the police or fire department regular trustees, the alternate trustee
representing the department from which the vacancy occurs shall serve as
the regular trustee for the remainder of the unexpired regular trustee's
term].
[Thereafter, the board
shall appoint a new alternate trustee from the same department to serve for
a period ending on the earlier of the expiration of the regular trustee's
term or the original alternate trustee's term. If the original alternate
trustee's term has not expired after serving in place of the regular
trustee, then that person shall serve out the remainder of the unexpired
term. After a new regular trustee has been elected, the original alternate
trustee shall return to serve as an alternate trustee until the regular
trustee's term has expired. However, if the original alternate trustee,
while an alternate trustee, is elected to a full term as a regular trustee
before the expiration of the term as an alternate trustee, the term of the
new alternate trustee extends until the expiration of the original
alternate trustee's term.]
(f) Trustees hold office for staggered two-year
terms. Persons authorized to appoint more than one trustee under this
section may reappoint one trustee to the same position
[The
election of the trustees
representing the police and fire departments
shall be held under the supervision of the board, and the board
shall adopt such rules and regulations governing
the election procedure as it considers appropriate, as long as the rules
and regulations are consistent with
generally accepted principles of secret ballot and majority rule]. [The rules and
regulations adopted by the board shall
be recorded in the minutes of the board and made available to the members
of any pension plan within the pension system.]
(h) The executive
director [administrator], or in the executive director's
[administrator's] absence a member of the administrative staff
designated by the board, shall serve as the secretary of the board.
(i) The board shall serve
without separate compensation from the fund, but, if applicable, with entitlement to any appropriate
compensation from the city as if the board
members were performing their regular functions for the police or
fire department or for the city. The board shall meet not less than
once each month and may meet at any time on the call of its chairman.
(j) The board has full power
to make rules [and regulations] pertaining to the conduct of its
meetings and to the operation of the pension system as long as its rules
are not, subject to Subsections (j-1) and (j-2) of this section,
inconsistent with the terms of this article, any pension plan within the
pension system, or the laws of this state or the United States to the extent
applicable.
(j-1) The board may adopt
a rule that conflicts with this article:
(1) to ensure compliance
with the code, including Section 415 of the code, and other applicable
federal law; or
(2) subject to Subsection
(j-5) of this section, to achieve an amortization
period of the pension system that does not exceed 35 years.
(j-2) The board may only
adopt or change a rule relating to board
governance and conduct by a two-thirds vote of all members.
(j-3) The board may
correct any defect, supply any omission, and reconcile any inconsistency
that may appear in this article in a manner and to the extent that the
board believes would:
(1) be expedient for the
administration of the pension system;
(2) be for the greatest
benefit of all members, pensioners, and qualified survivors; and
(3) not adversely affect
the benefits of a member, pensioner, or qualified survivor.
(j-4) The board has full
discretion and authority to construe and interpret the combined pension
plan and to do all acts necessary to carry out the purpose of the combined
pension plan. A decision of the board is final and binding on all affected
parties.
No
equivalent provision.
(j-5) The board may not
adopt a rule under Subsection (j-1)(2) of this section unless the rule has
first been reviewed by the State Pension Review Board and the State Pension
Review Board finds:
(1) implementation of the
rule will have a positive impact on the
actuarial soundness of the pension system; and
(2) the rule complies with applicable federal law, including
the United States Constitution.
(j-6) The board shall
provide the State Pension Review Board with a copy of a proposed rule for
purposes of Subsections (j-1)(2) and
(j-5) of this section at least 90 days before the date the board
intends to implement the rule.
No
equivalent provision.
(j-7) At least twice each
year, the board shall have a meeting to receive public input regarding the
pension system and to inform the public about the health and performance of
the pension system.
(n) Seven [Four] trustees of the
board constitute a quorum at any [called] meeting[, except that a
trustee from the police department and a trustee from the fire department
must be present to conduct business].
(o) No action may be taken
by the board except at a meeting. Except as provided by Subsection (j-2) of this section or
Section 4.071 of this article, or as otherwise specifically provided by law,
[and] no action shall be taken during a board meeting without
the approval of a majority of the trustees of the board [present].
Only actions of the board
taken or approved of during a meeting are binding on the board, and no
other written or oral statement or representation made by any person is
binding on the board or the pension system.
(p) The board may file
suit on behalf of the pension system in a court of competent jurisdiction
regardless of the court's location. The board has sole authority to
litigate matters on behalf of the pension system. Notwithstanding Chapter
15, Civil Practice and Remedies Code, or any other law, an action against
the pension system or the board shall be brought in a court of competent
jurisdiction located in the city or county in which the pension system is
located.
(q) The board may
purchase from one or more insurers one or more insurance policies that
provide for the reimbursement of a trustee or employee of the pension
system for liability imposed as damages caused by, and for costs and
expenses incurred by the individual in defense of, an alleged act, error,
or omission committed by the individual in the individual's capacity as a
fiduciary or employee of the pension system. The board may not purchase an
insurance policy that provides for the reimbursement of a trustee or
employee of the system due to the trustee's or employee's dishonesty,
fraudulent breach of trust, lack of good faith, intentional fraud or
deception, or intentional failure to act prudently.
(r) The board shall adopt
a code or codes of ethics in accordance with Section 825.212, Government
Code. In adopting or amending a code or codes of ethics, the board may
consider comments on the policy from the city attorney of the city. The
board shall:
(1) review the code or
codes of ethics on an annual basis and amend the code or codes as the board
considers necessary;
(2) file a copy of the
code or codes of ethics adopted or amended in accordance with this
subsection with the State Pension Review Board; and
(3) provide a copy of the
code or codes of ethics adopted or amended in accordance with this
subsection to the city attorney.
(s) The board shall
develop an Internet website designed to give active members and pensioners
access to the information concerning the system and the
individual's participation
in the
system required by Section
802.106, Government Code, as well as information concerning the financial
health of the pension system.
|
SECTION 5. Section 3.01,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (a),
(b), (d), (e), (f), (h), (i), (j), (n), and (o) and adding Subsections
(b-1), (b-2), (b-3), (b-4), (d-1), (j-1), (j-2), (j-3), (j-4), (j-5),
(j-6), (j-7), (j-8), (j-9), (p), (q), (r), and (s) to read as follows:
(a) The pension system shall
be administered by the board. The board shall execute its fiduciary
duty to hold and administer the assets of the fund for the exclusive
benefit of members and their beneficiaries under Section 802.203,
Government Code, Section 67(f), Article XVI, Texas Constitution, and any
other applicable law, in a manner that ensures the sustainability of the
pension system for purposes of providing current and future benefits to
members and their beneficiaries.
(b) Subject to
Subsections (b-1) and (b-2), the [The] board consists of 11 [seven] trustees who
shall be selected and shall serve as follows:
(1) five trustees appointed by the mayor;
(2) three trustees appointed by the nominations
committee;
(3) one trustee appointed jointly by the city manager and the nominations committee;
(4) subject to Subsection (b-3) of this section, one trustee
who is a current or former police officer of the city nominated and elected
by members of the pension system under rules adopted by the board; and
(5) subject to Subsection (b-3) of this section, one trustee
who is a current or former fire fighter of the city nominated and elected
by members of the pension system under rules adopted by the board.
(b-1) To be appointed or elected a trustee under this
section, a person:
(1) must have
demonstrated financial, accounting, business, investment, budgeting, real
estate, or actuarial expertise; and
(2) may not be an elected
official of the city.
(b-2) To be appointed a
trustee under Subsection (b)(1), (2), or
(3) of this section a person may not be an active member or pensioner.
(See Subsection (b-1)(2)
above.)
(b-3) If the board
determines that it is not possible to nominate or elect a trustee under
Subsection (b)(4) or (5) of this section who meets the requirements of
Subsection (b-1) of this section, the board shall notify the nominations
committee and the nominations committee shall appoint a trustee who meets
the requirements of Subsection (b-1) of this section to represent the
interests of police officers or fire fighters, as appropriate, of the city
on the board. An appointment under this subsection may be made without
regard to whether the trustee is qualified under Subsection (b)(4) or (5),
as applicable, of this section.
(b-4) A trustee is not
required to reside in a particular city or county of this state.
[The city council shall
name from among its members three council members who shall serve as
trustees of the board. The council member trustees shall be named as soon
as possible after the first Monday in May of each odd-numbered year and
shall serve for the term of office to which they were elected as council
members. If there is a vacancy in any of the council member trustees'
seats on the board, the city council shall name another council member to
serve out the remainder of the unexpired term.
[(2) The police and fire
department members of the pension plans within the pension system shall
separately, by department and not by plan, elect from among their respective
memberships two active police officer and two active fire fighter members.
On their election, each of the trustees under this subdivision shall
execute a written affirmation of the person's undertaking to faithfully
perform duties to the pension system. The police and fire department
trustees shall serve terms of four years each, the terms being staggered so
that one term, but not both from the same department, shall expire on June
1 of each odd-numbered year. If a vacancy occurs among the police and fire
department trustees, the vacancy shall be filled in accordance with the
provisions of Subsection (d) of this section. The police and fire
department trustees will continue to serve beyond the expiration of their
terms, if their successors have not been elected and affirmed in writing
their undertaking to faithfully perform their duties to the pension system,
until their successors are elected and have affirmed in writing their
undertaking to faithfully perform their duties to the pension system.]
(d) A [If a] vacancy on the board in a trustee position under Subsection (b)(1),
(2), or (3) of this section shall be filled in the same manner as
the original appointment.
The board by rule shall determine the manner by which a
vacancy in a trustee position under Subsection (b)(4) or (5) of this
section is filled
[occurs among the police
or fire department alternate trustees, for reasons other than the failure
to elect a successor alternate trustee or the occurrence of a vacancy among
the regular trustees of either department, the board shall appoint a new
alternate trustee representing the department from which the vacancy occurs
to serve as the alternate trustee for the remainder of the alternate
trustee's term]. [A candidate is not eligible for election to an
alternate trustee position and to a regular trustee position during the
same election.]
(See Subsection (d) above.)
(d-1) The city manager
and the nominations committee shall jointly appoint a trustee to fill a
vacancy under Subsection (b)(3) of this section not later than the 60th day
after the date of the vacancy.
(e) The mayor shall determine whether all trustees
appointed under Subsection (b)(1) of this section hold office for staggered
two-year terms or staggered three-year terms. The nominations committee
shall determine whether all trustees appointed or elected under Subsection
(b)(2), (3), (4), or (5) of this section hold office for staggered two-year
terms or staggered three-year terms. An appointed trustee may not serve
for more than six consecutive years on the board
[If a vacancy occurs among
the police or fire department regular trustees, the alternate trustee
representing the department from which the vacancy occurs shall serve as
the regular trustee for the remainder of the unexpired regular trustee's
term]. [Thereafter, the board shall appoint a new alternate trustee
from the same department to serve for a period ending on the earlier of the
expiration of the regular trustee's term or the original alternate
trustee's term. If the original alternate trustee's term has not expired
after serving in place of the regular trustee, then that person shall serve
out the remainder of the unexpired term. After a new regular trustee has
been elected, the original alternate trustee shall return to serve as an
alternate trustee until the regular trustee's term has expired. However,
if the original alternate trustee, while an alternate trustee, is elected
to a full term as a regular trustee before the expiration of the term as an
alternate trustee, the term of the new alternate trustee extends until the
expiration of the original alternate trustee's term.]
No
equivalent provision. (But see Subsection (e) above.)
(f) The nomination and election of the trustees under
Subsection (b)(4) or (5) of this section [representing the
police and fire departments] shall
be held under the supervision of the board, and the board shall adopt such
rules [and regulations]
governing the election procedure as it considers appropriate, as long as
the rules [and regulations] are
consistent with generally accepted principles of secret ballot and majority
rule. The rules [and regulations] adopted by the board shall be recorded in the minutes of the
board and made available to the members of any pension plan within the
pension system.
(h) Same as introduced
version.
(i) The board shall serve
without separate compensation from the fund, but a trustee is entitled to reimbursement for travel expenses and,
if applicable, [with entitlement]
to any appropriate compensation from the city as if the trustee [board members] were performing the trustee's
[their] regular functions for the police or fire department or
for the city. The board shall meet not less than once each month and
may meet at any time on the call of its chairman.
(j) The board has full power
to make rules [and regulations] pertaining to the conduct of its
meetings and to the operation of the pension system as long as its rules
are not, subject to Subsections (j-1) and (j-2) of this section,
inconsistent with the terms of this article, any pension plan within the
pension system, or the laws of this state or the United States to the
extent applicable. A board meeting
may be held by telephone conference call or by videoconference call in
accordance with Sections 551.125 and 551.127, Government Code, except that
Section 551.125(b), Government Code, does not apply.
(j-1) The board may adopt
a rule that conflicts with this article:
(1) to ensure compliance
with the code, including Section 415 of the code, and other applicable
federal law;
(2) subject to
Subsections (j-5) through (j-8) of this
section, to amortize the unfunded actuarial accrued liability of the
pension system within a period that does not exceed 35 years, if the board determines the rule is
appropriate based on the evaluations required under Subsection (j-5) of
this section; or
(3) subject to Subsections (j-6) and (j-7) of this section and
notwithstanding any other law, to increase the benefits provided under this
article in any manner the board determines appropriate if the increase will
not cause the amortization period of the unfunded actuarial accrued
liability of the pension system to exceed 25 years, after taking into
account the impact of the increase.
(j-2) Except as provided by Subsection (j-1) of this section or
Section 4.02(b) of this article, a provision of any plan provided by the
pension system may only be amended if approved by the board. An amendment described by this subsection:
(1) may not cause the amortization period of the unfunded
actuarial accrued liability of the pension system to exceed 35 years, after
taking into account the impact of the amendment, as determined by the board
and reviewed by the State Pension Review Board; and
(2) is not required to be ratified by the legislature.
(j-3) Same as
introduced version.
(j-4) Same as
introduced version.
(j-5) Not later than
January 1, 2018, the board shall conduct an evaluation of:
(1) how benefits are
computed under this article to identify potential means of abusing the
computation of benefits to inflate pension benefits received by pensioners;
and
(2) the impact, including
the impact on the combined pension plan, of establishing one or more
alternative benefit plans, including a defined contribution plan or a
hybrid retirement plan that combines elements of both a defined benefit
plan and a defined contribution plan, for newly hired employees of the city
and for members who voluntarily elect to transfer to an alternative benefit
plan.
(j-6) The board may not
adopt a rule under Subsection (j-1)(2) or
(3) of this section unless the rule has first been reviewed by the
State Pension Review Board and the State Pension Review Board finds that
implementation of a rule under:
(1) Subsection (j-1)(2) of this section complies with the
amortization period prescribed by that subdivision and Subsection (j-8) of
this section; or
(2) Subsection (j-1)(3) of this section complies with the
amortization period prescribed by that subdivision.
(j-7) The board shall
provide the State Pension Review Board with a copy of a proposed rule for
purposes of Subsection (j-6) of
this section at least 90 days before the date the board intends to
implement the rule.
(j-8) The board may not
adopt a rule under Subsection (j-1)(2) of this section based on an
evaluation under Subsection (j-5)(2) of this section if the board
determines implementation of the rule would cause the amortization period
of the unfunded actuarial accrued liability of the combined pension plan or
any plan established under this article by the pension system to exceed 35
years, after taking into account implementation of the rule.
(j-9) Same as
introduced version.
(n) Six [Four] trustees of the
board constitute a quorum at any [called] meeting[, except that a
trustee from the police department and a trustee from the fire department
must be present to conduct business].
(o) No action may be taken
by the board except at a meeting. Except as provided by Section 4.071
of this article, or as otherwise specifically provided by law, [and]
no action
shall be taken during a board
meeting without the approval of a majority of the trustees of the board
[present].
Only actions of the board
taken or approved of during a meeting are binding on the board, and no
other written or oral statement or representation made by any person is
binding on the board or the pension system.
(p) Same as
introduced version.
(q) Substantially the
same as introduced version.
(r) Substantially the
same as introduced version.
(s) Substantially the
same as introduced version.
|
|
SECTION 6. Part 3, Article
6243a-1, Revised Statutes, is amended by adding Section 3.011 to read as
follows:
No
equivalent provision.
No
equivalent provision.
Sec. 3.011. TRUSTEE
TRAINING.
(a) A person who is
appointed to or selected for the board and qualifies for office as a
trustee shall complete a training program that complies with this section.
(b) The training program
must provide the person with information regarding:
(1) the law governing the
pension system's operations;
(2) the programs,
functions, rules, and budget of the pension system;
(3) the scope of and
limitations on the rulemaking authority of the board;
(4) the results of the
most recent formal audit of the pension system;
(5) the requirements of:
(A) laws relating to open
meetings, public information, administrative procedure, and disclosing
conflicts of interest; and
(B) other laws applicable
to a trustee in performing the trustee's duties, including the board's
fiduciary duties under Section 4.07(b)
of this article, Section 802.203, Government Code, and any other applicable
law;
(6) the code or codes of
ethics adopted under Section 3.01(r) of this article and any applicable
ethics policies adopted by the Texas Ethics Commission; and
(7) financial training
regarding the risks of investing in alternative investments.
(c) The executive
director shall create a training manual that includes the information
required by Subsection (b) of this section. The executive director shall distribute
a copy of the training manual annually to each trustee. On receipt of the
training manual, each trustee shall sign and submit to the executive
director a statement acknowledging receipt of the training manual.
|
SECTION 6. Part 3, Article
6243a-1, Revised Statutes, is amended by adding Sections 3.011, 3.012, and
3.013 to read as follows:
Sec. 3.011. NOMINATIONS
COMMITTEE. (a) Subject to Subsection (b) of this section, the nominations
committee consists of:
(1) the executive
director, who is a nonvoting member;
(2) the president, chair,
or other executive head of the following organizations or their successor
organizations, or that person's designee:
(A) the Dallas Black
Firefighters Association;
(B) the Black Police
Association of Greater Dallas;
(C) the National Latino
Law Enforcement Organization;
(D) the Dallas Fraternal
Order Police Lodge 588;
(E) the Dallas Police
Association;
(F) the Dallas Fire
Fighters Association, International Association of Fire Fighters Local No.
58; and
(G) the Dallas Hispanic
Firefighters Association, Inc.;
(3) a pensioner who is:
(A) a former police
officer of the city;
(B) appointed by the
president, chair, or other executive head of the Dallas Police Retired
Officers Association; and
(C) a member of the
Dallas Police Retired Officers Association; and
(4) a pensioner who is:
(A) a former fire fighter
of the city;
(B) jointly appointed by
the president, chair, or other executive head of the following
organizations:
(i) the Dallas Retired
Firefighters Association;
(ii) the Retired Black
Firefighters Association of Dallas; and
(iii) the Dallas Hispanic
Retired Fire Fighters Association; and
(C) a member of an
organization described by Paragraph (B) of this subdivision.
(b) If an organization
described by Subsection (a)(2) of this section elects not to participate on
the nominations committee, is prohibited from participating on the
nominations committee under Subsection (h) of this section, or ceases to
exist, the nominations committee members appointed under that subsection
consist only of representatives of the remaining organizations, if any.
(c) A vacancy on the
nominations committee in a position under Subsection (a)(3) or (4) of this
section shall be filled not later than the 30th day after the date of the
vacancy. If a vacancy is not filled within the time prescribed by this
subsection, the position on the nominations committee is eliminated.
(d) The executive
director shall serve as presiding officer of the nominations committee.
(e) The nominations
committee shall meet at the call of the presiding officer.
(f) The nominations
committee shall appoint trustees to the board in accordance with Sections
3.01(b)(2), (b)(3), and (b-3) of this article.
(g) Persons serving on
the nominations committee under Subsection (a)(2), (3), or (4) of this
section serve without compensation and may not be reimbursed for travel or
other expenses incurred while conducting the business of the nominations
committee. The executive director may not receive additional compensation
for service on the nominations committee.
(h) An organization
described by Subsection (a)(2), (3), or (4) of this section may not
participate on or make appointments to the nominations committee unless the
organization is in good standing with the secretary of state, if
applicable.
(i) Chapter 2110,
Government Code, does not apply to the nominations committee.
(j) The nominations
committee may establish policies and procedures governing its operations.
Sec. 3.012. REMOVAL OF
TRUSTEES. (a) In accordance with procedures adopted by board rule, a
trustee:
(1) appointed under
Section 3.01(b)(1) of this article may be removed by the mayor for cause;
(2) appointed or elected
under Section 3.01(b)(2), (4), or (5) of this article may be removed by the
nominations committee for cause; and
(3) appointed under
Section 3.01(b)(3) of this article may be removed jointly by the city
manager and the nominations committee for cause.
(b) It is a cause for
removal of a trustee from the board that the trustee:
(1) does not have at the
time of taking office the qualifications required by Section 3.01(b) or
(b-1)(1) of this article, subject to Subsection (b-3) of that section;
(2) does not maintain
during service on the board the qualifications required by Section 3.01(b)
or (b-1)(1) of this article, subject to Subsection (b-3) of that section;
(3) is ineligible for
membership under Section 3.01(b-1)(2) or (b-2) of this article; or
(4) is absent from more
than 40 percent of the meetings that the trustee is eligible to attend
during a calendar year without an excuse approved by a majority vote of the
board.
(c) The validity of an
action of the board is not affected by the fact that it is taken when a
cause for removal of a trustee exists.
(d) If the executive
director has knowledge that a potential cause for removal exists, the
executive director shall notify the chairman of the board of the potential
cause. The chairman shall then notify the appointing or nominating official
or body, as appropriate, that a potential cause for removal exists. If the
potential cause for removal involves the chairman, the executive director
shall notify the vice chairman or next highest ranking officer of the
board, who shall then notify the appointing or nominating official or body,
as appropriate, that a potential cause for removal exists.
Sec. 3.013. TRUSTEE
TRAINING.
(a) Same as
introduced version.
(b) The training program
must provide the person with information regarding:
(1) the law governing the
pension system's operations;
(2) the programs,
functions, rules, and budget of the pension system;
(3) the scope of and
limitations on the rulemaking authority of the board;
(4) the results of the
most recent formal audit of the pension system;
(5) the requirements of:
(A) laws relating to open
meetings, public information, administrative procedure, and disclosing
conflicts of interest; and
(B) other laws applicable
to a trustee in performing the trustee's duties, including the board's
fiduciary duties described under Section
3.01(a) of this article;
(6) the code or codes of
ethics adopted under Section 3.01(r) of this article and any applicable
ethics policies adopted by the Texas Ethics Commission; and
(7) financial training
regarding the risks of investing in alternative investments.
(c) Same as
introduced version.
|
|
SECTION 7. Section 3.02,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 3.02. PROFESSIONAL
CONSULTANTS. In addition to the authority of the board to employ the
services of certain consultants set forth in this article, the board has
the authority to employ the services of any professional consultant,
including investment
advisors and investment managers, whenever the services of the consultants
[consultant] are considered necessary or desirable and in the best
interests of the pension system.
A professional consultant
shall receive such compensation as may be determined by the board in
accordance with Section 4.01 of this article.
|
SECTION 7. Section 3.02,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 3.02. PROFESSIONAL
CONSULTANTS. In addition to the authority of the board to employ the
services of certain consultants set forth in this article, the board has
the authority to employ the services of any professional consultant recommended by the executive director,
including investment advisors and investment managers, whenever the
services of the consultants [consultant] are considered
necessary or desirable and in the best interests of the pension system, as determined by the board in consultation
with the executive director.
A professional consultant shall receive such compensation as may be
determined by the board in accordance with Section 4.01 of this article.
|
|
No
equivalent provision.
|
SECTION 8. Part 3, Article
6243a-1, Revised Statutes, is amended by adding Section 3.025 to read as
follows:
Sec. 3.025. CHIEF
INVESTMENT OFFICER. The executive director may hire a chief investment
officer, subject to confirmation by the board, to assist the pension system
regarding the investment of assets of the fund. Compensation for a chief
investment officer hired under this section shall be made in accordance
with Section 4.01 of this article.
|
|
SECTION 8. Section 3.03,
Article 6243a-1, Revised Statutes, is amended by amending Subsection (b)
and adding Subsection (b-1) to read as follows:
(b) Subject to Subsection
(b-1) of this section, the [The] city attorney or an assistant
city attorney may [shall] attend board [all]
meetings [of the board] and may advise the board on any
matter on which the pension system [board] requests a legal
opinion from the city attorney.
(b-1) The city attorney
or an assistant city attorney is not required to provide an opinion under
Subsection (b) of this section unless the opinion is requested by the city
council on behalf of the pension system. The city attorney or assistant
city attorney may decline to provide the opinion if the subject matter of
the request is too dependent on disputed facts to permit a generalized
opinion, as determined by the city attorney or assistant city attorney.
No
equivalent provision.
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SECTION 9. Section 3.03,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (b) and
(c) and adding Subsection (b-1) to read as follows:
(b) Same as introduced
version.
(b-1) Same as
introduced version.
(c) The board may retain
other attorneys to serve as legal advisors to [represent] the
board [or to give advice]. The executive director may hire a
chief legal officer, subject to confirmation by the board, or other
attorneys if necessary to carry out the business of the pension system.
Compensation for a chief legal officer or other attorneys hired
under this subsection shall be made in accordance with Section 4.01 of
this article.
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SECTION 9. Section 3.04,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 3.04. APPOINTMENT OF EXECUTIVE
DIRECTOR [ADMINISTRATOR]. (a) The board has the authority to
appoint an executive director [administrator] to carry out the business of the board and
to keep a record of the
proceedings of the board.
A person appointed
executive director under this section
must have relevant business experience in administering
similarly situated pension systems
[The administrator, in
carrying out the business of the board within the scope of the
administrator's responsibility, may not be considered a fiduciary with
respect to the pension system].
No
equivalent provision.
(b) Subject to the approval of the board and to Subsection
(b-1) of this section, the executive director [administrator]
may select any number of persons to assist the executive director in
carrying out the executive director's duties under this section, including hiring outside accountants.
(b-1) The executive
director may not select a person to assist the executive director under
Subsection (b) of this section that is an active, former, or retired police
officer or fire fighter of the city unless
the person retired due to a disability [administrator].
(c) Both the executive
director [administrator] and those persons selected to assist
the executive director [administrator] may be considered
employees of the city. Unless otherwise delegated to the executive
director [administrator], the board shall have the ultimate
authority to retain, discipline, or terminate the engagement of any persons selected under this section.
(d) The executive
director owes a fiduciary duty to the pension system in exercising discretion when carrying out the
business of the board [subsection].
(e) The executive
director shall establish an organizational structure for pension system
employees to optimize daily governance
of the system.
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SECTION 10. Section 3.04,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 3.04. APPOINTMENT OF EXECUTIVE
DIRECTOR [ADMINISTRATOR]. (a) The board has the authority to
appoint an executive director [administrator] to assist
[carry out the business of] the board with administering the pension system and ensure that records are kept [to
keep a record] of the proceedings of the board. Subject to Subsection (a-1) of this section,
a person appointed executive director under this section:
(1) must have, to the extent possible, relevant
experience in managing a
similarly situated business entity;
and
(2) may not be a current or former trustee [The
administrator, in carrying out the business of the board within the scope
of the administrator's responsibility, may not be considered a fiduciary
with respect to the pension system].
(a-1) During any period
in which the most recent actuarial valuation of the pension system
indicates that the period needed to amortize the unfunded actuarial accrued
liability of the pension system exceeds 35 years, the board shall, to the
extent lapsed investments are a significant portion of the pension system's
assets, ensure that the executive director appointed under Subsection (a)
of this section has, or hires staff that has, appropriate experience in
managing a business entity with lapsed investments in a manner that
resulted in the improved liquidity or profitability of the business entity.
(b) Subject to Subsection (b-1) of this section [the approval of the board],
the executive director [administrator] may select any number
of persons the executive director
determines appropriate to assist the executive director in
carrying out the executive director's duties under this section. Subject to Section 4.01 of this article, the
titles and salaries of persons selected to assist the executive director
shall be determined by the executive director.
(b-1) The executive
director may not select a person to assist the executive director who is an
active, former, or retired police officer or fire fighter of the city [administrator].
(c) The executive
director [Both the administrator] and those persons selected to assist
the executive director [administrator] may be considered
employees of the city. Unless otherwise delegated to the executive
director [administrator], the board shall have the ultimate
authority to retain, discipline, or terminate the engagement of the executive director.
(d) The executive
director owes a fiduciary duty to the pension system and shall ensure the sustainability of the
pension system for the purpose of providing current and future benefits to
members of the pension system and their beneficiaries [any persons selected under this
subsection].
(b-2) The executive
director shall establish the organizational structure of pension system
employees to optimize administration
of the pension system.
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SECTION 10. Sections
4.01(a), (c), and (d), Article 6243a-1, Revised Statutes, are amended.
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SECTION 11. Same as
introduced version.
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SECTION 11. Sections
4.02(b), (d), and (e), Article 6243a-1, Revised Statutes, are amended to
read as follows:
(b) Funds contributed by the
city as its share of the amount required to finance the payment of benefits
under the pension system may be used for no other purpose.
Any change to the [The]
contributions required to be made to the pension system by the city
[shall be annually appropriated by the city council and periodically paid
on the basis of a percentage of the total wages and salaries of the members
of the police and fire departments who are members of each of the plans
within the pension system. The amount of this percentage and any change in
it] may [be determined] only be made by the legislature or
by a majority vote of the voters of the city.
(d) Subject to Section
4.025 of this article, the city shall make contributions to the pension
system biweekly in an amount equal to the sum of:
(1) the greater of:
(A) 34.5 percent of the
aggregate computation pay paid to members during the period for which the
contribution is made; or
(B) the applicable amount
set forth below:
(i) $5,173,000 for the
biweekly pay periods beginning with the first biweekly pay period that
begins after September 1, 2017, and ends on the last day of the first
biweekly pay period that ends after December 31, 2017;
(ii) $5,344,000 for the
26 biweekly pay periods immediately following the last biweekly pay period
described by Subparagraph (i) of this paragraph;
(iii) $5,571,000 for the
26 biweekly pay periods immediately following the last biweekly pay period
described by Subparagraph (ii) of this paragraph; and
(iv) an amount equal to
the biweekly amount applicable for the prior 26 biweekly pay periods,
increased by a 2.75 percent compounded rate for each subsequent 26 biweekly
pay periods, beginning with the first biweekly pay period following the
last biweekly pay period described in Subparagraph (iii) of this paragraph;
and
(2) except as provided by
Subsection (e) of this section, an amount equal to 1/26th of $11 million.
[The percentage of required contributions from the city shall be in
accordance with the following schedule and any increase or decrease in city
contributions shall occur automatically on any increases or decreases in
the members' contribution percentage:
[City ContributionsMember
Contributions
28-1/2%9%
27-1/2%8-1/2%
26%8%
24-1/2%7-1/2%
23%7%
21-1/2%6-1/2%]
(e) Beginning with the
first biweekly pay period following the last biweekly pay period that ends
on or after September 1, 2019, the [The] city is required to
pay only the contribution amount described by Subsection (d)(2) of this
section if the most recent actuarial valuation at the time the payment is due shows that with that
contribution, the total contributions to the pension system are sufficient
to amortize the unfunded actuarial accrued liabilities of the fund within
35 years, as confirmed by the State
Pension Review Board
[may elect to contribute
more than that required in the schedule provided by Subsection (d) of this
section, except that the city's contribution percentage may not exceed
28-1/2 percent unless approved as provided by Subsection (b) of this
section. Further, in no event may the city's contribution be less than
21-1/2 percent unless approved as provided by Subsection (b)].
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SECTION 12. Sections
4.02(b), (d), and (e), Article 6243a-1, Revised Statutes, are amended to
read as follows:
(b) Funds contributed by the
city as its share of the amount required to finance the payment of benefits
under the pension system may be used for no other purpose. The city is not responsible for the payment of
any administrative or professional service fees of the pension system.
Any change to the [The] contributions required to be made to
the pension system by the city [shall be annually appropriated by
the city council and periodically paid on the basis of a percentage of the
total wages and salaries of the members of the police and fire departments
who are members of each of the plans within the pension system. The amount
of this percentage and any change in it] may [be determined]
only be made:
(1) by the
legislature; [or]
(2) by a majority
vote of the voters of the city; or
(3) in accordance with a written agreement entered into between
the pension system and the city, unless the change would increase the
period required to amortize the unfunded actuarial accrued liability of the
fund.
(d) Same as introduced
version.
(e) Beginning with the
first biweekly pay period following the last biweekly pay period that ends
on or after September 1, 2019, the [The] city is only
required to pay the contribution amount described by Subsection (d)(2) of
this section if the board determines,
based on the most recently completed actuarial valuation, that with
the contribution, the total contributions to the pension system are sufficient
to amortize the unfunded actuarial accrued liabilities of the fund within
35 years. The State Pension Review
Board shall review the board's determination under this subsection. The
board and the State Pension Review Board shall annually make the
determination and conduct the review required under this subsection
[may elect to contribute more than that required in the schedule
provided by Subsection (d) of this section, except that the city's
contribution percentage may not exceed 28-1/2 percent unless approved as
provided by Subsection (b) of this section. Further, in no event may the
city's contribution be less than 21-1/2 percent unless approved as provided
by Subsection (b)].
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SECTION 12. Part 4, Article
6243a-1, Revised Statutes, is amended by adding Section 4.025 to read as
follows:
Sec. 4.025. CITY OR
MEMBER CONTRIBUTIONS IF NO UNFUNDED ACTUARIAL LIABILITIES. Notwithstanding
Section 4.02 or 4.03 of this article, if the pension system has no unfunded
actuarial liability as computed on the
basis of an actuarial reserve funding method acceptable to and approved by
the board, annual contributions must
be equally divided between the city and the members.
The board shall adjust the
city contribution rates under Section 4.02 of this article and the member
contribution rates under Section 4.03 of this article accordingly, and
certify the adjusted rates.
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SECTION 13. Part 4, Article
6243a-1, Revised Statutes, is amended by adding Section 4.025 to read as
follows:
Sec. 4.025. CITY OR
MEMBER CONTRIBUTIONS IF NO UNFUNDED ACTUARIAL LIABILITIES. Notwithstanding
Section 4.02 or 4.03 of this article, if the pension system has no unfunded
actuarial liability according to the
most recent actuarial valuation, the annual normal costs must be equally divided between the city and
the members unless equally dividing the
costs would increase the member contribution rates beyond the rates
prescribed by Section 4.03 of this article. The board shall adjust
the city contribution rates under Section 4.02 of this article and the
member contribution rates under Section 4.03 of this article accordingly,
and certify the adjusted rates. After
the completion of a subsequent actuarial valuation showing unfunded
actuarial liabilities, the contribution rates applicable under Sections
4.02 and 4.03 of this article apply.
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SECTION 13. Section 4.03,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (a),
(b), (c), (d), and (g) and adding Subsections (a-1), (d-1), (d-2), and (i)
to read as follows:
(a) Subject to Subsection
(a-1) of this section and except as provided by Section 4.025 of this
article, each [Each] Group A member of the combined pension plan
shall have 13.5 [6.5] percent of base pay deducted from the
member's wages each month, and
the contributions shall be promptly remitted to the fund by the city.
(a-1) If a Group A member
is assigned, for any period, to a job-sharing program or any similar work
schedule that is considered by the member's department to be less than a
full-time work schedule, the member's contributions are determined by
multiplying the applicable contribution rate by a fraction, the numerator
of which is the number of hours the member actually worked during the
period and the denominator of which is the number of hours the member would
have worked during the period if the member had been working a full-time
work schedule.
(b) Each member shall [continue
to] contribute to the fund under the applicable terms of this article
[section] until the member leaves active service with either
department. If a member leaves active service with a department, [or
until the beginning of the member's 33rd year of pension service, at which
time] the member shall cease making contributions.
(c) Each Group B member
shall authorize the city to deduct from the member's salary a percentage of
the member's computation pay. The authorization shall be in writing and
filed with the executive director [administrator].
(d) Subject to Subsection
(d-1) of this section and except as provided by Section 4.025 of this
article, for pay periods starting on or after September 1, 2017, each [Each]
Group B member shall have 13.5 [8.5] percent of the member's
computation pay deducted from the member's wages on a biweekly basis
[each month, and the contributions
shall be promptly remitted to the fund by the city].
(d-1) If a Group B member
is assigned, for any period, to a job-sharing program or any similar work
schedule that is considered by the member's department to be less than a
full-time work schedule, the member's contributions are determined by
multiplying the applicable contribution rate by a fraction, the numerator
of which is the number of hours the member actually worked during the
period and the denominator of which is the number of hours the member would
have worked during the period if the member had been working a full-time
work schedule.
(d-2) For purposes of
Subsection (d) of this section, "computation pay" includes
computation pay paid to a Group B member during any period the member is
receiving workers' compensation.
(g) The percentage of base pay
contributed by Group A members or computation pay contributed by Group B
members may not be altered except by an adjustment under Section 4.025
[amendment pursuant to the terms of Section 4.02] of this article.
(i) Member contributions
under this article or any payments a member is entitled to make under this
article to receive additional pension service may be picked up by the city
under the terms of an appropriate resolution of the city council.
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SECTION 14. Section 4.03,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (a),
(b), (c), (d), and (g) and adding Subsections (a-1), (d-1), (d-2), and (i)
to read as follows:
(a) Subject to Subsection
(a-1) of this section and except as provided by Section 4.025 of this
article, each [Each] Group A member of the combined pension plan
shall have 13.5 [6.5] percent of base pay deducted from the
member's wages on a biweekly basis [each month], and the
contributions shall be promptly remitted to the fund by the city.
(a-1) Same as
introduced version.
(b) Same as introduced
version.
(c) Same as introduced
version.
(d) Subject to Subsection
(d-1) of this section and except as provided by Section 4.025 of this
article, for pay periods starting on or after September 1, 2017, each [Each]
Group B member shall have 13.5 [8.5] percent of the member's
computation pay deducted from the member's wages on a biweekly basis
[each month,] and the
contributions shall be promptly remitted to the fund by the city.
(d-1) Same as introduced
version.
(d-2) Same as
introduced version.
(g) Same as introduced
version.
(i) Same as
introduced version.
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SECTION 14. Section 4.04,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (a),
(c), (d), (e), (f), (g), (h), (j), and (k) and adding Subsections (f-1) and
(h-1) to read as follows:
(a) Except as provided by
Subsection (d) or (e) of this section, a [A] Group B member who,
either voluntarily or involuntarily, leaves active service is entitled to a
refund from the fund of the total amount of the member's Plan B and Group B
contributions, without interest, that were paid beginning with the
effective date of the member's Group B membership or membership in Plan B.
A refund under this subsection results in a total cancellation of
pension service credit and the member and any person who would otherwise
take by, through, or under the member is not entitled to any benefits from
the pension system [an appropriate reduction of pension service].
(c) A [former] Group
B member who desires [desiring] a refund of the Plan B or
Group B contributions under Subsection (b)
of this section [the person made to the fund] must make written
application for the refund with the executive director [administrator].
In no case may any refund be made to a [any former] Group B
member before the expiration of 30 days after the date the person leaves
active service.
(d) Subject to Subsection
(k) of this section, if a Group B member with less than five years of pension
service either voluntarily or involuntarily leaves active service and fails
to make written application for a refund of contributions within three
years after the date of the notice described by Subsection (j) of
this section [is] made by the board, the person forfeits the right
to withdraw any portion of the contribution, and the total amount of Plan B
and Group B contributions the person made will remain in the fund. If the
Group B member described by this subsection dies after leaving active
service, the [person's heirs or, if there are no heirs, the]
deceased member's designee [estate] may apply for the refund
of the person's contributions, resulting in an appropriate loss of pension
service if the application is filed with the executive director [administrator]
within three years after the date of the notice described by
Subsection (j) of this section [is] made by the board. Subject to
Subsection (k) of this section, if a Group B member's designee [heirs
or estate] fails to apply for a refund of the Group B member's
contributions within the three-year period described by this subsection,
the designee forfeits [heirs and the estate forfeit] any
right to the contributions, and the total amount of the Plan B and Group B
contributions made by the Group B member will remain in the fund.
(e) Subject to Subsection
(k) of this section, if a Group B member with five or more years of pension
service either voluntarily or involuntarily leaves active service and fails
to make written application for a refund of the person's Plan B and Group B
contributions within three years after the date of the notice
described by Subsection (j) of this section [is] made by the board,
the person forfeits the right to withdraw any portion of the contributions,
and the total amount of the contributions will remain in the fund. A Group
B member described by this subsection may, however, apply for a Group B
retirement pension [benefits] under Section 6.02 of this
article or, if the Group B member dies before the member is eligible to
apply for a Group B retirement pension, the member's qualified
survivors [benefits, the person's heirs or, if there are no heirs,
the deceased member's estate] may apply for Group B death
benefits under Sections 6.06, 6.061, 6.062, and 6.063 of this article.
If the Group B member dies before the member is eligible to apply for a
Group B retirement pension and the member has no qualified survivors, the
Group B member's designee [in accordance with the provisions of this
article, or the heirs or the estate] may apply for a refund of the Group
B member's Plan B and Group B contributions, resulting in a total
cancellation [an appropriate loss] of pension service. Subject
to Subsection (k) of this section, if a Group B member's designee [heirs
or estate] fails to apply for a refund of the Group B and Plan B
member's contributions within the three-year period described by this
subsection, the designee forfeits [heirs and the estate forfeit]
any right to the contributions, and the total amount of the Plan B and
Group B contributions made by the Group B member will remain in the fund.
(f) Subject to
Subsections (g) and (h) of this section, [If] a Group B member,
other than a Group B member who elects or has elected to receive a Group A
benefit or a benefit determined under the old plan or Plan A, who [with
five or more years of pension service] either voluntarily or
involuntarily leaves active service with five or more years of pension
service [, the person] is entitled to:
(1) subject to Subsection
(f-1) of this section, have the total amount of the person's Plan B and
Group B contributions to the fund refunded in accordance with Subsection
(a) of this section, which results in a loss of all of the person's accrued
pension service; or
(2) if the Group B member
first entered active service before January 1, 1999, elect to take a
refund of less than the total amount of the person's Plan B and Group B
contributions while leaving a sufficient amount to retain pension service
amounting to five or more years.
(f-1) A Group B member
who elects to receive a refund under Subsection (f)(1) of this section and
any person who would otherwise take by, through, or under the member is not
entitled to any benefits from the pension system.
(g) If a Group B member
elects a refund of a portion of the person's contributions under Subsection
(f)(2) of this section, the amount of the refund shall equal the total
amount of the person's Plan B and Group B annual contributions, without
interest, for each full year of pension service canceled [cancelled],
computed based on the earliest contributions made.
(h) A [former] Group
B member who first entered active service on or after January 1, 1999,
is entitled to have the total amount of the person's Group B contributions
refunded under Subsection (a) of this section in accordance with Subsection
(f)(1) of this section, but may not receive a refund of less than the total
amount in accordance with Subsection (f)(2) of this section.
(h-1) A Group B member
who leaves active service and later returns to active service is
permitted to repay to the fund any previously withdrawn employee
contributions and receive pension service in accordance with Section
5.07(d) of this article as a Group B member to the extent that [if,]
before again leaving active service, the Group B member repays [completely]
to the fund the previously withdrawn contributions with interest,
calculated at the interest rate from time to time used in the pension
system's actuarial rate of return assumptions, compounded annually,
on the previously withdrawn contributions [for the period from the date
the contributions were withdrawn until the date the principal and accrued
interest are repaid in full].
(j) On the 58th [50th]
anniversary of the birth of a Group B member described by Subsection (d) or
(e) of this section, or on the board's receipt of notice of the death of
the Group B member, the board shall, by registered or certified mail,
return receipt requested, attempt to notify the Group B member, qualified survivor, or designee
[the member's heirs or estate], as applicable, of the status of the
person's [their] entitlement to a refund of contributions from
the fund.
(k) A Group B member or
designee described by Subsection (d) or (e) of this section [or the
heirs or estate of the Group B member] shall have the person's [their]
right, title, interest, or claim to a refund of the Group B member's
contributions reinstated only on the board's grant of their written request
for a reinstatement and refund. The board's decision shall be based on a
uniform and nondiscriminatory basis [policy that it shall, from
time to time, adopt].
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SECTION 15. Section 4.04,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (a),
(c), (d), (e), (f), (g), (h), (j), and (k) and adding Subsections (f-1) and
(h-1) to read as follows:
(a) Same as introduced
version.
(c) A [former] Group
B member who desires [desiring] a refund of the Plan B or
Group B contributions under Subsection (a)
of this section [the person made to the fund] must make written
application for the refund with the executive director [administrator].
In no case may any refund be made to a [any former] Group B
member before the expiration of 30 days after the date the person leaves
active service.
(d) Same as introduced
version.
(e) Same as introduced
version.
(f) Same as introduced
version.
(f-1) Same as
introduced version.
(g) Same as introduced version.
(h) Same as introduced
version.
(h-1) Same as
introduced version.
(j) On the 58th [50th]
anniversary of the birth of a Group B member described by Subsection (d) or
(e) of this section, or on the board's receipt of notice of the death of
the Group B member, the board shall, by registered or certified mail,
return receipt requested, attempt to notify the Group B member or designee
[the member's heirs or estate], as applicable, of
the status of the person's
[their] entitlement to a refund of contributions from the fund.
(k) Same as introduced
version.
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SECTION 15. Section 4.06(c),
Article 6243a-1, Revised Statutes, is amended.
|
SECTION 16. Same as
introduced version.
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|
SECTION 16. Section 4.07,
Article 6243a-1, Revised Statutes, is amended.
|
SECTION 17. Same as
introduced version.
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|
SECTION 17. Part 4, Article
6243a-1, Revised Statutes, is amended.
|
SECTION 18. Substantially
the same as introduced version.
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|
SECTION 18. Section 4.08(a),
Article 6243a-1, Revised Statutes, is amended to read as follows:
(a) The executive
director [board] has the authority to employ a qualified actuary
to provide a continuing observation of the operation of the pension system
and to make recommendations and give advice to the board about the
condition of the assets of the fund and the administration of the pension
system. A qualified actuary shall receive such compensation as is
determined by the board in accordance with Section 4.01 of this article.
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No
equivalent provision.
|
|
No
equivalent provision.
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SECTION 19. Section 4.08,
Article 6243a-1, Revised Statutes, is amended by adding Subsection (c) to
read as follows:
(c) On written request by
the city, the executive director shall make available to the city's actuary
or auditor the information and documents provided to or used by the pension
system's actuary or auditor in conducting an actuarial valuation under this
article or preparing any other document prepared under this article.
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SECTION 19. Section 4.09,
Article 6243a-1, Revised Statutes, is amended.
|
SECTION 20. Same as
introduced version.
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SECTION 20. Section 5.01,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 5.01. MEMBERSHIP IN
COMBINED PENSION PLAN. (a) The
membership of the combined
pension plan is composed of the following persons:
(1) Group A members:
(A) police officers or fire
fighters who are on active service and who as of February 28, 1973, had
filed a written statement with the pension system of their desire to
participate in either the old plan or Plan A;
(B) police officers and fire
fighters who are on active service and [,] who were employed
and receiving compensation from the city as a police officer or a fire
fighter before March 1, 1973, and who made contributions to either the old
plan or Plan A attributable to any period of employment before March 1,
1973; and
(C) except as provided by Subsection
(b) of this section, persons who elect to become Group A members under that
subsection; and
(2) Group B members:
(A) police officers and fire
fighters who are on active service and who [,] were formerly
members of either the old plan or Plan A[,] and who, as of
April 30, 1973, had filed a written statement with the pension system of
their desire to participate in Plan B;
(B) police officers and fire
fighters who are on active service and who on or after March 1, 1973, and
before January 1, 1993, became members of Plan B;
(C) as a condition of
employment, any police officer [office] or fire fighter who
is initially employed as a police officer or a fire fighter by the city on
or after January 1, 1993;
(D) as a condition of return
to active service and except as provided by Subsection (b) of this section,
former members of the old plan or Plan A who left active service before
March 1, 1973;
(E) as a condition of return
to active service and except as provided by Subsection (c) of this section,
former Group B members who
are no longer on active
service, whether or not the persons were ever a member of the old plan,
Plan A, or the combined pension plan;
(F) Group A members who are
on active service and meet the requirements and make an election under
Subsection (d) of this section; and
(G) persons who are on
active service and make an election under Subsection (e) of this section.
No
equivalent provision.
(b) A person who has
received an old plan, Plan A, or combined pension plan retirement or
disability pension on or after March 1, 1973, may, if the person returns to
active service, elect to participate as a Group A or Group B member by
filing a written application for membership with the executive director
[administrator] not later than 60 days after the date of return to
active service. [As a condition of either Group A or Group B
membership, the board may require the person to undergo a physical
examination and be certified by the health director as being capable of
performing the duties to which the person will be assigned.] If the
person described by this subsection does not elect to become a Group
A or Group B member, the person shall on leaving active service receive a
retirement pension in an amount that is unadjusted for the period of return
to active service if the person meets all of the requirements of Group A
membership.
(c) A Group B pensioner who
was never a member of the old plan, Plan A, or the combined pension plan
before January 1, 1993, may, if the person returns to active service, elect
to become a Group B member by filing a written application for membership
with the executive director [administrator] not later than 60
days after the date of return to active service. [As a condition of
Group B membership, the board may require the pensioner to undergo a
physical examination and be certified by the health director as being
capable of performing the duties to which the person will be assigned.]
If the person described by this subsection does not elect to again
become a Group B member, on leaving active service, if the person meets all
applicable requirements of this article, the person shall receive benefits
in an amount equal to the amount the person was receiving as of the day
before the day the person returned to active service, and the person's base
pension shall be the same as the base pension originally computed before
the return to active service.
(d) A person who is on
active service and is a Group A member may, before the person
participates in DROP, irrevocably elect to become a Group B member by
filing a written application with the executive director [administrator].
On and after the filing of the application, the Group A member shall make
contributions to the fund at the rate applicable to Group B members.
However, the contributions do not, by themselves, establish [constitute]
Group B membership. Group B membership is contingent on the satisfaction
of the following conditions:
(1) the [The]
person must, before the person elects to participate in DROP, pay an
amount to the fund equal to the difference between the contributions the
person would have made to the fund had the person been a Group B member for
the entire period the person could otherwise have been a Group B member
before making application for membership and the contributions the person
actually made during that period, plus interest calculated in accordance
with procedures adopted by the board from time to time; and[.]
(2) the [The]
payments described by this subsection must be completed before the
earlier of the date on which the person begins participation in DROP
or leaves active service in accordance with procedures adopted by the
board from time to time.
(d-1) If the fund
does not receive payment under Subsection (d)(1) of this section by the
[that] date prescribed by Subsection (d)(2) of this section,
all payments made under Subsection (d)(1) of this section [of
this type], as well as those amounts paid by the person after the
person's application for Group B membership that are in excess of the Group
A member contribution rate, shall be returned without accrued interest
to the person, or in the event of the person's death to the person's designee
[surviving spouse, children, or estate], as applicable.
(e) A person who is on
active service and has never been a member of any plan within the pension
system may elect to become a Group B member on a prospective basis by
filing a written application for membership with the executive director
[administrator].
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SECTION 21. Section 5.01,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 5.01. MEMBERSHIP IN
COMBINED PENSION PLAN. (a) Except
as provided by Subsection (a-1) of this section, the [The]
membership of the combined pension plan is composed of the following
persons:
(1) Group A members:
(A) police officers or fire
fighters who are on active service and who as of February 28, 1973, had
filed a written statement with the pension system of their desire to
participate in either the old plan or Plan A;
(B) police officers and fire
fighters who are on active service and [,] who were employed
and receiving compensation from the city as a police officer or a fire
fighter before March 1, 1973, and who made contributions to either the old
plan or Plan A attributable to any period of employment before March 1,
1973; and
(C) except as provided by
Subsection (b) of this section, persons who elect to become Group A members
under that subsection; and
(2) Group B members:
(A) police officers and fire
fighters who are on active service and who [,] were formerly
members of either the old plan or Plan A[,] and who, as of
April 30, 1973, had filed a written statement with the pension system of
their desire to participate in Plan B;
(B) police officers and fire
fighters who are on active service and who on or after March 1, 1973, and
before January 1, 1993, became members of Plan B;
(C) as a condition of
employment, any police officer [office] or fire fighter who
is initially employed as a police officer or a fire fighter by the city on
or after January 1, 1993;
(D) as a condition of return
to active service and except as provided by Subsection (b) of this section,
former members of the old plan or Plan A who left active service before
March 1, 1973;
(E) as a condition of return
to active service and except as provided by Subsection (c) of this section,
former Group B members who are no longer on active service, whether
or not the persons were ever a member of the old plan, Plan A, or the
combined pension plan;
(F) Group A members who are
on active service and meet the requirements and make an election under
Subsection (d) of this section; and
(G) persons who are on
active service and make an election under Subsection (e) of this section.
(a-1) Group A or Group B
members do not include any employee of the city who is required by
ordinance or who elects, in accordance with an ordinance, to participate in
an alternative benefit plan established under Section 3.01(j-1)(2) of this
article based on an evaluation under Section 3.01(j-5)(2) of this article.
(b) Same as introduced
version.
(c) Same as introduced
version.
(d) Same as introduced
version.
(d-1) If the fund
does not receive payment under Subsection (d)(1) of this section by the
[that] date prescribed by Subsection (d)(2) of this section,
all payments made under Subsection (d)(1) of this section [of
this type], as well as those contribution
amounts paid by the person after the person's application for Group B
membership that are in excess of the Group A member contribution rate,
shall be returned without accrued interest to the person, or in the
event of the person's death to the person's designee [surviving
spouse, children, or estate], as applicable.
(e) Same as introduced
version.
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|
SECTION 21. Sections
5.02(a), (d), (e), (h), and (i), Article 6243a-1, Revised Statutes, are
amended.
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SECTION 22. Substantially
the same as introduced version.
|
|
SECTION 22. Section 5.03,
Article 6243a-1, Revised Statutes, is amended.
|
SECTION 23. Same as
introduced version.
|
|
SECTION 23. Section 5.04,
Article 6243a-1, Revised Statutes, is amended.
|
SECTION 24. Same as
introduced version.
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SECTION 24. Section 5.05,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 5.05. PENSION SERVICE.
(a) Subject to Subsection
(d) of this section and except as provided by Subsection (e) of this
section, a [A] member shall receive pension service for the
time, computed in years and fractional years for months and days, completed
as a member of the combined pension plan, the old plan, Plan A, or Plan B.
(b) A member who elects to
pay contributions for time spent on military leave, authorized leave of absence,
or for an apprenticeship or probationary period, or for any other reason
provided for by this article may [not] receive [any] pension
service for [any part of] the time for which the member is
contributing only to the extent provided under Section 5.07(d), 5.08, or
5.09 of this article [until the entire amount due the fund for the
entire period involved has been paid as if the service were performed as a
member].
(c) If a member, either
voluntarily or involuntarily, leaves active service and later returns to
active service, the person shall receive full pension service for the
period of the person's original membership, if the person did not withdraw
the person's contributions pursuant to Section 4.04 of this article. If,
however, the member had withdrawn the person's contributions and did
[does] not replace the previously withdrawn contributions [with
interest] as required by Section 4.04 of this article, the member
[person] forfeits any pension service attributable to any period
of time for which the respective contributions were not repaid [accrued
while a member before the date of the person's return to active service].
(d) If a member is
assigned, for any period, to a job-sharing program or any similar work
schedule that is considered by the member's department to be less than a
full-time work schedule, the member's pension service is determined by
multiplying the pension service that could have been earned for full-time
work during the period by a fraction, the numerator of which is the number
of hours the member actually worked during the period and the denominator
of which is the number of hours the member would have worked during the
period if the member had been working a full-time work schedule. This
proration may not affect the computation of pension service for a member
during any period the member is on leave:
(1) because of an illness
or injury; or
(2) receiving periodic
payments of workers' compensation.
(e) Notwithstanding any
other provision in this section, a member may not receive pension service
attributable to nonqualified service to the extent the pension service
would result in either more than five years of permissive service
attributable to nonqualified service being taken into account, or any
permissive service being taken into account before the member has completed
at least five years of active service. In this subsection,
"permissive service" and "nonqualified service" have
the meanings described by Section 415(n)(3) of the code.
|
SECTION 25. Section 5.05,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 5.05. PENSION SERVICE.
(a) Same as introduced
version.
(b) A member who elects to
pay contributions for time spent on military leave, authorized non-uniformed leave of absence, or
for an apprenticeship or probationary period, or for any other reason
provided for by this article may [not] receive [any] pension
service for [any part of] the time for which the member is
contributing only to the extent provided under Section 5.07(d), 5.08, or
5.09 of this article [until the entire amount due the fund for the
entire period involved has been paid as if the service were performed as a
member].
(c) Same as introduced
version.
(d) Same as
introduced version.
(e) Same as
introduced version.
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|
SECTION 25. Sections 5.06,
5.07, 5.08, and 5.09, Article 6243a-1, Revised Statutes, are amended to
read as follows:
Sec. 5.06. VESTED RIGHTS OF
GROUP B MEMBERS. (a) If a Group B member accrues five years of pension
service, whether the pension service is accrued while a Group B member or
while a member of the old plan, Plan B, Plan A, the combined pension plan,
or a combination of the plans, the Group B member has vested rights
and is eligible to apply for a retirement pension in accordance with
Section 6.02 of this article.
(b) If a Group B member has
vested rights as determined under Subsection (a) of this section, and the
Group B member either voluntarily or involuntarily leaves active service
before becoming eligible to receive any benefits under Section 6.02 of this
article, the person shall be provided with a letter approved by the board
and signed by the executive director [administrator] that,
barring unrepaid refunds, clerical error, miscalculation, or other
error, is incontestable and shall state:
(1) the total amount of
pension service the Group B member had accrued until the date the person
left active service;
(2) the total amount of
contributions the Group B member made under the terms of Plan B and the
combined pension plan; and
(3) the monthly retirement
pension due the Group B member at age 58 [50].
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SECTION 26. Sections 5.06,
5.07, 5.08, and 5.09, Article 6243a-1, Revised Statutes, are amended to
read as follows:
Sec. 5.06. Same as
introduced version.
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|
Sec. 5.07. PURCHASE OF
PENSION SERVICE BY GROUP B MEMBERS. (a) A Group B member who is on
active service and has previously elected not to become a contributing
member of the old plan or [and] Plan A may purchase pension
service from the fund for that period during which the member performed
active service with either department until the effective date of the
member's Group B membership. No pension service may be given to the Group
B member except to the extent that [until] payment is made
for the [entire period described by this subsection, and no] pension
service in accordance with Subsection (d) of this section [may be
purchased for any period that is of greater or lesser length].
(b) Payment for the purchase
of pension service under Subsection (a) of this section shall be
equal to the amount of contributions the Group B member would have made to
the old plan and Plan A had the member been a contributing member of either
of the plans during the period for which the pension service is being
purchased [described by Subsection (a) of this section], plus
interest calculated in accordance with procedures adopted by the board from
time to time.
(c) Subject to Subsection
(d) of this section, a [A] Group B member who is on active
service may repay the fund all or a portion of the employee
contributions withdrawn by an alternate payee pursuant to the terms of a
qualified domestic relations order [and receive pension service as a
Group B member attributable to the contributions, if the Group B member
repays completely to the fund the withdrawn contributions] with
interest, calculated at the interest rate from time to time used in the
pension system's actuarial rate of return assumptions, compounded
annually, on the contributions for the period from the date the
contributions were withdrawn until the date the principal and accrued
interest are repaid, and receive pension service as a Group B member, in
accordance with Subsection (d) of this section, for the period for which
the contributions and interest were paid [in full].
(d) [No pension service
may be given to a Group B member under Subsection (b) or (c) of this
section until the entire amount described by Subsection (b) or (c) has been
paid to the fund.] If payment of the entire amount of pension
service a member is entitled to under Subsection (a) or (c) of this section
or under Section 4.04(h-1) of this article is not completed by the earlier
of the date the Group B member begins participation in DROP or the date the
member [is not completed by the date the Group B member] leaves
active service, pension service will be provided only for the number of
full years of pension service that the contributions and interest paid
under those provisions will purchase, computed based on the most recent
years for which the member was entitled to purchase pension service.
Except for pension service that is picked up by the city under the
authority of Section 414(h)(2) of the code, a fractional year of pension
service may be purchased only if less than a full year of pension service
is available for purchase.
(e) The amounts paid but
insufficient to purchase one or more whole years of pension service that
remain available for purchase, including any interest paid by the Group B
member, must be returned to the Group B member or, if the Group B member
has died, to the Group B member's designee, without any accrued interest on
the returned money.
(f) Notwithstanding any
other provision of this section, any amounts that have been picked up and
paid by the city may not be paid to a member or designee, and the member
shall be given credit for all years, and fractions of years, of pension
service that can be purchased with the picked-up contributions [all
partial payments shall be returned to the Group B member or, if the Group B
member has died, to the member's heirs or estate, whichever is applicable].
|
Sec. 5.07. Same as introduced
version.
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Sec. 5.08. MEMBERS IN UNIFORMED
[ARMED] SERVICES. (a) In this section, "service in the
uniformed services" has the meaning assigned by the federal Uniformed
Services Employment and Reemployment Rights Act of 1994 (38 U.S.C. Section
4301 et seq.).
(a-1) A member who
is reemployed by the city after an absence due to service in the uniformed
services shall receive contributions, benefits, and pension service that
are no less favorable than those required by Section 414(u) of the code in
accordance with the procedure described by Subsection (c) of this section
[may receive pension service for time spent away from either department
while on active duty in any of the military services of the United States,
including service in any state or National Guard or any reserve component
of any military service in accordance with the military leave provided by
this section].
(b) To the extent a
provision of this section that was in effect before November 25, 1996,
would provide a member who was on active service with the pension system
before November 25, 1996, with greater rights, the prior provision of this
section applies [Any member inducted into the armed forces as a
draftee must reapply for reinstatement with the member's prior department
within 90 days after the date of honorable discharge or separation from
military service. On such reinstatement, the member may elect to repay the
member's contributions at any time under the procedure described by
Subsection (h) of this section].
(c) Payment for credit
for pension service under this section [Any member enlisting in the
armed forces, other than as a reservist, whose military service between
June 24, 1948, and August 1, 1961, did not exceed four years, or whose
military service began after August 1, 1961, and did not exceed five years
if the fifth year is at the request and convenience of the federal
government, and who was honorably discharged or separated from service is
guaranteed, under the provisions of coverage described by this subsection,
the right to restore pension service under the procedure described by
Subsection (h) of this section. The four- and five-year leaves permitted
by this subsection apply to all of a member's employment with the city. An
enlistment plus any number of reenlistments may not exceed the four- or five-year
limitations stated above.
[(d) Any member ordered
to an initial period of active duty for training in a reserve component of
not less than 12 consecutive weeks is entitled to restore pension service
for the period absent from the member's department, if the member returns
to the member's department within 31 days after the date of honorable
discharge or separation from duty in the reserve unit.
[(e) Any member serving
in a reserve component, voluntarily or involuntarily, may remain on
military leave for four years, which may be extended for periods when the
President of the United States calls the reserve unit into active duty.
The service extension for members joining a reserve unit voluntarily is
available only when the additional service is at the request and for the
convenience of the federal government. Any member returning to the
member's department under this provision must report back to work within
the time specified to the member by the department, giving due regard for
travel time and hospitalization, if required. Any inquiry into the
validity of orders extending terms of reservist active duty for training
will be referred to the Department of Labor's Office of Veterans'
Employment and Training.
[(f) Any member on
military leave for short periods of authorized training, such as two-week
encampments, are treated as on leave with pay for up to 15 working days in
any one calendar year, during which time pension service automatically
accrues. Leave in excess of 15 days will be treated as described by
Subsection (e) of this section.
[(g) With the exception
of those circumstances described by Subsection (f) of this section, the
city is not required to match contributions made by members under the terms
of this section.
[(h) Repayment] shall
be made in accordance with Section 5.07 of this article and a [the
procedure set forth in any] uniform and nondiscriminatory [military
leave and payment] procedure adopted by the board [and in effect
from time to time].
Sec. 5.09. NON-UNIFORMED
[NONMILITARY] LEAVE OF ABSENCE.
(a) An "authorized
non-uniformed leave of absence" means any leave of
absence that meets one of the following requirements [conditions]:
(1) the leave of absence was
unpaid and granted by the member's department in accordance with the
federal Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 et
seq.); or
(2) the leave of absence
was unpaid and was [must be] an official leave authorized and
certified by the chief of the member's [either]
department as being beneficial to[; and
[(2) the leave of absence
must be for the purpose of benefitting] the department.
(b) Subject to the
requirements of this section and any procedures adopted by the board, a
[A] member may receive pension service for time spent away from the
member's [either] department on an authorized non-uniformed
[nonmilitary] leave of absence. To receive pension service under
this section [for a nonmilitary leave of absence, the following
conditions must be met:
[(1) before the date the
member's leave of absence is to begin], the member must file with the executive
director [administrator] a written application to pay to the
fund both:
(1) the member
contributions the member would have made to the fund had the member
remained on active service and had there been no change in the member's
position or hours of work during the period of the authorized leave of
absence; and
(2) the contributions the
city would have made to the fund on the member's behalf [any
contributions that will accrue during the member's leave as set forth in
Subdivisions (2) and (3) of this subsection;
[(2) the member must agree
to pay into the fund the amount the member would have contributed had the
member remained on active service, the amount to be based on the
computation pay the member would have normally received had there been no
change in the member's position during the period of leave;
[(3) the member must agree
to pay into the fund an amount equal to the amount the city would have
contributed computed on the basis of total wages and salary the member
would normally have received] had the member remained on active service
and had there been no change in the member's position or hours of work
during the period of the authorized leave of absence.
(b-1) Contributions made
under Subsection (b)(2) of this section may not be refunded to the member.
(b-2) The written
application described by Subsection (b) of this section must be filed
before the member's leave of absence begins, unless the pension system
determines that it would not be reasonable to expect the member to file the
application before the leave of absence begins, in which case the
application must be filed as soon as circumstances permit, as determined by
the pension system. [leave, the payment to represent the total
amount that would have been contributed by the city on the member's behalf
had the member remained on active service and paid in addition to the
amount the member must contribute as set forth in Subdivision (2) of this
subsection;]
(b-3) To receive pension service
under this section, the following additional conditions must also be met:
(1) [(4)] if
the member's contribution rate, the city's contribution rate, or
both the member's and city's contribution rates change before the end of
the member's leave of absence [changes as provided by Section 4.02
of this article], the percentage [of total wages and salary]
required to be paid by the member also changes, so that the amount paid by
the member in accordance with this section always equals the amount that would
have been contributed by the member, and by the city on the member's
salary [behalf] had the member
remained on active service[, and in no event is the city required to pay
into the fund any contributions that would have been made on behalf of a
member had the member remained on active service during the period of an
authorized leave of absence];
(2) [(5)]
payment of contributions as set forth in Subsection (b) of this section
[Subdivisions (3) and (4) of this subsection] shall begin coincident
with the beginning of the applicable
leave of absence and shall be
made monthly to the executive director [administrator] for
deposit in the fund, unless the board authorizes the deferment of the
payments, in which case the payments must include interest calculated in
accordance with Subsection (b-4) of this section [until the member
has returned to active service];
(3) no pension
service will be granted to the member until the member returns to active
service, and if the member does not return to active service, the
contributions paid, including any interest paid, will be returned to
the member except as provided by Subsection (c) of this section;
(4) if the board
authorizes the deferment of the payments under Subdivision (3) of this subsection, the payment
must [may] be made either by authorizing the deduction of pro
rata portions of the total amount due from the member's salary over a
one-year period, or by cash payment made to the executive director [administrator]
within one year after the date of the member's return to active service,
except that the board may approve a longer period for making the payment if
it finds that the one-year limit would work a financial hardship on the
member;
(5) [(6)] the
member must return to active service within 90 days after the date the
member's authorized leave expires, or if the member's authorized leave does
not have a fixed expiration date, within a reasonable time to be determined
by the board, or the member forfeits the right to pay for the leave time;
and
(6) [(7)] no
member may ever be allowed to pay leave of absence contributions under this
section for any time in excess of the time actually spent on an authorized
leave of absence.
(b-4) For purposes of
Subsection (b-3)(2) of this section, interest is calculated from the date
the member's payment was first due, at the interest rate from time to time
used in the pension system's actuarial rate of return assumptions,
compounded annually until the date the principal and accrued interest are
repaid in full.
(c)(1) If a member of the
combined pension plan is disabled or dies while on an authorized leave of
absence, the member or the member's designee is [heirs are]
entitled to [either] a refund of contributions pursuant to Section
4.04 of this article or the member or the member's qualified survivors are
entitled to benefits under the provisions of this article, to the extent
applicable.
(2) A member who is disabled
or dies while on leave of absence pursuant to this section may receive no
pension service for any portion of the period of the leave,[;]
except that if the member had, before the member's disability or
death, paid for contributions while on leave of absence in accordance with
[Subsection (a) of] this section, the member shall receive pension
service for the leave time actually paid for at the time of the member's
disability or death. The [, but the] member may receive no
pension service for any portion of the period of leave for which
contributions were [have] not [been] paid to the executive
director [administrator] for deposit in the fund.
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Sec. 5.08. Substantially the
same as introduced version.
Sec. 5.09. NON-UNIFORMED
[NONMILITARY] LEAVE OF ABSENCE.
(a) Same as introduced
version.
(b) Subject to the
requirements of this section and any procedures adopted by the board, a
[A] member may receive pension service for time spent away from the
member's [either] department on an authorized non-uniformed
[nonmilitary] leave of absence. To receive pension service under
this section [for a nonmilitary leave of absence, the following conditions
must be met:
[(1) before the date the
member's leave of absence is to begin], the member must file with the executive
director [administrator] a written application to pay to the
fund both:
(1) the member
contributions the member would have made to the fund had the member
remained on active service and had there been no change in the member's
position or hours of work during the period of the authorized non-uniformed leave of absence; and
(2) the contributions the
city would have made to the fund on the member's behalf [any
contributions that will accrue during the member's leave as set forth in
Subdivisions (2) and (3) of this subsection;
[(2) the member must agree
to pay into the fund the amount the member would have contributed had the
member remained on active service, the amount to be based on the
computation pay the member would have normally received had there been no
change in the member's position during the period of leave;
[(3) the member must agree
to pay into the fund an amount equal to the amount the city would have
contributed computed on the basis of total wages and salary the member
would normally have received] had the member remained on active service
and had there been no change in the member's position or hours of work
during the period of the authorized non-uniformed
leave of absence.
(b-1) Same as
introduced version.
(b-2) The written
application described by Subsection (b) of this section must be filed
before the member's authorized
non-uniformed leave of absence
begins, unless the pension
system determines that it would not be reasonable to expect the member to
file the application before the authorized
non-uniformed leave of absence begins, in which case the application
must be filed as soon as circumstances permit, as determined by the pension
system. [leave, the payment to represent the total amount that would
have been contributed by the city on the member's behalf had the member
remained on active service and paid in addition to the amount the member
must contribute as set forth in Subdivision (2) of this subsection;]
(b-3) To receive pension
service under this section, the following additional conditions must also
be met:
(1) [(4)] if
the member's contribution rate, the city's contribution rate, or
both the member's and city's contribution rates change before the end of
the member's authorized non-uniformed
leave of absence [changes as provided by Section 4.02 of this
article], the percentage [of total wages and salary] required to
be paid by the member also changes, so that the amount paid by the member
in accordance with this section always equals the amount that would have
been contributed by the member, and by the city on the member's behalf had the member remained on
active service[, and in no event is the city required to pay into the
fund any contributions that would have been made on behalf of a member had
the member remained on active service during the period of an authorized
leave of absence];
(2) [(5)]
payment of contributions as set forth in Subsection (b) of this section
[Subdivisions (3) and (4) of this subsection] shall begin coincident
with the beginning of the applicable authorized
non-uniformed leave of absence and shall be made monthly to the executive
director [administrator] for deposit in the fund, unless the
board authorizes the deferment of the payments, in which case the
payments must include interest calculated in accordance with Subsection
(b-4) of this section [until the member has returned to active
service];
(3) no pension
service will be granted to the member until the member returns to active
service, and if the member does not return to active service, the
contributions paid, including any interest paid, will be returned to
the member except as provided by Subsection (c) of this section;
(4) if the board
authorizes the deferment of the payments under Subdivision (2) of this subsection, the
payment must [may] be made either by authorizing the
deduction of pro rata portions of the total amount due from the member's
salary over a one-year period, or by cash payment made to the executive
director [administrator] within one year after the date of the
member's return to active service, except that the board may approve a
longer period for making the payment if it finds that the one-year limit
would work a financial hardship on the member;
(5) [(6)] the
member must return to active service within 90 days after the date the
member's authorized non-uniformed
leave of absence expires,
or if the member's authorized non-uniformed
leave of absence does not
have a fixed expiration date, within a reasonable time to be determined by
the board, or the member forfeits the right to pay for the leave time; and
(6) [(7)] no
member may ever be allowed to pay leave of absence contributions under this
section for any time in excess of the time actually spent on an authorized non-uniformed leave of absence.
(b-4) Same as
introduced version.
(c)(1) If a member of the
combined pension plan is disabled or dies while on an authorized non-uniformed leave of absence, the
member or the member's designee is [heirs are] entitled to [either]
a refund of contributions pursuant to Section 4.04 of this article or the
member or the member's qualified survivors are entitled to benefits under
the provisions of this article, to the extent applicable.
(2) A member who is disabled
or dies while on an authorized
non-uniformed leave of absence pursuant to this section may
receive no pension service for any portion of the period of the leave,[;]
except that if the member had, before the member's disability or
death, paid for contributions while on an
authorized non-uniformed
leave of absence in accordance with [Subsection (a) of] this
section, the member shall receive pension service for the leave time
actually paid for at the time of the member's disability or death. The
[, but the] member may receive no pension service for any portion of
the period of leave for which contributions were [have] not [been]
paid to the executive director [administrator] for deposit in
the fund.
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|
SECTION 26. Sections 6.01
and 6.02, Article 6243a-1, Revised Statutes, are amended to read as
follows:
Sec. 6.01. GROUP A
RETIREMENT PENSION.
(a) A Group A member [or
former Group A member] must have 20 years of pension service to be
eligible for a Group A retirement pension under this section. A member's benefit
election [application] under this section, once approved
[made], is irrevocable.
(a-1) If a Group A
pensioner returns to active service as a police officer or fire fighter
with the city, the person's Group A retirement pension ceases until the
time that the person again leaves active service with the city.
(a-2) If a Group A
pensioner resumes employment with the city in a capacity other than as a
police officer or fire fighter, the pensioner's Group A retirement pension
continues during the period of employment, except the pensioner is not entitled to accrue additional
credit for pension service during this period. Additional credit for
pension service does not accrue during any period in which a Group A
pensioner becomes employed by the city unless the additional credit is
attributable to active service as a police officer or fire fighter with the
city.
(b) At age 58
[50] a Group A member [or former Group A member] is
eligible to begin drawing a monthly Group A retirement pension. A monthly
Group A retirement pension equals 50 percent of the base pay per month,
plus 50 percent of any longevity pay the Group A member was receiving at
the time the member left active service. Although the number of years used
in the computation of longevity pay remains fixed at the earlier of the
time a Group A member [or former Group A member] leaves active
service or begins participation in DROP, the monthly rate of
longevity pay used in this computation is subject to change in the event of
an amendment to the state law governing longevity pay. The monthly Group A
retirement pension benefits of Group A pensioners shall be adjusted from
time to time in a like manner.
(c) In addition to the
amount computed under Subsection (b) of this section, at age 58 [50],
a Group A member is eligible to begin drawing an annual Group A retirement
pension. An annual retirement pension equals 50 percent of the difference
between the annualized amount of city service incentive pay and longevity
pay. In determining city service incentive pay and longevity pay for
purposes of this element of the annual Group A retirement pension only the
following apply:
(1) City service incentive
pay is calculated in the same manner as the city service incentive pay is
calculated for members currently on active service except:
(A) the annual salary of a
Group A pensioner used in calculating city service incentive pay is
determined on the basis of the last city civil service rank held by the
Group A pensioner when the person was on active service; however, if the
rank no longer exists, its closest equivalent shall be determined by the
board and applied; and
(B) the annual salary of a
Group A pensioner as determined under Paragraph (A) of this subdivision
shall be that amount in effect on the last day of September of each year
the Group A pensioner's annual retirement pension is calculated.
(2) Longevity pay shall be
calculated as 12 times the amount of monthly longevity pay the Group A
pensioner was receiving at the time such person left active service, except
that the monthly rate of longevity pay used in this computation is subject
to change if an amendment to state law governing longevity pay is enacted.
(d) The element of annual
retirement pension computed under Subsection (c)(1) of this section is
subject to the following limitations:
(1) it shall be prorated for
the year in which the pensioner begins receiving a retirement pension;
(2) it shall be payable only
to those Group A pensioners who, as [a] Group A members
[member] on active service, received city service incentive
pay and who receive a monthly Group A retirement pension as determined
under Subsection (b) of this section on the last day of September of each
year; and
(3) it shall be paid to
Group A pensioners as long as the city continues to pay city service
incentive pay to Group A members on active service.
(4) Notwithstanding
Subsections (b) and (c) of this section, a Group A member with a minimum of
20 years of pension service may apply for an actuarially reduced retirement
pension to begin no earlier than when the member attains age 53
[45] but before the member attains age 58
[50]. The Group A member [or a former Group A member]
who has made an application may receive a retirement pension calculated
under Subsections (b) and (c) of this section reduced by two-thirds of one
percent per month for each whole calendar month the benefit is payable
before the month in which the Group A member [or former Group A member]
attains age 58 [50].
(e) At age 62
[55] a Group A member [or former Group A member] is
eligible to begin drawing a monthly retirement pension computed as follows:
(1)(A) at the rate of three
percent of base pay for each year, prorated for fractional years, of
pension service, with a maximum of 32 years of pension service, or 96
percent of base pay; or
(B) if the Group A member [or
former Group A member] had 34 or more years of pension service as of
April 30, 1990, then the member's retirement pension is calculated
at the rate calculated under the terms of the combined pension plan in
effect on April 30, 1990, if the resulting amount would be greater
than the amount calculated under Paragraph (A) of this subdivision; plus
(2) one-half of the
longevity pay the Group A member [or former Group A member] was
receiving at the time the person left active service; plus
(3) 1/24th, without
subsequent adjustment, of the annualized amount of the city service
incentive pay the Group A member [or former Group A member] received
at the time the person left active service.
(f) [Notwithstanding
Subsection (e) of this section, Group A pensioners payments under
Subsection (e)(3) of this section are contingent on the city's continuing
payment of city service incentive pay to Group A members on active service.]
For purposes of Subsection (e) of this section, base pay and
longevity pay are the amounts in effect on the earlier of the date the
member begins participation in DROP or the date benefits are to begin,
without subsequent adjustment.
(g) Notwithstanding
Subsection (e) of this section, a Group A member [or former Group A
member] with 20 or more years of pension service may apply for an
actuarially reduced Group A retirement pension beginning on or after the
date the Group A member [or former Group A member] attains age 58
[50] but before the person attains age 62
[55]. The Group A member [or former Group A member]
may receive a retirement pension calculated under Subsection (e) of this
section reduced by two-thirds of one percent per month for each whole
calendar month the benefit is payable before the month in which the Group A
member [or former Group A member] attains age 62
[55].
(h) Entitlement to the Group
A retirement pension described by this section is subject to the following
conditions:
(1) written application must
be filed with the executive director [administrator];
(2) the grant of a Group A
retirement pension by the board must be made at a meeting of the board held
during the month the Group A retirement pension is to become effective, or
as soon after that as administratively possible; and
(3) the Group A member must
no longer be on active service.
|
SECTION 27. Section 6.01,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (a),
(b), (d), (e), (f), (g), and (h) and adding Subsections (a-1) and (a-2) to
read as follows:
Sec. 6.01. GROUP A
RETIREMENT PENSION.
(a) Same as introduced
version.
(a-1) Substantially
the same as introduced version.
(a-2) If a Group A
pensioner resumes employment with the city in a capacity other than as a
police officer or fire fighter, the pensioner's Group A retirement pension
continues during the period of employment, except the pensioner may not accrue additional credit for
pension service during this period. Additional credit for pension service
does not accrue during any period in which a Group A pensioner becomes
employed by the city unless the additional credit is attributable to active
service as a police officer or fire fighter with the city.
(b) At age 50 a Group A member [or former Group
A member] is eligible to begin drawing a monthly Group A retirement
pension. A monthly Group A retirement pension equals 50 percent of the
base pay per month, plus 50 percent of any longevity pay the Group A member
was receiving at the time the member left active service. Although the
number of years used in the computation of longevity pay remains fixed at
the earlier of the time a Group A member [or former Group A
member] leaves active service or begins participation in DROP,
the monthly rate of longevity pay used in this computation is subject to
change in the event of an amendment to the state law governing longevity
pay. The monthly Group A retirement pension benefits of Group A pensioners
shall be adjusted from time to time in a like manner.
No
equivalent provision.
(d) The element of annual
retirement pension computed under Subsection (c)(1) of this section is
subject to the following limitations:
(1) it shall be prorated for
the year in which the pensioner begins receiving a retirement pension;
(2) it shall be payable only
to those Group A pensioners who, as [a] Group A members
[member] on active service, received city service incentive
pay and who receive a monthly Group A retirement pension as determined
under Subsection (b) of this section on the last day of September of each
year; and
(3) it shall be paid to
Group A pensioners as long as the city continues to pay city service
incentive pay to Group A members on active service.
(4) Notwithstanding
Subsections (b) and (c) of this section, a Group A member with a minimum of
20 years of pension service may apply for an actuarially reduced retirement
pension to begin no earlier than when the member attains age 45 but before the member attains age 50. The Group A member [or a former
Group A member] who has made an application may receive a retirement
pension calculated under Subsections (b) and (c) of this section reduced by
two-thirds of one percent per month for each whole calendar month the benefit
is payable before the month in which the Group A member [or former Group
A member] attains age 50.
(e) At age 55 a Group A member [or former Group
A member] is eligible to begin drawing a monthly retirement pension
computed as follows:
(1)(A) at the rate of three
percent of base pay for each year, prorated for fractional years, of
pension service, with a maximum of 32 years of pension service, or 96
percent of base pay; or
(B) if the Group A member [or
former Group A member] had 34 or more years of pension service as of
April 30, 1990, then the member's retirement pension is calculated
at the rate calculated under the terms of the combined pension plan in
effect on April 30, 1990, if the resulting amount would be greater
than the amount calculated under Paragraph (A) of this subdivision; plus
(2) one-half of the
longevity pay the Group A member [or former Group A member] was
receiving at the time the person left active service; plus
(3) 1/24th, without
subsequent adjustment, of the annualized amount of the city service
incentive pay the Group A member [or former Group A member] received
at the time the person left active service.
(f) Same as introduced
version.
(g) Notwithstanding
Subsection (e) of this section, a Group A member [or former Group A
member] with 20 or more years of pension service may apply for an
actuarially reduced Group A retirement pension beginning on or after the
date the Group A member [or former Group A member] attains age 50 but before the person attains age 55. The Group A member [or former
Group A member] may receive a retirement pension calculated under
Subsection (e) of this section reduced by two-thirds of one percent per
month for each whole calendar month the benefit is payable before the month
in which the Group A member [or former Group A member] attains age 55.
(h) Entitlement to the Group
A retirement pension described by this section is subject to the following
conditions:
(1) a written
application must be filed with the executive director [administrator];
(2) the grant of a Group A
retirement pension by the board must be made at a meeting of the board held
during the month the [Group A]
retirement pension is to become effective, or as soon after that as administratively
possible; and
(3) the Group A member must
no longer be on active service.
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|
Sec. 6.02. GROUP B
RETIREMENT PENSION.
(a) If a [A]
Group B member [or former Group B member who] has accrued five or
more years of pension service, is no longer on active service with the department,
has not withdrawn the member's contributions, and otherwise meets the age
and pension service requirements under the applicable provision of this
section, the member may apply [may make application] for a Group
B retirement pension under this section. A member's benefit election
application under a provision of this section, once approved, is
irrevocable.
(a-1) If a Group B
pensioner returns to active service as a police officer or fire fighter
with the city, the person's [on reaching 50 years of age, or for an
actuarially reduced] Group B retirement pension ceases until that
person again leaves active service with the city.
(a-2) If a Group B
pensioner resumes employment with the city in a capacity other than as a
police officer or fire fighter, the pensioner's Group B retirement pension
will continue during the period of employment except the pensioner may not
accrue additional credit for pension service during this period.
Additional credit for pension service does not accrue during any period in
which a Group B pensioner becomes employed by the city unless the
additional credit is attributable to active service as a police officer or
fire fighter with the city [on reaching 45 years of age].
(b) A [former] Group
B member
who meets the requirements
of Subsection (a) of this section may elect to receive a Group B retirement
pension that shall be calculated as follows:
(1) for a member who
began active service before March 1, 2011, and
who has attained at least 58 years of age, the member's retirement
pension shall be the sum of:
(A) the number of years
of pension service before September 1, 2017, prorated for fractional years,
times three percent of the average computation pay determined over the 36
consecutive months of pension service in which the Group B member received
the highest computation pay; plus
(B) the number of years
of pension service on or after September 1, 2017, prorated for fractional
years, times 2.5 percent of the
average computation pay determined over the 60 consecutive months of
pension service in which the Group B member received the highest
computation pay; or
(2) for a member who
began active service on or after March 1, 2011, and who has attained at least 58 years of age, the
member's retirement pension shall be the number of years of pension
service, prorated for fractional years, times the
applicable percentage prescribed by Subsection (b-1) of this section
of the average computation pay determined over the 60 consecutive months of
pension service in which the member received the highest computation pay.
(b-1) For purposes of
Subsection (b)(2) of this
section, the applicable percentage is based on the age of the Group B
member when the member's retirement pension begins as set forth below:
Age of Member When
Retirement Pension Begins - Percent
53 2.0%
54 2.1%
55 2.2%
56 2.3%
57 2.4%
58 and older 2.5%
(b-2) Days during which a
member earned no pension service due to a termination of active service or
otherwise must be disregarded in determining either
the 36 or 60 consecutive months of highest computation pay under Subsection
(b)(1) or (2) of this section, as appropriate. The pension benefit
calculated under Subsection (b) of this section may not exceed the greater
of:
(1) 90 percent of the
member's average computation pay determined under that subsection; or
(2) the vested and
accrued benefit of a member as determined on August 31, 2017. [or
Group B pensioner who withdrew any of the person's Plan B or Group B
contributions and who on again becoming a Group B member does not replace
such previously withdrawn contributions with interest thereon as provided
by Section 4.04 of this article must earn at least five years of pension
service after the time the person returns to active service to be eligible
for a Group B retirement pension.]
(c) Except as provided by
Subsection (c-2) of this section, [Entitlement to] a Group B member
who meets the requirements of Subsection (a) of this section
may elect to receive an
actuarially reduced Group B retirement pension calculated in accordance
with Subsection (c-1) of this section:
(1) not earlier than the
member's 53rd birthday; and
(2) not later than
member's 58th birthday.
(c-1) Except as provided
by Subsection (c-2) of this section, a Group B member who applies for an
actuarially reduced Group B retirement pension under Subsection (c) of this
section shall receive a pension calculated under Subsection (b) of this
section, reduced by two-thirds of one percent per month, for each whole
calendar month the pension would be payable before the month in which the
member attains
58 years of age.
(c-2) If, for purposes of
Subsection (c-1) of this section, a Group B member's pension benefit
calculated under Subsection (b) is equal to 90 percent of the member's
average computation pay, the member is entitled to a Group B retirement
pension under Subsection (c) of this section at 53 years of age that is not
actuarially reduced as provided under Subsection (c-1) of this section
[retirement pension as
described by Subsection (a) or (b) of this section is subject to the
following conditions:
[(1) written application
must be filed with the administrator;
[(2) the grant of the
Group B retirement pension by the board must be made at a meeting of the
board held during the month the Group B retirement pension is to become
effective, or as soon after that as possible; and
[(3) the Group B member
may no longer be on active service].
(d) Except as provided by
Subsection (d-2) of this section, a [A] Group B member who
has accrued 20 or more years of pension service and has been on active
service at any time on or after January 1, 1999, may elect to apply for a
Group B retirement pension beginning at any time after the Group B member
leaves active service, regardless of age. A Group B member may elect a
Group B retirement pension under this subsection as follows:
(1) if the member accrued
20 or more years of pension service on or before September 1, 2017, the
member may elect a pension under this subsection that is computed in the
same manner as the Group B retirement pension under Subsection (b) of this
section except that: (A) the percentage set forth below must be
used instead of the three percent multiplier specified in Subsection
(b)(1)(A) of this section:
Age of Member When
Retirement Pension Begins - Percent
51 and 52 2.75%
50 2.5%
49 2.25%
48 and younger 2%; and
(B) the percentage set forth below must be used instead of the
2.5 percent multiplier prescribed by Subsection (b)(1)(B) of this section:
Age of Member When Retirement Pension Begins Percent
57 2.4%
56 2.3%
55 2.2%
54 2.1%
53 and younger 2.0%; or
(2) except as provided by
Subsection (d-2) of this section, if the member accrued 20 or
more years of pension
service after September 1, 2017, the member may elect a pension under this
subsection computed in the same manner as the Group B retirement pension
under Subsection (b)(2) of this section except that the percentage set
forth below must be used instead of the multiplier
prescribed under Subsection (b-1) of this section:
Age of Member When
Retirement Pension Begins Percent
53 1.9%
54 2.0%
55 2.1%
56 2.2%
57 2.3%
58 and older 2.4%
(d-1) A member who elects
a pension under Subsection (d) of this section is not entitled to:
(1) minimum benefits
under either Section 6.10A or 6.11 of this article; or
(2) benefits under
Subsection (g) of this section.
(d-2) If, for purposes of
Subsection (d) of this section, a Group B member's pension benefit
calculated under Subsection (b) of this section is equal to 90 percent of
the member's average computation pay, the member is entitled to a Group B
retirement pension under Subsection (d) of this section that is not reduced
as provided under Subsection (d)(1) or (2) of this section [retirement
pension shall be computed at the rate of three percent of the average
computation pay determined over the 60 consecutive months in which the
Group B member received the highest computation pay, multiplied by the
number of years, prorated for fractional years, of pension service to a
maximum of 32 years of pension service or 96 percent of the computation pay
as determined under this subsection].
(e) A [However, a]
Group B member or former Group B member with 34 or more years of pension
service as of April 30, 1990, shall
receive the greater of a Group B retirement pension calculated under the
terms of Plan B as in effect on that date or a Group B retirement pension
calculated pursuant to Subsection (b) [(d)]
of this section.
[(f) A Group B member, or
any former Group B member who was a Group B member as of any date after
April 30, 1990, may apply for an actuarially reduced Group B retirement
pension beginning no earlier than the person's 45th birthday but before the
person's 50th birthday. A Group B member or former Group B member who
applies for an actuarially reduced Group B retirement pension beginning on
or after the person's 45th birthday shall receive a pension calculated
under Subsection (d) of this section, reduced by two-thirds of one percent
per month for each whole calendar month the pension would be payable before
the month in which the Group B member or former Group B member attains age
50.]
(g) In no event may any
Group B member [or former Group B member] who was at any time a
Group A member or a contributing member of the old plan or Plan A,
and who satisfied the applicable age and length-of-service
requirements of the applicable plan at the time the person left active
service, receive a retirement pension in an amount less than the amount
the person would be entitled to receive as a Group A member.
(h) Notwithstanding any
other provision of this section, a [A former] Group B member who
was not a Group B member on or after January 1, 1993 [May 1, 1990],
shall receive a retirement pension calculated under the applicable
provisions of Plan B [this plan] as that plan existed
[in effect] on the date the member terminated [person left]
active service.
(i) Entitlement to a
Group B retirement pension under Subsection (b), (c), (d), or (e) of this
section is subject to the following conditions:
(1) a written application
must be filed with the executive director; and
(2) the grant of the
Group B retirement pension by the board must be made at a meeting of the
board held during the month the retirement pension is to become effective,
or as soon after as administratively possible [A former Group B
member who was not a Group B member after April 30, 1990, may request an
actuarially reduced retirement pension beginning no earlier than the
person's 45th birthday but before the person's 50th birthday]. [A
former Group B member described by this subsection shall receive a
retirement pension under the applicable provisions of Plan B as in effect
on the date the person left active service, reduced by two-thirds of one
percent per month for each whole calendar month the pension would be
payable before the month in which the former Group B member attains age 50.]
|
SECTION 28. Section 6.02,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 6.02. GROUP B RETIREMENT
PENSION.
(a) Same as introduced
version.
(a-1) Same as
introduced version.
(a-2) Substantially
the same as introduced version.
(b) A [former] Group
B member who began active service
before March 1, 2011, and who has attained at least 50 years of age, or who
began active service on or after March 1, 2011, and has attained at least
58 years of age, and who otherwise
meets the requirements of Subsection (a) of this section may elect
to receive a Group B retirement pension that shall be calculated as
follows:
(1) for a member who
began active service before March 1, 2011, the member's retirement pension
shall be the sum of:
(A) the number of years
of pension service before September 1, 2017, prorated for fractional years,
times three percent of the average computation pay determined over the 36
consecutive months of pension service in which the Group B member received
the highest computation pay; plus
(B) the number of years
of pension service on or after September 1, 2017, prorated for fractional
years, times the applicable percentage
prescribed by Subsection (b-1) of this section of the average
computation pay determined over the 60 consecutive months of pension
service in which the Group B member received the highest computation pay;
or
(2) for a member who
began active service on or after March 1, 2011, the member's retirement
pension shall be the number of years of pension service, prorated for
fractional years, times 2.5
percent of the average computation pay determined over the 60 consecutive
months of pension service in which the member received the highest
computation pay.
(b-1) For purposes of
Subsection (b)(1)(B) of this
section, the applicable percentage is based on the age of the Group B
member when the member's retirement pension begins as set forth below:
Age of Member When
Retirement Pension Begins - Percent
58 and older 2.5%
57 2.4%
56 2.3%
55 2.2%
54 2.1%
53 and younger 2.0%
(b-2) Days during which
the member earned no pension service due to a termination of active service
or otherwise must be disregarded in determining the 36 or 60 consecutive
months of highest computation pay under Subsection (b)(1) or (2) of this
section, as appropriate. The pension benefit calculated under Subsection
(b) of this section may not exceed the greater of:
(1) 90 percent of the
member's average computation pay determined under the applicable subsection; or
(2) the vested and
accrued benefit of a member as determined on August 31, 2017. [or
Group B pensioner who withdrew any of the person's Plan B or Group B
contributions and who on again becoming a Group B member does not replace
such previously withdrawn contributions with interest thereon as provided
by Section 4.04 of this article must earn at least five years of pension
service after the time the person returns to active service to be eligible
for a Group B retirement pension.]
(c) Except as provided by
Subsection (c-2) of this section, [Entitlement to] a Group B member
who has either attained at least 45
years of age on September 1, 2017, or who attains at least 53 years of age
after September 1, 2017, and who otherwise meets the requirements of
Subsection (a) of this section may elect to receive an actuarially reduced
Group B retirement pension calculated in accordance with Subsection (c-1)
of this section:
(1) not earlier than the
member's 45th or 53rd birthday, as applicable; and
(2) not later than the
member's 50th or 58th birthday, as applicable.
(c-1) Except as provided
by Subsection (c-2) of this section and
subject to Section 6.021 of this article, a Group B member who
applies for an actuarially reduced Group B retirement pension under
Subsection (c) of this section shall receive a pension calculated under
Subsection (b) of this section, reduced by two-thirds of one percent per
month, for each whole calendar month the benefit is payable before the
month in which the member attains:
(1) for members who attained at least 45 years of age on
September 1, 2017, 50 years of age; or
(2) for members not described by Subdivision (1) of this
subsection who attain at least 53 years of age after September 1, 2017,
58 years of age.
(c-2) If, for purposes of
Subsection (c-1) of this section, a Group B member's pension benefit
calculated under Subsection (b) of this section is equal to 90 percent of
the member's average computation pay, the member is entitled to a Group B
retirement pension under Subsection (c) of this section at 45 or 53 years of age, as applicable, that is not actuarially
reduced as provided under Subsection (c-1) of this section
[retirement pension as
described by Subsection (a) or (b) of this section is subject to the
following conditions:
[(1) written application
must be filed with the administrator;
[(2) the grant of the
Group B retirement pension by the board must be made at a meeting of the
board held during the month the Group B retirement pension is to become
effective, or as soon after that as possible; and
[(3) the Group B member
may no longer be on active service].
(d) Except as provided by
Subsection (d-2) of this section, a [A] Group B member who
has accrued 20 or more years of pension service and has been on active
service at any time on or after January 1, 1999, may elect to apply for a
Group B retirement pension beginning at any time after the Group B member
leaves active service, regardless of age. A Group B member may elect a
Group B retirement pension under this subsection as follows:
(1) if the member accrued
20 or more years of pension service on or before September 1, 2017, the
member may elect a pension under this subsection that is computed in the
same manner as the Group B retirement pension under Subsection (b)(1) of
this section except that the percentage set forth below must be used
instead of the three percent multiplier prescribed by Subsection (b)(1)(A)
of this section:
Age of Member When
Retirement Pension Begins - Percent
48 and 49 2.75%
47 2.5%
46 2.25%
45 and younger 2%; and
(2) except as provided by
Subsection (d-2) of this section and
subject to Section 6.021 of this article, if the member accrued 20
or more years of pension service after September 1, 2017, the member may
elect a pension under this subsection computed in the same manner as the
Group B retirement pension under Subsection (b)(2) of this section except
that the percentage set forth below must be used instead of the 2.5 percent multiplier prescribed by
Subsection (b)(2) of this section:
Age of Member When
Retirement Pension Begins Percent
57 2.4%
56 2.3%
55 2.2%
54 2.1%
53 and younger 2.0%
(d-1) Same as
introduced version.
(d-2) Same as
introduced version.
(e) A [However, a]
Group B member or former Group B member with 34 or more years of pension
service as of April 30, 1990, is
entitled to [shall]
receive the greater of a Group B retirement pension calculated under the
terms of Plan B as in effect on that date or a Group B retirement pension calculated
pursuant to Subsection (b) [(d)] of this section.
[(f)] Same as
introduced version.
(g) Same as introduced
version.
(h) Same as introduced
version.
(i) Entitlement to a
Group B retirement pension under Subsection (b), (c), (d), or (e) of this
section is subject to the following conditions:
(1) a written application
must be filed with the executive director;
(2) the grant of the
Group B retirement pension by the board must be made at a meeting of the board
held during the month the retirement pension is to become effective, or as
soon after as administratively possible; and
(3) the Group B member may no longer be on active service
[A former Group B member who was not a Group B member after April 30,
1990, may request an actuarially reduced retirement pension beginning no
earlier than the person's 45th birthday but before the person's 50th
birthday]. [A former Group B member described by this subsection
shall receive a retirement pension under the applicable provisions of Plan
B as in effect on the date the person left active service, reduced by
two-thirds of one percent per month for each whole calendar month the
pension would be payable before the month in which the former Group B
member attains age 50.]
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No
equivalent provision.
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SECTION 29. Part 6, Article
6243a-1, Revised Statutes, is amended by adding Sections 6.021 and 6.022 to
read as follows:
Sec. 6.021. AUTHORITY TO
ADOPT ALTERNATIVE MULTIPLIERS FOR COMPUTATION OF CERTAIN GROUP B BENEFITS.
(a) For purposes of Section 6.02(c-1) or (d)(2) of this article, the board
by rule may adopt alternative multipliers, including an alternative table
prescribing actuarially appropriate multipliers. In adopting rules under
this subsection, the board shall designate the date on which the
alternative multiplier shall take effect.
(b) Copies of any
alternative multipliers adopted under this section must be maintained at
the principal office of the pension system and published on the pension
system's publicly available Internet website.
Sec. 6.022. AUTHORITY TO
REDUCE RETIREMENT AGE. Notwithstanding any other law, the board may reduce
the age at which a Group B member is eligible to begin receiving a
retirement pension, including an actuarially reduced retirement pension,
under Section 6.02 of this article if the board determines that the
reduction will not cause the amortization period of the unfunded actuarial
accrued liability of the pension system to exceed 25 years, after taking
into account the impact of the reduction. A board action under this
section may not take effect until the State Pension Review Board reviews
the board's determination described by this section.
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SECTION 27. Section 6.03,
Article 6243a-1, Revised Statutes, is amended.
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SECTION 30. Same as
introduced version.
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SECTION 28. Part 6, Article
6243a-1, Revised Statutes, is amended.
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SECTION 31. Substantially
the same as introduced version.
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SECTION 29. Section 6.04,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 6.04. CALCULATION OF REGULAR
[GROUP A] DISABILITY BENEFITS [PENSION].
(a) Subject to Subsection
(g) of this section, if [If] a Group A member's application for
a Group A disability pension has been approved by the board pursuant to
Section 6.03 of this article, including any procedures adopted under that
section, the Group A member may elect to receive a Group A disability
pension calculated:
(1) in the same
manner as the benefit under Sections 6.01(b) and (c) of this article;
or
(2) under Subsection (c)
[(b)] of this section.
(b) An election under
Subsection (a) of this section, once approved by the board [made],
is irrevocable.
[(b) When a Group A
member elects to accept a Group A disability pension under this section, it
shall be calculated as provided by Subsections (c), (d), and (e) of this
section.]
(c) Subject to Subsection
(g) of this section, [If] a Group A [member's disability
results during the performance of duties with either department, the]
member who elects to have benefits determined under this subsection
is entitled to a monthly disability pension calculated as follows:
(1) at a rate of three
percent of base pay for each year, prorated for fractional years, of
pension service, with a [minimum of 20 years of pension service being
deemed credited and a] maximum of 32 years of pension service being
credited, or 96 percent of base pay [or], except that if the
Group A member had 34 or more years of pension service as of April 30,
1990 [May 1, 1990], the member shall
receive the greater of a disability pension calculated under the
terms of the combined pension plan in effect on that date or as calculated
under this subdivision; plus
(2) one-half of the
longevity pay the Group A member was receiving at the time the member left
active service; plus
(3) subject to Subsection
(d) of this section, 1/24th[, without subsequent adjustment,] of
the annualized amount of city service incentive pay the Group A member
received at the time the member left active service.
(c-1) The disability pension
calculated under Subsection (c) of this section may not exceed the greater
of:
(1) 90 percent of the
member's average base pay determined under the subsection; or
(2) the vested and
accrued disability pension of the member as determined on August 31, 2017.
(d) Payments of the
amounts described by [Notwithstanding Subsection (c) of this
section, the amount of a disability retirement benefit of a Group A
pensioner who is on disability retirement under] Subsection (c)(3) of
this section are [is] contingent on the city's continuing
payment of city service incentive pay to Group A members on active
service. [For purposes of this subsection, base pay and longevity pay
are the amounts in effect on the date the benefits are to begin, without
subsequent adjustment.]
(e) If a Group B [A]
member's application for a Group B disability pension has been approved
by the board under Section 6.03 of this article, including any procedures
adopted under that section, the Group B member may elect to receive a Group
B disability pension calculated in the manner described by Subsection (f)
or (f-1) of this section, subject to Subsection (g) of this section [disability
does not result during the performance of the member's duties with either
department, the member is entitled to a monthly disability pension
calculated:
[(1) at a rate of three
percent of base pay for each year, prorated for fractional years, of
pension service, with a maximum of 32 years of pension service, or 96
percent of base pay, except that if the Group A member had 34 or more years
of pension service as of April 30, 1990, the member shall receive the
greater of a disability pension calculated under the combined pension plan
in effect on that date or as calculated under this subdivision; plus
[(2) one-half of the
longevity pay the Group A member was receiving at the time the member left
active service; plus
[(3) 1/24th of the
annualized amount of city service incentive pay the Group A member received
at the time the member left active service, without regard to any
subsequent adjustment].
(f) Subject to
Subsections (f-1), (f-3), and (g) of this section, the disability pension
of a Group B member shall be calculated as follows:
(1) for a member who
began active service before March 1, 2011, the member's disability pension
shall be the sum of:
(A) the member's number
of years of pension service earned before September 1, 2017, prorated for
fractional years, times three percent of the average computation pay
determined over the 36 consecutive months of pension service in which the Group B member received the highest
computation pay; plus
(B) the number of years
of pension service, including pension service credit imputed under Section
6.05(b-1) of this article, earned
on or after September 1, 2017, prorated for fractional years, times 2.5 percent of the average computation
pay determined over the 60 consecutive months of pension service in which
the Group B member received the
highest computation; or
(2) for a member who
began active service on or after March 1, 2011, the member's disability
pension shall be the number of years of pension service, including pension
service credit imputed under Section 6.05(b-1)
of this article, prorated for fractional years, times the applicable percentage prescribed by Section 6.02(b-1) of this
article of the average
computation pay determined over the 60 consecutive months of pension
service in which the member received the highest computation pay.
(f-1) Notwithstanding
Subsection (f) of this section, for a Group B member who had 34 or more
years of pension service as of April 30, 1990, the member is entitled to
receive the greater of a disability pension calculated under the terms of
Plan B in effect on April 30, 1990, or calculated under Subsection (f) of
this section.
(f-2) For purposes of
Subsections (f) and (f-1) of this section:
(1) any partial year of
pension service for a Group B member's first 20 years of pension service must be counted as a full year of
pension service, if the member was considered by the member's department to
have worked a normal full-time schedule at the time of the disability;
(2) if the member has
less than 36 or 60 consecutive months of pension service, as applicable,
the member's average computation pay will be computed based on the member's
entire pension service; and
(3) days during which the
member earned no pension service due to a termination of active service or
otherwise must be disregarded in determining the 36 or 60 consecutive
months of highest computation pay.
(f-3) The disability
pension calculated under Subsection (f) or (f-1) of this section may not
exceed the greater of:
(1) 90 percent of the
member's average computation pay determined under the applicable
subsection; or
(2) the vested and
accrued disability pension of the member as determined on August 31, 2017
[Payments of the amounts described by Subsection (e)(3) of this section
are contingent on the city's continuing payment of city service incentive
pay to Group A members on active service].
(g) The disability
pension calculated in accordance with this section, including both a Group
A benefit described by Subsection (a) of this section and a Group B benefit
described by Subsection (f) of this section, shall be reduced
dollar-for-dollar by any monthly disability compensation benefit received
under Section 6.05 of this article. If the monthly disability compensation
benefit provided to a member under Section 6.05 of this article equals or
exceeds any benefit the member is entitled to under this article, the
member may not receive the benefit under this section [For purposes
of Subsection (e)(3) of this section, base pay and longevity pay are the
amounts in effect on the date the benefits are to begin, without subsequent
adjustment].
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SECTION 32. Section 6.04,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 6.04. CALCULATION OF REGULAR
[GROUP A] DISABILITY BENEFITS [PENSION].
(a) Same as introduced
version.
(b) Same as
introduced version.
(c) Subject to Subsection
(g) of this section, [If] a Group A [member's disability
results during the performance of duties with either department, the]
member who elects to have benefits determined under this subsection
is entitled to a monthly disability pension calculated as follows:
(1) at a rate of three
percent of base pay for each year, prorated for fractional years, of
pension service, with a [minimum of 20 years of pension service being
deemed credited and a] maximum of 32 years of pension service being
credited, or 96 percent of base pay [or], except that if the
Group A member had 34 or more years of pension service as of April 30,
1990 [May 1, 1990], the member
is entitled to [shall] receive the greater of a
disability pension calculated under the terms of the combined pension plan
in effect on that date or as calculated under this subdivision; plus
(2) one-half of the
longevity pay the Group A member was receiving at the time the member left
active service; plus
(3) subject to Subsection
(d) of this section, 1/24th[, without subsequent adjustment,] of
the annualized amount of city service incentive pay the Group A member
received at the time the member left active service.
(c-1) The disability
pension calculated under Subsection (c) of this section may not exceed the
greater of:
(1) 90 percent of the
member's average base pay determined under the applicable subsection; or
(2) the vested and
accrued disability pension of the member as determined on August 31, 2017.
(d) Same as introduced
version.
(e) Same as introduced
version.
(f) Subject to
Subsections (f-1), (f-3), and (g) of this section, the disability pension
of a Group B member shall be calculated as follows:
(1) for a member who
began active service before March 1, 2011, the member's disability pension
shall be the sum of:
(A) the member's number
of years of pension service earned before September 1, 2017, prorated for
fractional years, times three percent of the average computation pay
determined over the 36 consecutive months of pension service in which the
member received the highest computation pay; plus
(B) the number of years
of pension service, including pension service credit imputed under Section
6.05(c) of this article,
earned on or after
September 1, 2017, prorated for fractional years, times the applicable percentage prescribed by
Section 6.02(b-1) of this article of the average computation pay
determined over the 60 consecutive months of pension service in which the
member received the highest computation pay;
or
(2) for a member who
began active service on or after March 1, 2011, the member's disability
pension shall be the number of years of pension service, including pension
service credit imputed under Section 6.05(c)
of this article, prorated for fractional
years, times 2.5 percent of the average computation
pay determined over the 60 consecutive months of pension service in which
the member received the highest computation pay.
(f-1) Same as
introduced version.
(f-2) For purposes of
Subsections (f) and (f-1) of this section:
(1) any partial year of
pension service for a Group B member's first 20 years of pension service is counted as a full year of pension
service, if the member was considered by the member's department to have
worked a normal full-time schedule at the time of the disability;
(2) if the member has
less than 36 or 60 consecutive months of pension service, as applicable,
the member's average computation pay will be computed based on the member's
entire pension service; and
(3) days during which the
member earned no pension service due to a termination of active service or
otherwise must be disregarded in determining the 36 or 60 consecutive
months of highest computation pay.
(f-3) Same as
introduced version.
(g) The disability
pension calculated in accordance with this section, including both a Group
A benefit described by Subsection (a) of this section and a Group B benefit
described by Subsection (f) of this section, shall be reduced
dollar-for-dollar by any monthly disability compensation benefit received
under Section 6.05 of this article. If the monthly disability compensation
benefit provided to a member under Section 6.05 of this article equals or
exceeds any benefit the member is entitled to under this section or Section 6.01(b) or (c) of this
article, the member may not receive the benefit under this section [For
purposes of Subsection (e)(3) of this section, base pay and longevity pay
are the amounts in effect on the date the benefits are to begin, without
subsequent adjustment].
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SECTION 30. The heading to
Section 6.05, Article 6243a-1, Revised Statutes, is amended.
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SECTION 33. Same as
introduced version.
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SECTION 31. Section 6.05,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (a),
(b), and (c) and adding Subsection (b-1) to read as follows:
(a) If a member leaves
active service at any time due to disability and the board determines that the disability was caused by
an injury or sickness
incurred in the performance of the member's duties with the member's department, the member is entitled to
periodic disability compensation benefits in accordance with this section
[Group B member's application for a Group B disability pension has been
approved by the board pursuant to Section 6.03 of this article, including
any procedures adopted under that section, the Group B member may,
depending on the circumstances, elect to receive a Group B disability
pension calculated in the manner described by Subsection (b) or (c) of this
section].
(b) Subject to Subsection
(b-1), [If] a Group A [B] member whose
disability, as determined by the board, was caused by an injury or sickness
incurred in the performance of the member's duty shall receive a monthly
benefit equal to 60 percent of the member's base pay. For purposes of this
subsection, "base pay" is the amount in effect on the date
compensation benefits under this section are to begin, without subsequent
adjustment.
(b-1) Instead of
receiving a periodic disability compensation benefit under Subsection (b)
of this section, a Group A member who is entitled to periodic disability
compensation under this section may elect, before the benefits begin, to
receive those benefits as a monthly benefit equal to 50 percent of the
member's base pay adjusted from time to time to reflect changes in base pay
that occur after the member began receiving a monthly compensation benefit
under this section [becomes disabled during the performance of the
member's duties with either department, the member is entitled to a monthly
disability pension calculated at a rate of three percent of the average
computation pay determined over the 60 consecutive months in which the
Group B member received the member's highest computation pay multiplied by
the number of years, prorated for fractional years, of the member's pension
service with a minimum of 20 years of pension service being deemed
credited, or 60 percent of average computation pay determined over the 60
consecutive months in which the Group B member received the member's
highest computation pay, except that if the Group B member has less than
five years of pension service, the Group B member's average computation pay
will be computed based on the member's entire pension service. If a Group
B member had 34 or more years of pension service as of April 30, 1990, the
Group B member is entitled to receive the greater of a Group B disability
pension calculated under the terms of Plan B in effect on that date or
calculated pursuant to this subsection].
(c) A [The Group B
disability pension for any] Group B member whose disability, as
determined by the board, was caused by an injury or sickness incurred in
the performance of the member's duty shall receive a monthly benefit equal
to the disability pension under Sections 6.04(f), (f-1), (f-2), and (f-3)
of this article except that if the member:
(1) does not have 20
years of pension service, the member is considered to have 20 years of
pension service for the purposes of calculating the disability pension
under that section; and
(2) has less than 36 or
60 months, as applicable, of employment with the department, average
computation pay will be computed based on all the member's computation pay,
and days during which the member earned no pension service due to a
termination of active service or otherwise, shall be disregarded in
determining either the 36 or 60 consecutive months of highest computation
pay [does not result during the performance of the member's duties
with either department shall be computed at a rate of three percent of the
average computation pay determined over the 60 consecutive months in which
the Group B member received the member's highest computation pay multiplied
by the number of years, prorated for fractional years, of the member's
pension service, except that any partial year of pension service for the
first 20 years of pension service shall be counted as a full year of
pension service. If the Group B member has less than five years of pension
service, the Group B member's average computation pay will be computed
based on the member's entire pension service, and if a Group B member had
34 or more years of pension service as of April 30, 1990, the Group B
member is entitled to receive the greater of a disability pension
calculated under the terms of Plan B in effect on that date or calculated
pursuant to this subsection].
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SECTION 34. Section 6.05,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (a),
(b), and (c) and adding Subsection (b-1) to read as follows:
(a) If a member leaves
active service at any time due to disability and the board determines that the member with the disability became unable
to perform the member's duties with the member's department due to
an injury or sickness incurred in the performance of the member's duties,
the member is entitled to periodic disability compensation benefits in
accordance with this section [Group B member's application for a
Group B disability pension has been approved by the board pursuant to
Section 6.03 of this article, including any procedures adopted under that
section, the Group B member may, depending on the circumstances, elect to
receive a Group B disability pension calculated in the manner described by
Subsection (b) or (c) of this section].
(b) Same as introduced
version.
(b-1) Instead of
receiving a periodic disability compensation benefit under Subsection (b)
of this section, a Group A member who is entitled to periodic disability
compensation benefits under this
section may elect, before the benefits begin, to receive those benefits as
a monthly benefit equal to 50 percent of the member's base pay adjusted
from time to time to reflect changes in base pay that occur after the
member began receiving a monthly compensation benefit under this section
[becomes disabled during the performance of the member's duties with
either department, the member is entitled to a monthly disability pension
calculated at a rate of three percent of the average computation pay
determined over the 60 consecutive months in which the Group B member
received the member's highest computation pay multiplied by the number of
years, prorated for fractional years, of the member's pension service with
a minimum of 20 years of pension service being deemed credited, or 60
percent of average computation pay determined over the 60 consecutive
months in which the Group B member received the member's highest
computation pay, except that if the Group B member has less than five years
of pension service, the Group B member's average computation pay will be
computed based on the member's entire pension service. If a Group B member
had 34 or more years of pension service as of April 30, 1990, the Group B
member is entitled to receive the greater of a Group B disability pension
calculated under the terms of Plan B in effect on that date or calculated
pursuant to this subsection].
(c) A [The Group B
disability pension for any] Group B member whose disability, as
determined by the board, was caused by an injury or sickness incurred in
the performance of the member's duty shall receive a monthly benefit equal
to the disability pension under Sections 6.04(f), (f-1), (f-2), and (f-3)
of this article except that if the member:
(1) does not have 20
years of pension service, the member is considered to have 20 years of
pension service for the purposes of calculating the disability pension
under that section; and
(2) has less than 36 or
60 consecutive months, as
applicable, of employment with the department, the member's average computation pay will be computed
based on all the member's computation pay, and days during which the member
earned no pension service due to a termination of active service or
otherwise must be disregarded in determining either the 36 or 60
consecutive months of highest computation pay [does not result
during the performance of the member's duties with either department shall
be computed at a rate of three percent of the average computation pay
determined over the 60 consecutive months in which the Group B member
received the member's highest computation pay multiplied by the number of
years, prorated for fractional years, of the member's pension service,
except that any partial year of pension service for the first 20 years of
pension service shall be counted as a full year of pension service. If the
Group B member has less than five years of pension service, the Group B
member's average computation pay will be computed based on the member's
entire pension service, and if a Group B member had 34 or more years of
pension service as of April 30, 1990, the Group B member is entitled to
receive the greater of a disability pension calculated under the terms of
Plan B in effect on that date or calculated pursuant to this subsection].
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SECTION 32. Section 6.05(d),
Article 6243a-1, Revised Statutes, is transferred to Part 6, Article
6243a-1, Revised Statutes, redesignated as Section 6.055, Article 6243a-1,
Revised Statutes, and amended to read as follows:
Sec. 6.055. REDUCTION IN
DISABILITY OR COMPENSATION BENEFITS FOR CERTAIN PERSONS.
(a) In this section,
"earned income" means income earned by a Group B pensioner in the
form of wages, salaries, commissions, fees, tips, unemployment benefits,
and other amounts received by virtue of employment or self-employment but
paid before any deduction for taxes or insurance. In addition, earned
income also includes those amounts contributed on a before-tax basis to any
retirement plan or employee health and welfare benefit plan.
(b) [(d)] The
board shall require any Group B pensioner who became a member of Plan B or
the combined pension plan on or after May 1, 1990, and who is receiving a
Group B disability pension under Section 6.04 of this article or a
periodic disability compensation under Section 6.05 of this article [in
accordance with Subsection (b) or (c) of this section] to provide the
board annually, on or before July 1 [May 1] of each year,
with a true and complete copy of those portions of the person's federal
and, if applicable, state tax return, including appropriate schedules, for
the previous calendar year that indicate the person's occupations, if
any, and earned income for the previous calendar year. If the
pensioner did not file a tax return for the previous calendar year, the
board may require other documentation reflecting the pensioner's occupation
or earned income that the board determines appropriate.
(c) The pension system
[However, the board] may waive the July 1 [May 1] date
under Subsection (b) of this section in lieu of one later in the
same calendar year if the Group B pensioner provides the board with a true
and complete copy of a grant of an extension of time for the filing of the
person's tax return from the appropriate governmental agency or a true and
complete copy of an extension request that results in any automatic
extension.
(d) If, after evaluating
the information received under Subsection (a)
of this section, the pension system
finds the Group B pensioner is or has been receiving earned income from
one or more employments, including self-employment, during the preceding
year, the board shall reduce future disability pension payments to
the Group B pensioner in
accordance with the following formula: $1 for each $1 that the sum of
"a" + "b" is greater than "c," where
"a" is the earned income of the Group B pensioner attributable to
the previous calendar year from the person's employments, "b" is
the total amount of Group B disability pension
received by the
Group B pensioner the
previous calendar year, and "c" is the annualized amount of the
average computation pay the Group B pensioner received as of the date the
person left active service.
(e) For purposes of the
[this] computation under Subsection (d) of this section, the
average computation pay shall be deemed increased at the adjustment [a] rate prescribed by Section 6.12 of this article
[of four percent simple interest],
if any, without compounding during the year, as of
each January 1 that the Group B pensioner receives a Group B disability
pension and periodic disability
benefit.
|
SECTION 35. Section 6.05(d),
Article 6243a-1, Revised Statutes, is redesignated as Section 6.055,
Article 6243a-1, Revised Statutes, and amended to read as follows:
Sec. 6.055. REDUCTION IN
DISABILITY OR COMPENSATION BENEFITS FOR CERTAIN PERSONS.
(a) Same as
introduced version.
(b) [(d)] Same
as introduced version.
(c) Same as
introduced version.
(d) If, after
evaluating the information received under Subsection (b) of this section, the board finds the Group
B pensioner is or has been
receiving earned income from one or more employments, including
self-employment, during the preceding year, the board shall reduce future
disability retirement [pension] payments to the Group
B pensioner in accordance with the following formula: $1 for each $1 that
the sum of "a" + "b" is greater than "c,"
where "a" is the earned income of the Group B pensioner
attributable to the previous calendar year from the person's employments, "b"
is the total amount of Group B disability retirement
payments [pension] received
by the Group B pensioner the previous calendar year, and "c" is
the annualized amount of the average computation pay the Group B pensioner
received as of the date the person left active service.
(e) For purposes of the
[this] computation under Subsection (d) of this section, the
average computation pay shall be deemed increased at a rate of 2.75 percent [of four percent
simple interest], without compounding during the year, as of each
January 1 that the Group B pensioner receives a Group B disability retirement payment [pension].
|
|
SECTION 33. Section 6.06,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (b),
(e), (f), (g), (h), (j), (k), (l), (m), (n), (o), (p), (q), (r), and (t)
and adding Subsections (e-1), (e-2), (j-1), (o-1), (o-2), (u), and (v) to
read as follows:
(b) A written application
for benefits must be filed with the executive director [administrator].
(e) If [the qualified]
surviving children of a primary party are not qualified survivors
entitled to death benefits, the [qualified surviving] spouse of
the primary party who is a qualified survivor is entitled only to
receive a share of the death benefits in the amount calculated under
Section 6.07(a) [or (b)] or Section 6.08(b)(1), (c)(1), (d)(1), or
(e)(1) of this article, whichever is applicable, and is not entitled to
what otherwise would be the [qualified] surviving children's share.
(e-1) If a primary
party had [there is] no [qualifying] surviving spouse,
any [qualified] surviving child who is a qualified survivor [children]
shall receive only the amount calculated under Section 6.07(a) [or (b)]
or Section 6.08(b)(2), (c)(2), (d)(2), or (e)(2) of this article, whichever
is applicable, and is [are] not entitled to what otherwise
would be the [qualified surviving]
spouse's share.
(e-2) If a primary
party does not have a [there is no qualified surviving] spouse
or [qualified surviving] children who are qualified survivors,
any [qualified] dependent parent of the primary party who is a
qualified survivor shall receive only the amount calculated under
Section 6.07(c) or Section 6.08(b)(3), (d)(3), or (e)(3) of this article,
whichever is applicable, and is not entitled to what otherwise would be the
[qualified surviving] spouse's
or [qualified surviving] children's share.
(f) The total monthly
death benefits [benefit] received by the qualified survivors
of a primary party under this article, including the primary party's [surviving]
spouse, [qualified surviving] children, or [qualified]
dependent parents, [parent] may not exceed the pension to
which the deceased primary party was entitled per month.
(g) If there is no surviving
spouse or legal guardian for the [qualified] surviving children of
a primary party and if the board
determines that the [qualified]
surviving children lack the discretion to handle money, or in other
appropriate circumstances, notwithstanding any other provision of this
section, the board may request a court of competent jurisdiction to appoint
a suitable person to receive and administer the [qualified]
surviving children's money or in those circumstances described in
Subsection (n) of this section, appoint a new trustee to administer the [qualified]
surviving children's [support] trust.
(h) With the exception of a
[support] trust described in Subsection (n) of this section, no
death benefits awarded to [qualified] surviving children may be used
for any purpose other than to benefit the [qualified] surviving
children. [The board may withhold payment of benefits if it has reason
to believe the benefits are not being properly applied.]
(j) With the exception of
those circumstances described in Subsection (n) of this section, death
benefits payable [paid] to [qualified] surviving
children [living with a person other than the surviving spouse]
shall be delivered to the legal guardian of the estate of the surviving
children if one has been appointed and the system has been provided proof
of the appointment. If no legal guardian has been appointed, death
benefits shall be delivered to one of the following persons, provided there
is evidence that the person is [person with whom the qualified
surviving children are living, if the board has designated the person as
being] a suitable person to receive and administer the benefits:
(1) the surviving spouse
with whom the child resides; or
(2) the adult head of the
household with whom the child resides, if the child does not reside with
the surviving spouse.
(j-1) In accordance with
Subsection (h) of this section, the recipient of a surviving child's death
benefits under Subsection (j) of this section must use the death benefits
to benefit the child. The board may[, however,] withhold
payment of benefits to anyone, if presented with evidence that the death
benefits are not being used to benefit the surviving child [but the
legal guardian of the qualified surviving children and may require proof
that a person has been appointed legal guardian of the qualified surviving
children before authorizing any benefits to be delivered to that person].
(k) Dependent [The
qualified surviving dependent] parents of a primary party [member]
who are entitled to receive death [any survivor]
benefits provided by this article may only receive the benefits for
the remainder of the dependent parents' [their] lives.
(l) The pension system
[board] may require all qualified survivors [persons]
receiving death benefits[, including qualified surviving spouses,
qualified surviving children or their guardians, and qualified surviving dependent
parents,] to file [with the administrator, at least once every two
years,] a sworn statement with the executive director concerning
the qualified survivor's [their]eligibility to continue to
receive death benefits at least once every two years, or at any other
time the executive director considers a sworn statement to be appropriate
to evidence the continued eligibility of a
qualified survivor. [The board may also require a sworn statement
from any person receiving death benefits at any time.] The board may
withhold death benefits from any person who fails or refuses to file a
statement when requested to do so.
(m) When the last qualified
survivor of any primary party becomes ineligible to continue to receive
death benefits, [that survivor shall be paid in a lump sum] an
amount equal to the excess [difference], if any, of [between]
the total amount of all contributions made to the fund by the primary
party, while a member, over [and] the sum of all benefits
paid to the primary party and all of the primary party's [his]
qualified survivors shall be paid in a lump sum to the last person to
receive benefits as a qualified survivor or, if none, to the member's
designee. [The total amount to
be paid in benefits to the primary party and all qualified survivors shall
never be less than the total amount of contributions the primary party made
to the fund while a member.]
(n) Notwithstanding any
other provision of this section:
(1) [,] death
benefits awarded to an unmarried child who is a qualified survivor
[surviving child of a primary party] who is determined by the board
to be disabled [handicapped] under the terms of Subsection (o-2)
[(o)] of this section may be paid to the trustee of a management
trust, supplemental needs or special needs trust, or comparable trust [support
trust] established for the benefit of the child, if the trust meets
the requirements set forth in a procedure adopted from time to time by the
board [qualified surviving child if:
[(1) an opinion of
counsel of the trustee of the support trust is furnished to the board
indicating that payments made to the support trust will not, under existing
law, be considered a resource of the qualified surviving child under Title
42, Section 1396(a)(17), of the United States Code or any successor
statute, as well as applicable state law or regulations governing the
situation]; and
(2) as soon as
practicable after the pension system has knowledge of an event listed in
this subdivision, the system shall
terminate payment of death
benefits to a [coincident with the furnishing of the opinion of
counsel, the board is provided with an executed original of the support
trust document for the records of the pension system;
[(3) the terms of the
trust provide that the board will receive an annual accounting of the
support trust from its trustee, although the board has no legal
responsibility to oversee the support trust; and
[(4) the support]
trust described by Subdivision (1) of this subsection effective [will
terminate as soon as practicable] on the earlier occurrence of the
following events:
(A) the date as of [on]
which the [qualified surviving] child is determined by the board to
no longer be disabled [handicapped] under the terms of this
section;
(B) the date on which the [qualified
surviving] child is lawfully married;
(C) the date on which the [qualified
surviving] child is deceased;
(D) the date on which the pension
system becomes aware that the assets of the [support] trust are
deemed to be the resources of the child under applicable federal or state
laws or regulations; or
(E) if [unless
otherwise excused by the board,] the trustee of the child's [support]
trust fails to provide a court of competent jurisdiction [the
board] with an annual accounting of the child's trust, the
date occurring [within] six months after the date of the
close of the [support] trust's fiscal year.
(o) When a child who, as
a qualified survivor, [surviving child who] is entitled
to receive death benefits under this article reaches the age of 19, the [qualified
surviving] child may no longer participate in the division of the
benefits, but the same undiminished [qualified surviving] child's
share as determined by this section shall be paid to any remaining [qualified
surviving] children who are qualified survivors who remain eligible
to continue to receive death benefits.
(o-1) If benefits are no
longer payable to the trust described in Subsection (n)(1) of this section
in accordance with Subsection (n)(2) of this section, the benefits are
divisible and payable to any remaining children who are qualified survivors
who remain eligible to receive death benefits.
(o-2) If an unmarried
child [under 19 years of age. However, a handicapped qualified
surviving child may not be removed from participation in the division of
benefits on reaching the age of 19 nor may the child be barred from
original participation at any time after reaching the age of 19, and the
payments shall continue for the duration of the handicap. If a qualified
surviving child is not married and], after cessation of entitlement
to death benefits [(]because of attainment of age 19[) but
before age 23], becomes disabled before age 23 [handicapped],
the child is entitled to participate in the division of death benefits
under this article. Notwithstanding the preceding, all death benefits
granted under this subsection are conditioned on the board finding that:
(1) the [qualified
surviving] child is so physically or mentally disabled [handicapped],
either congenitally or through injury suffered or disease contracted, as to
be unable to be self-supporting or to secure and hold gainful employment or
pursue an occupation;
(2) the [qualified
surviving] child is not married;
(3) the disability [handicap]
was not the result of an occupational injury for which the [qualified
surviving] child received compensation equal to or greater than that
provided under this article;
(4) the disability [handicap]
was not the result of an intentional self-inflicted injury or a chronic
illness itself resulting from an addiction of the [qualified surviving]
child through a protracted course of [noncoerced] indulgence in
alcohol, narcotics, or other substance abuse that was not coerced;
and
(5) the disability [handicap]
did not occur as a result of the [qualified surviving] child's participation
in the commission of a felony.
(p) If a [handicapped
qualified surviving] child with a disability received or is
receiving workers' compensation resulting from an occupational
injury equal to an amount less than the death benefit to be provided under
this section, the difference shall be paid out of the assets of the fund in
the form otherwise payable as monthly benefits. For purposes of Subsections
[Subsection] (o), (o-1), and (o-2) of this section, if a lump
sum is awarded for an injury, the fund's actuary may compute a
corresponding monthly equivalent. A finding relating to a [qualified
surviving] child's disability [handicap] is subject to periodic
review and modification by the board.
(q) On the death or marriage
of a [qualified surviving] child granted death benefits under this
article, the death benefits shall cease being paid to that child; however,
the same undiminished [qualified surviving] child's share as
determined by this section shall be uniformly distributed among any remaining
unmarried [qualified surviving] children who are:
(1) under 19 years of
age;
(2) disabled [and
any unmarried qualified surviving children who are handicapped] as
described by Subsection (o-2) [(o)] of this section; or
(3) otherwise entitled to death benefits as qualified survivors.
(r) A spouse of a primary
party who married the primary party [resulting from any marriage to
a former member or pensioner] after the date the primary party
terminated [member or pensioner leaves] active service is not a
qualified survivor [surviving spouse] and is [not]
entitled only to those death benefits, if applicable,
provided under Section 6.063 of this article.
(t) A [qualified]
surviving spouse who first remarried a
primary party on or after April 21, 1988, is eligible to receive
death benefits for the remainder of the [qualified surviving]
spouse's life provided the surviving spouse is a qualified survivor.
This subsection may not be applied retroactively.
(u) The eligibility of a
surviving spouse who first remarried before April 21, 1988, is governed by
Section 6.061 of this article.
(v) The qualified
survivors of a member who dies while performing qualified military service
are entitled to any additional benefits, other than benefits relating to
the qualified military service, that qualified survivors would have
received if the member had returned from qualified military service the day
before death, resumed employment, and then died.
|
SECTION 36. Section 6.06,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (b),
(e), (f), (g), (h), (j), (k), (l), (m), (n), (o), (p), (q), (r), and (t)
and adding Subsections (e-1), (e-2), (j-1), (o-1), (o-2), (u), and (v) to
read as follows:
(b) Same as introduced
version.
(e) Same as introduced
version.
(e-1) If a primary
party had [there is] no [qualifying] surviving spouse,
any [qualified] surviving child who is a qualified survivor [children]
shall receive only the amount calculated under Section 6.07(a) [or (b)]
or Section 6.08(b)(2), (c)(2), (d)(2), or (e)(2) of this article, whichever
is applicable, and is [are] not entitled to what otherwise
would be the [qualified]
surviving spouse's share.
(e-2) If a primary
party does not have a [there is no qualified surviving] spouse
or [qualified surviving] children who are qualified survivors,
any [qualified] dependent parent of the primary party who is a
qualified survivor shall receive only the amount calculated under
Section 6.07(c) or Section 6.08(b)(3), (d)(3), or (e)(3) of this article,
whichever is applicable, and is not entitled to what otherwise would be the
[qualified] surviving spouse's
or [qualified] surviving children's share.
(f) Same as introduced
version.
(g) If there is no surviving
spouse or legal guardian for the [qualified] surviving children of
a primary party who are qualified
survivors and if the board determines that the [qualified]
surviving children lack the discretion to handle money, or in other
appropriate circumstances, notwithstanding any other provision of this
section, the board may request a court of competent jurisdiction to appoint
a suitable person to receive and administer the [qualified]
surviving children's money or in those circumstances described in
Subsection (n) of this section, appoint a new trustee to administer the [qualified]
surviving children's [support] trust.
(h) Same as introduced
version.
(j) Substantially the same as
introduced version.
(j-1) Same as
introduced version.
(k) Same as introduced
version.
(l) The pension system
[board] may require all qualified survivors [persons]
receiving death benefits[, including qualified surviving spouses,
qualified surviving children or their guardians, and qualified surviving
dependent parents,] to file [with the administrator, at least once
every two years,] a sworn statement with the executive director
concerning the qualified survivor's [their] eligibility to
continue to receive death benefits at least once every two years, or at
any other time the executive director considers a sworn statement to be
appropriate to evidence the continued eligibility of the qualified survivor. [The
board may also require a sworn statement from any person receiving death
benefits at any time.] The board may withhold death benefits from any
person who fails or refuses to file a statement when requested to do so.
(m) When the last qualified
survivor of any primary party becomes ineligible to continue to receive
death benefits, [that survivor shall be paid in a lump sum] an
amount equal to the excess [difference], if any, of [between]
the total amount of all contributions made to the fund by the primary
party while a member over [, and] the sum of all benefits
paid to the primary party and all of the primary party's [his]
qualified survivors shall be paid in a lump sum to the last person to
receive benefits as a qualified survivor or, if none exists, to the
member's designee. The total amount
to be paid in benefits to the primary party and all qualified survivors
shall never be less than the total amount of contributions the primary
party made to the fund while a member.
(n) Substantially the same
as introduced version.
(o) Same as introduced
version.
(o-1) Same as
introduced version.
(o-2) Same as
introduced version.
(p) Same as introduced
version.
(q) On the death or marriage
of a [qualified surviving] child granted death benefits under this
article, the death benefits shall cease being paid to that child; however,
the same undiminished [qualified surviving] child's share as
determined by this section shall be uniformly distributed among any remaining
unmarried [qualified surviving] children who are:
(1) under 19 years of
age; or
(2) disabled [and
any unmarried qualified surviving children who are handicapped] as
described by Subsection (o-2) [(o)] of this section and entitled to death benefits as qualified
survivors.
(r) Same as introduced
version.
(t) A [qualified]
surviving spouse who first remarried on or after April
21, 1988, is eligible to
receive death benefits for the remainder of the [qualified surviving]
spouse's life provided the surviving spouse is a qualified survivor.
This subsection may not be applied retroactively.
(u) Same as
introduced version.
(v) Same as
introduced version.
|
|
SECTION 34. Part 6, Article
6243a-1, Revised Statutes, is amended by adding Sections 6.061, 6.062,
6.063, and 6.064 to read as follows:
Sec. 6.061. PROSPECTIVE
REINSTATEMENT OF CERTAIN DEATH BENEFITS; ELECTION. (a) Subject to Subsections (b) and (d) of this
section, the surviving spouse of a primary party who was a member of the
old plan, Plan A, or Plan B whose death benefits, also referred to as
"survivor benefits" or "widow benefits," terminated
because of a remarriage of the surviving spouse that occurred before April
21, 1988, is entitled to receive death benefits, on a prospective basis
only, as of the first day of the month following the month in which the
executive director receives the application.
(b) The board may call an
election of the membership approving this section. If this section is not
approved by a vote of the membership, this section has no effect.
(c) The board shall begin to make reasonable efforts to
notify all known living surviving spouses who may be entitled to a
reinstatement of benefits under this section as
soon as practicable after the board certifies the results of the election
of the membership approving this section.
(d) A surviving spouse's
properly completed, board-approved application for reinstatement of death
benefits under this section must be received by the executive director not
later than the 180th day after the date the board completes, as determined
by the board, the reasonable efforts required by Subsection (c) of this
section.
(e) A surviving spouse's
application for reinstatement of death benefits under this section
constitutes the spouse's waiver of any claims against the pension system,
the board, the executive director, or any other employee of the board or
the pension system arising out of any claim for death benefits.
(f) This section may not
be applied retroactively. A surviving spouse may not receive death
benefits attributable to periods before the executive director's receipt of
a properly completed and board-approved application, and any benefit
provided to a surviving spouse described in this section must be calculated
as if the benefits had not terminated on the surviving spouse's remarriage
notwithstanding the fact the reinstatement of benefits is not retroactive.
Sec. 6.062. LUMP SUM
PAYMENT ON DEATH OF CERTAIN MEMBERS. (a) If an unmarried member dies while
on active service and before beginning participation in DROP, the last
person to receive benefits as the member's qualified survivors or, if the
member does not have a qualified survivor living, the member's designee,
shall be paid a lump sum payment determined in accordance with this section
if the member:
(1) had no qualified
survivors; or
(2) only had qualified
survivors who are children who become ineligible to receive death benefits
before the benefits were paid for at least 120 consecutive months.
(b) The amount of the
lump sum payment under this section is the greater of:
(1) the payment that
could have been provided under Section 6.06(m) of this article; or
(2) an amount equal to
the actuarial equivalent of the remainder of the monthly benefits that
would have been paid for the period from the last monthly benefit payment
to the end of the 120 months, including
the date of the first monthly benefit payment, if any.
(c) If no death benefit
payments have been made with respect to the member, the amount of a monthly
death benefit payment shall be considered to be the monthly death benefit
that would have been paid if the member had died leaving only one dependent
parent who was a qualified survivor.
(d) If a qualified
survivor or designee is entitled to payment under both this section and
Section 6.06(m) of this article, payments shall be made only under this
section.
(e) The payment required
under this section shall be made as soon as practicable after the later of
the date:
(1) of the death of the member;
or
(2) the last qualified
survivor becomes ineligible to receive monthly death benefit payments.
Sec. 6.063. AUTHORITY TO
ELECT CERTAIN ACTUARIALLY REDUCED BENEFITS. (a) The board shall adopt
policies under which a member who is leaving active service or a pensioner
may elect to accept actuarially reduced benefits to provide the following
optional benefits:
(1) a 100 percent joint
and survivor annuity with the member's or pensioner's spouse;
(2) a 50 percent joint
and survivor annuity with a spouse who is not a qualified survivor because
the marriage to the pensioner occurred after the pensioner terminated
active service, provided the election is made not later than one year after
the date of the marriage; or
(3) a death benefit for a
child who is not a qualified survivor because the child was born or adopted
after the member left active service, but only if the child:
(A) is a dependent of the
pensioner, within the meaning of Section 152(a)(1) of the code; and
(B) has not attained 18
years of age at the time of the election.
(b) An election under
this section may not be revoked by the member or pensioner after it is
filed with the pension system.
(c) Notwithstanding any
other provision of this article, an election under this section shall result
in benefits being paid as prescribed by this section instead of as
prescribed by Section 6.01, 6.02, 6.04, 6.05, 6.07, or 6.08 of this
article, as applicable.
(d) A pensioner who
desires to make an election under Subsection (a)(1) of this section after
having made an election under Subsection (a)(2) of this section shall incur
a second actuarial reduction in benefits to pay for the increased survivor
annuity.
(e) Except as provided by
Subsection (f) of this section, a person is not entitled to the payment of
benefits under this section with respect to a pensioner who makes an
election after termination of active service and dies within one year after
making the election, except the amount by which the pensioner's benefits
were reduced are paid to the person who is entitled to receive payments
under Section 6.064 of this article.
(f) Subsection (e) of
this section does not apply to a person who makes an election under
Subsection (a)(1) of this section to receive a 100 percent joint and
survivor annuity with a spouse who is a qualified survivor at the time:
(1) the board grants a
retirement pension; or
(2) a retirement pension
would have been granted but for the fact that the person elected to
participate in DROP after retirement.
(g) The actuarially
reduced pension being paid to the pensioner under this section will not be
increased if the spouse dies before the pensioner, or if the child attains
19 years of age before the pensioner dies.
(h) The joint and
survivor annuity or the pensioner's pension and child's death benefit
payable under this section is the actuarial equivalent of the pension and
death benefits, if any, that would have been payable, at the time of the
election, if the election had not been made. On the death of the
pensioner:
(1) the surviving spouse
of a pensioner who made an election under Subsection (a)(1) receives a
pension that is equal to the reduced pension being received by the
pensioner at the time of death; and
(2) a surviving spouse
who is not a qualified survivor of a pensioner who made an election under
Subsection (a)(2) receives
a pension that is 50
percent of the reduced pension being received by the pensioner at the time
of death.
(i) A pensioner and
surviving spouse receiving a death benefit payable under this section are
eligible for adjustments under Sections 6.12 and 6.13 of this article, if
the pensioner or surviving spouse, as applicable, is otherwise entitled to
those adjustments, except that in each case the adjustment shall be
calculated so that the total pension or death benefit paid is reduced by
the same percentage the pensioner's pension is otherwise reduced under this
section.
(j) A pensioner and
surviving spouse receiving a death benefit payable under this section are
not entitled to the minimum benefits provided under Section 6.10A, 6.10B,
or 6.11 of this article.
(k) A surviving spouse
receiving a death benefit payable under this section is not entitled to the
special death benefit provided under Section 6.09 of this article.
(l) During a period in
which there are two or more qualified survivors of a member who has made a
joint and survivor election under this section, the spousal benefit will be
divided among the eligible survivors under Section 6.07 or 6.08 of this
article, as applicable.
(m) A child's death
benefit elected under Subsection (a)(3) of this section is treated the same
way as a death benefit to a child who is a qualified survivor, except that
it is based on the actuarially reduced pension.
Sec. 6.064. DESIGNEES.
(a) A member, pensioner, or qualified survivor may at any time designate,
in writing, one or more persons as a designee to receive any lump sum
payment due from the pension system on the death of the member, pensioner,
or qualified survivor, as applicable.
(b) A designation under
this section of a person other than the spouse of the member, pensioner, or
qualified survivor, as appropriate, must be made with the written consent
of the spouse, if the individual has a spouse.
(c) A designation made
under this section:
(1) may be revoked or
changed at any time; and
(2) is void if the person
designated dies or goes out of existence before the payment is made.
(d) If a member,
pensioner, or qualified survivor designates a spouse to receive a payment
and the parties are later divorced, the designation is void at the time of
the divorce unless ratified in writing at the time of the divorce or after
that time.
(e) A designation by a
member under this section is void at the time the member becomes a
pensioner unless ratified in writing at the time the member becomes a
pensioner or after that time.
(f) If a member,
pensioner, or qualified survivor does not have a valid designee on file
with the pension system at the time of death, the designee is:
(1) the spouse;
(2) the qualified
survivors, if any, if there is no spouse;
(3) the estate of the
person, if there is no spouse or qualified survivors; or
(4) the heirs of the
person, if there is no spouse, qualified survivors, or estate.
|
SECTION 37. Part 6, Article
6243a-1, Revised Statutes, is amended by adding Sections 6.061, 6.062,
6.063, and 6.064 to read as follows:
Sec. 6.061. PROSPECTIVE
REINSTATEMENT OF CERTAIN DEATH BENEFITS. (a) Subject to Subsection (c) of this section, the
surviving spouse of a primary party who was a member of the old plan, Plan
A, or Plan B whose death benefits, also referred to as "survivor
benefits" or "widow benefits," terminated because of a
remarriage of the surviving spouse that occurred before April 21, 1988, is
entitled to receive death benefits, on a prospective basis only, as of the
first day of the month following the month in which the executive director
receives the application.
No
equivalent provision.
(b) The board shall make
reasonable efforts to notify all known living surviving spouses who may be
entitled to a reinstatement of benefits under this section.
(c) Substantially the
same as introduced version.
(d) Same as
introduced version.
(e) Same as
introduced version.
Sec. 6.062. LUMP-SUM
PAYMENT ON DEATH OF CERTAIN MEMBERS. (a) If an unmarried member dies while
on active service and before beginning participation in DROP, the last
person to receive benefits as the member's qualified survivor or, if the
member does not have a qualified survivor living, the member's designee,
shall be paid a lump-sum payment determined in accordance with this section
if, at the time of the member's death,
the member:
(1) had no qualified
survivors; or
(2) only had qualified
survivors who are children who become ineligible to receive death benefits
before the benefits were paid for at least 120 consecutive months.
(b) The amount of the
lump-sum payment under this section is the greater of:
(1) the payment that
could have been provided under Section 6.06(m) of this article; or
(2) an amount equal to
the actuarial equivalent of the remainder of the monthly benefits that
would have been paid for the period from the last monthly benefit payment
to the end of the 120 months, starting
with the date of the first monthly benefit payment, if any.
(c) Same as
introduced version.
(d) Same as
introduced version.
(e) Same as
introduced version.
Sec. 6.063. Substantially
the same as introduced version.
Sec. 6.064. Same as
introduced version.
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SECTION 35. Sections 6.07,
6.08, 6.09, and 6.10A, Article 6243a-1, Revised Statutes, are amended to
read as follows:
Sec. 6.07. GROUP A DEATH
BENEFITS. (a)(1) If a Group A member dies before leaving active
service [retirement] and before the Group A member had [has]
20 years of pension service, the Group A member's [leaving both a
qualified surviving] spouse and [qualified surviving] children who
are [, the] qualified [surviving spouse shall make an
election for all] survivors shall, in the aggregate, [to]
receive a Group A death benefit [consisting in the aggregate of an
amount] equal to a Group A retirement pension computed under the terms
of Section 6.01 of this article as if the Group A member had completed 20
years of pension service. [An election under this subdivision, once
made, is irrevocable. This Group A death benefit shall be divided one-half
to the qualified surviving spouse and one-half to the qualified surviving
children.]
(2) If a Group A [pensioner
dies during disability retirement and before the Group A pensioner had 20
years of pension service, leaving both a qualified surviving spouse and
qualified children, the survivors in the aggregate shall receive a Group A
death benefit calculated either under Sections 6.01(b) and (c) of this
article if the Group A pensioner's Group A disability pension was
calculated under Section 6.04(a) of this article, or under Section 6.01(e)
of this article if the Group A pensioner's Group A disability pension was
calculated under Section 6.04(b) of this article. This Group A death
benefit shall be divided one-half to the qualified surviving spouse and
one-half to the qualified surviving children.
[(b)(1) If a Group A
member or former Group A] member dies before service retirement and
after the Group A member has [or former Group A member has]
20 years of pension service, the Group A member's [leaving both a
qualified surviving] spouse and [qualified surviving] children, who
are [the] qualified [surviving spouse shall make an election
for all] survivors shall, in the aggregate, [to] receive
a Group A death benefit calculated under Section 6.01 of this article as
if the Group A member [of an amount equal to a Group A retirement
pension the Group A member or former Group A member would have received]
had [the person] left active service on the date of the [death,
computed under the terms of Section 6.01 of this article. An election
under this subdivision, once made, is irrevocable. This] Group A member's
death [benefit shall be divided one-half to the qualified surviving
spouse and one-half to the qualified surviving children].
(3) If a Group A
pensioner dies during service retirement, the Group A pensioner's spouse
and children who are qualified survivors shall, in the aggregate, receive a
Group A death benefit in an amount equal to the Group A retirement pension
being received by the Group A pensioner at the date of death.
(4) If a Group A
pensioner dies after November 25, 1996, while receiving periodic disability
compensation under Section 6.05 of this article or a disability pension
under Section 6.04 of this article, and before the Group A pensioner has 20
years of pension service, the Group A pensioner's spouse and children who
are qualified survivors shall, in the aggregate, receive a Group A death
benefit calculated under Section 6.04 or 6.05 of this article, as
applicable, in the same manner as the Group A pensioner's periodic
disability compensation or disability pension, but as if the Group A
pensioner had completed 20 years of pension service.
(5) [(2)(A)]
If a Group A pensioner who has 20 or more years of pension service dies
during disability retirement, the Group A pensioner's spouse and children
who are qualified survivors shall, in the aggregate, [dies leaving
both a qualified surviving spouse and qualified surviving children, the
qualified surviving spouse shall make an election for all survivors to]
receive a Group A death benefit in an [the] amount equal
to [of] the Group A disability [retirement]
pension being received by the Group A pensioner on the date of the
pensioner's death.
(b) [before the
person's death. This] Group A death benefits under Subsection (a)
of this section [benefit] shall:
(1) be divided
one-half to the [qualified surviving] spouse and one-half to the [qualified
surviving] children who are qualified survivors; and [.]
(2) subject to [(B)
With] the terms of Sections [exception of those circumstances
described by Section] 6.06(n), (o), (o-1), and (o-2) of this
article, be distributed in an equal and uniform manner to the children
described by Subdivision (1) of this subsection [the Group A death
benefits awarded to the qualified survivors under this subsection shall be
paid entirely to the qualified surviving spouse and the qualified surviving
children. The qualified surviving children's one-half share shall be
equally and uniformly distributed by the qualified surviving spouse to them].
(c) [(c)(1)]
If a Group A member or pensioner [former Group A member] dies
leaving no [qualified surviving] spouse or [qualified surviving]
children who are qualified survivors, the [but leaves surviving
one or both qualified surviving dependent parents, the qualified surviving]
dependent parents who are qualified survivors shall [may elect to]
receive a Group A death benefit equal to the death benefit otherwise
payable under Subsection (a) of this section. The death benefit payable to
the dependent parents under this subsection shall be divided equally
between the parents regardless of whether the parents are married or living
at the same residence. [Group A retirement pension the Group A
member or former Group A member would have been entitled to under Section
6.01 of this article after leaving active service. If there are two
qualified dependent parents, the election must be mutual. An election
under this subdivision, once made, is irrevocable. The qualified surviving
dependent parents of a Group A pensioner shall receive a Group A death
benefit equal to the amount of the actual Group A retirement pension being
received at the time of the pensioner's death, divided equally between the
qualified surviving dependent parents.
[(2) If a Group A pensioner
dies during disability retirement and before the Group A pensioner had 20
years of pension service, leaving no qualified surviving spouse or
qualified surviving children, but leaves surviving one or both qualified
surviving dependent parents, the qualified surviving dependent parents may
elect to receive a Group A death benefit calculated either: under Sections
6.01(b) and (c) of this article if the Group A pensioner's Group A
disability pension was calculated under Section 6.04(a) of this article, or
under Section 6.01(e) of this article if the Group A pensioner's Group A
disability pension was calculated under Section 6.04(b) of this article.
An election under this subdivision, once made, is irrevocable.
[(d)] If there is
only one [qualified surviving] dependent parent, that [the]
parent is entitled to one-half of the death benefit described in [amount
determined under Subsection (c)(1) or (c)(2) of] this subsection
[section].
Sec. 6.08. GROUP B DEATH
BENEFITS. (a) If a Group B member dies while on active service, a [former]
Group B member who left active service and is vested under Section
5.06 of this article dies, or a Group B pensioner dies while receiving
[on] service or disability retirement or while receiving periodic
disability compensation under Section 6.05, the person's qualified
survivors, or the person
described in Section
6.06(g) as the recipient of the children's
benefits [guardian
of the qualified surviving children if no qualified surviving spouse exists],
may make application for Group B death benefits. If the deceased [The
qualified surviving spouse of a Group B member or former Group B member
described by this subsection, the guardian of the qualified surviving
children of the person if no qualified surviving spouse exists, or the
qualified dependent parents if no qualified surviving spouse or qualified
surviving children exist, have the option to select whether Group A or
Group B death benefits are received, if the Group B member or former]
Group B member was previously eligible to elect whether to
receive either a Group A or Group B retirement pension, the option to
elect whether Group A or Group B death benefits are received shall be
exercised by one of the following:
(1) a qualified survivor
who is the spouse of the deceased Group B member described by this
subsection;
(2) the person described
in Section 6.06(g) as the recipient of
benefits on behalf of the
deceased member's children who are qualified survivors, if no spouse is a
qualified survivor; or
(3) the qualified
survivors who are dependent parents of the deceased member, if there is
neither a spouse nor children who are qualified survivors.
(a-1) A qualified
survivor who receives Group A death benefits under Subsection (a) of
this section [subsection] is entitled to a ratable portion of
a reimbursement from the fund in the same amount and manner determined
under Section 5.03(d) of this article. A qualified survivor or guardian
desiring a refund of excess contributions must make application for the
refund with the executive director [administrator] within
three years after the date the qualified survivor or guardian makes
application for Group A death benefits. The option contained in this
subsection is not available to qualified survivors of a Group B member [or
former Group B member] who had, at the time of death, already applied
for a retirement pension and selected a Group A retirement pension as
provided by Section 5.03(c) or (c-1) of this article, but the
qualified survivors are entitled to receive a Group A death benefit.
(b) Subject to Subsection
(b-2) of this section, death [Death] benefits shall be computed
as follows for the qualified survivors of Group B members who die while on
active service:
(1) the [A
qualified surviving spouse's Group B] death benefit of a qualified
survivor who is the spouse of a member who began active service:
(A) before March 1, 2011,
shall be the sum of:
(i) the number of years
of pension service earned before September 1, 2017, prorated for fractional
years, times 1.5 percent of the [computed at the rate of 1.5 percent
of the Group B member's] average computation pay determined over the 36
[60] consecutive months of pension service in which the Group
B member received the highest computation pay; plus
(ii) the number of [,
for each year, and prorated for fractional years, of pension service with a
minimum of 20] years of pension service, including pension service
credit imputed under Section 6.05(b-1)
of this article, after September 1, 2017, prorated for fractional years,
times 1.25 [assumed, or 30]
percent of the average
computation pay determined over the 60 consecutive months of pension
service in which the Group B member received the highest
computation pay; or
(B) on or after March 1,
2011, shall be the number of years of pension service, including pension
service imputed under Section 6.05(b-1)
of this article, prorated for fractional years, times the applicable percentage rate set forth below
of average computation pay determined over the 60 consecutive months
of pension service in which the member received the highest computation
pay:
Age of Member When
Retirement Pension Begins - Percent
53 1.0%
54 1.05%
55 1.10%
56 1.15%
57 1.2%
58 and older 1.25%;
(2) the death benefit of
qualified survivors who are a member's children shall be computed in the
same manner as a spouse's benefit is computed under Subdivision (1)(A) or
(B) of this subsection, as applicable, and shall be divided equally among
all of the qualified survivor children; and
(3) the death benefit of
each qualified survivor who is a member's dependent parent shall be
computed in the same manner as a spouse's Group B benefit is computed under
Subdivision (1)(A) or (B) of this subsection, as applicable.
(b-1) Pension service for
purposes of the calculation under Subsection (b) of this section may not be
less than 20 years. Any partial year of pension service for the first 20
years of pension service is counted as a full year of pension service, if
the member was considered by the member's department to have worked a
normal, full-time schedule at the time of the member's death.
(b-2) The death
benefit calculated under Subsection (b) of this section may not
exceed the greater of:
(1) 45 [a
computation for 32 years of pension service, or 48] percent of the member's
average computation pay determined over the 36 or 60 consecutive
months, as applicable, in which the Group B member received the
highest computation pay; or
(2) the vested and
accrued death benefit as determined on August 31, 2017.
(b-3) For purposes of
Subsections (b) through (b-2) of this section:
(1) if [If]
the Group B member had less than 36 or 60 consecutive months, as
applicable, [five years] of pension service, the average computation
pay will be computed based on the person's entire pension service; and
(2) days during which the
member earned no pension service due to a termination of active service or
otherwise must be disregarded in determining the 36 or 60 consecutive months, as applicable, of highest computation
pay.
[(2) A qualified
surviving child's Group B death benefit shall be computed in the same
manner as a qualified surviving spouse's benefit is computed under
Subdivision (1) of this subsection and shall be divided equally among all
of the qualified surviving children.
[(3) Each qualified
surviving dependent parent's Group B death benefit shall be computed in the
same manner as a qualified surviving spouse's Group B benefit is computed
under Subdivision (1) of this subsection.]
(c) Group B death benefits
shall be computed as follows for the qualified survivors of any [former]
Group B member who died after leaving active service and who had vested
rights under Section 5.06 of this article but who had not received [Group
B] retirement benefits [under Section 6.02 of this article] at
the time of death:
(1) the death benefit of
a [The] qualified survivor who is the member's [surviving]
spouse [of the former Group B member] is [entitled to a Group B
death benefit] equal to 50 percent of any [Group B] retirement
pension the [former Group B] member would have been entitled to [under
Section 6.02 of thisarticle] as of the date the [former Group B]
member left active service;[.]
(2) the death benefits of
[The] qualified survivors who are the member's [surviving]
children [of the former Group B member] are [entitled to a Group
B benefit] calculated in the same manner as the spouse's benefit is
computed under Subdivision (1) of this subsection [Group B death
benefit of a qualified surviving spouse], to be divided equally between
the [qualified surviving] children; and[.]
(3) the death benefit of
each [Each of the] qualified survivor who is the member's
[surviving] dependent parent [parents of the former Group
B member] is [entitled to a Group B death benefit] equal to 50
percent of any [Group B] retirement pension the [former Group B]
member would have been entitled to [under the provisions of Section 6.02
of this article] as of the date the [former Group B] member left
active service.
(d) Group B death benefits
shall be computed as follows for the qualified survivors of any Group B
pensioner [of this plan] who dies while receiving service [a
Group B] retirement [pension]:
(1) the death benefit of
a [The] qualified [surviving] survivor who is the
pensioner's spouse [of a Group B pensioner] is [entitled to
Group B death benefits] equal to 50 percent of any retirement pension
the Group B pensioner was receiving at the time of death;[.]
(2) the death benefits of
qualified survivors who are the pensioner's [The qualified surviving]
children [of a Group B pensioner] are [entitled to a Group B
death benefit] calculated in the same manner as the spouse's benefit
is computed under Subdivision (1) of this subsection [Group B death
benefit of a qualified surviving spouse], to be divided equally between
the [qualified surviving] children; and[.]
(3) the death benefit of
each [Each of the] qualified survivor who is the pensioner's
[surviving] dependent parent [parents of a Group B pensioner]
is [entitled to a Group B death benefit] equal to 50 percent of any
retirement pension the Group B pensioner was receiving at the time of
death.
(e) Group B death benefits
shall be computed as follows for the qualified survivors of any Group B
pensioner who dies while receiving disability retirement or while
receiving periodic [a Group B] disability compensation under
Section 6.05 of this article [pension due to either a
service-connected or nonservice-connected disability]:
(1) the death benefit of
a [The] qualified survivor who is the pensioner's [surviving]
spouse [of the Group B pensioner] is [entitled to the greater of
a Group B death benefit] equal to 50 percent of any Group B periodic
disability compensation or disability pension the Group B pensioner
would have been entitled to [under Section 6.05 of this article] as
of the date the Group B pensioner left active service because of
disability, or a Group B death benefit equal to 50 percent of any periodic
disability compensation or [Group B] disability pension the
Group B pensioner was receiving at the time of death;[.]
(2) the death benefits of
[The] qualified survivors who are the pensioner's [surviving]
children [of the Group B pensioner] are [entitled to a Group B
death benefit] calculated in the same manner as the spouse's [Group
B death] benefit is computed under Subdivision (1) of this
subsection [of a qualified surviving spouse], to be divided
equally between the [qualified surviving] children; and[.]
(3) the death benefit of
each [Each of the] qualified survivor who is the pensioner's
[surviving] dependent parent [parents of the Group B
pensioner] is [entitled to the greater of a Group B death benefit]
equal to 50 percent of any periodic disability compensation or
disability pension the Group B pensioner would have been entitled to [under
Section 6.05 of this article] as of the date the Group B pensioner left
active service because of disability, or a Group B death benefit equal to
50 percent of any periodic disability compensation or [Group B]
disability pension the Group B pensioner was receiving at the time of
death.
Sec. 6.09. QUALIFIED
SURVIVING SPOUSE SPECIAL DEATH BENEFIT. (a) A person who is the [Notwithstanding
Sections 6.06 and 6.07 of this article, the qualified surviving] spouse
of a Group A primary party, who is a qualified survivor, and who is
entitled to death benefits under Sections 6.06, 6.061, 6.062, 6.063, and
6.07 of this article is also entitled to a special death benefit
under this section if:
(1) the Group A primary
party:
(A) [elected to
receive a Group A retirement pension and later died, was receiving a
disability or retirement pension either under the terms of Plan A before
the original enactment of this article or elected to receive a Group A
retirement pension under Sections 6.01(e), (f), and (g) of this article and
later died, or was receiving a Group A disability pension under Section
6.04(c) of this article and later died;
[(2) the Group A primary
party (i)] had at least 20 years of pension service, [and]
left active service after October 1, 1985, and was at least 62
[55] years of age on the earlier of the date the primary
party:
(i) left active service;
or
(ii) began participation
in DROP [or older]; or
(B) had [(ii) on
or after May 1, 1990, the Group A primary party, after accruing] at
least 20 years of pension service, left active service on or after May
31, 2000, and on the earlier of the date the primary party left active
service or began participation in DROP, [and] had a total of at
least 78 [80] credits, with each year of pension service,
prorated for fractional years, equal to one credit and with each year of
age, prorated for fractional years, equal to one credit; or [and]
(2) the [(3) the
qualified surviving] spouse has attained 58 [55]
years of age and there are no [qualified surviving] children who
are qualified survivors eligible for death benefits.
(b) Until the requirements
of Subsection (a) of this section are satisfied, a qualified survivor
who is the spouse of a Group A primary party [surviving spouse]
shall receive a Group A death benefit in accordance with Section 6.07 of
this article.
(c) The special Group A
death benefit under Subsection (a) of this section is calculated
based on the following formula:
(P x P x A) + (P x C) + D,
where
A = base pay at the time the
Group A primary party began participation in DROP, begins service
retirement, dies, or becomes disabled, plus longevity pay, plus one-twelfth
of last-received city service incentive pay;
B = Group A primary party's
benefit calculated at the time the Group A primary party began
participation in DROP, begins service retirement, dies, or becomes
disabled;
P = B/A (expressed as a
percentage or a decimal);
C = the number of adjustments
made to a Group A primary party's [Group A] retirement pension,
disability pension, or periodic [Group A] disability compensation,
[pension under Section 6.04 of this article] multiplied by the
amount of the adjustments; and
D = the number of adjustments
made under this article to the [a qualified surviving
spouse's] Group A death benefit of a spouse who is a qualified
survivor under Section 6.07, [of this article] multiplied
by the amount of the adjustments.
(d) A person who is the
[Notwithstanding Sections 6.03 and 6.05 of this article, a qualified
surviving] spouse of a Group B primary party, who is a
qualified survivor, and who is entitled to any death benefits under
Sections 6.06, 6.061, 6.062, 6.063, and [or] 6.08 of this
article is also entitled to a special benefit under this section if:
(1) the Group B primary
party [elected to receive a Group B retirement pension and later died,
or was receiving a Group B disability or retirement pension under this
article and died;
[(2) the Group B primary
party]:
(A) had at least 20 years of
pension service, left active service after October 1, 1985, and was at
least 62 [55] years of age at the earlier
of the date the primary party left [time of leaving] active
service or began participation in DROP; or
(B) on or after May 31,
2000 [1, 1990], [the Group B primary party] left active
service or began participation in DROP, whichever was earlier,
having a total of at least 78 [80] credits, with each year of
pension service, prorated for fractional years, equal to one credit and
with each year of age, determined at the time the Group B primary party
left active service or began participation in DROP, prorated for
fractional years, equal to one credit; or [and]
(2) [(3)] the
[qualified surviving] spouse has attained 62 [55]
years of age, and there are no [qualified surviving] children of
the primary party who are qualified survivors.
(d-1) Until the
requirements of Subsection (d) [(c)] of this section are
satisfied, a spouse who is a qualified survivor [surviving
spouse] may only receive a Group B death benefit in accordance with
Sections 6.06, 6.061, 6.062, 6.063, [6.03] and 6.08 [6.05]
of this article.
(e) The [This]
special Group B death [survivor] benefit under Subsection
(d) of this section is calculated based on the following formula:
(P x P x A) + (P x C) + D,
where
A = average monthly
computation pay at the time the Group B primary party begins service
retirement, dies, [or] becomes disabled, or begins participation
in DROP;
B = the Group B primary
party's benefit [Group B retirement or Group B disability pension]
calculated at the time the Group B primary party begins participation in
DROP, begins to receive service [or disability]
retirement, [or] dies, or becomes disabled;
P = B/A (expressed as a
percentage or a decimal);
C = the number of post-retirement
[postretirement] adjustments made to a Group B primary party's [Group
B] retirement pension, disability pension, or periodic [Group
B] disability compensation [pension under Section 6.05 of
this article] multiplied by the amount of the adjustments; and
D = the number of adjustments
made to the [a qualified surviving spouse's] Group B death
benefit of a qualified survivor who is the primary party's spouse
under Section 6.08 of this article multiplied by the amount of the
adjustments.
Sec. 6.10A. MINIMUM BENEFITS
TO CERTAIN GROUP A PRIMARY PARTIES WHO WERE GROUP A, OLD PLAN, OR
COMBINED PENSION PLAN MEMBERS [ELECT TO RECEIVE RETIREMENT PENSION
UNDER SECTIONS 6.01(B) AND (C)] AND THEIR QUALIFIED SURVIVORS. (a)
Except as provided by Section 6.063 of this article or Subsections
(b) and (h) of this section and notwithstanding any benefit computation and
determination to the contrary contained in this article, the minimum Group
A benefits provided by this section shall be paid to any Group A primary
party who elects to receive a Group A retirement pension under Sections
6.01(b) and (c) of this article, the old plan, or former Section 14(a)
of this article, or to the primary party's qualified survivors [.
The benefits under this section shall be distributed in accordance with
Sections 6.01(b) and (c), 6.04(a), or 6.07 of this article, as applicable],
except that a Group A primary party who elects to receive an actuarially
reduced [Group A retirement pension because of the primary party's
request to receive a Group A] retirement pension before 58
[50] years of age and the primary party's qualified survivors
are not entitled to the [Group A] minimum benefits specified under
this section. An alternate payee is not entitled to the Group A minimum
benefits specified in this section.
(b) A Group A primary party
who elects to receive a Group A retirement pension under Sections 6.01(b)
and (c) of this article, the old plan, or former Section 14(a) of this
article and who left active service with 20 or more years of pension
service is entitled to receive a minimum Group A retirement pension of $2,200
[$1,500] a month. [If the Group A primary party's Group A
retirement pension is subject to a qualified domestic relations order and
the sum of the actuarial equivalents of the monthly benefits payable to the
Group A primary party and the alternate payee is less than the actuarial
equivalent of the minimum monthly Group A retirement pension described by
this subsection, the Group A primary party's monthly Group A retirement
pension will be increased so that the sum of the actuarial equivalents of
the alternate payee's and the Group A primary party's monthly Group A
retirement pension equals the actuarial equivalent of the minimum monthly
Group A retirement pension calculated under this subsection.]
(c) In the absence of
children who are [A] qualified survivors, a [surviving]
spouse who is a qualified survivor of a Group A primary party who
elected to receive a Group A retirement pension under Sections 6.01(b) and
(c) of this article, the old plan, or former Section 14(a) of this
article, will receive a minimum monthly Group A death benefit of $1,200
[$750].
(d) A spouse who is a
qualified survivor [surviving spouse] of a Group A primary
party who elected to receive a Group A retirement pension under Sections
6.01(b) and (c) of this article, the old plan, or former Section 14(a)
of this article, will receive, if there are children who are
qualified survivors [surviving children], a minimum Group A
death benefit of $1,100 [$750] a month. [The qualified
surviving children, as a group, will receive a minimum Group A death
benefit of $750 a month, to be divided equally among them.]
(e) In the absence of a spouse
who is a qualified survivor [surviving spouse] of a Group
A primary party who elected to receive a Group A retirement pension under Sections
6.01(b), [and] (c), or (e) of this article, the old
plan, or former Section 14(a) of this article, the primary party's children
who are qualified survivors [surviving children], as a
group, will receive a minimum Group A death benefit of $1,100 [$750]
a month, to be divided equally among them.
(f) If there is neither a
[In the absence of both a qualified surviving] spouse nor a child
who is a [and] qualified survivor [surviving children]
of a Group A primary party who elected to receive a Group A retirement
pension under Sections 6.01(b) and (c) of this article, the old plan, or
former Section 14(a) of this article, each [qualified surviving]
dependent parent who is a qualified survivor will receive a minimum
Group A death benefit of $1,100 [$750] a month. If only one
of them is surviving, that [the qualified surviving]
dependent parent will receive a minimum Group A death benefit equal to $1,100
[$750] a month.
(g) Notwithstanding the
minimum monthly benefit described in other subsections of this section, a
Group A primary party who receives periodic disability compensation
under Section 6.05(b) or a Group A disability pension under Section
6.04(a) of this article, the old plan, or former
Section 17(a) of this
article, [calculated in the same manner as a Group A retirement
pension under Sections 6.01(b) and (c) of this article,] shall receive
a minimum Group A disability pension equal to $2,200 [$1,500]
a month.
(h) If a Group A pensioner
who received a monthly benefit under Section 6.05(b-1) of this article or a
disability pension under Section 6.04(a) of this article, calculated in the
same manner as a Group A retirement pension under Sections 6.01(b) and (c),
the old plan, or former Section
17(a) of this article
[primary party's disability pension is subject to a qualified domestic
relations order and the sum of the actuarial equivalents of the monthly
benefits payable to the Group A primary party and the alternate payee is
less than the actuarial equivalent of the minimum monthly Group A
disability pension determined under Subsection (g) of this section, the
Group A primary party's minimum monthly Group A disability pension will be
increased so that the sum of the actuarial equivalents of the alternate
payee's and the Group A primary party's minimum monthly Group A disability
pension equals the amount determined under Subsection (g) of this section.
[(i) If a Group A
pensioner who received a disability under Section 6.04(a) of this article,
calculated in the same manner as a Group A retirement pension under
Sections 6.01(b) and (c) of this article] before the completion of 20
years of pension service dies, the qualified survivors will receive a
minimum Group A death benefit as provided under Subsection (c), (d), (e),
or (f) of this section, as applicable, whichever is greatest.
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SECTION 38. Sections 6.07,
6.08, 6.09, and 6.10A, Article 6243a-1, Revised Statutes, are amended to
read as follows:
Sec. 6.07. Substantially the same
as introduced version.
Sec. 6.08. GROUP B DEATH
BENEFITS. (a) If a Group B member dies while on active service, a [former]
Group B member who left active service and is vested under Section
5.06 of this article dies, or a Group B pensioner dies while receiving
[on] service or disability retirement or while receiving periodic
disability compensation under Section 6.05 of this article, the
person's qualified survivors, or the person described in Section 6.06(g)
or (j) of this article as the recipient of the children's
benefits [guardian of the qualified surviving children if no
qualified surviving spouse exists], may make application for Group B
death benefits. If the deceased [The qualified surviving spouse
of a Group B member or former Group B member described by this subsection,
the guardian of the qualified surviving children of the person if no
qualified surviving spouse exists, or the qualified dependent parents if no
qualified surviving spouse or qualified surviving children exist, have the
option to select whether Group A or Group B death benefits are received, if
the Group B member or former] Group B member was previously
eligible to elect whether to receive either a Group A or Group B
retirement pension, the option to elect whether Group A or Group B death
benefits are received shall be exercised by one of the following:
(1) a qualified survivor
who is the spouse of the deceased Group B member described by this
subsection;
(2) the person described
in Section 6.06(g) or (j) of this article as the recipient of
benefits on behalf of the deceased member's children who are qualified
survivors, if no spouse is a qualified survivor; or
(3) the qualified
survivors who are dependent parents of the deceased member, if there is
neither a spouse nor children who are qualified survivors.
(a-1) Same as
introduced version.
(b) Subject to Subsection
(b-2) of this section, death [Death] benefits shall be computed
as follows for the qualified survivors of Group B members who die while on
active service:
(1) the [A
qualified surviving spouse's Group B] death benefit of a qualified
survivor who is the spouse of a member who began active service:
(A) before March 1, 2011,
shall be the sum of:
(i) the number of years
of pension service earned before September 1, 2017, prorated for fractional
years, times 1.5 percent of the [computed at the rate of 1.5 percent
of the Group B member's] average computation pay determined over the 36
[60] consecutive months of pension service in which the Group
B member received the highest computation pay; plus
(ii) the number of [,
for each year, and prorated for fractional years, of pension service with a
minimum of 20] years of pension service, including pension service
credit imputed under Section 6.05(c)
of
this article, after
September 1, 2017, prorated for fractional years, times the applicable percentage rate set forth below
[assumed, or 30 percent]
of the average computation pay determined over the 60 consecutive months of
pension service in which the Group B member received the highest
computation pay:
(B) on or after March 1,
2011, shall be the number of years of pension service, including pension
service imputed under Section 6.05(c)
of this article, prorated for fractional years, times 1.25 percent of the average computation
pay determined over the 60 consecutive months of pension service in which
the Group B member received the
highest computation pay;
Age of Member When
Retirement Pension Begins - Percent
58 and older 1.25%
57 1.2%
56 1.15%
55 1.10%
54 1.05%
53 and younger 1.0%; or
(2) the death benefit of
qualified survivors who are a member's children shall be computed in the
same manner as a spouse's benefit is computed under Subdivision (1)(A) or
(B) of this subsection, as applicable, and shall be divided equally among
all of the children who are qualified survivors; and
(3) the death benefit of
each qualified survivor who is a member's dependent parent shall be
computed in the same manner as a spouse's Group B benefit is computed under
Subdivision (1)(A) or (B) of this subsection, as applicable.
(b-1) Same as
introduced version.
(b-2) Same as
introduced version.
(b-3) For purposes of
Subsections (b) through (b-2) of this section:
(1) if [If]
the Group B member had less than 36 or 60 consecutive months, as
applicable, [five years] of pension service, the average
computation pay will be computed based on the person's entire pension
service; and
(2) days during which the
member earned no pension service due to a termination of active service or
otherwise must be disregarded in determining the 36 or 60 consecutive
months of highest computation pay.
[(2) A qualified
surviving child's Group B death benefit shall be computed in the same
manner as a qualified surviving spouse's benefit is computed under
Subdivision (1) of this subsection and shall be divided equally among all
of the qualified surviving children.
[(3) Each qualified
surviving dependent parent's Group B death benefit shall be computed in the
same manner as a qualified surviving spouse's Group B benefit is computed
under Subdivision (1) of this subsection.]
(c) Same as introduced
version.
(d) Same as introduced
version.
(e) Same as introduced
version.
Sec. 6.09. QUALIFIED
SURVIVING SPOUSE SPECIAL DEATH BENEFIT. (a) A person who is the [Notwithstanding
Sections 6.06 and 6.07 of this article, the qualified surviving] spouse
of a Group A primary party, who is a qualified survivor, and who is
entitled to death benefits under Sections 6.06, 6.061, 6.062, 6.063, and
6.07 of this article is also entitled to a special death benefit
under this section if:
(1) the Group A primary
party:
(A) [elected to
receive a Group A retirement pension and later died, was receiving a
disability or retirement pension either under the terms of Plan A before
the original enactment of this article or elected to receive a Group A
retirement pension under Sections 6.01(e), (f), and (g) of this article and
later died, or was receiving a Group A disability pension under Section
6.04(c) of this article and later died;
[(2) the Group A primary
party (i)] had at least 20 years of pension service, [and]
left active service after October 1, 1985, and was at least 55 years of age on the earlier of
the date the primary party:
(i) left active service;
or
(ii) began participation
in DROP [or older]; or
(B) had [(ii) on
or after May 1, 1990, the Group A primary party, after accruing] at
least 20 years of pension service, left active service on or after May
31, 2000, and on the earlier of the date the primary party left active
service or began participation in DROP, [and] had a total of at
least 78 [80] credits, with each year of pension service,
prorated for fractional years, equal to one credit and with each year of
age, prorated for fractional years, equal to one credit; or [and]
(2) the [(3) the
qualified surviving] spouse has attained 55
years of age and there are no [qualified surviving] children who
are qualified survivors eligible for death benefits.
(b) Same as introduced
version.
(c) Substantially the same
as introduced version.
(d) A person who is the
[Notwithstanding Sections 6.03 and 6.05 of this article, a qualified
surviving] spouse of a Group B primary party, who is a
qualified survivor, and who is entitled to any death benefits under
Sections 6.06, 6.061, 6.062, 6.063, and [or] 6.08 of this
article is also entitled to a special benefit under this section if:
(1) the Group B primary
party [elected to receive a Group B retirement pension and later died,
or was receiving a Group B disability or retirement pension under this
article and died;
[(2) the Group B primary
party]:
(A) had at least 20 years of
pension service, left active service after October 1, 1985, and was at
least 55 years of age at the earlier
of the date the primary party left [time of leaving] active
service or began participation in DROP; or
(B) on or after May 31,
2000 [1, 1990], [the Group B primary party] left active
service or began participation in DROP, whichever was earlier,
having a total of at least 78 [80] credits, with each year of
pension service, prorated for fractional years, equal to one credit and
with each year of age, determined at the time the Group B primary party
left active service or began participation in DROP, prorated for
fractional years, equal to one credit; or [and]
(2) [(3)] the
[qualified surviving] spouse has attained 55 years of age, and there are no [qualified surviving]
children of the primary party who are qualified survivors.
(d-1) Same as
introduced version.
(e) Same as introduced
version.
Sec. 6.10A. MINIMUM BENEFITS
TO CERTAIN GROUP A PRIMARY PARTIES WHO WERE GROUP A, OLD PLAN, OR
COMBINED PENSION PLAN MEMBERS [ELECT TO RECEIVE RETIREMENT PENSION
UNDER SECTIONS 6.01(B) AND (C)] AND THEIR QUALIFIED SURVIVORS. (a)
Except as provided by Section 6.063 of this article or Subsections
(b) and (h) of this section and notwithstanding any benefit computation and
determination to the contrary contained in this article, the minimum Group
A benefits provided by this section shall be paid to any Group A primary
party who elects to receive a Group A retirement pension under Sections
6.01(b) and (c) of this article, the old plan, or former Section 14(a)
of this article, or to the primary party's qualified survivors [.
The benefits under this section shall be distributed in accordance with
Sections 6.01(b) and (c), 6.04(a), or 6.07 of this article, as applicable],
except that a Group A primary party who elects to receive an actuarially
reduced [Group A retirement pension because of the primary party's
request to receive a Group A] retirement pension before 50 years of age and the primary party's
qualified survivors are not entitled to the [Group A] minimum
benefits specified under this section. An alternate payee is not entitled
to the Group A minimum benefits specified in this section.
(b) Same as introduced
version.
(c) Substantially the same
as introduced version.
(d) Substantially the same as
introduced version.
(e) Substantially the same
as introduced version.
(f) Same as introduced
version.
(g) Substantially the same
as introduced version.
(h) Substantially the same
as introduced version.
[(i)] Substantially
the same as introduced version.
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|
SECTION 36. The heading to
Section 6.10B, Article 6243a-1, Revised Statutes, is amended.
|
SECTION 39. Same as
introduced version.
|
|
SECTION 37. Sections
6.10B(a), (b), (c), (d), (e), (f), (g), and (i), Article 6243a-1, Revised
Statutes, are amended to read as follows:
(a) Except as provided by Section
6.063 of this article and Subsection [Subsections] (b) [and
(h)] of this section and notwithstanding any benefit computation and
determination to the contrary contained in this article, the minimum Group
A benefits provided by this section shall be paid to any Group A primary
party who elects to receive a Group A retirement pension under Section
6.01(e) of this article, Plan A, or former Section 14(b) of this article
or to the primary party's qualified survivors[. The benefits
under this section shall be distributed in accordance with Section 6.01(e),
6.04(b), or 6.07 of this article, as applicable], except that a Group A
primary party who elects to receive an actuarially reduced Group A
retirement pension [because of the primary party's request to receive a
Group A retirement pension] before 58 [55] years of age and the
primary party's qualified survivors are not entitled to the [Group A]
minimum benefits specified in [under] this section. An
alternate payee is not entitled to the Group A minimum benefits specified
in this section.
(b) A Group A primary party
who elects [elected] to receive a Group A retirement pension
under Section 6.01(e) of this article, Plan A, or former Section 14(b)
of this article and who left active service with 20 or more years of
pension service is entitled to receive a minimum [Group A]
retirement pension equal to the greater of $2,200 [(i) $1,500]
a month or [(ii)] $1,000 a month adjusted, if applicable, in
the manner described by Section 6.12 [6.12(a)] of this
article. [If the Group A primary party's Group A retirement pension is
subject to a qualified domestic relations order and the sum of the
actuarial equivalents of the monthly benefits payable to the Group A
primary party and the alternate payee is less than the actuarial equivalent
of the minimum monthly Group A retirement pension described by this
subsection, the Group A primary party's monthly Group A retirement pension
will be increased so that the sum of the actuarial equivalents of the
alternate payee's and the Group A primary party's monthly Group A
retirement pension equals the actuarial equivalent of the minimum monthly
Group A retirement pension calculated under this subsection.]
(c) In the absence of
children who are [A] qualified survivors, a [surviving]
spouse who is a qualified survivor of a Group A primary party who elects
[elected] to receive a Group A retirement pension under Section 6.01(e)
of this article, Plan A, or former Section 14(b) of this article,
will receive a minimum monthly [Group A] death benefit equal
to the greater of $1,200 [(i) $750] a month or [(ii)]
$500 a month adjusted, if applicable, in the manner described by Section
6.12 [6.12(a)] of this article.
(d) A spouse who is a
qualified survivor [surviving spouse] of a Group A primary
party who elects to receive a Group A retirement pension under Section
6.01(e) of this article, Plan A, or former Section 14(b) of this article,
will receive, if there are children who are qualified survivors
[surviving children], a minimum Group A death benefit equal to the
greater of $1,100 [(i) $750] a month or [(ii)] $500 a
month adjusted, if applicable, in the manner described by Section 6.12
[6.12(a)] of this article. The children who are qualified survivors
[surviving children], as a group, will receive a minimum [Group A]
death benefit equal to the greater of $1,100 [(iii) $750] a
month or [(iv)] $500 a month adjusted, if applicable, in the
manner described by Section 6.12 [6.12(a)] of this article,
to be divided equally among them.
(e) In the absence of a spouse
who is a qualified survivor [surviving spouse] of a Group
A primary party who elected to receive a Group A retirement pension under
Section 6.01(e) of this article, Plan A, or former Section 14(b) of this
article, the [the qualified surviving children of a Group A]
primary party's children who are qualified survivors [party],
as a group, will receive a minimum Group A death benefit equal to the
greater of $1,100 [(i) $750] a month or [(ii)] $500 a
month adjusted, if applicable, in the manner described by Section 6.12
[6.12(a)] of this article, to be divided equally among them.
(f) If there is neither a
[In the absence of both a qualified surviving] spouse nor child
who is a [and] qualified survivor [surviving children]
of a Group A primary party who elected to receive a Group A retirement
pension under Section 6.01(e) of this article, Plan A, or the former
Section 14(b) of this article, each [qualified surviving]
dependent parent who is a qualified survivor will receive a minimum
Group A death benefit equal to the greater of $1,100 [(i) $750]
a month or [(ii)] $500 a month adjusted, if applicable, in
the manner described by Section 6.12 [6.12(a)] of this
article. If only one of them is surviving, that [the qualified
surviving] dependent parent will receive a minimum Group A death
benefit equal to the greater of $1,100 [(iii) $750] a month
or [(iv)] $500 a month adjusted, if applicable, in the manner
described by Section 6.12 [6.12(a)] of this article.
(g) Notwithstanding the
minimum monthly benefit as described in other subsections of this section,
a Group A primary party who leaves active service on a non-service-connected
[nonservice-connected] disability under Section 6.04(a) [6.04(b)(2)]
of this article, Plan A, or former Section 17(b)(2) of this article,
with less than 20 years of pension service shall receive a minimum monthly
Group A disability pension equal to the greater of $110 [(i) $75]
multiplied by the number of years of the primary party's pension service or
[(ii)] $50 multiplied by the number of years of the primary party's
pension service, the product adjusted, if applicable, in the manner
described by Section 6.12 [6.12(a)] of this article.
(i) If a Group A pensioner
who received a non-service-connected [nonservice-connected]
disability under Section 6.04(a) [6.04(b)(2)] of this article,
Plan A,
or former Section 17(b)(2)
of this article, before the completion of 20 years of pension service
dies, the qualified survivors will each receive the amount specified in
Section 6.07 of this article or the minimum [monthly] Group A death
benefit as provided under Subsection (c), (d), (e), or (f) of this section,
as applicable, whichever is greatest.
|
SECTION 40. Sections
6.10B(a), (b), (c), (d), (e), (f), (g), and (i), Article 6243a-1, Revised
Statutes, are amended to read as follows:
(a) Except as provided by Section
6.063 of this article and Subsection [Subsections] (b) [and
(h)] of this section and notwithstanding any benefit computation and
determination to the contrary contained in this article, the minimum Group
A benefits provided by this section shall be paid to any Group A primary
party who elects to receive a Group A retirement pension under Section
6.01(e) of this article, Plan A, or former Section 14(b) of this article
or to the primary party's qualified survivors[. The benefits
under this section shall be distributed in accordance with Section 6.01(e),
6.04(b), or 6.07 of this article, as applicable], except that a Group A
primary party who elects to receive an actuarially reduced Group A
retirement pension [because of the primary party's request to receive a
Group A retirement pension] before 55
years of age and the primary party's qualified survivors are not entitled
to the [Group A] minimum benefits specified in [under]
this section. An alternate payee is not entitled to the Group A minimum
benefits specified in this section.
(b) Same as introduced
version.
(c) Substantially same as
introduced version.
(d) Substantially same as
introduced version.
(e) Same as introduced
version.
(f) Same as introduced
version.
(g) Substantially same as
introduced version.
(i) If a Group A pensioner
who received a non-service-connected [nonservice-connected]
disability pension under
Section 6.04(a) [6.04(b)(2)] of this article, Plan A, or
former Section 17(b)(2) of this article before the completion of 20
years of pension service dies, the qualified survivors will each receive
the amount specified in Section 6.07 of this article or the minimum [monthly]
Group A death benefit as provided under Subsection (c), (d), (e), or (f) of
this section, as applicable, whichever is greatest.
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|
SECTION 38. Sections 6.11,
6.12, and 6.13, Article 6243a-1, Revised Statutes, are amended to read as
follows:
Sec. 6.11. MINIMUM BENEFITS
TO GROUP B PRIMARY PARTIES AND THEIR QUALIFIED SURVIVORS. (a) Except as
provided by Section 6.063 of this article or Subsections (b), (c),
and (h) of this section and notwithstanding any benefit computation and
determination to the contrary contained in this article, the minimum Group
B benefits provided by this section shall be paid to any Group B primary
party or the primary party's qualified survivors, except further
that a Group B primary party who elects to receive an actuarially reduced [Group
B] retirement pension [because of
the primary party's request to receive the pension at or after age 45, but]
before age 58, including a request for a benefit under Sections 6.02(c)
and (d), [50] and the primary party's qualified
survivors[,] or [an] alternate payee [of the primary party],
are not entitled to the Group B minimum benefits specified by this section.
(b) If a Group B primary
party leaves active service with 20 or more years of pension service, the
Group B primary party is entitled to receive a Group B minimum retirement
pension equal to the greater of $2,200 [(i) $1,500] a month
or [(ii)] $925 a month, which sum may (A) increase at the rate of $5
a month for each year of pension service beyond 20 years, but the increase
may not exceed $75 and (B) be adjusted, if applicable, in the manner
described by Section 6.12 [6.12(a)] of this article. [If
a Group B primary party's Group B retirement pension is or becomes subject
to a qualified domestic relations order and the sum of the actuarial
equivalents of the monthly Group B retirement pension payable to the Group
B primary party and the alternate payee is less than the actuarial
equivalent of the minimum monthly Group B retirement pension as calculated
under this subsection, the Group B primary party's monthly Group B
retirement pension will be increased so that the sum of the actuarial
equivalents of both the alternate payee's and the Group B primary party's
Group B retirement pensions equals the actuarial equivalent of the minimum
monthly Group B retirement pension as calculated under this subsection.]
(c) If a Group B primary
party leaves active service with less than 20 years of pension service, the
primary party is entitled to receive a minimum monthly Group B retirement
pension equal to the greater of:
(1) $2,200 [(i)
$1,500] a month divided by 20 and multiplied by the Group B primary
party's number of years of pension service; or
(2) [(ii)]
$925 a month divided by 20 and multiplied by the Group B primary party's
number of years of pension service, which amount is then adjusted, if
applicable, in the manner described by Section 6.12 [6.12(a)]
of this article. [If a Group B primary party's retirement pension is or
becomes subject to a qualified domestic relations order and the sum of the
actuarial equivalents of the monthly Group B retirement pension payable to
the Group B primary party and the alternate payee is less than the
actuarial equivalent of the monthly retirement pension as calculated under
this subsection, the Group B primary party's monthly Group B retirement
pension will be increased so that the sum of the actuarial equivalents of
the alternate payee's and the Group B primary party's monthly Group B
retirement pensions equals the actuarial equivalent of the minimum monthly
Group B retirement pension as calculated under this subsection.]
(d) In the absence of children
who are qualified survivors, a spouse who is a [surviving
children, the] qualified survivor [surviving spouse] of a
Group B primary party will receive a minimum Group B death benefit equal to
the greater of:
(1) $1,200 [(i)
$750] a month; or
(2) [(ii)]
$600 a month adjusted, if applicable, in the manner described by
Section 6.12 [6.12(a)] of this article.
(e) A spouse who is a
qualified survivor [surviving spouse] of a Group B primary
party [will receive], if there are children who are qualified
survivors [surviving children], will receive [the
greater of a minimum Group B death benefit of 50 percent of the primary
party's minimum monthly Group B retirement pension described by Subsection
(b) or (c) of this section, whichever is applicable. The qualified
surviving children, as a group, will receive the greater of] a minimum
[monthly] Group B death benefit of $1,100 a month [50
percent of the minimum monthly Group B retirement pension described by
Subsection (b) or (c) of this section, whichever is applicable, to be
divided equally among them].
(f) The [In the
absence of a qualified surviving spouse, the qualified surviving]
children who are qualified survivors of a Group B primary party, as
a group, will receive a minimum Group B death benefit equal to the greater
of $1,100 [(i) $750] a month or [(ii)] $600 a month
adjusted, if applicable, in the manner described by Section 6.12
[6.12(a)] of this article, to be divided equally between them.
(g) If there is neither a
[In the absence of either a qualified surviving] spouse nor a
child who is a [or] qualified survivor [surviving
children], each [qualified surviving] dependent parent who is
a qualified survivor of the deceased Group B primary party will receive
a minimum death benefit of $1,100 a month [Group B minimum death
benefit equal to the greater of 50 percent of the Group B primary party's
minimum monthly Group B retirement pension described by Subsection (b) or
(c) of this section, whichever is applicable. If only one qualified
surviving dependent parent is surviving, the parent will receive a Group B
minimum death benefit of 50 percent of the minimum monthly Group B
retirement pension described by Subsection (b) or (c) of this section,
whichever is applicable].
(h) Notwithstanding the
minimum monthly [Group B] retirement pension otherwise described by
this section, a Group B primary party who left active service on a non-service-connected
[nonservice-connected]
disability with less than 20 years of pension service will receive a
minimum monthly [Group B] disability pension equal to the greater of
$110 [(i) $75] multiplied by the number of years of the
primary party's pension service or [(ii)] $46.25 multiplied by the
number of years of the primary party's pension service, the product
adjusted in the manner, if applicable, described by Section 6.12
[6.12(a)] of this article. [If the Group B primary party's Group
B disability pension is or becomes subject to a qualified domestic
relations order and the sum of the actuarial equivalents of the monthly
Group B disability pension payable to the Group B primary party and the
alternate payee is less than the actuarial equivalent of the monthly
disability pension as calculated under this subsection, the Group B primary
party's monthly Group B disability pension will be increased so that the
sum of the actuarial equivalents of the alternate payee's and the Group B
primary party's monthly Group B disability pensions equals the actuarial
equivalents of the minimum monthly Group B disability pension as calculated
under this subsection.] If a Group B primary party who was receiving a
non-service-connected [nonservice-connected Group B]
disability pension before the completion of 20 years pension service dies,
the qualified survivors will receive the amount specified in Section 6.08
of this article, or the [Group B] minimum monthly death benefits
granted to qualified survivors as provided by Subsections (d), (e), (f),
and (g) of this section, as applicable, whichever is greater.
Sec. 6.12. ADJUSTMENTS TO
RETIREMENT AND DISABILITY PENSION BENEFITS. (a) This section applies
to the following benefits provided under this article:
(1) [Annually on
the first day of October,] a retirement pension calculated under Section
6.01(e) [Section 6.01] or 6.02 of this article;
(2) [,] a
disability pension calculated under Section 6.04 of this article, other
than under Section 6.04(a) of this article;
(3) periodic disability
compensation benefit under Section [or] 6.05 of this article,
other than Section 6.05(b-1) of this article; [,] or
(4) a death benefit
calculated under:
(A) Section 6.07 of
this article, if calculated in the manner of a retirement pension under
Section 6.01(e) of this article or in the manner of a disability
compensation benefit under Section 6.05(b-1)
of this article; or
(B) Section 6.08 of
this article currently in pay status, or pending board approval on the last
day of September [, will be increased by an amount equal to four
percent, not compounded, of the original amount of the retirement or
disability pension or death benefit].
(b) Except as provided by
Subsection (d) of this section, annually on the first day of October, the
pension system shall increase the base pension of a benefit described by
Subsection (a) of this section by a percentage equal to the average annual
rate of actual investment return of the pension system for the five-year
period ending on the December 31 preceding the effective date of the
adjustment less five percent.
(c) An adjustment under
this section may not exceed four percent of the applicable base pension
benefit.
(d) The pension system
may only make an adjustment to benefits under this section if the amount of
the pension system's market value of assets divided by the amount of the
pension system's actuarial accrued liabilities, after giving effect to the
adjustment, is not less than .70.
(e)
No equivalent provision.
(e) The following persons
may not receive an adjustment under this section:
(1) a member on active
service, including a DROP participant;
(2) a pensioner until the
first October 1 occurring after both the pensioner's retirement and the
earlier of:
(A) the date the
pensioner reaches 62 years of age; or
(B) the third anniversary
of the date the pensioner retired; or
(3) a qualified survivor
until the first October 1 occurring after the earlier of:
(A) the date the
qualified survivor reaches 62 years of age;
(B) the third anniversary
of the date the primary party retired; or
(C) the third anniversary
of the date of the member's or pensioner's death.
(f) [(b)] A [Group
B] retirement or [Group B] disability pension or periodic
disability compensation paid to any Group B pensioner may not be less
than the Group B pensioner's base pension.
(g) The death benefit
of the qualified survivors who are the [a Group B qualified
surviving] spouse, [Group B qualified surviving] dependent parent,
or child of a Group B pensioner [parents, as a group, or Group B
qualified surviving children], as a group, may not be less than 50
percent of the [a Group B] pensioner's base pension.
Sec. 6.13. SUPPLEMENT TO
CERTAIN RECIPIENTS 62 [55] YEARS OF AGE OR OLDER. If
a pensioner had at least 20 years of pension service under any plan adopted
pursuant to Article 6243a or this article, or if a pensioner is receiving the
periodic [a service-connected] disability compensation
benefit under Section 6.05 of this article [pension], the
pensioner, the pensioner's [qualified surviving] spouse who is a
qualified survivor eligible to receive benefits under this article, or
the pensioner's [qualified surviving] children who are qualified
survivors, as a group, under Section 6.06 [6.06(o)] of
this article are entitled to receive, when the pensioner or spouse who
is a qualified survivor [surviving spouse] attains 62
[55] years of age, [the greater of] a monthly
supplement equal to the greater of $50 or three percent of their
total monthly benefit, [and] for months [years]
beginning on and after January 1, 1991, and
ending on August 31, 2017, a [the] monthly supplement [will
be] equal to the greater of $75 or three percent of their total monthly
benefit, and for months beginning
after August 31, 2017, a monthly supplement equal to zero. For
purposes only of calculating this supplement, the phrase "their total
monthly benefit" means the amount payable to a pensioner or qualified
survivors under the terms of the plans described by this section under
which the pensioner or qualified survivor elected to receive benefits but
does not include the supplement authorized by this section or any adjustments
under Section 6.12 of this article made after September 1, 2017.
No
equivalent provision.
|
SECTION 41. Sections 6.11,
6.12, and 6.13, Article 6243a-1, Revised Statutes, are amended to read as
follows:
Sec. 6.11. MINIMUM BENEFITS
TO GROUP B PRIMARY PARTIES AND THEIR QUALIFIED SURVIVORS. (a) Except as
provided by Section 6.063 of this article or Subsections (b), (c),
and (h) of this section and notwithstanding any benefit computation and
determination to the contrary contained in this article, the minimum Group
B benefits provided by this section shall be paid to any Group B primary
party or the primary party's qualified survivors, except further
that a Group B primary party who elects to receive an actuarially reduced [Group
B] retirement pension, including
a request for a benefit under Sections 6.02(c) and (d) of this article, [because of the primary party's request to
receive the pension at or after age 45, but before age 50] and
the primary party's qualified survivors[,] or [an] alternate
payee [of the primary party], are not entitled to the Group B
minimum benefits specified by this section.
(b) Same as introduced
version.
(c) Same as introduced
version.
(d) Same as introduced
version.
(e) Same as introduced
version.
(f) Same as introduced
version.
(g) Same as introduced
version.
(h) Same as introduced
version.
Sec. 6.12. ADJUSTMENTS TO
RETIREMENT AND DISABILITY PENSION BENEFITS. (a) This section applies
to the following benefits provided under this article:
(1) [Annually on
the first day of October,] a retirement pension calculated under Section
6.01(e) [Section 6.01] or 6.02 of this article;
(2) [,] a
disability pension calculated under Section 6.04 of this article, other
than under Section 6.04(a) of this article;
(3) periodic disability
compensation benefit under Section [or] 6.05 of this article,
other than Section 6.05(b-1) of this article; [,] or
(4) a death benefit
calculated under:
(A) Section 6.07 of
this article, if calculated in the manner of a retirement pension under
Section 6.01(e) of this article or in the manner of a disability
compensation benefit under Section 6.05(b)
of this article; or
(B) Section 6.08 of
this article currently in pay status, or pending board approval on the last
day of September [, will be increased by an amount equal to four
percent, not compounded, of the original amount of the retirement or
disability pension or death benefit].
(b) Except as provided by
Subsection (d) of this section, annually on the first day of October, the
pension system shall increase the base pension of a benefit described by
Subsection (a) of this section by a percentage equal to the average annual
rate of actual investment return of the pension system for the five-year
period ending on the December 31 preceding the effective date of the
adjustment less five percent.
(c) An adjustment under
this section may not be less than zero
percent or exceed four percent of the applicable base pension
benefit.
(d) The pension system
may only make an adjustment to benefits under this section if the ratio of the amount of the pension
system's market value of assets divided by the amount of the pension
system's actuarial accrued liabilities, after giving effect to the
adjustment, is not less than .70.
(e) For purposes of
Subsection (d) of this section, the amount of the pension system's market
value of assets and the amount of the pension system's actuarial accrued
liabilities shall be based on and determined as of the date of the most
recently completed actuarial valuation.
(f) Same as introduced
version.
(g) Same as
introduced version.
(h) Same as
introduced version.
Sec. 6.13. SUPPLEMENT TO
CERTAIN RECIPIENTS 55 YEARS OF
AGE OR OLDER. (a) Except as
provided by Subsection (b) of this section, if [If] a
pensioner had at least 20 years of pension service under any plan adopted
pursuant to Article 6243a or this article, or if a pensioner is receiving the
periodic [a service-connected] disability compensation
benefit under Section 6.05 of this article [pension], the
pensioner, the pensioner's [qualified surviving] spouse who is a
qualified survivor eligible to receive benefits under this article, or
the pensioner's [qualified surviving] children who are qualified
survivors, as a group, under Section 6.06 [6.06(o)] of
this article are entitled to receive, when the pensioner or spouse who
is a qualified survivor [surviving spouse] attains 55 years of age, provided the pensioner or spouse attains 55
years of age before September 1, 2017, [the greater of] a
monthly supplement equal to the greater of $50 or three percent of
their total monthly benefit[,] and for months [years]
beginning on and after January 1, 1991, a [the] monthly
supplement [will be] equal to the greater of $75 or three percent of
their total monthly benefit. For purposes only of calculating this
supplement, the phrase "their total monthly benefit" means the
amount payable to a pensioner or qualified survivors under the terms of the
plans described by this section under which the pensioner or qualified
survivor elected to receive benefits but does not include the supplement
authorized by this section or any adjustments under Section 6.12 of this
article made after September 1, 2017.
(b) A person described by
Subsection (a) of this section who, on September 1, 2017, is not receiving
or has not received a supplemental benefit under this section is not
entitled to receive a supplemental benefit under this section.
|
|
SECTION 39. Section 6.14,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (a),
(b), (c), (d), (e), (f), (g), (h), and (j) and adding Subsections (e-1),
(e-2), (e-3), (f-1), (g-1), (l), (m), (n), and (o) to read as follows:
(a) A [In lieu of
either leaving active service and commencing a retirement pension as
provided for under Section 6.01 or 6.02 of this article, whichever is
applicable, or remaining in active service and continuing to accrue
additional pension benefits as provided under Section 6.01 or 6.02, a]
member who remains on active service after becoming [is]
eligible to receive a [an unreduced] retirement pension under
either Section 6.01 or 6.02 of this article may [remain in
active service,] become a participant in the deferred retirement
option plan [Deferred Retirement Option Plan ("DROP")]
in accordance with Subsections (b) and (c) of this section, and defer the
beginning of the person's retirement pension. Once an election to
participate in the DROP has been made, the election continues in effect at
least as long as the member remains in active service. On leaving
active service, the member may:
(1) apply for a
retirement pension under Sections 6.01(b) and (c), Section 6.01(e), or Sections
6.02(b), (c), (d), or (e) [Section 6.02] of this article,
whichever is applicable, together with any DROP benefit provided under this
section; or
(2) continue to
participate in DROP in accordance with
Subsection (g) of this section.
(b) The election to
participate in the DROP shall be made in accordance with procedures set
forth in any uniform and nondiscriminatory election form adopted by the
board and in effect from time to time. To determine the proper amount to
be credited to a member's DROP account, the election shall indicate whether
the member desires to receive a retirement pension under Sections 6.01(b)
and (c), Section 6.01(e), or Section 6.02(b), (c), (d), or (e) [6.02]
of this article, whichever is applicable. The election may be made at any
time on or after the date the member becomes eligible for a [an
unreduced] retirement pension as provided by this subsection. The
election [under Sections 6.01(b) and (c), Section 6.01(e), or
Section 6.02 of this article, whichever is applicable, and] becomes
effective on the first day of the first month on or after the date
on which the member makes the election, except that an election that
would otherwise have been effective on October 1, 1993, and every October 1
after that date, is considered, for purposes of this section and Section
6.12 of this article, to be effective on September 30 of the year in which
it would otherwise have been effective. On and after the effective
date of the election, the member will no longer be eligible for any
refund of [make member] contributions [to the fund,
notwithstanding Section 4.03(b) or (f) of this article, whichever is
applicable]. The election by one or more members to participate in the
DROP has no effect on the amount of city contributions to the fund under
Section 4.02 of this article.
(c) Each month after a
member has made an election to participate in the DROP and indicated a
desire to receive a retirement pension under Sections 6.01(b) and (c),
Section 6.01(e), or Section 6.02(b), (c), (d), or (e) [Section
6.02] of this article, whichever is applicable, and through the
month before the month in which [until] the member leaves active
service, an amount equal to the retirement pension the member would have
received under the [Sections 6.01(b) and (c), Section 6.01(e), or
Section 6.02, whichever is] applicable subsection[,] for
that month if the member had left active service and been granted a
retirement pension by the board on the effective date of DROP participation
shall be credited [transferred] to a separate DROP account
maintained within the fund for the benefit of the member. The monthly contribution amount is not subject
to adjustment under Section 6.12 of this article. Amounts held
in the DROP account of a member [member's DROP account]
shall be credited at the end of each calendar month [with interest at a
rate that will approximately equal one-twelfth of the annual rate assumed
by the pension system's qualified actuary and approved by the board as the
assumed actuarial rate of return for the fund]. Notwithstanding
this section, effective January 1, 2018, members on active service who have
10 years or more of participation in DROP shall no longer have the amount
of their retirement pension credited to the member's DROP account while the
member is on active service.
(d) A [On leaving
active service and on the board's grant of a retirement pension, a]
member may not [who participates in DROP shall begin to]
receive a [the balance in the person's DROP account under one of
the following methods of] distribution from the member's DROP
account while the member is on active service [elected by the
member:
[(1) a single-sum
distribution made at a time selected by the member but not later than April
1 of the year after the member attains 70-1/2 years of age;
[(2) an annuity to be
paid in equal monthly payments for the life of the member, or for the life
of the member and a designated beneficiary in the same manner as a
retirement pension computed under Sections 6.01(b) and (c), Section
6.01(e), or Section 6.02 of this article, whichever is applicable,
determined as of the date the member leaves active service based on the
person's account balance and age and the age of the designated beneficiary,
if applicable, on that date and using the mortality and earnings assumptions
being used on that date by the pension system's qualified actuary and
approved by the board as the assumed actuarial rate of return for the fund;
or
[(3) substantially equal
monthly or annual payments of the person's account balance beginning at a
time selected by the member that is on or before April 1st of the year
after the member attains 70-1/2 years of age and extending over a fixed
period that does not exceed the life expectancy of the member, or the life
expectancy of the member and the member's designated beneficiary, if
applicable].
(e) Except as provided by
Subsections (e-1) and (l) of this section, the balance in the [The]
DROP account [balance] of a member who terminated from active
service on or before September 1, 2017, or who terminates from active
service shall be distributed to the member in the form of an annuity by
annuitizing the amount credited to the DROP account over the life
expectancy of the member using mortality tables recommended by the pension
system's qualified actuary. The annuity shall be distributed as of the later of, as applicable:
(1) the date the member
retires and is granted a retirement pension; or
(2) September 1, 2017
[elects the method of distribution described by Subsection (d)(3) of
this section shall be credited with interest on the unpaid balance at the
end of each calendar month in the same manner as is prescribed by
Subsection (c) of this section].
(e-1) The board may adopt
a shorter period for annuitizing DROP account balances under Subsection
(e) of this section if the pension system's qualified actuary determines
that the shorter period will not cause the pension system's amortization
period to exceed 25 years [A member may change a distribution
election at any time before the member attains 70-1/2 years of age to
receive one or more additional payments or to accelerate or delay any
payment not then due, if the change is communicated to the plan
administrator, in accordance with procedures then in effect, not less than
30 days before the day it is to take effect and if the change does not
result in a failure of the distributions to satisfy the requirements of
Section 401(a)(9) of the code].
(e-2) The annuitization
of a DROP account under Subsection (e) of this section must reflect the accrual
of interest on the amount in the DROP account as of September 1, 2017, over
the annuitization period applied to the account under this section. The
interest rate applied under this subsection must be a reasonable rate, as determined by the board, equal to
the interest rate on the 10-year note issued by the United
States Department of the Treasury or other federal treasury note. The
portion of an annuity attributable to amounts credited to a member's DROP
account on or after September 1, 2017, may not reflect the accrual of this
interest on annuitization.
(e-3) The board may by
rule allow a DROP participant who has terminated active service and who is
eligible for a retirement pension to:
(1) assign the
distribution from the participant's annuitized DROP account to a third
party provided the pension system receives a favorable private letter
ruling from the Internal Revenue Service ruling that such an assignment
will not negatively impact the system's qualified plan status; and
(2) in the event of an
unforeseeable emergency, as determined
by the board, obtain a lump-sum distribution from the participant's
DROP account instead of an annuity.
No
equivalent provision.
(f) The board may adopt
rules and policies relating to the administration of Subsections (e),
(e-1), and (e-2) of this section if the rules and policies are:
(1) consistent with the
qualification of the plan under Section 401 of the code; and
(2) in the best interest
of the pension system [Any election made in accordance with
Subsection (d) of this section may be changed at any time before leaving
active service to any other election permitted by that subsection, subject
to the requirements for spousal consent, in Section 6.14(d)(1), if applicable].
(f-1) The DROP account of
a member who begins participating in DROP on or after September 1, 2017,
does not accrue interest.
(g) The provisions of
Sections 6.06, 6.061, 6.062, 6.063, 6.07, and 6.08 of this article
pertaining to death benefits of a qualified survivor do not apply to
amounts held in a member's or pensioner's DROP account [, and the
class of persons eligible to become qualified survivors of a member closes
on the effective date of the member's participation in DROP]. Instead,
a member or pensioner who participates in DROP may designate a
beneficiary to receive the balance of
the member's or pensioner's DROP account in the event of the
member's death in any [the following] manner allowed by Subsection (e-3) of this article,
Section 401(a)(9) of the code, and any policy adopted by the board. A
member or pensioner who is or becomes married is considered to have
designated the member's or pensioner's spouse as the member's or
pensioner's beneficiary, notwithstanding any prior beneficiary designation,
unless the member or pensioner has made a different designation in
accordance with a policy adopted by the board. If a member or pensioner
does not have a spouse or the spouse predeceases the member or pensioner,
the member's or pensioner's, as applicable, DROP account will be
distributed to the member's or pensioner's, as applicable, designee.
Notwithstanding anything in this section to the contrary, if a member or
pensioner has previously designated the member's or pensioner's spouse as the
beneficiary or co-beneficiary of the DROP account and the member or
pensioner and spouse are subsequently divorced, the divorce automatically
results in the invalidation of the designation of the spouse as a
beneficiary and, if there is no additional beneficiary designated, the
member's or pensioner's DROP account shall be distributed as provided by
Subsection (e) of this section. If there are beneficiaries who survive the
deceased member or pensioner, the surviving beneficiaries share equally in
that portion that would have otherwise been payable to the former spouse.
[:
[(1) The beneficiary
designation must be made on an election form adopted by the board and in
effect from time to time and in accordance with the conditions on the form,
except that if the member is married, the designation of a beneficiary
other than the member's spouse is valid only if the spouse consents to the
designation at the time, in the manner, and on the consent form as is
adopted by the board and in effect from time to time.
[(2) If a member who
participates in DROP dies while in active service or before the beginning
of the member's DROP account, distributions will begin no more than one
year after the date of the member's death under a method described by
Subsection (d) of this section and shall be completed within the life, or
life expectancy, of the designated beneficiary.
[(3) If a member who
participates in DROP dies after having begun to receive distributions in
accordance with Subsection (d) of this section, the balance in the member's
DROP account shall continue to be distributed to the member's designated
beneficiary or other person described by Subdivision (4) of this subsection
in accordance with any elections that had been made under Subsection (d) of
this section.
[(4) If the deceased
member has not designated a beneficiary or has designated a beneficiary but
not a method of distribution, the member's DROP account shall be
distributed in a single-sum payment as soon as administratively feasible
after the member's death to the beneficiary if one was designated and
otherwise to the spouse if the member was married at the time of death or,
if the member was not married, to the member's estate.]
(g-1) [(5)] A
member who [participates in DROP] becomes a DROP participant is
ineligible for any disability benefits described by Section [Sections]
6.03, 6.04, or [and] 6.05 of this article, but is entitled
to [instead, on the board's acknowledgment of a disability that
would otherwise qualify the member for disability benefits, the board shall
grant] a retirement pension in accordance with Sections 6.01(b) and
(c), Section 6.01(e), or Section 6.02 of this article, whichever is
applicable, on termination from active service, and [the member]
is also entitled to receive annuity payments [both a retirement
pension and a distribution of the DROP account] in accordance with
Subsection (e) [(d)] of this section.
(h) The base pay or
computation pay, whichever is applicable, in effect as of the effective
date of a [Group A] member's participation in DROP shall be used in
calculating the member's [Group A] retirement pension under Section
6.01 or 6.02 of this article. A [Group A] member who elects
to participate in DROP does not accrue additional pension service for
purposes of computing a [the Group A] retirement pension [provided
under Section 6.01(e) of this article] for any period after the
effective date of the election.
(j) Except as provided by
Subsection (l) of this section, if [If] a pensioner who has
been a [participated in] DROP participant returns to
active service, the person must [once again] become a participant in
DROP under the terms and conditions in effect at the time of [the
person's] return to active service.
(l) Notwithstanding any
other provision of this section and except as provided by Subsection (o) of
this section, a member who has entered DROP before June 1, 2017, may revoke
the DROP election at any time on or after September 1, 2017, and before the
earlier of:
(1) February 28, 2018; or
(2) the member's
termination of active service.
(m) If a member revokes
participation in DROP under Subsection (l) of this section:
(1) the member's DROP
account balance is eliminated; and
(2) the member shall
receive pension service credited for all or a portion of the period of the
revoked DROP participation on payment of the required contributions for the
period of the revoked DROP participation in accordance with a uniform and
nondiscriminatory procedure adopted by the board that results in the
payment of the amount of member contributions that would have been made if
the member had never participated in DROP.
(n) A member who revokes
the member's DROP election under Subsection (l) of this section is entitled
to only a monthly pension computed on the basis of the member's pension
service, including pension service purchased under Subsection (m) of this
section:
(1) average computation
pay at the time of leaving active service, if the member is a Group B
member; or
(2) as provided by
Section 6.01(b) of this article, if the member is a Group A member.
(o) A member may not
revoke DROP participation under Subsection (l) of this section if any money
has been transferred out of the member's DROP account.
|
SECTION 42. Section 6.14,
Article 6243a-1, Revised Statutes, is amended by amending Subsections (a),
(b), (c), (d), (e), (f), (g), (h), and (j) and adding Subsections (e-1),
(e-2), (e-3), (e-4), (f-1), (g-1), (l), (m), (n), and (o) to read as
follows:
(a) A [In lieu of
either leaving active service and commencing a retirement pension as
provided for under Section 6.01 or 6.02 of this article, whichever is
applicable, or remaining in active service and continuing to accrue
additional pension benefits as provided under Section 6.01 or 6.02, a]
member who remains on active service after becoming [is]
eligible to receive a [an unreduced] retirement pension under
either Section 6.01 or 6.02 of this article may [remain in
active service,] become a participant in the deferred retirement
option plan [Deferred Retirement Option Plan ("DROP")]
in accordance with Subsections (b) and (c) of this section, and defer the
beginning of the person's retirement pension. Once an election to
participate in the DROP has been made, the election continues in effect at
least as long as the member remains in active service. On leaving
active service, the member may:
(1) apply for a
retirement pension under Sections 6.01(b) and (c), Section 6.01(e), or Sections
6.02(b), (c), (d), or (e) [Section 6.02] of this article,
whichever is applicable, together with any DROP benefit provided under this
section; or
(2) continue to
participate in DROP except the member is
ineligible for disability benefits described by Subsection (g-1) of this
section.
(b) Same as introduced
version.
(c) Each month after a
member has made an election to participate in the DROP and indicated a
desire to receive a retirement pension under Sections 6.01(b) and (c),
Section 6.01(e), or Section 6.02(b), (c), (d), or (e) [Section
6.02] of this article, whichever is applicable, and through the
month before the month in which [until] the member leaves active
service, an amount equal to the retirement pension the member would have
received under the [Sections 6.01(b) and (c), Section 6.01(e), or
Section 6.02, whichever is] applicable subsection[,] for
that month if the member had left active service and been granted a
retirement pension by the board on the effective date of DROP participation
shall be credited [transferred] to a separate DROP account
maintained within the fund for the benefit of the member. Amounts held in the
DROP account of a member [member's DROP account] shall be
credited at the end of each calendar month [with interest at a rate that
will approximately equal one-twelfth of the annual rate assumed by the
pension system's qualified actuary and approved by the board as the assumed
actuarial rate of return for the fund]. Notwithstanding this
section, effective January 1, 2018, a member on active service who has 10
years or more of participation in DROP shall no longer have the amount of the
member's retirement pension credited to the member's DROP account while the
member is on active service.
(d) Same as introduced
version.
(e) Except as provided by
Subsections (e-1) and (l) of this section, the balance in the [The]
DROP account [balance] of a member who terminated from active
service on or before September 1, 2017, or who terminates from active
service shall be distributed to the member in the form of an annuity by
annuitizing the amount credited to the DROP account over the life
expectancy of the member as of the date
of the annuitization using mortality tables recommended by the
pension system's qualified actuary. The annuity shall be distributed beginning as promptly as administratively
feasible after the later of, as applicable:
(1) the date the member
retires and is granted a retirement pension; or
(2) September 1, 2017
[elects the method of distribution described by Subsection (d)(3) of
this section shall be credited with interest on the unpaid balance at the
end of each calendar month in the same manner as is prescribed by
Subsection (c) of this section].
(e-1) Same as
introduced version.
(e-2) The annuitization
of a DROP account under Subsection (e) of this section must reflect the
accrual of interest on the amount in the DROP account as of September 1,
2017, over the annuitization period applied to the account under this
section. The interest rate applied under this subsection must be a rate as reasonably equivalent as practicable
to the interest rate on a note issued
by the United States Department of the Treasury or other federal treasury
note with a duration that is reasonably
comparable to the annuitization period applied to the account, as
determined by the board. The portion of an annuity attributable to
amounts credited to a member's DROP account on or after September 1, 2017,
may not reflect the accrual of this interest on annuitization.
(e-3) The board may by
rule allow a DROP participant who has terminated active service and who is
eligible for a retirement pension to:
(1) assign the
distribution from the participant's annuitized DROP account to a third
party provided the pension system receives a favorable private letter
ruling from the Internal Revenue Service ruling that such an assignment
will not negatively impact the pension system's qualified plan status; and
(2) subject to Subsection (e-4) of this section,
in the event of an unforeseeable emergency or
hardship obtain a lump-sum distribution from the participant's DROP
account resulting in a corresponding
reduction in the total number or in the amount of annuity payments.
(e-4) The board shall
adopt rules necessary to implement Subsection (e-3)(2) of this section,
including rules regarding what constitutes an unforeseeable emergency or
hardship.
(f) Same as introduced
version.
(f-1) Same as
introduced version.
(g) The provisions of
Sections 6.06, 6.061, 6.062, 6.063, 6.07, and 6.08 of this article
pertaining to death benefits of a qualified survivor do not apply to
amounts held in a member's or pensioner's DROP account [, and the
class of persons eligible to become qualified survivors of a member closes on
the effective date of the member's participation in DROP]. Instead, a
member or pensioner who participates in DROP may designate a
beneficiary to receive the annuity
payments under this section over the remaining annuitization period [balance of the member's DROP account]
in the event of the member's or
pensioner's death subject
to any rights provided under Subsection (e-3) of this section and
in the [following] manner allowed by Section 401(a)(9) of the
code and any policy adopted by the board. A member or pensioner who is or
becomes married is considered to have designated the member's or
pensioner's spouse as the member's or pensioner's beneficiary,
notwithstanding any prior beneficiary designation, unless the member or
pensioner has made a different designation in accordance with a policy
adopted by the board. If a member or pensioner does not have a spouse or
the spouse predeceases the member or pensioner, the member's or
pensioner's, as applicable, DROP account will be distributed to the
member's or pensioner's, as applicable, designee. Notwithstanding anything
in this section to the contrary, if a member or pensioner has previously
designated the member's or pensioner's spouse as the beneficiary or
co-beneficiary of the DROP account and the member or pensioner and spouse
are subsequently divorced, the divorce automatically results in the
invalidation of the designation of the spouse as a beneficiary and, if there
is no additional beneficiary designated, the member's or pensioner's DROP
account shall be distributed as provided by Subsection (e) of this
section. If there are beneficiaries who survive the deceased member or
pensioner, the surviving beneficiaries share equally in that portion that
would have otherwise been payable to the former spouse. [:
[(1) The beneficiary
designation must be made on an election form adopted by the board and in
effect from time to time and in accordance with the conditions on the form,
except that if the member is married, the designation of a beneficiary
other than the member's spouse is valid only if the spouse consents to the
designation at the time, in the manner, and on the consent form as is
adopted by the board and in effect from time to time.
[(2) If a member who
participates in DROP dies while in active service or before the beginning
of the member's DROP account, distributions will begin no more than one
year after the date of the member's death under a method described by
Subsection (d) of this section and shall be completed within the life, or
life expectancy, of the designated beneficiary.
[(3) If a member who
participates in DROP dies after having begun to receive distributions in
accordance with Subsection (d) of this section, the balance in the member's
DROP account shall continue to be distributed to the member's designated
beneficiary or other person described by Subdivision (4) of this subsection
in accordance with any elections that had been made under Subsection (d) of
this section.
[(4) If the deceased
member has not designated a beneficiary or has designated a beneficiary but
not a method of distribution, the member's DROP account shall be
distributed in a single-sum payment as soon as administratively feasible
after the member's death to the beneficiary if one was designated and
otherwise to the spouse if the member was married at the time of death or,
if the member was not married, to the member's estate.]
(g-1) Same as
introduced version.
(h) Same as introduced
version.
(j) Same as introduced
version.
(l) Same as
introduced version.
(m) Same as
introduced version.
(n) A member who revokes
the member's DROP election under Subsection (l) of this section is entitled
to only a monthly pension computed on the basis of the member's pension
service, including pension service purchased under Subsection (m) of this
section:
(1) that is based on the member's average
computation pay at the time of leaving active service, if the member is a
Group B member; or
(2) as provided by
Section 6.01(b) of this article, if the member is a Group A member.
(o) Same as
introduced version.
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SECTION 40. Sections
6.15(a), (b), and (e), Article 6243a-1, Revised Statutes, are amended to
read as follows:
(a) The board may require
the following pensioners receiving a disability pension or a periodic
disability compensation benefit to appear and undergo a medical
examination by the health director or, if the health director approves, by
any licensed medical practitioner, to determine if the pensioner's
disability continues or has been removed to the extent that the pensioner
is able to resume duties with the department:
(1) any Group A pensioner
who has served less than 20 years;
(2) any Group A pensioner
who elected a Group A [B] disability pension under Section 6.04(a) [6.04(e)] of this
article, or a non-service-connected disability pension under Plan A or
former Section 17(b)(2) of this article, and who had [has
served] more than 20 years of pension service, but is less than 62 [55] years of age;
and
(3) any Group B pensioner
who was granted [elected] a Group B disability pension under
Section 6.04 of this article or periodic disability compensation under
Section 6.05 of this article or a disability pension under the terms of
Plan B and is less than 58 [50] years of age.
(b) Any medical examination
under this section is subject to the following conditions:
(1) Except as otherwise
provided by this section, the board has complete discretion to require a
pensioner to appear and undergo a medical examination as well as the time
that may pass between examinations. When it becomes clear to the board
from reliable medical evidence that the disability is unequivocally
permanent and is not expected to diminish, the board may waive [not
require] subsequent examinations.
(2) A pensioner may not be
required to undergo a medical examination more often than once in a
six-month period, except that the board may order the pensioner to undergo
an examination at any time if the board has reason to believe the
pensioner's disability has been removed and that the pensioner may be able
to resume duties with the pensioner's former department or if the pensioner
requests to be allowed to return to duty.
(3) If a pensioner fails to
undergo an examination after being notified by the board that the
examination is required, the board may discontinue disability benefits
until the pensioner has undergone the examination and the results of the
examination have been sent to the board.
(4) If the pensioner is
examined by an approved outside medical practitioner other than the health
director, the reasonable and customary cost of the examination, if any, is
payable from the assets of the fund.
(e) Pursuant to its
authority under Section 6.06(n)
[6.06(o)] of this article to review and modify any funding relating
to the disability of a child who is a qualified survivor [surviving
child's handicap], the board may require such [a handicapped]
qualified survivor with a disability [surviving child]
receiving death benefits to appear and undergo medical examination by the
health director or, if the health director approves, by any licensed
medical practitioner, to determine if the disability [handicap]
continues or if the disability [handicap] has been removed.
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SECTION 43. Sections
6.15(a), (b), and (e), Article 6243a-1, Revised Statutes, are amended to
read as follows:
(a) The board may require
the following pensioners receiving a disability pension or a periodic
disability compensation benefit to appear and undergo a medical
examination by the health director or, if the health director approves, by
any licensed medical practitioner, to determine if the pensioner's
disability continues or has been removed to the extent that the pensioner
is able to resume duties with the department:
(1) any Group A pensioner
who has served less than 20 years;
(2) any Group A pensioner
who elected a Group A [B] disability pension under Section 6.04 [6.04(e)] of this
article, periodic disability
compensation under Section 6.05 of this article, or a
non-service-connected disability pension under Plan A or former Section
17(b)(2) of this article, and who had [has served] more
than 20 years of pension service, but is less than 55 years of age; and
(3) any Group B pensioner
who was granted [elected] a Group B disability pension
under Section 6.04 of this article or periodic disability compensation
under Section 6.05 of this article or a disability pension under the
terms of Plan B and is less than 50 years
of age.
(b) Same as introduced
version.
(e) Pursuant to its
authority under Section 6.06(o-2)
[6.06(o)] of this article to review and modify any funding relating
to the disability of a child who is a qualified survivor [surviving
child's handicap], the board may require the [a handicapped]
qualified survivor with a disability [surviving child] receiving
death benefits to appear and undergo medical examination by the health
director or, if the health director approves, by any licensed medical
practitioner, to determine if the disability [handicap]
continues or if the disability [handicap] has been removed.
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SECTION 41. Sections 6.16,
6.18, and 6.19, Article 6243a-1, Revised Statutes, are amended.
|
SECTION 44. Same as
introduced version.
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SECTION 42. Part 6, Article
6243a-1, Revised Statutes, is amended by adding Sections 6.20 and 6.21 to
read as follows:
Sec. 6.20. ERRONEOUS
PAYMENTS OR OVERPAYMENTS. (a) If the pension system pays money to any
person not entitled to the payment, whether by reason of an error of the
pension system as to entitlement to or the amount of a benefit or
otherwise, or an error of some other
person, including the
recipient of the payment, the recipient of the payment holds the funds to
which the recipient was not entitled in constructive trust for the pension
system and those funds are subject to demand by the system at any time.
(b) The recipient of an
erroneous payment from the pension system shall repay to the system all
funds associated with the erroneous payment.
(c) If the recipient of
an erroneous payment retains the funds to which the recipient was not
entitled after the recipient has knowledge that the recipient was not
entitled to the funds, the recipient shall be obligated to repay to the
system the funds with interest from the date knowledge is reasonably
established, until the date the funds are repaid, compounded annually. The
interest rate required under this subsection is the interest rate from time
to time that may be levied on final judgments in state court proceedings
under the laws of this state.
(d) For purposes of
Subsection (c) of this section, receipt of a demand from the pension system
for the repayment of funds establishes a recipient's knowledge from at
least the date the demand was received.
(e) Subject to Subsection
(g) of this section, the board may by rule adopt a procedure to enable the
pension system to offset the future benefit or other payments of a
recipient described by this section. In addition, the board may take any
additional action, including the bringing of a lawsuit, the board considers
necessary to recover an erroneous payment and
interest the pension system is entitled to under this section.
(f) If the pension system
determines that a person is entitled to additional benefits as a result of
an error made by the pension system or
another person, the pension system shall promptly pay the additional
benefits owed.
(g) The board's
correction procedures must comply with the Internal Revenue Service's
Employee Plans Compliance Resolution System and Revenue Procedure 2016-51,
including subsequent guidance.
Sec. 6.21. MEDICAL EXPENSE
BENEFITS. (a) The board may establish and pay the start-up costs
necessary to establish a separate medical expense account that is a part of
the combined pension plan administered by the pension system and satisfies
the requirements of Section 401(h) of the code. The board shall determine
the terms of the medical expense account established under this section.
(b) Any medical expense
account established under this section along with the combined pension plan
shall be promptly submitted to the Internal Revenue Service for purposes of
obtaining a determination letter.
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SECTION 45. Part 6, Article
6243a-1, Revised Statutes, is amended by adding Section 6.20 to read as
follows:
Sec. 6.20. ERRONEOUS
PAYMENTS OR OVERPAYMENTS. (a) If the pension system pays money to any
person not entitled to the payment, whether by reason of an error of the
pension system as to entitlement to or the amount of a benefit or
otherwise, or an act or error of
some other person, including the recipient of the payment, the recipient of
the payment holds the funds to which the recipient was not entitled in
constructive trust for the pension system and those funds are subject to
demand by the pension system at any time.
(b) Substantially the
same as introduced version.
No
equivalent provision.
No
equivalent provision.
(c) Subject to Subsection
(e) of this section, the board may by rule adopt a procedure to enable the
pension system to offset the future benefit or other payments of a
recipient described by this section. In addition, the board may take any
additional action, including the bringing of a lawsuit, the board considers
necessary to recover an erroneous payment the pension system is entitled to
under this section.
(d) If the pension system
determines that a person is entitled to additional benefits as a result of
an error made by the pension system, the pension system shall promptly pay
the additional benefits owed.
(e) Same as
introduced version.
No
equivalent provision.
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SECTION 43. Article 6243a-1,
Revised Statutes, is amended by adding Part 6A to read as follows:
PART 6A. EQUITABLE
ADJUSTMENTS
Sec. 6A.01. EQUITABLE
ADJUSTMENTS TO BENEFITS.
Notwithstanding any other
provision of this article, the board shall consider and adopt rules
requiring the equitable return of funds paid to or credited to the benefit
of a member or pensioner under this article before September 1, 2017, to
the extent the funds exceeded reasonable amounts that should be paid or
credited given the circumstances of the pension system at the time the
payment or credit was made, including the return of excessive interest
credited to a member's DROP account and excessive adjustments made under
Section 6.12 of this article.
No
equivalent provision.
Sec. 6A.02. ADJUDICATION
OF CERTAIN CHALLENGES. (a) The constitutionality and other validity under
the state or federal constitution of all or any part of Section 6A.01 of
this article or rule adopted under that section may be determined in an
action for declaratory judgment in a district court in the city or county
in which the pension system is located under Chapter 37, Civil Practice and
Remedies Code, except that this section does not authorize an award of
attorney's fees against this state and Section 37.009, Civil Practice and
Remedies Code, does not apply to an action filed under this section.
(b) An appeal of a
declaratory judgment or order, however characterized, of a district court,
including an appeal of the judgment of an appellate court, holding or
otherwise determining that all or any of part of Section 6A.01 of this
article or rule adopted under that section is constitutional or
unconstitutional, or otherwise valid or invalid, under the state or federal
constitution is an accelerated appeal.
(c) If the judgment or
order is interlocutory, an interlocutory appeal may be taken from the
judgment or order and is an accelerated appeal.
(d) The district court
may grant or deny a temporary or otherwise interlocutory injunction or a
permanent injunction on the grounds of the constitutionality or
unconstitutionality, or other validity or invalidity, under the state or
federal constitution of all or any part of Section 6A.01 of this article or
rule adopted under that section.
(e) There is a direct
appeal to the Texas Supreme Court from an order, however characterized, of
a trial court granting or denying a temporary or otherwise interlocutory
injunction or a permanent injunction on the grounds of the
constitutionality or unconstitutionality, or other validity or invalidity,
under the state or federal constitution of all or any part of Section 6A.01
of this article or rule adopted under that section.
(f) The direct appeal is
an accelerated appeal.
(g) This section
exercises the authority granted by Section 3-b, Article V, Texas
Constitution.
(h) The filing of a
direct appeal under this section will automatically stay any temporary or
otherwise interlocutory injunction or permanent injunction granted in
accordance with this section pending final determination by the Texas
Supreme Court, unless the supreme court makes specific findings that the
applicant seeking such injunctive relief has pleaded and proved that:
(1) the applicant has a
probable right to the relief it seeks on final hearing; and
(2) the applicant will
suffer a probable injury that is imminent and irreparable, and that the
applicant has no other adequate legal remedy.
(i) An appeal under this
section, including an interlocutory, accelerated, or direct appeal, is
governed, as applicable, by the Texas Rules of Appellate Procedure,
including Rules 25.1(d)(6), 26.1(b), 28.1, 28.3, 32.1(g), 37.3(a)(1),
38.6(a) and (b), 40.1(b), and 49.4.
No
equivalent provision. (But see Sec. 6A.02 above.)
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SECTION 46. Article 6243a-1,
Revised Statutes, is amended by adding Part 6A to read as follows:
PART 6A. EQUITABLE
ADJUSTMENTS
Sec. 6A.01. EQUITABLE
ADJUSTMENTS TO BENEFITS.
(a) Subject to this
section and notwithstanding any other provision of this article, the
board shall consider and adopt rules requiring the equitable return of
funds paid to or credited to the benefit of a member or pensioner under
this article before September 1, 2017, to the extent the funds exceeded
reasonable amounts that should be paid or credited given the circumstances
of the pension system at the time the payment or credit was made, including
the return of excessive interest credited to a member's DROP account and
excessive adjustments made under Section 6.12 of this article.
(b) For purposes of
Subsection (a) of this section, "reasonable amounts" includes the
amounts that would have been paid or credited:
(1) if the interest rate
applied in determining a benefit, including the interest rate applied to a
DROP account, equaled the actual, audited rate of return of the plan at the
time the interest was credited to the account; or
(2) if the percentage
increase applied under Section 6.12 of this article equaled the percentage
increase, if any, in the Consumer Price Index for Urban Wage Earners and
Clerical Workers (CPI-W) most recently published by the Bureau of Labor
Statistics of the United States Department of Labor and used by the United
States Social Security Administration to provide a cost-of-living
adjustment for social security benefit payments payable beginning in
January of the next year.
No
equivalent provision. (But see Sec. 6A.02 below.)
Sec. 6A.02. ADJUDICATION
OF CERTAIN CHALLENGES. (a) The Texas Supreme Court has exclusive and
original jurisdiction over a challenge to the constitutionality under the
Texas Constitution of Section 6A.01 of this article. An action under this
section is authorized to the full extent permitted by Section 3, Article V,
Texas Constitution. The Texas Supreme Court may issue any injunctive,
declaratory, or equitable relief the court deems appropriate or necessary
to effectuate the court's mandamus jurisdiction in connection with a
challenge under this section.
(b) Any action brought
under this section must be filed not later than the 90th day after the date
the board adopts a rule under Section 6A.01 of this article.
(c) If an action brought
under this section is timely filed, the board may not enforce or otherwise
administer any rules adopted pursuant to Section 6A.01 of this article
during the pendency of the action.
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SECTION 44. Section 8.01,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 8.01. QUALIFICATION
UNDER FEDERAL TAX LAW.
(a) The plans within the
pension system and the assets of the fund are intended to qualify as a
governmental plan under Sections [Section] 401 and
414(d) of the code, be exempt from federal income taxes under Section
501(a) of the code, and conform at all times to applicable requirements of
law, regulations, and orders of duly constituted federal governmental
authorities. Accordingly, if any provision of this article is subject to
more than one construction, one of which will permit the qualification of a
plan that is within the pension system, that construction that will permit
the plan to qualify and conform will prevail.
(b) The plans within the
pension system as well as the assets of the fund shall be maintained for
the exclusive benefit of members and their beneficiaries. At no time
before the termination of all the plans within the pension system and the
satisfaction of all liabilities with respect to members and their
beneficiaries under all plans shall any part of the principal or interest
from the assets of the fund be used for or diverted to purposes other than
the exclusive benefit of the members and beneficiaries.
(c) Notwithstanding any
other provisions of this article, the annual benefit [pension]
provided with respect to any member [may not exceed an annual benefit
computed in accordance with the limitations prescribed by this subsection.
[(1) The maximum annual
benefit payable] in any limitation year [to a member] may not
exceed the amount permitted by Section 415(b) of the code for the
limitation year, and the sum of the member contributions and all other
annual additions for any limitation year may not exceed the amount
permitted under Section 415(c) of the code for that limitation year. If
the aggregated annual benefit or aggregated annual additions under [lesser
of:
[(A) $90,000; or
[(B) 100 percent of a
member's 415 compensation averaged over the three consecutive limitation
years, or the actual number of limitation years for a member whose total
pension service is less than three consecutive limitation years, during
which the member had the greatest aggregate 415 compensation from the city.
[(2) Benefits provided to
a member under this article and under any defined benefit plan or plans
maintained by the city shall be aggregated for purposes of determining
whether the limitations in Subdivision (1) of this subsection are met. If
the aggregate benefits otherwise payable from] any qualified plans
created under this article and any other defined benefit plan or plans
maintained by the city would otherwise exceed the limitations of Section
415 of the code [Subdivision (1) of this subsection], the required
reductions in benefits or contributions shall first be made to the
extent possible from the other plan or plans. The limitations
referenced in this subsection shall be adjusted annually in accordance with
Section 415(d) of the code and any adjustment to benefits applies to the
benefits of active and terminated members and applies without regard to
whether a terminated member is a pensioner.
[(3) The adjustments on
retirement are the following:
[(A) If the annual
benefit begins before a member attains age 62, the $90,000 limitation, as
adjusted, shall be reduced in a manner prescribed by the secretary of the
treasury. However, that adjustment may not reduce the member's annual
benefit below $75,000, if the member's benefit begins after age 55, or the
actuarial equivalent of $75,000 beginning at age 55 if benefits begin
before age 55. Furthermore, except as provided by Paragraph (C) of this
subdivision, an adjustment may not reduce the member's annual benefit below
$50,000, regardless of the age at which the benefit begins.
[(B) If the annual
benefit begins after a member attains age 65, the $90,000 limitation, as
adjusted, will be increased so that it is the actuarial equivalent of the
$90,000 limitation at age 65.
[(C) If a member's
benefits begin before the member has at least 15 years of pension service
as a full-time employee of the police or fire department, or both,
including credit for full-time service in the armed forces of the United
States, Paragraphs (A) and (B) of this subdivision shall be applied by
substituting "social security retirement age" for "age
62" and for "age 65," and the last two sentences of
Paragraph (A) of this subdivision do not apply in computing the benefit
limitation for that member.
[(D) The portion of a
member's benefit that is attributable to the member's own contributions is
not part of the annual benefit subject to the limitations of Subdivision
(1) of this subsection. Instead, the amount of those contributions is
treated as an annual addition to a qualified defined contribution plan
maintained by the city.
[(4)(A) The dollar
limitation on annual benefits provided by Subdivision (1) of this
subsection, and the $50,000 limitation provided by Subdivision (3) of this
subsection, but not the $75,000 limitation provided by that subsection,
shall be adjusted annually as provided by Section 415(d) of the code and
the regulations prescribed by the secretary of the treasury. The adjusted
limitation is effective as of January 1 of each calendar year and is
applicable to limitation years ending with or within that calendar year.
[(B) The limitation
provided by this paragraph for a member who has separated from service with
a vested right to a pension shall be adjusted annually as provided by
Section 415(d) of the code and the regulations prescribed by the secretary
of the treasury.
[(5) The following
interest rate assumptions shall be used in computing the limitations under
this section:
[(A) For the purpose of
determining the portion of the annual benefit that is purchased with member
contributions, the interest rate assumption is 8.5 percent, compounded
annually, for plan years beginning before 1988 and 120 percent of the
federal mid-term rate, as in effect under Section 1274 of the code,
compounded annually, for plan years beginning after 1987.
[(B) For the purpose of
adjusting the annual benefit to a straight life annuity, the interest rate
assumption is five percent, unless a different rate is required by the
secretary of the treasury.
[(C) For the purpose of
adjusting the $90,000 limitation after a member attains age 65, the
interest rate assumption is five percent, unless a different rate is
required by the secretary of the treasury, and the mortality decrement
shall be ignored to the extent that a forfeiture does not occur at death.
[(6) For purposes of
Subdivisions (1) and (3) of this subsection, an adjustment under Section
415(d) of the code may not be taken into account before the limitation year
for which that adjustment first takes effect. For purposes of Subdivisions
(1) and (5) of this subsection, an adjustment is not required for the value
of qualified joint and survivor annuity benefits, preretirement death
benefits, postretirement medical benefits, or postretirement cost-of-living
increases made in accordance with Section 415(d) of the code and Section
1.415-3(c) of the Income Tax Regulations.
[(7) This plan may pay an
annual benefit to any member in excess of the member's maximum annual
benefit otherwise allowed if:
[(A) the annual benefit
derived from the city's contributions under any qualified plans within this
article and all defined benefit plans maintained by the city does not in
the aggregate exceed $10,000 for the limitation year or for any prior
limitation year; and
[(B) the member has not
at any time participated in a defined contribution plan maintained by the
city.
[For purposes of this
subdivision, member contributions to the plan are not considered a separate
defined contribution plan maintained by the city.
[(8) If a member has less
than 10 years of pension service in the plan at the time the member begins
to receive benefits under the plan, the $90,000 limitation, as adjusted,
shall be reduced by multiplying the limitation by a fraction in which the
numerator is the number of years of pension service and the denominator is
10; provided, however, that the fraction may not be less than one-tenth.
The 100 percent limitation of Subdivision (1)(B) of this subsection, and
the $10,000 limitation of Subdivision (7) of this subsection shall be
reduced in the same manner as provided by this subdivision, except the
numerator shall be the number of years of employment with the city rather
than years of pension service.
[(9) If a member is or
has been a participant in one or more defined benefit plans and one or more
defined contribution plans maintained by the city, the following provisions
shall apply:
[(A) The sum of the
defined benefit plan fraction and the defined contribution plan fraction
for any limitation year may not exceed 1.0.
[(B) The defined benefit
plan fraction for any limitation year is a fraction in which:
[(I) the numerator is the
projected annual benefit of a member, determined as of the close of the
limitation year pursuant to Section 1.415-7(b)(3) of the Income Tax
Regulations; and
[(II) the denominator is
the lesser of:
[(i) the product of 1.25
and the maximum dollar limitation provided by Subdivision (1)(A) of this
subsection, as adjusted, for the limitation year; or
[(ii) the product of 1.4 and
the amount that may be taken into account under Subdivision (1)(B) of this
subsection for the limitation year.
[(C) The defined
contribution plan fraction for any limitationyear is a fraction in which:
[(I) the numerator is the
sum of the annual additions to the member's account as of the close of the
limitation year; and
[(II) the denominator is
the sum of the lesser of the following amounts determined for the
limitation year and each prior year of service with the city:
[(i) the product of 1.25
and the dollar limitation in effect under Section 415(c)(1)(A) of the code
for the limitation year, determined without regard to Section 415(c)(6) of
the code; or
[(ii) the product of 1.4
and the amount that may be taken into account under Section 415(c)(1)(B) of
the code for the limitation year beginning before January 1, 1987; the
annual additions may not be recomputed to treat all member contributions as
an annual addition.
[(D) If the sum of the
defined benefit plan fraction and the defined contribution plan fraction
exceeds 1.0 in any limitation year for any member of any plan within the
pension system, the administrator shall limit, to the extent necessary, the
annual additions to the member's account for that limitation year. If
after limiting to the extent possible the annual additions to the member's
account for the limitation year, the sum of the defined benefit plan
fraction and the defined contribution plan fraction still exceeds 1.0, the
administrator shall adjust the benefits under the defined benefit plan
fraction so that the sum of both fractions shall not exceed 1.0 in any
limitation year for the member.
[(10) For purposes of
determining the limits provided by this section, all qualified defined
benefit plans, whether terminated or not, ever maintained by or contributed
to by the city, shall be treated as one defined benefit plan, and all
qualified defined contribution plans, whether terminated or not, ever
maintained by or contributed to by the city, shall be treated as one
defined contribution plan.]
(c-1) [(11)]
Notwithstanding anything contained in this section to the contrary, the
limitations, adjustments, and other requirements prescribed by this section
shall at all times be computed in the manner most favorable to the
affected members, to the extent permitted by guidelines issued by the
Internal Revenue Service [comply with the requirements of Section
415 of the code and all regulations promulgated under the code]. If
any provision of Section 415 of the code is repealed or is not enforced by
the Internal Revenue Service, that provision may not reduce the benefits of
any member after the effective date of the repeal of the provision or
during the period in which the provision is not enforced.
(c-2) Any benefit
reductions that are required to be made under this section shall be applied
to reduce the monthly benefit that would otherwise have been payable to the
member, unless the value of the member's DROP account accrued under Section
6.14 of this article exceeds the amount that may be paid under this
section. If the value of the DROP account exceeds the value of the
payments that may be made under this section, the member shall receive a
lump sum payment from the account of the maximum amount that may be paid
under this section and the payment shall permanently reduce the benefits
the member would otherwise have been entitled to receive under the combined
pension plan.
(d) A member's retirement
pension may not begin later than April 1 of the year after the later of the
year in which the member leaves active service or the year in which the
member attains age 70-1/2 and must at all times comply with the
requirements of Section 401(a)(9) of the code. [Benefits to a
qualified beneficiary may not begin later than one year after the date of
the member's death].
(e) Any person [member
or beneficiary] who receives any distribution from any plan within the pension
system that is an eligible rollover distribution as defined by Section
402(f)(2)(A) of the code is entitled to have that distribution transferred
directly to another eligible retirement plan as defined by Section
402(c)(8)(B) of the code of the person's [member's or
beneficiary's] choice on providing direction regarding that transfer to
the executive director [administrator] in accordance with
procedures established by the executive director [administrator].
(e-1) If an eligible
rollover distribution described by Subsection (e) of this section is to a
designated beneficiary who is not the spouse or former spouse of the
member, the transfer may only be to an individual retirement account or an
individual retirement annuity.
(f) For the 2017 calendar
year, the [The] annual compensation taken into account for
any purpose under the combined pension plan [this article]
may not exceed $400,000 for an eligible participant or $270,000 for an
ineligible participant [$200,000 for any calendar year]. For a
Group A member the term "annual compensation" means the aggregate
of the member's base pay. For a Group B member the term "annual
compensation" means the aggregate of the member's computation pay for
any given plan year. These dollar limits [The $200,000 limit]
shall be adjusted from [on January 1 of each year at the same]
time to time [and] in accordance with guidelines [the
same manner as] provided by the secretary of the treasury. For
[Section 415(d) of the code. In determining the compensation of a
member for] purposes of this subsection, an:
(1) "eligible
participant" means any person who first became a member of the pension
system before January 1, 1996; and
(2) "ineligible
participant" means any member who is not an eligible participant [limitation,
the family aggregation rules of Section 414(q)(6) of the code apply, except
that the term "family member" includes only the spouse of the
member and any lineal descendants of the member who have not attained age
19 at the end of the plan year. If as a result of this family aggregation
requirement, the $200,000 limit is exceeded, the limitation shall be
prorated among the affected individuals in proportion to each individual's
compensation as determined before application of the limit].
(g) For purposes of
Subsection (h) of this section, "normal retirement age" means the
earlier of:
(1) attainment of 50
years of age on or before September 1, 2017, and completion of at least
five years of pension service;
(2) the attainment of 58
years of age after September 1, 2017, and completion of at least five years
of pension service; or
(3) completion of 20
years of pension service.
(h) The retirement
benefit earned by a member is nonforfeitable:
(1) on attainment of
normal retirement age, if not already nonforfeitable; or
(2) to the extent the
benefit is funded, if not already nonforfeitable, on the termination or
partial termination of the combined pension plan or the complete
discontinuance of city contributions to the fund.
(i) In accordance with
Section 401(a)(8) of the code, forfeitures arising under the combined
pension plan may not be used to increase the benefits any member would otherwise
receive under the terms of the plan. Forfeitures may be used first to
reduce administrative expenses, then to reduce required city contributions.
(j) Subject to procedures
adopted by the board, the system shall accept an eligible rollover
distribution from another eligible retirement plan as defined by Section
402(f)(2)(B) of the code as payment of all or a portion of any payment a
member is permitted to make to the system for past pension service credit.
The
system shall separately
account for any after-tax contributions transferred from any plan under
this subsection.
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SECTION 47. Section 8.01,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 8.01. QUALIFICATION
UNDER FEDERAL TAX LAW.
(a) Same as introduced
version.
(b) Same as introduced
version.
(c) Substantially the same as
introduced version.
(c-1) Same as
introduced version.
(c-2) Substantially same
as introduced version.
(d) Same as introduced version.
(e) Same as introduced
version.
(e-1) Same as
introduced version.
(f) Same as introduced
version.
(g) Substantially the
same as introduced version.
(h) Same as introduced
version.
(i) Same as
introduced version.
(j) Substantially the
same as introduced version.
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SECTION 45. Section 8.02,
Article 6243a-1, Revised Statutes, is amended.
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SECTION 48. Same as
introduced version.
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SECTION 46. Section 8.03,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 8.03. EXEMPTION OF
BENEFITS FROM JUDICIAL PROCESS OR ALIENATION.
(a) A portion of the fund or
benefit or amount awarded to any primary party, qualified survivor,
[or] beneficiary of a member's DROP account, excess benefit
participant, or survivor of an excess benefit participant under this
article may not be held, seized, taken, subjected to, or detained or levied
on by virtue of any execution, attachment, garnishment, injunction, or
other writ, order, or decree, or any process or proceedings issued from or
by any court for the payment or satisfaction, in whole or in part, of any
debt, damage, claim, demands, or judgment against any person entitled to
benefits from any plan within the pension system or from the excess
benefit plan. The fund and the excess benefit plan or any claim
against the fund or the excess benefit plan may not be directly or
indirectly assigned or transferred, and any attempt to transfer or assign the
fund or the excess benefit plan or a claim against the fund or
the excess benefit plan is void.
(b) A benefit under any plan
created or existing pursuant to this article or Article 6243a is subject to
division pursuant to the terms of a qualified domestic relations order.
The executive director [administrator] shall determine the
qualifications of a domestic relations order according to a uniform,
consistent procedure approved by the board. The total benefit payable to a
primary party or to an alternate payee under a qualified domestic relations
order may not actuarially exceed the benefits to which a primary party
would be entitled in the absence of the qualified domestic relations
order. In calculating the alternate payee's benefits under a qualified
domestic relations order, the interest rate is the rate used by the pension
system's actuary in the actuarial evaluation for that year, except that the
minimum interest rate for this purpose is the minimum required by Section
414 of the code.
(c) This section does not
preclude:
(1) the payment of
death benefits to a [support] trust for certain [surviving]
children of a primary party pursuant to Section 6.06(n) of this article;
(2) the withholding of
federal taxes from pension benefits;
(3) the recovery by the
board of overpayments of benefits previously made to any person;
(4) the direct deposit of
benefit payments to an account in a bank, savings and loan association,
credit union, or other financial institution, provided the arrangement is
not an alienation; or
(5) under any policy
adopted by the board and uniformly applied to voluntary arrangements
entered into by a primary party or qualified survivor, any voluntary and
revocable arrangement entered into by a pensioner or a qualified survivor
that permits the withholding and direct payment of health care or life
insurance premiums or similar payments from the monthly benefit payments.
(d) For purposes of
Subsection (c) of this section, an attachment, garnishment, levy,
execution, or other legal process is not considered a voluntary
arrangement.
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SECTION 49. Section 8.03,
Article 6243a-1, Revised Statutes, is amended to read as follows:
Sec. 8.03. EXEMPTION OF
BENEFITS FROM JUDICIAL PROCESS OR ALIENATION.
(a) Same as introduced
version.
(b) Same as introduced
version.
(c) This section does not
preclude:
(1) the payment of
death benefits to a [support] trust for certain [surviving]
children of a primary party pursuant to Section 6.06(n) of this article;
(2) the withholding of
federal taxes from pension benefits;
(3) the recovery by the
board of overpayments of benefits previously made to any person;
(4) the direct deposit of
benefit payments to an account in a bank, savings and loan association,
credit union, or other financial institution, provided the arrangement is
not an alienation;
(5) under any policy
adopted by the board and uniformly applied to voluntary arrangements
entered into by a primary party or qualified survivor, any voluntary and
revocable arrangement entered into by a pensioner or a qualified survivor
that permits the withholding and direct payment of health care or life
insurance premiums or similar payments from the monthly benefit payments;
or
(6) an assignment of the distribution from an annuitized DROP
account to a third party under Section 6.14(e-3)(1) of this article.
(d) Same as
introduced version.
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SECTION 47. The following
provisions of Article 6243a-1, Revised Statutes, are repealed:
(1) Section 3.01(c);
(2) Section 4.01(b);
(3) Section 4.02(f);
(4) Sections 6.06(i) and
(s);
(5) Section 6.10B(h);
(6) Sections 6.14(i) and
(k); and
(7) Part 7.
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SECTION 50. The following
provisions of Article 6243a-1, Revised Statutes, are repealed:
(1) Section 1.01(b);
(2) Section 3.01(c);
(3) Section 4.01(b);
(4) Section 4.02(f);
(5) Sections 6.06(i) and
(s);
(6) Section 6.10B(h);
(7) Sections 6.14(i) and
(k); and
(8) Part 7.
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SECTION 48.
No
equivalent provision.
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SECTION 51.
(a) In this section, "board,"
"city," "city manager," "nominations
committee," "pension system," and "trustee" have
the meanings assigned by Section 2.01, Article 6243a-1, Revised Statutes,
as amended by this Act.
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(a) The terms of the current
members of the board of trustees of the pension system established under
Article 6243a-1, Revised Statutes, expire on the effective date of this
Act. On that date or as soon as possible after that date, the mayor, city council, executive director, and
city manager shall appoint new members to the board in accordance with the
requirements of Section 3.01, Article
6243a-1, Revised Statutes, as amended by this Act.
Notwithstanding
Section 3.01(o), Article 6243a-1, Revised Statutes, as amended by this Act,
once at least seven trustees have been appointed to the board under this
section, the board shall by majority vote:
(1)
appoint two trustees under Section 3.01(b)(7), Article 6243a-1, Revised
Statutes, as amended by this Act; and
(2) adopt rules
establishing:
(A) a process for selecting
trustees under Sections 3.01(b)(5) and (6), Article 6243a-1, Revised
Statutes, as amended by this Act; and
(B) staggered terms for the
trustees appointed or selected under Section 3.01, Article 6243a-1, Revised
Statutes, as amended by this Act, including the dates by which the terms of
initial trustees appointed or selected under this section expire.
No
equivalent provision.
No
equivalent provision. (But see Subdivision (2) above.)
No
equivalent provision.
No
equivalent provision.
(b) Notwithstanding Section
3.01(g), Article 6243a-1, Revised Statutes, the board shall elect from
among its trustees an initial chairman, vice chairman, and a deputy fire chairman not later than September 1, 2017, and if it elects to do
so, an initial second deputy vice chairman.
(c) Not later than the 90th
day after the date all members of the board under Section 3.01, Article
6243a-1, Revised Statutes, as amended by this Act, have been appointed or selected, the board shall vote on
and, if the board determines it appropriate, amend the existing rules
relating to the governance and conduct of the board in accordance with Subsection (j-2) of that section, as added by
this Act.
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(b) The terms of the current
trustees expire on the effective date of this Act. Subject to Subsection (e) of this section, on that date
or as soon as possible after that date:
(1) the mayor, nominations committee, and city
manager, as applicable, shall
appoint new trustees to the board in accordance with the requirements of Sections 3.01(b)(1), (2), and (3), Article
6243a-1, Revised Statutes, as added by this Act; and
(2)
notwithstanding the requirements of Sections 3.01(b)(4) and (5) and (f),
Article 6243a-1, Revised Statutes, as added or amended by this Act, that
the board adopt rules governing the nomination and election of trustees
appointed under Sections 3.01(b)(4) and (5), Article 6243a-1, Revised
Statutes, as added by this Act, the nominations committee shall adopt
procedures for nominating and electing the initial trustees nominated and
elected under Sections 3.01(b)(4) and (5), Article 6243a-1, Revised
Statutes, as added by this Act.
No
equivalent provision. (But see Subsection (d) below.)
(c) Notwithstanding Section
3.01(o), Article 6243a-1, Revised Statutes, as amended by this Act, and
except as provided by Subsections (d) and (h) of this section, the board
may not take any action authorized by Article 6243a-1, Revised Statutes,
until at least 10 initial trustees have been appointed or elected, unless
the action is in the ordinary course of business of the board and is
required for the continued administration of the pension system.
(d) Once all trustees have
been appointed to the board under this section, the board shall by majority
vote adopt rules establishing a process for nominating and electing
trustees under Sections 3.01(b)(4) and (5), Article 6243a-1, Revised
Statutes, as added by this Act.
(e) The city manager and the
nominations committee shall jointly appoint a new trustee to the board
under Section 3.01(b)(3), Article 6243a-1, Revised Statutes, as added by
this Act, not later than the 60th day after the effective date of this Act.
(f) As soon as possible
after the effective date of this Act, the mayor and the nominations
committee shall:
(1) make a determination
under Section 3.01(e), Article 6243a-1, Revised Statutes, as amended by
this Act, regarding the term limits of the board established under that
article; and
(2) notwithstanding Section 3.01(e),
Article 6243a-1, Revised Statutes, as amended by this Act, determine the
terms of initial trustees to ensure the appropriate staggering of trustee
terms.
(g) Notwithstanding Section
3.01(g), Article 6243a-1, Revised Statutes, the board shall elect from
among its trustees an initial chairman, vice chairman, and deputy vice chairman as soon as possible after all trustees have been appointed or
elected in accordance with this Act and, if the board elects to do
so, an initial second deputy vice chairman.
(h) Not later than the 90th
day after the date all trustees under Section 3.01, Article 6243a-1,
Revised Statutes, as amended by this Act, have been appointed or elected, the board shall vote on
and, if the board determines it is appropriate, amend the existing rules
relating to the governance and conduct of the board.
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SECTION 49. Not later than
December 1, 2017, the board shall consider adopting rules under Section
3.01(j-1)(2), Article 6243a-1, Revised Statutes, as added by this Act, to:
(1) evaluate how benefits
are computed under Article 6243a-1, Revised Statutes, for purposes of
identifying potential means of abusing the computation in order to inflate pension
benefits received; and
(2) implement one or more
alternative benefit plans for newly hired employees of the pension system.
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No
equivalent provision.
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SECTION 50. Not later than
January 1, 2018, the board of trustees established under Section 3.01,
Article 6243a-1, Revised Statutes, as amended by this Act, shall establish
the ethics policy required by Subsection (r) of that section, as added by
this Act.
No
equivalent provision.
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SECTION 52. (a) Not later
than January 1, 2018, the board of trustees of the pension system
established under Article 6243a-1, Revised Statutes, shall:
(1) establish the ethics
policy required by Section 3.01(r), Article 6243a-1, Revised Statutes, as
added by this Act; and
(2)
appoint an executive director under Section 3.04, Article 6243a-1, Revised
Statutes, as amended by this Act.
(b) As soon as possible
after the executive director is appointed under Subsection (a) of this
section, the executive director may hire, subject to confirmation by the
board of trustees of the pension system established under Article 6243a-1,
Revised Statutes, a chief investment officer as authorized under Section
3.025, Article 6243a-1, Revised Statutes, as added by this Act, and a chief
legal officer as authorized under Section 3.03(c), Article 6243a-1, Revised
Statutes, as amended by this Act.
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No
equivalent provision.
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SECTION 53. (a) In this
section, "executive director," "nominations committee,"
and "pensioner" have the meanings assigned by Section 2.01,
Article 6243a-1, Revised Statutes, as amended by this Act.
(b) As soon as possible
after the effective date of this Act, but not later than the 30th day after
the effective date of this Act:
(1) the president, chair, or
other executive head of an organization described by Section 3.011(a)(2),
Article 6243a-1, Revised Statutes, as added by this Act, that is eligible
to and intends to participate on the nominations committee shall notify the
executive director of:
(A) the organization's
intent to participate on the nominations committee; and
(B) whether the president,
chair, or other executive head, as appropriate, or that person's designee
will serve on the committee; and
(2) the president, chair, or
other executive head of an organization described by Section 3.011(a)(3)(B)
or (4)(B), Article 6243a-1, Revised Statutes, as added by this Act, that is
eligible to and intends to participate in appointing a pensioner to the
nominations committee shall:
(A) notify the executive
director of the organization's intent to participate in appointing a
pensioner to the nominations committee; and
(B) appoint or jointly
appoint, as applicable, a pensioner to serve on the nominations committee
in accordance with Sections 3.011(a)(3) and (4), Article 6243a-1, Revised
Statutes, as added by this Act.
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SECTION 51. Sections 4.02 and 4.03, Article 6243a-1,
Revised Statutes, as amended by this Act, and Section 4.025, Article
6243a-1, Revised Statutes, as added by this Act, apply only to a
contribution made on or after the date of the most recently completed
actuarial valuation following September 1, 2017.
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SECTION 54. Section 4.025,
Article 6243a-1, Revised Statutes, as added by this Act, applies only to a
contribution made on or after the date of the most recently completed
actuarial valuation following the effective date of this Act.
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SECTION 52. Not earlier than
June 1, 2019, and not later than August 15, 2019, the board of trustees
established under Article 6243a-1, Revised Statutes, shall conduct an actuarial valuation for purposes of
making an initial determination under Section 4.02(e), Article
6243a-1, Revised Statutes, as amended by this Act. Each subsequent
determination under Section 4.02(e), Article 6243a-1, Revised Statutes,
shall be based on the most recently performed
actuarial valuation.
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SECTION 55. Not earlier than
June 1, 2019, and not later than August 15, 2019, the board of trustees
established under Article 6243a-1, Revised Statutes, shall make and submit to the State Pension Review
Board for review an initial determination under Section 4.02(e),
Article 6243a-1, Revised Statutes, as amended by this Act, based on the most recently completed actuarial
valuation. Each subsequent annual
determination under Section 4.02(e), Article 6243a-1, Revised Statutes, as
amended by this Act, shall be based on the most recently completed actuarial valuation.
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No
equivalent provision.
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SECTION 56. The board of
trustees of the pension system established under Article 6243a-1, Revised
Statutes, shall review all investments held on the effective date of this
Act under Section 4.071, Article 6243a-1, Revised Statutes, as added by
this Act.
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SECTION 53. Changes in law
to Part 5, Article 6243a-1, Revised Statutes, as amended by this Act, apply
to membership in a pension system established under Article 6243a-1,
Revised Statutes, on or after the effective date of this Act.
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SECTION 57. Same as
introduced version.
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SECTION 54. The board of
trustees established under Section 3.01, Article 6243a-1, Revised Statutes,
as amended by this Act, shall begin annuitizing and distributing a DROP
account under Section 6.14(e) of that article, as amended by this Act, as
soon as administratively feasible after the effective date of this Act.
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No
equivalent provision.
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SECTION 55. A rollover
distribution to a plan administered by the pension system established under
Article 6243a-1, Revised Statutes, that was made on or after January 1,
2002, is validated as of the date the distribution occurred. A
distribution described by this section may not be held invalid because the
distribution was not performed in accordance with Section 8.01(i), Article 6243a-1, Revised
Statutes, as added by this Act, or other applicable law.
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SECTION 58. A rollover
distribution to a plan administered by the pension system established under
Article 6243a-1, Revised Statutes, that was made on or after January 1,
2002, is validated as of the date the distribution occurred. A
distribution described by this section may not be held invalid because the
distribution was not performed in accordance with Section 8.01(j), Article 6243a-1, Revised
Statutes, as added by this Act, or other applicable law.
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SECTION 56. An action taken
by the board before September 1, 2017, is not considered void solely by
virtue of the number of trustees on the board or by virtue of the
composition of the board in effect at the time the action was taken.
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No
equivalent provision.
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No
equivalent provision.
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SECTION 59. If any provision
of this Act or its application to any person or circumstance is held
invalid, the invalidity does not affect other provisions or applications of
this Act that can be given effect without the invalid provision or
application, and to this end the provisions of this Act are declared to be
severable.
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SECTION 57. This Act takes
effect September 1, 2017.
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SECTION 60. Same as
introduced version.
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