85R4709 LED-D
 
  By: Alonzo H.B. No. 1163
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to eligibility for membership and funding of benefits for
  certain law enforcement, custodial, and other peace officers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 802.305(i)(2), Government Code, is
  amended to read as follows:
               (2)  "State-financed public retirement system" means
  the Employees Retirement System of Texas, including the law
  enforcement, [and] custodial, and peace officer supplemental
  retirement fund, or the Teacher Retirement System of Texas.
         SECTION 2.  Subchapter C, Chapter 803, Government Code, is
  amended by adding Section 803.2015 to read as follows:
         Sec. 803.2015.  COMBINED SERVICE CREDIT FOR CERTAIN PEACE
  OFFICERS.  (a)  This section applies to a person who, on December
  31, 2017:
               (1)  is a member of the Teacher Retirement System of
  Texas, who:
                     (A)  is identified under Section 825.515 as being
  employed in a position as a peace officer; and
                     (B)  elects to begin membership as a peace officer
  participating in the Employees Retirement System law enforcement,
  custodial, and peace officer supplemental retirement fund
  beginning January 1, 2018; or
               (2)  is a member of the Employees Retirement System of
  Texas who:
                     (A)  is employed in a position as a law
  enforcement, custodial, juvenile justice, or peace officer as those
  terms are defined by Section 811.001; and
                     (B)  elects to begin participation in the
  Employees Retirement System law enforcement, custodial, and peace
  officer supplemental retirement fund beginning January 1, 2018.
         (b)  For the purposes of this chapter, service credit earned
  by a person described by Subsection (a) is considered service
  credit earned in two retirement systems and is subject to Section
  803.201.  The membership on which combined service credit is based
  is service credit accrued:
               (1)  before beginning participation in the Employees
  Retirement System law enforcement, custodial, and peace officer
  supplemental retirement fund; and
               (2)  after beginning participation in the Employees
  Retirement System law enforcement, custodial, and peace officer
  supplemental retirement fund.
         SECTION 3.  Section 811.001, Government Code, is amended by
  amending Subdivisions (6) and (9) and adding Subdivisions (8-b) and
  (12-b) to read as follows:
               (6)  "Combined retirement annuity" means the amount
  payable on retirement for service credited as a member of the
  employee class of membership plus any supplemental amount payable
  from the law enforcement, [and] custodial, and peace officer
  supplemental retirement fund.
               (8-b)  "Juvenile justice officer" means a member of the
  retirement system who is employed by the Texas Juvenile Justice
  Department and certified by that department as holding a position
  as a juvenile correctional officer or other position the primary
  duties of which include the custodial supervision of or other
  close, regularly planned contact with youth in the custody of that
  department.
               (9)  "Law enforcement officer" means a member of the
  retirement system who:
                     (A)  has been commissioned as a law enforcement
  officer by the Department of Public Safety, the Texas Alcoholic
  Beverage Commission, the Parks and Wildlife Department, the office
  of the attorney general, or the office of inspector general at the
  Texas Juvenile Justice Department; and
                     (B)  is recognized as a commissioned law
  enforcement officer by the Texas Commission on Law Enforcement.
               (12-b)  "Peace officer" means:
                     (A)  a person certified as being employed as a
  peace officer under Section 815.505; or
                     (B)  any other person employed as a peace officer
  who is:
                           (i)  not a custodial officer, juvenile
  justice officer, or law enforcement officer for purposes of this
  subtitle; and
                           (ii)  a peace officer under Article 2.12,
  Code of Criminal Procedure, employed or appointed by a department,
  commission, board, agency, or institution of the state.
         SECTION 4.  Section 812.003, Government Code, is amended by
  amending Subsection (b) and adding Subsection (b-1) to read as
  follows:
         (b)  An office or employment that is included in the coverage
  of the Teacher Retirement System of Texas, other than in a position
  identified as a peace officer position under Section 825.515, the
  Judicial Retirement System of Texas Plan One, or the Judicial
  Retirement System of Texas Plan Two or, except as provided by
  Section 9.01, Chapter 238 (S.B. 378), Acts of the 73rd Legislature,
  Regular Session, 1993, is with a university system or institution
  of higher education, as defined by Section 61.003, Education Code,
  is not a position with a department, commission, board, agency, or
  institution of the state for purposes of this subtitle.
         (b-1)  Membership in the employee class includes any person
  who is certified as being employed in a position as a peace officer
  under Section 815.505.
         SECTION 5.  Section 812.101(c), Government Code, is amended
  to read as follows:
         (c)  For a law enforcement, juvenile justice, [or]
  custodial, or peace officer, the withdrawal of accumulated
  contributions under Subsection (a) includes all of the officer's
  contributions made under Section 815.402(h).
         SECTION 6.  Subchapter F, Chapter 813, Government Code, is
  amended by adding Section 813.507 to read as follows:
         Sec. 813.507.  JUVENILE JUSTICE OFFICER SERVICE. (a)  The
  Texas Juvenile Justice Board by rule shall adopt standards for
  determining eligibility for service credit as a juvenile justice
  officer, based on the need to encourage early retirement of persons
  whose duties are hazardous and require them to have routine contact
  with youth in the custody of the Texas Juvenile Justice Department
  on a regular basis.
         (b)  The Texas Juvenile Justice Department shall determine a
  person's eligibility to receive credit as a juvenile justice
  officer. A determination by the department may not be appealed by
  an employee but is subject to change by the retirement system.
         SECTION 7.  Section 813.513(a), Government Code, is amended
  to read as follows:
         (a)  An eligible member may establish not more than 36 months
  of equivalent membership service credit, including law
  enforcement, juvenile justice, [or] custodial, or peace officer
  service, in either the elected class or the employee class.
         SECTION 8.  Section 814.107, Government Code, is amended to
  read as follows:
         Sec. 814.107.  SERVICE RETIREMENT BENEFITS FOR CERTAIN
  [PEACE] OFFICERS.  (a)  This section applies only to a member who
  participates in the law enforcement, custodial, and peace officer
  supplemental retirement fund.
         (a-1)  A member who has at least 20 years of service credit as
  a law enforcement, juvenile justice, [or] custodial, or peace
  officer is eligible to retire regardless of age and receive a
  standard service retirement annuity in an amount and to be funded as
  provided by this section.
         (b)  The standard service retirement annuity payable for at
  least 20 years of service credit as a law enforcement, juvenile
  justice, [or] custodial, or peace officer is an amount computed on
  the basis of the member's average monthly compensation for the 60
  highest months of compensation in the employee class, times the sum
  of the percentage factor used in the computation of a standard
  service retirement annuity under Section 814.105 plus .5 percent.
         (c)  The standard combined service retirement annuity that
  is payable under this section is based on retirement on or after the
  attainment of the normal retirement age, which for purposes of this
  section is the earlier of either the age of 57 or the age at which
  the sum of the member's age and amount of service credit in the
  employee class equals the number 80.  The annuity of a law
  enforcement, juvenile justice, [or] custodial, or peace officer who
  retires before reaching the age of 57 under any eligibility
  criteria is actuarially reduced by five percent for each year of
  difference between the member's age at retirement and 57.  The
  actuarial reduction described by this section is in addition to any
  other actuarial reduction required by law.
         (c-1)  A law enforcement, juvenile justice, [or] custodial,
  or peace officer who retires before attaining the age of 50 is
  entitled only to an annuity that is actuarially reduced from the
  annuity available at the age of 50 to the law enforcement, juvenile
  justice, [or] custodial, or peace officer whose service credit
  annuity amount is based on the sum of the member's age and amount of
  law enforcement, juvenile justice, [or] custodial, or peace officer
  service credit and employee class service credit, and is not
  entitled to have the annuity recalculated at normal retirement age.  
  The standard or reduced annuity under this section is payable from
  the trust fund established by Section 815.310 and the law
  enforcement, [and] custodial, and peace officer supplemental
  retirement fund in a ratio determined by the retirement system.
         (d)  A member who retires under this section retires
  simultaneously from the employee class of membership. Optional
  retirement annuities provided by Section 814.108 are available to a
  member eligible to receive a service retirement annuity under this
  section, but the same optional plan and beneficiary must be
  selected for the portion of the annuity payable from the law
  enforcement, [and] custodial, and peace officer supplemental
  retirement fund and the portion payable from the trust fund
  established by Section 815.310.
         (e)  The amount payable from the law enforcement, [and]
  custodial, and peace officer supplemental retirement fund is
  reducible by the amount paid from the trust fund established by
  Section 815.310 for service as a law enforcement, juvenile justice,
  [or] custodial, or peace officer.  The total combined amount of an
  annuity under this section may not be less than the authorized
  benefit under Subsection (b) subtracted by any amount necessary
  because of selection of an optional annuity, because of retirement
  before the normal retirement age, or as provided by Subsection (f).
         (f)  The standard combined service retirement annuity
  payable for at least 20 years of service credit as a law
  enforcement, juvenile justice, [or] custodial, or peace officer may
  not exceed 100 percent of the average compensation computed under
  Subsection (b).
         (g)  For purposes of this section, service as a law
  enforcement, juvenile justice, [or] custodial, or peace officer is
  creditable as provided by rule of the board of trustees or on a
  month-to-month basis, whichever is greater.
         SECTION 9.  The heading to Section 814.207, Government Code,
  is amended to read as follows:
         Sec. 814.207.  DISABILITY RETIREMENT BENEFITS FOR CERTAIN
  [PEACE] OFFICERS.
         SECTION 10.  Section 814.207, Government Code, is amended by
  amending Subsections (a) and (d) and adding Subsection (a-1) to
  read as follows:
         (a)  This section applies only to a member who participates
  in the law enforcement, custodial, and peace officer supplemental
  retirement fund.
         (a-1)  An annuity payable for an occupational disability
  resulting from a risk to which law enforcement, juvenile justice,
  [or] custodial, or peace officers are exposed because of the nature
  of their [law enforcement or custodial] duties is payable under the
  same terms and conditions that apply to other occupational
  disability retirement annuities under this subtitle, except that
  the source and amount of the annuity are as provided by this
  section.
         (d)  The portions of the annuity under this section payable
  from the law enforcement, [and] custodial, and peace officer
  supplemental retirement fund are the amount remaining after
  deduction of any amount payable under Section 814.206, except the
  portion of an amount that exceeds the minimum payments provided by
  Section 814.206(b) and that is made for service other than as a law
  enforcement, juvenile justice, [or] custodial, or peace officer and
  any amount by which an annuity is increased under Subsection (e).
         SECTION 11.  Section 814.305, Government Code, is amended to
  read as follows:
         Sec. 814.305.  ANNUITY FOR SURVIVOR OF LAW ENFORCEMENT,
  JUVENILE JUSTICE, [OR] CUSTODIAL, OR PEACE OFFICER.  (a)  This
  section applies only to a member who participates in the law
  enforcement, custodial, and peace officer supplemental retirement
  fund.
         (b)  If a member who has at least 20 years of service credit
  as a law enforcement, juvenile justice, [or] custodial, or peace
  officer dies, the amount of the death benefit annuity payable for
  the member's service as a law enforcement, juvenile justice, [or]
  custodial, or peace officer is an amount computed and funded as
  provided by Section 814.107, including any applicable reduction
  factors.
         SECTION 12.  Section 815.103(c), Government Code, is amended
  to read as follows:
         (c)  The board of trustees may authorize the executive
  director to acquire, hold, manage, purchase, sell, assign, trade,
  transfer, and dispose of any security, evidence of debt, or other
  investment in which assets of the law enforcement, [and] custodial,
  and peace officer supplemental retirement fund may be invested.
         SECTION 13.  Section 815.208(c), Government Code, is amended
  to read as follows:
         (c)  The board of trustees shall make payments from the law
  enforcement, [and] custodial, and peace officer supplemental
  retirement fund for services rendered by the actuary for that fund
  and approved by the board.
         SECTION 14.  Sections 815.301(a) and (b), Government Code,
  are amended to read as follows:
         (a)  The board of trustees shall:
               (1)  invest the assets of the retirement system as a
  single fund without distinction as to their source; and
               (2)  hold securities purchased with the assets
  described by Subsection (a)(1) collectively for the proportionate
  benefit of:
                     (A)  all accounts in the trust fund that are
  listed in Section 815.310(b); and
                     (B)  the law enforcement, [and] custodial, and
  peace officer supplemental retirement fund.
         (b)  The board of trustees may delegate its authority under
  Subsection (a) to the executive director.  The board of trustees or
  the executive director may, under the standard of care provided by
  Section 815.307, invest and reinvest any of the retirement system's
  assets and may commingle assets of the trust fund and the law
  enforcement, [and] custodial, and peace officer supplemental
  retirement fund with the assets of the Judicial Retirement System
  of Texas Plan Two for investment purposes, as long as proportionate
  ownership records are maintained and credited.  Investments may
  include home office facilities, including land, equipment, and
  office building, used in administering the retirement system.
         SECTION 15.  Section 815.308(b), Government Code, is amended
  to read as follows:
         (b)  The amount of cash on hand may not exceed 10 percent of
  the total amount in the funds of the retirement system on deposit
  with the comptroller, excluding the assets of the law enforcement,
  [and] custodial, and peace officer supplemental retirement fund.
         SECTION 16.  Section 815.309, Government Code, is amended to
  read as follows:
         Sec. 815.309.  CREDITING SYSTEM ASSETS. All assets of the
  retirement system, except assets of the law enforcement, [and]
  custodial, and peace officer supplemental retirement fund, shall be
  credited to the trust fund established by Section 815.310.
         SECTION 17.  The heading to Section 815.317, Government
  Code, is amended to read as follows:
         Sec. 815.317.  LAW ENFORCEMENT, [AND] CUSTODIAL, AND PEACE
  OFFICER SUPPLEMENTAL RETIREMENT FUND.
         SECTION 18.  Sections 815.317(a), (a-1), and (b), Government
  Code, are amended to read as follows:
         (a)  The retirement system shall deposit in the law
  enforcement, [and] custodial, and peace officer supplemental
  retirement fund state contributions and other appropriations made
  by the legislature to the fund and proceeds from investment of the
  fund.
         (a-1)  The comptroller shall deposit fees collected under
  Section 133.102(e)(7), Local Government Code, to the credit of the
  law enforcement, [and] custodial, and peace officer supplemental
  retirement fund.
         (b)  The retirement system may use money from the fund only
  to pay supplemental retirement and death benefits to law
  enforcement, juvenile justice, [and] custodial, or peace officers
  as provided by this subtitle and to pay for the administration of
  the fund.
         SECTION 19.  Section 815.402(h), Government Code, is amended
  to read as follows:
         (h)  In addition to the contribution under Subsection
  (a)(1), each department or agency of the state that employs a law
  enforcement, juvenile justice, [or] custodial, or peace officer
  shall deduct an additional 0.5 percent contribution from that
  member's compensation, to be deposited in the law enforcement,
  [and] custodial, and peace officer supplemental retirement fund,
  provided that, if the state contribution to the law enforcement,
  [and] custodial, and peace officer supplemental retirement fund is
  computed using a percentage less than 0.5 percent, the member's
  contribution is computed using a percentage equal to the percentage
  used to compute the state contribution.
         SECTION 20.  Section 815.403(a), Government Code, is amended
  to read as follows:
         (a)  During each fiscal year, the state shall contribute to
  the retirement system:
               (1)  an amount equal to 7.4 percent of the total
  compensation of all members of the retirement system for that year;
               (2)  money to pay lump-sum death benefits for retirees
  under Section 814.501;
               (3)  an amount for the law enforcement, [and]
  custodial, and peace officer supplemental retirement fund equal to
  2.13 percent of the aggregate state compensation of all law
  enforcement, juvenile justice, custodial, and peace [law
  enforcement] officers for that year;
               (4)  money necessary for the administration of the law
  enforcement, [and] custodial, and peace officer supplemental
  retirement fund; and
               (5)  money for service credit not previously
  established, as provided by Section 813.202(c) or 813.302(d).
         SECTION 21.  Section 815.505, Government Code, is amended to
  read as follows:
         Sec. 815.505.  CERTIFICATION OF NAMES OF LAW ENFORCEMENT,
  JUVENILE JUSTICE, [AND] CUSTODIAL, AND PEACE OFFICERS.  (a)  Not
  later than the 12th day of the month following the month in which a
  person begins or ceases employment as a law enforcement, juvenile
  justice, [officer or] custodial, or peace officer, the Public
  Safety Commission, the Texas Alcoholic Beverage Commission, the
  Parks and Wildlife Commission, the office of the attorney general,
  the [office of inspector general at the] Texas Juvenile Justice
  Department, the Board of Pardons and Paroles, or the Texas Board of
  Criminal Justice, and any other state employer, as applicable,
  shall certify to the retirement system, in the manner prescribed by
  the system, the name of the employee and such other information as
  the system determines is necessary for the crediting of service and
  financing of benefits under this subtitle.
         (b)  Not later than the 12th day of the month following the
  month in which a person begins or ceases employment as a peace
  officer, an employer required to provide information about a person
  identified as being employed in a position as a peace officer under
  Section 825.515 shall certify to the retirement system, in the
  manner prescribed by the system, the name of the employee and such
  other information as the system determines is necessary for the
  crediting of service and financing of benefits under this subtitle.
         SECTION 22.  Section 822.002, Government Code, is amended to
  read as follows:
         Sec. 822.002.  EXCEPTIONS TO MEMBERSHIP REQUIREMENT. An
  employee of the public school system is not permitted to be a member
  of the retirement system if the employee:
               (1)  is eligible and elects to participate in the
  optional retirement program under Chapter 830;
               (2)  is eligible and elects to participate in the law
  enforcement, custodial, and peace officer supplemental retirement
  fund under Section 803.2015;
               (3)  is required to participate in the law enforcement,
  custodial, and peace officer supplemental retirement fund as a
  member of the employee class under Section 812.003(b-1);
               (4) [(2)]  is solely employed by a public institution
  of higher education that as a condition of employment requires the
  employee to be enrolled as a student in the institution; or
               (5) [(3)]  has retired under the retirement system and
  has not been reinstated to membership pursuant to Section 824.005
  or 824.307.
         SECTION 23.  Section 840.301(a), Government Code, is amended
  to read as follows:
         (a)  The board of trustees may, under the standard of care
  provided by Section 840.303, invest and reinvest the retirement
  system's assets and may commingle assets of the trust fund with the
  assets of the Employees Retirement System of Texas, including its
  trust fund and the law enforcement, [and] custodial, and peace
  officer supplemental retirement fund, for investment purposes, as
  long as proportionate ownership records are maintained and
  credited.
         SECTION 24.  Section 133.102(e), Local Government Code, is
  amended to read as follows:
         (e)  The comptroller shall allocate the court costs received
  under this section to the following accounts and funds so that each
  receives to the extent practicable, utilizing historical data as
  applicable, the same amount of money the account or fund would have
  received if the court costs for the accounts and funds had been
  collected and reported separately, except that the account or fund
  may not receive less than the following percentages:
               (1)  abused children's counseling
         0.0088 percent;
               (2)  crime stoppers assistance
         0.2581 percent;
               (3)  breath alcohol testing
         0.5507 percent;
               (4)  Bill Blackwood Law Enforcement Management
  Institute
         2.1683 percent;
               (5)  law enforcement officers standards and education
         5.0034 percent;
               (6)  comprehensive rehabilitation
         9.8218 percent;
               (7)  law enforcement, [and] custodial, and peace
  officer supplemental retirement fund
         11.1426 percent;
               (8)  criminal justice planning
         12.5537 percent;
               (9)  an account in the state treasury to be used only
  for the establishment and operation of the Center for the Study and
  Prevention of Juvenile Crime and Delinquency at Prairie View A&M
  University
         1.2090 percent;
               (10)  compensation to victims of crime fund
         37.6338 percent;
               (11)  emergency radio infrastructure account
         5.5904 percent;
               (12)  judicial and court personnel training fund
         4.8362 percent;
               (13)  an account in the state treasury to be used for
  the establishment and operation of the Correctional Management
  Institute of Texas and Criminal Justice Center Account
         1.2090 percent; and
               (14)  fair defense account
         8.0143 percent.
         SECTION 25.  (a)  Not later than December 31, 2017, a person
  who is a member of the Teacher Retirement System of Texas and is
  identified under Section 825.515, Government Code, as being
  employed as a peace officer shall decide whether to:
               (1)  remain a member in the Teacher Retirement System
  of Texas; or
               (2)  become a member of the employee class as a peace
  officer participating in the Employees Retirement System law
  enforcement, custodial, and peace officer supplemental retirement
  fund effective January 1, 2018.
         (b)  Not later than December 31, 2017, a person who is a
  member of the Employees Retirement System of Texas, holds a
  position as a law enforcement, juvenile justice, custodial, or
  peace officer, and was not eligible before the effective date of
  this Act to participate in the law enforcement and custodial
  officer supplemental retirement fund shall decide whether to:
               (1)  remain a member of the Employees Retirement System
  of Texas without participating in the law enforcement, custodial,
  and peace officer supplemental retirement fund; or
               (2)  begin participation in the Employees Retirement
  System law enforcement, custodial, and peace officer supplemental
  retirement fund effective January 1, 2018.
         (c)  The retirement benefits of a person who opts to begin
  participation in the Employees Retirement System law enforcement,
  custodial, and peace officer supplemental retirement fund under
  Subsection (a) or (b) of this section shall be divided as if the
  benefits were based on service credit earned in two separate
  retirement systems as follows:
               (1)  service credit earned before January 1, 2018; and
               (2)  service credit earned on or after January 1, 2018.
         (d)  A person who earns service credit described by
  Subsections (c)(1) and (2) of this section is eligible to have that
  credit treated as combined service credit under Chapter 803,
  Government Code, as amended by this Act.
         SECTION 26.  This Act takes effect September 1, 2017.