By: Johnson of Dallas, et al. H.B. No. 4034
        (Senate Sponsor - Johnson)
         (In the Senate - Received from the House May 3, 2023;
  May 4, 2023, read first time and referred to Committee on Finance;
  May 16, 2023, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 16, Nays 1; May 16, 2023,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 4034 By:  West
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to certain disability and death benefits payable by the
  public retirement systems for police and fire fighters in certain
  municipalities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  This Act may be cited as the David Walters Act.
         SECTION 2.  Section 6.04(f), Article 6243a-1, Revised
  Statutes, is amended to read as follows:
         (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 2.5 percent [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.
         SECTION 3.  Section 6.08, Article 6243a-1, Revised Statutes,
  is amended by amending Subsections (b) and (b-2) and adding
  Subsections (b-4) and (b-5) to read as follows:
         (b)  Subject to Subsection (b-2) of this section, death
  benefits shall be computed as follows for the qualified survivors
  of Group B members who die while on active service:
               (1)  the 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, except as provided by Subsection (b-4) of this section, 1.5
  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
                           (ii)  the number of 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, except as provided by Subsection (b-4) of
  this section, 1.25 percent [the applicable percentage rate set
  forth below] 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
                     (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, except as provided by Subsection (b-4) of this
  section, 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;
               (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-2)  The death benefit calculated under Subsection (b) of
  this section may not exceed the greater of:
               (1)  except as provided by Subsection (b-4) of this
  section, 45 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-4)  If a member dies in the line of duty, as determined by
  the board under Subsection (b-5) of this section, the percentage
  rate applied to the member's average computation pay under:
               (1)  Subsection (b)(1)(A)(i) of this section is 3
  percent instead of 1.5 percent at such time as there are qualified
  survivors who are either the member's children or surviving spouse,
  but not both;
               (2)  Subsection (b)(1)(A)(ii) of this section is 2.5
  percent instead of 1.25 percent at such time as there are qualified
  survivors who are either the member's children or surviving spouse,
  but not both;
               (3)  Subsection (b)(1)(B) of this section is 2.5
  percent instead of 1.25 percent at such time as there are qualified
  survivors who are either the member's children or surviving spouse,
  but not both; and
               (4)  Subsection (b-2)(1) is 90 percent instead of 45
  percent.
         (b-5)  A member is considered to have died in the line of duty
  if the member's death is caused by the performance of the member's
  duties for the member's department. The board shall determine
  whether a member died in the line of duty. In making a determination
  under this subsection, the board may consider as guidance the
  determination of the same or similar issue made by another
  governmental entity.
         SECTION 4.  Section 6.04(f), Article 6243a-1, Revised
  Statutes, as amended by this Act, applies only to a disability
  pension for which an application is filed on or after the effective
  date of this Act. A disability pension for which an application is
  filed before the effective date of this Act is governed by the law
  in effect immediately before the effective date of this Act, and the
  former law is continued in effect for that purpose.
         SECTION 5.  (a) In this section, "board" and "member" have
  the meanings assigned by Section 2.01, Article 6243a-1, Revised
  Statutes.
         (b)  Subject to Subsection (c) of this section, Section 6.08,
  Article 6243a-1, Revised Statutes, as amended by this Act, applies
  only to a death benefit payable on or after the effective date of
  this Act.
         (c)  If a member died in the line of duty before September 1,
  2023, as determined by the board in accordance with Section
  6.08(b-5), Article 6243a-1, Revised Statutes, as added by this Act,
  the death benefit payable on or after September 1, 2023, to the
  member's surviving spouse or children shall be adjusted in
  accordance with Section 6.08(b-4), Article 6243a-1, Revised
  Statutes, as added by this Act, as applicable. The surviving spouse
  or children of a member described by this subsection are not
  entitled to payment of any adjusted benefits relating to death
  benefits paid before September 1, 2023.
         SECTION 6.  This Act takes effect September 1, 2023.
 
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