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A BILL TO BE ENTITLED
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AN ACT
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relating to retirement benefits for certain peace officers who are |
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members of the Teacher Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 821.001, Government Code, is amended by |
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adding Subdivision (11-a) to read as follows: |
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(11-a) "Peace officer" means a member of the |
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retirement system who is elected, employed, or appointed as a peace |
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officer under Article 2.12, Code of Criminal Procedure, Section |
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37.081 or 51.203, Education Code, or other law. |
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SECTION 2. Subchapter C, Chapter 824, Government Code, is |
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amended by adding Sections 824.2025 and 824.2035 to read as |
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follows: |
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Sec. 824.2025. ELIGIBILITY FOR SERVICE RETIREMENT FOR PEACE |
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OFFICERS. (a) This section applies notwithstanding any other law, |
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including Section 824.202. |
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(b) A member who is at least 55 years old and who has at |
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least 10 years of service credit as a peace officer engaged in law |
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enforcement activities by a school district or institution of |
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higher education is eligible to retire and receive a service |
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retirement annuity. |
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(c) A member who has at least 20 years of service credit as a |
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peace officer is eligible to retire regardless of age and receive a |
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standard service retirement annuity in an amount provided by |
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Section 824.203 or 824.2035, as applicable. |
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(d) The standard combined service retirement annuity that |
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is payable under Section 824.203 or 824.2035, as applicable, is |
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based on retirement on or after the attainment of the normal |
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retirement age, which for purposes of this section is the earlier of |
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either the age of 57 or the age at which the sum of the member's age |
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and amount of service credit equals the number 80. The annuity of a |
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peace officer who retires before reaching the age of 57 under any |
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eligibility criteria is actuarially reduced by five percent for |
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each year of difference between the member's age at retirement and |
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57. The actuarial reduction described by this section is in |
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addition to any other actuarial reduction required by law. |
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(e) A peace officer who retires before attaining the age of |
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50 is entitled only to an annuity that is actuarially reduced from |
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the annuity available at the age of 50 to the peace officer whose |
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service credit annuity amount is based on the sum of the member's |
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age and amount of peace officer service credit and other service |
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credit, and is not entitled to have the annuity recalculated at |
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normal retirement age. The standard or reduced annuity under this |
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section is payable from appropriate accounts described by Section |
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825.306. |
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Sec. 824.2035. SERVICE RETIREMENT BENEFITS FOR CERTAIN |
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PEACE OFFICERS. (a) This section applies to a member subject to |
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Section 824.2025(c) who renders service as a peace officer after |
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September 1, 2018. |
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(b) The standard service retirement annuity payable for a |
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peace officer subject to this section is an amount computed on the |
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basis of the member's average annual compensation for the five |
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years of service, whether or not consecutive, in which the member |
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received the highest annual compensation, times the sum of the |
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percentage factor used in the computation of a standard service |
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retirement annuity under Section 824.203 plus 0.5 percent. |
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(c) Optional retirement annuities provided by Section |
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824.204 are available to a member eligible to receive a service |
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retirement annuity under this section. |
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(d) The total combined amount of an annuity under this |
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section may not be less than the authorized benefit under |
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Subsection (b) subtracted by any amount necessary because of |
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selection of an optional annuity, because of retirement before the |
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normal retirement age, or as provided by Subsection (e). |
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(e) The standard combined service retirement annuity |
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payable for at least 20 years of service credit as a peace officer |
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may not exceed 100 percent of the average compensation computed |
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under Subsection (b). |
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(f) For purposes of this section, service as a peace officer |
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is creditable as provided by rule of the board of trustees or on a |
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month-to-month basis, whichever is greater. |
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SECTION 3. Subchapter D, Chapter 824, Government Code, is |
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amended by adding Section 824.3045 to read as follows: |
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Sec. 824.3045. DISABILITY RETIREMENT BENEFITS FOR CERTAIN |
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PEACE OFFICERS. (a) An annuity payable for a disability resulting |
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from a risk to which peace officers are exposed because of the |
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nature of the officers' duties is payable under the same terms and |
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conditions that apply to other disability retirement annuities |
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under this subtitle. |
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(b) Except as provided by Subsection (c), a disability |
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retirement annuity under this section is an amount, but not more |
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than 100 percent, computed on the basis of the officer's average |
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annual compensation, times a percentage derived by application of |
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Section 824.2035(b). |
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(c) A disability retirement annuity under this section is |
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not reducible because of age and may not be less than 50 percent of |
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the officer's average annual compensation regardless of the amount |
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of service credited to the officer. |
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(d) If a retiring member or retiree under this section |
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presents evidence satisfactory to the retirement system that the |
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person's disability makes the person incapable of substantial |
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gainful activity solely because of the disability and is considered |
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a total disability under federal social security law, the |
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retirement system shall increase the person's disability |
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retirement annuity to 100 percent of the officer's average annual |
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compensation. |
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(e) An annuity increase under Subsection (d) is not payable |
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before the first month following the month in which the |
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satisfactory evidence is received by the retirement system under |
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Subsection (d). |
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SECTION 4. Subchapter E, Chapter 824, Government Code, is |
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amended by adding Section 824.4025 to read as follows: |
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Sec. 824.4025. ANNUITY FOR SURVIVOR OF PEACE OFFICER. If a |
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member who has at least 20 years of service credit as a peace |
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officer dies, the amount of the death benefit annuity payable for |
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the member's service as a peace officer is an amount computed under |
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Section 824.2035, including any applicable reduction factors. |
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SECTION 5. Section 825.402, Government Code, is amended to |
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read as follows: |
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Sec. 825.402. RATE OF MEMBER CONTRIBUTIONS. (a) Except as |
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provided by Subsection (b), the [The] rate of contributions for |
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each member of the retirement system is: |
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(1) five percent of the member's annual compensation |
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or $180, whichever is less, for service rendered after August 31, |
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1937, and before September 1, 1957; |
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(2) six percent of the first $8,400 of the member's |
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annual compensation for service rendered after August 31, 1957, and |
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before September 1, 1969; |
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(3) six percent of the member's annual compensation |
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for service rendered after August 31, 1969, and before the first day |
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of the 1977-78 school year; |
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(4) 6.65 percent of the member's annual compensation |
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for service rendered after the last day of the period described by |
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Subdivision (3) and before September 1, 1985; |
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(5) 6.4 percent of the member's annual compensation |
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for service rendered after August 31, 1985, and before September 1, |
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2014; |
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(6) 6.7 percent of the member's annual compensation |
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for service rendered after August 31, 2014, and before September 1, |
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2015; |
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(7) 7.2 percent of the member's annual compensation |
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for service rendered after August 31, 2015, and before September 1, |
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2016; |
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(8) 7.7 percent of the member's annual compensation |
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for service rendered after August 31, 2016, and before September 1, |
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2017; and |
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(9) for service rendered on or after September 1, |
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2017, the lesser of: |
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(A) 7.7 percent of the member's annual |
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compensation; or |
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(B) a percentage of the member's annual |
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compensation equal to 7.7 percent reduced by one-tenth of one |
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percent for each one-tenth of one percent that the state |
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contribution rate for the fiscal year to which the service relates |
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is less than the state contribution rate established for the 2015 |
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fiscal year. |
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(b) For service rendered after September 1, 2018, the rate |
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of contributions for each member of the retirement system who is a |
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peace officer is 9.5 percent of the member's annual compensation. |
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SECTION 6. Subchapter E, Chapter 825, Government Code, is |
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amended by adding Section 825.4093 to read as follows: |
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Sec. 825.4093. EMPLOYER CONTRIBUTIONS FOR PEACE OFFICERS. |
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(a) This section applies to an employer who reports to the |
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retirement system the employment of a peace officer for service |
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rendered as a peace officer after September 1, 2018. |
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(b) In addition to employer contributions otherwise |
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required under this subchapter, for each peace officer the employer |
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reports to the retirement system, the employer shall contribute |
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monthly to the retirement system one percent of the member's |
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compensation. |
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(c) Contributions under this section are subject to the |
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requirements of Section 825.408. |
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SECTION 7. Subchapter F, Chapter 825, Government Code, is |
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amended by adding Section 825.5155 to read as follows: |
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Sec. 825.5155. CERTIFICATION OF NAMES OF PEACE OFFICERS. |
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Not later than the 12th day of the month following the month in |
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which a person begins or ceases employment as a peace officer, the |
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employer shall certify to the retirement system, in the manner |
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prescribed by the system, the name of the employee and such other |
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information as the system determines is necessary for the crediting |
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of service and financing of benefits under this subtitle. |
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SECTION 8. Section 824.3045, Government Code, as added by |
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this Act, applies only to the disability retirement annuity of a |
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peace officer who applies for the annuity on or after the effective |
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date of this Act. The disability retirement annuity of a person who |
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applies for the annuity before the effective date of this Act is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 9. Section 824.4025, Government Code, as added by |
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this Act, applies only to a death benefit annuity that is applied |
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for on or after the effective date of this Act. A death benefit |
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annuity applied for before the effective date of this Act is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 10. The board of trustees of the Teacher Retirement |
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System of Texas shall adopt rules as soon as possible after the |
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effective date of this Act to implement the changes in law made by |
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this Act, including rules that ensure that any benefit paid to the |
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member under Section 824.2035, Government Code, as added by this |
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Act, is reasonably proportionate to the member's contribution under |
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Section 825.402, Government Code, as amended by this Act. |
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SECTION 11. This Act takes effect September 1, 2017. |