|
|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to eligibility for membership and funding of benefits for |
|
certain 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. Section 811.001, Government Code, is amended by |
|
amending Subdivisions (6) and (14) and adding Subdivision (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. |
|
(12-b) "Peace officer" means a person: |
|
(A) identified under Section 825.515 as being |
|
employed in a position as a peace officer; and |
|
(B) certified as being a peace officer under |
|
Section 815.505. |
|
(14) "Retiree" means a person who, except as provided |
|
by Section 812.203 or 812.2035, receives an annuity based on |
|
service that was credited to the person in a class of membership. |
|
SECTION 3. Section 812.003, Government Code, is amended by |
|
amending Subsections (b) and (c) 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 in |
|
which an election is made under Section 812.0035 or 812.0036, 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. |
|
(c) Membership in the employee class is mandatory for |
|
eligible persons, other than eligible persons who do not make an |
|
election under Section 812.0035. |
|
SECTION 4. Subchapter A, Chapter 812, Government Code, is |
|
amended by adding Sections 812.0035 and 812.0036 to read as |
|
follows: |
|
Sec. 812.0035. OPTIONAL MEMBERSHIP FOR CERTAIN LAW |
|
ENFORCEMENT OFFICERS. (a) In lieu of participating in the Teacher |
|
Retirement System of Texas, a person who is employed in a position |
|
identified as a peace officer position for a public school other |
|
than an institution of higher education under Section 825.515 may |
|
elect, not later than the 60th day after the first date of |
|
employment, to participate, or return to participation, in the |
|
retirement system. |
|
(b) An election by a person described by Subsection (a) to |
|
participate in the retirement system must be on a form prescribed by |
|
the retirement system for that purpose. |
|
(c) Sections 812.205 and 812.206 do not apply to a person |
|
who makes an election under this section. |
|
Sec. 812.0036. CERTAIN PEACE OFFICERS EMPLOYED ON AUGUST |
|
31, 2019. (a) This section applies to a person who, on August 31, |
|
2019: |
|
(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 for a public school that |
|
is not an institution of higher education; and |
|
(B) elects, not later than November 1, 2019, to |
|
begin membership as a peace officer participating in the Employees |
|
Retirement System of Texas law enforcement, custodial, and peace |
|
officer supplemental retirement fund beginning January 1, 2020; or |
|
(2) is a member of the Teacher Retirement System of |
|
Texas and is a retiree of the Employees Retirement System of Texas |
|
or a member of that system who is absent from service and who: |
|
(A) was employed as a law enforcement or |
|
custodial officer; |
|
(B) is identified under Section 825.515 as being |
|
employed in a position as a peace officer for a public school that |
|
is not an institution of higher education; and |
|
(C) elects, not later than November 1, 2019, to |
|
return to membership as a peace officer participating in the |
|
Employees Retirement System of Texas law enforcement, custodial, |
|
and peace officer supplemental retirement fund beginning January 1, |
|
2020. |
|
(b) For the purposes of this chapter, service credit earned |
|
by a person described by Subsection (a)(1) 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 of Texas law enforcement, custodial, and peace |
|
officer supplemental retirement fund; and |
|
(2) after beginning participation in the Employees |
|
Retirement System of Texas law enforcement, custodial, and peace |
|
officer supplemental retirement fund. |
|
(c) For purposes of this chapter, service credit earned by a |
|
person who makes an election under Subsection (a)(2) is governed by |
|
Sections 812.201(d) and 812.2035. Service credit earned by that |
|
person in the Teacher Retirement System of Texas before the |
|
effective date of the election is transferred to the Employees |
|
Retirement System of Texas as provided by Chapter 805 without |
|
regard to the amount of service credit held in either system. |
|
SECTION 5. Section 812.101(c), Government Code, is amended |
|
to read as follows: |
|
(c) For a law enforcement, [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. Section 812.201, Government Code, is amended by |
|
amending Subsection (a) and adding Subsection (d) to read as |
|
follows: |
|
(a) Except as provided by Subsection (c) or (d), a retiree |
|
may not rejoin the retirement system as a member of the class from |
|
which the person retired. |
|
(d) A person who is retired from the employee class of |
|
membership and who is employed in a position identified as a peace |
|
officer position for a public school other than an institution of |
|
higher education under Section 825.515 may elect to become a member |
|
again under Section 812.0035 by filing notice with the retirement |
|
system. Except as provided by Section 812.2035(c), when benefit |
|
payments are resumed, the retirement system shall recompute the |
|
annuity selected at the time of the officer's original retirement |
|
to include the additional service established during membership |
|
under this subsection. |
|
SECTION 7. Section 812.202(b), Government Code, is amended |
|
to read as follows: |
|
(b) Except as provided by Section 812.2035, the [The] |
|
payment of benefits to a retiree for service credited in the |
|
employee class of membership is not affected by the retiree's |
|
taking a position included in the employee class. |
|
SECTION 8. The heading to Section 812.203, Government Code, |
|
is amended to read as follows: |
|
Sec. 812.203. ELECTED CLASS BENEFITS AFFECTED. |
|
SECTION 9. Subchapter C, Chapter 812, Government Code, is |
|
amended by adding Section 812.2035 to read as follows: |
|
Sec. 812.2035. CERTAIN EMPLOYEE CLASS BENEFITS AFFECTED. |
|
(a) If a retiree takes a position as a peace officer and elects to |
|
participate again in the system under Section 812.0035, the |
|
retirement system shall suspend annuity payments to the person for |
|
service that was credited in that class until the person no longer |
|
holds that position. |
|
(b) Time during which annuity payments are suspended as |
|
provided by this section does not reduce the number of months |
|
payments are to be made under an optional benefit selection |
|
providing for a specific amount of benefits for a guaranteed number |
|
of months after retirement. |
|
(c) If a member who originally retired with service that |
|
was, at the time of that retirement, credited only in the employee |
|
class of membership again retires, the person at the time of |
|
subsequent retirement may select an annuity based on service in the |
|
employee class as if the person were retiring for the first time. |
|
If the person selects an annuity under Section 814.108(c)(3) or |
|
(c)(4), the retirement system shall reduce the number of months of |
|
guaranteed payment by the number of months for which an annuity was |
|
paid under the person's original retirement. |
|
SECTION 10. 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, [or] custodial, or peace officer service, in either |
|
the elected class or the employee class. |
|
SECTION 11. 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, [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, [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, [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, [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, [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, [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, [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, [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, [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 12. 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 13. 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, [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, [or] custodial, or peace officer and any amount by |
|
which an annuity is increased under Subsection (e). |
|
SECTION 14. Section 814.305, Government Code, is amended to |
|
read as follows: |
|
Sec. 814.305. ANNUITY FOR SURVIVOR OF LAW ENFORCEMENT, [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, [or] custodial, or peace officer dies, the |
|
amount of the death benefit annuity payable for the member's |
|
service as a law enforcement, [or] custodial, or peace officer is an |
|
amount computed and funded as provided by Section 814.107, |
|
including any applicable reduction factors. |
|
SECTION 15. 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 16. 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 17. 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) Except as provided by Section 815.3016, the board of |
|
trustees may delegate its authority under Subsection (a) to the |
|
executive director. Subject to Section 815.3016, 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 18. 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 19. 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 20. 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 21. 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)(5) [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, [and] custodial, or peace officers as provided by this |
|
subtitle and to pay for the administration of the fund. |
|
SECTION 22. 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, [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 23. 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, 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 24. Section 815.505, Government Code, is amended to |
|
read as follows: |
|
Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT, |
|
[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 officer or custodial |
|
officer, the Public Safety Commission, the Texas Alcoholic Beverage |
|
Commission, the Parks and Wildlife Commission, the office of |
|
inspector general at the Texas Juvenile Justice Department, the |
|
Board of Pardons and Paroles, or the Texas Board of Criminal |
|
Justice, 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) This subsection applies only to a person who elects or |
|
elected to participate in the retirement system as a peace officer. |
|
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 in a public |
|
school other than an institution of higher education 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 25. Section 822.001(a), Government Code, is amended |
|
to read as follows: |
|
(a) Membership in the retirement system includes: |
|
(1) all persons who were members of the retirement |
|
system on the day before the effective date of this subtitle; and |
|
(2) all employees of the public school system, unless |
|
an employee is excluded from membership under Section 822.002. |
|
SECTION 26. Section 822.002(a), Government Code, is amended |
|
to read as follows: |
|
(a) 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 |
|
Employees Retirement System of Texas under Section 812.0035 or |
|
812.0036(a); or |
|
(3) [(2)] has retired under the retirement system and |
|
has not been reinstated to membership pursuant to Section 824.005 |
|
or 824.307. |
|
SECTION 27. 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 28. 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) crime stoppers assistance0.2581 percent; |
|
(2) breath alcohol testing0.5507 percent; |
|
(3) Bill Blackwood Law Enforcement Management |
|
Institute2.1683 percent; |
|
(4) law enforcement officers standards and |
|
education5.0034 percent; |
|
(5) law enforcement, [and] custodial, and peace |
|
officer supplemental retirement fund11.1426 percent; |
|
(6) criminal justice planning12.5537 percent; |
|
(7) 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 |
|
University1.2090 percent; |
|
(8) compensation to victims of crime fund |
|
37.6338 percent; |
|
(9) emergency radio infrastructure account |
|
5.5904 percent; |
|
(10) judicial and court personnel training fund |
|
4.8362 percent; |
|
(11) 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 |
|
Account1.2090 percent; and |
|
(12) fair defense account17.8448 percent. |
|
SECTION 29. The name of the law enforcement and custodial |
|
officer supplemental retirement fund is changed to the law |
|
enforcement, custodial, and peace officer supplemental retirement |
|
fund. A reference in Subtitle B, Title 8, Government Code, or other |
|
law to the law enforcement and custodial officer supplemental |
|
retirement fund means the law enforcement, custodial, and peace |
|
officer supplemental retirement fund. |
|
SECTION 30. This Act takes effect September 1, 2019. |