By: Menéndez  S.B. No. 1207
         (In the Senate - Filed February 24, 2023; March 9, 2023,
  read first time and referred to Committee on Finance;
  March 31, 2023, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 17, Nays 0; March 31, 2023,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1207 By:  Hinojosa
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the retirement system in certain municipalities for
  firefighters and police officers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 1.02(4-a), (5), (7), and (17), Chapter
  824 (S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
  (Article 6243o, Vernon's Texas Civil Statutes), are amended to read
  as follows:
               (4-a)  "Catastrophic injury" means, except as provided
  by Section 5.03(a-2) of this Act, irreparable physical bodily
  injury sustained by a member as a direct and immediate result of the
  member's engaging in an activity that:
                     (A)  constitutes the performance of the member's
  duties as a firefighter or police officer;
                     (B)  involves an extraordinary degree of risk of
  bodily injury or death; and
                     (C)  does not result in death.
               (5)  "Code" means the United States Internal Revenue
  Code of 1986 or a successor statute, unless the context requires
  otherwise.
               (7)  "Dependent child" means:
                     (A)  a person who is less than 18 years of age and
  is a natural or adopted child of a deceased member or deceased
  retiree; or
                     (B)  a person:
                           (i)  who is at least 18 years of age;
                           (ii)  who is mentally or physically disabled
  to the extent that the person is not capable of being
  self-supporting; and
                           (iii)  whose natural or adoptive parent is a
  deceased member or deceased retiree[, provided that, for the year
  immediately preceding the death of the member or retiree, the
  deceased member or retiree claimed the person as a dependent on the
  member's or retiree's federal income tax return].
               (17)  "Total salary" means all salary of a member:
                     (A)  including:
                           (i)  amounts picked up by the municipality
  under Section 4.04(b) of this Act; and
                           (ii)  amounts that would be included in
  salary but for an election under Section 125(d), 132(f)(4), 401(k),
  402(e)(3), 402(h)(1)(B), or 457(b) of the code; and
                     (B)  excluding[, except]:
                           (i) [(A)]  overtime pay, field training
  officer's pay, bomb squad pay, SWAT team pay, K-9 pay, and hostage
  team pay; and
                           (ii) [(B)]  pay for unused accrued vacation
  and sick leave, holiday pay, compensatory time pay, and bonus days
  leave, or any similar items of compensation that may be paid in the
  future.
         SECTION 2.  Section 2.02, Chapter 824 (S.B. 817), Acts of the
  73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
  Texas Civil Statutes), is amended by amending Subsections (a) and
  (b) and adding Subsection (b-1) to read as follows:
         (a)  The mayor of a municipality to which this Act applies,
  or a qualified mayoral designee, serves on the board for the term of
  the mayor's office, provided [except] that, if the mayor appoints a
  qualified mayoral designee, the mayor may replace or remove that
  qualified mayoral designee at the mayor's discretion, and the term
  of the mayor or the mayor's qualified mayoral designee, as
  applicable, on the board expires on the date the mayor ceases to be
  mayor of the municipality for any reason. An individual designated
  by the mayor to serve on the board under this subsection may only
  serve on the board while the individual is a qualified mayoral
  designee.
         (b)  The two members of the municipal governing body serve on
  the board for the term of the office to which they are elected or
  appointed, provided that the term of the member on the board expires
  on the day the member ceases to be a member of the municipal
  governing body for any reason.
         (b-1)  The governing body of a municipality shall fill a
  vacancy on the board under Section 2.01(a)(2) of this Act in the
  manner provided by Subsection (b) of this section.
         SECTION 3.  Section 3.01(a), Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         (a)  The board has complete authority and power to:
               (1)  administer the fund for the exclusive benefit of
  all members, retirees, and beneficiaries;
               (2)  disburse benefits or otherwise order payments from
  the fund as required by this Act;
               (3)  control the fund independently;
               (4)  conduct all litigation on behalf of the fund; and
               (5)  purchase with fund assets from one or more
  insurers licensed to do business in this state one or more insurance
  policies that provide for reimbursement of the fund and any
  trustee, officer, or employee of the board for liability imposed or
  damages because of an alleged act, error, or omission committed in
  the trustee's, officer's, or employee's capacity as a fiduciary
  officer or employee of the fund and for costs and expenses incurred
  as a trustee, officer, or employee in defense of a claim for an
  alleged act, error, or omission, as long as the insurance policy
  does not provide for reimbursement of a trustee, officer, or
  employee for liability imposed or expenses incurred because of the
  trustee's, officer's, or employee's personal dishonesty, fraud,
  lack of good faith, or intentional failure to act prudently.
         SECTION 4.  The heading to Section 3.03, Chapter 824 (S.B.
  817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
  6243o, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 3.03.  [ORDERS FOR] DISBURSEMENTS OF BENEFITS.
         SECTION 5.  Section 3.03(b), Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         (b)  Disbursements of benefits may not be made without a
  record vote of the board.
         SECTION 6.  Section 4.03, Chapter 824 (S.B. 817), Acts of the
  73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
  Texas Civil Statutes), is amended by amending Subsections (b), (c),
  and (f) and adding Subsections (f-1) and (i) to read as follows:
         (b)  Subject to Subsections (c) and (e) of this section, a 
  [Not later than the 90th day after the date of the member's
  reinstatement to an active status in the fire or police department,
  the] member may restore credit not established during the period
  the member was engaged in active service in any uniformed service by
  paying [must file with the secretary of the board a written
  statement of intent to pay] into the fund an amount equal to what
  the member would have paid during that period if the member had
  remained on active status in the fire or police department [during
  the period of the member's absence in the uniformed service].
         (c)  The member must make the payment described by Subsection
  (b) of this section in full within an amount of time after the
  member's return to active status in the fire or police department
  that is equal to three times the amount of time the member was
  engaged in active service with the uniformed service [absent],
  except that the maximum period for payment may not exceed five
  years.
         (f)  If a [person who became a] member [before October 1,
  1997,] does not make the payment authorized [required] under
  Subsection (b) [(c)] of this section within the [required amount
  of] time prescribed by Subsection (c) of this section and the member
  would otherwise be eligible for credit under federal law, the
  member may receive credit for the uniformed service if:
               (1)  the board determines that the member had good
  cause for not complying with Subsection (b) or (c) of this section;
  and
               (2)  the member [also] pays interest, compounded
  annually, on the then current rate of a member's contribution from
  the date the payment was required to the date the payment was made.
         (f-1)  The board shall set the rate of interest for purposes
  of Subsection (f)(2) of this section.
         (i)  The survivors of a member of the fund who dies while
  performing qualified military service, as defined in Section 414(u)
  of the code, are entitled to any additional benefits, other than
  benefit accruals relating to the period of qualified military
  service, that would have been provided if the member had returned to
  active status in the fire or police department and then terminated
  employment as the result of death.
         SECTION 7.  Section 5.03, Chapter 824 (S.B. 817), Acts of the
  73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
  Texas Civil Statutes), is amended by amending Subsections (a),
  (a-1), (c), and (d) and adding Subsection (a-3) to read as follows:
         (a)  An active member of the fund who is not eligible to
  receive a catastrophic injury disability annuity under Subsection
  (a-1) of this section is eligible to retire and receive a regular
  disability retirement annuity only if the member:
               (1)  makes a written application for regular disability
  retirement with the board;
               (2)  establishes to the satisfaction of the board that
  the member is permanently disabled through injury or disease so as
  to be unable to perform the duties of any available position in the
  department and, unless waived by the board, has been off active duty
  because of that injury or disease for a continuous period of not
  less than the 30 days preceding [before] the date of the application
  for disability retirement;
               (3)  has had all member contributions required by this
  Act made on the member's behalf;
               (4)  is not disqualified from receiving a disability
  retirement annuity under [on indefinite suspension as described in]
  Subsection (d) of this section; and
               (5)  has authorized the release to the board of all
  medical records dated on or after the date of initial application
  for employment with the department.
         (a-1)  An active member of the fund is eligible to retire and
  receive a catastrophic injury disability retirement annuity only if
  the member:
               (1)  makes a written application for catastrophic
  injury disability retirement with the board;
               (2)  establishes to the satisfaction of the board that
  the member is permanently so disabled as a result of a catastrophic
  injury as to:
                     (A)  be unable to secure any type of third-party
  employment, or engage in any self-employment, other than sporadic
  third-party or self-employment; and
                     (B)  have, as a result of the lack of third-party
  employment or self-employment, an annual income less than the
  poverty level for one person in the 48 contiguous states of the
  United States as provided under the poverty guidelines published
  from time to time by the United States Department of Health and
  Human Services, or similar guidelines selected by the board;
               (3)  has had all member contributions required by this
  Act made on the member's behalf;
               (4)  is not disqualified from receiving a disability
  retirement annuity under [on indefinite suspension as described in]
  Subsection (d) of this section; and
               (5)  has authorized the release to the board of all
  medical records dated on or after the date of initial application
  for employment with the department.
         (a-3)  In making any determination under this section, the
  board may consider or require any evidence the board considers
  necessary or appropriate to make the determination.
         (c)  A [Except as provided by Subsection (d) of this section,
  a] member [of the fund] who is on suspension for a specific period,
  including a member whose indefinite suspension is reversed or
  modified to a suspension for a specific period, and who becomes
  disabled as a result of an injury sustained or disease contracted
  while the member is on suspension is eligible for a disability
  retirement annuity under Subsection (a) or (a-1) of this section,
  as applicable, only if the suspended member makes up each
  [deducted] contribution to the fund not made by the member [lost] by
  reason of the suspension not later than the 30th day after the later
  of the termination date of the suspension or the date the suspension
  becomes final in accordance with Section 6.105 of this Act
  [exhaustion of any appeal with respect to the suspension].  A
  municipality to which this Act applies shall double-match all
  contributions made by a member under this subsection.
         (d)  A member of the fund who is on indefinite suspension,
  excluding an indefinite suspension reversed or modified to be a
  suspension for a specific period, that becomes [is not eligible for
  a disability retirement annuity until the] final in accordance with
  Section 6.105 of this Act or who is terminated by the municipality,
  [determination of the suspension and all appeals of that
  determination are exhausted. A member of the fund who is on
  indefinite suspension] is not entitled to a disability retirement
  annuity [if the member is finally discharged]. [A member of the
  fund who is on indefinite suspension but who is restored to duty or
  who is given a suspension for a specific period is eligible for a
  disability retirement annuity as provided by Subsection (a) of this
  section.]
         SECTION 8.  Sections 5.04(a) and (a-1), Chapter 824 (S.B.
  817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
  6243o, Vernon's Texas Civil Statutes), are amended to read as
  follows:
         (a)  A member who is eligible to retire and receive a
  disability retirement annuity under Section 5.03(a) of this Act is
  entitled to receive an annuity from the fund equal to:
               (1)  50 percent of the member's average total salary, if
  the member has served three years or more before the date of
  retirement;
               (2)  50 percent of the member's average monthly total
  salary as of the date of retirement multiplied by 12, if the member
  has served at least two months and less than three years before the
  date of retirement; or
               (3)  50 percent of the member's average daily total
  salary as of the date of retirement multiplied by 360, if the member
  has served less than two months before the date of retirement.
         (a-1)  Subject to Subsection (a-2) of this section a member
  who is eligible to retire and receive a catastrophic injury
  disability retirement annuity under Section 5.03(a-1) of this Act
  is entitled to receive an annuity from the fund equal to:
               (1)  87.5 percent of the member's average total salary,
  if the member has served three years or more before the date of
  retirement;
               (2)  87.5 percent of the member's average monthly total
  salary as of the date of retirement multiplied by 12, if the member
  has served at least two months and less than three years before the
  date of retirement; or
               (3)  87.5 percent of the member's average daily total
  salary as of the date of retirement multiplied by 360, if the member
  has served less than two months before the date of retirement.
         SECTION 9.  Sections 5.05(a-1), (a-3), (c), and (c-1),
  Chapter 824 (S.B. 817), Acts of the 73rd Legislature, Regular
  Session, 1993 (Article 6243o, Vernon's Texas Civil Statutes), are
  amended to read as follows:
         (a-1)  A disability retiree who is awarded a catastrophic
  injury disability annuity under Section 5.03(a-1) of this Act
  shall, if required by the board, undergo a medical examination by
  any reputable physician or physicians selected by the board:
               (1)  not later than 60 months after the date of the
  award of the annuity by the board; and
               (2)  thereafter, not later than 60 months following the
  last required medical examination of the disability retiree under
  this subsection.
         (a-3)  Subject to Subsections (b) and [Subsection] (c) of
  this section, based on an examination under Subsection
  [Subsections] (a), (a-1), or (a-2) of this section, the board shall
  determine whether the disability retirement annuity shall be
  continued, decreased, restored to the original amount if it had
  been decreased, or discontinued.
         (c)  For those retired because of disability on or after
  August 30, 1971, the disability retirement annuity may not, except
  in the case of discontinuance, be reduced to an amount that is less
  than the product of:
               (1)  2.25 percent multiplied by the number of years
  that the retiree served in the department and contributed a portion
  of salary as a member of the fund multiplied by the retiree's
  average total salary, if the retiree served three years or more
  before the date of retirement;
               (2)  2.25 percent multiplied by the number of years
  that the retiree served in the department and contributed a portion
  of salary as a member of the fund multiplied by the retiree's
  average monthly total salary as of the date of retirement
  multiplied by 12, if the retiree served at least two months and less
  than three years before the date of retirement; or
               (3)  2.25 percent multiplied by the number of years
  that the retiree served in the department and contributed a portion
  of salary as a member of the fund multiplied by the retiree's
  average daily total salary as of the date of retirement multiplied
  by 360, if the member has served less than two months before the
  date of retirement.
         (c-1)  In making the computation under Subsections (b) and
  [Subsection] (c) of this section, all fractional years shall be
  prorated based on full months served in the department as a
  contributing member of the fund before the date of retirement.
         SECTION 10.  The heading to Section 5.07, Chapter 824 (S.B.
  817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
  6243o, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         Sec. 5.07.  OUTSIDE INCOME PENSION SUSPENSION OR REDUCTION.
         SECTION 11.  Section 5.07, Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended by adding Subsections
  (a-1) and (c) and amending Subsection (b) to read as follows:
         (a-1)  If a retiree fails to provide an income tax return to
  the board under Subsection (a) of this section, the board may
  suspend the retiree's disability retirement annuity until the
  retiree provides the required income tax return.
         (b)  Subject to Subsection (c) of this section, if [If] the
  retiree received income from other employment, including
  self-employment, during the preceding year, the board may reduce
  the retiree's disability retirement annuity by the amount of $1 for
  each month for each $2 of income earned by the retiree from the
  other employment during each month of the previous year, except
  that the disability retirement annuity may not be decreased below
  the amount determined under Section 5.05(c) of this Act.
         (c)  The board may restore a disability retirement annuity
  that has been reduced under Subsection (b) of this section.  The
  amount of the restored annuity must be the same as the amount of the
  annuity before the reduction plus any applicable cost-of-living
  increases under Section 5.09 of this Act that occurred during the
  period the annuity was reduced.  This subsection does not require
  the board to allow or deny cost-of-living increases in any other
  circumstances.
         SECTION 12.  Section 5.10, Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended by amending Subsections
  (b), (c), (d), (f), and (j) and adding Subsections (b-1) and (d-1)
  to read as follows:
         (b)  A distributee may elect, at the time and in the manner
  prescribed by the board, to have any portion of an eligible rollover
  distribution paid directly to an eligible retirement plan specified
  by the distributee in a direct rollover. [Any member or beneficiary
  who is entitled to receive any distribution that is an eligible
  rollover distribution as defined by Section 402(c)(4) of the code
  is entitled to have that distribution transferred directly to
  another eligible retirement plan of the member's or beneficiary's
  choice on providing direction to the fund regarding that transfer
  in accordance with procedures established by the board.]
         (b-1)  For purposes of this subsection and Subsection (b) of
  this section:
               (1)  "Direct rollover" means a payment by the fund to
  the eligible retirement plan specified by a distributee.
               (2)  "Distributee" means a member or former member.
  The term includes a member's or former member's surviving spouse or
  designated beneficiary and a member's or former member's spouse or
  former spouse who is the alternate payee under a qualified domestic
  relations order, as defined by Section 414(p) of the code, with
  regard to the interest of the spouse or former spouse.
               (3)  "Eligible retirement plan" means:
                     (A)  an individual retirement account described
  by Section 408(a) of the code;
                     (B)  an individual retirement annuity described
  by Section 408(b) of the code;
                     (C)  a qualified annuity plan described by Section
  403(a) of the code;
                     (D)  a qualified trust described by Section 401(a)
  of the code;
                     (E)  an eligible deferred compensation plan
  described by Section 457(b) of the code that is maintained by an
  eligible employer described by Section 457(e)(1)(A) of the code;
                     (F)  an annuity contract described by Section
  403(b) of the code that accepts the distributee's eligible rollover
  distribution; or
                     (G)  in the case of an eligible rollover
  distribution to a designated beneficiary who is not the surviving
  spouse, or the spouse or former spouse under a qualified domestic
  relations order, an individual retirement account or individual
  retirement annuity only.
               (4)  "Eligible rollover distribution" means a
  distribution of all or any portion of the balance to the credit of
  the distributee. The term does not include:
                     (A)  a distribution that is one of a series of
  substantially equal periodic payments, paid not less frequently
  than once a year, made over the life or life expectancy of the
  distributee or the joint lives or joint life expectancies of the
  distributee and the distributee's designated beneficiary;
                     (B)  a series of payments for a specified period
  of 10 years or more;
                     (C)  a distribution to the extent the distribution
  is required under Section 401(a)(9) of the code; or
                     (D)  the portion of a distribution that is not
  includable in gross income, unless the distributee directs that the
  eligible rollover distribution be transferred directly to a
  qualified trust that is part of a defined contribution plan that
  agrees to separately account for the portion that is includable in
  gross income and the portion that is not or to an individual
  retirement account or individual annuity.
         (c)  The total salary taken into account for any purpose
  under this Act [for any member of the fund] may not exceed the
  annual compensation limitation under Section 401(a)(17) of the
  code, effective January 1, 2017, which is $405,000 [$200,000 per
  year] for an eligible member [participant] or $270,000 [$150,000
  per year] for an ineligible member [participant]. For purposes of
  this subsection, an eligible member is any employee who first
  became a member before 1996 and an ineligible member is any other
  member. The [These] dollar limits shall be [periodically] adjusted
  annually for cost-of-living increases as provided by Section
  401(a)(17) of the code [in accordance with guidelines provided by
  the United States secretary of the treasury. For purposes of this
  subsection, an eligible participant is any person who first became
  a member before 1996, and an ineligible participant is any member
  who is not an eligible participant].
         (d)  Accrued benefits under this Act become 100 percent
  vested for a member on the earlier of:
               (1)  the date the member attains normal retirement age 
  [has completed 20 years of service];
               (2)  the earlier termination or partial termination of
  the pension plan created by this Act, if it affects the member; or
               (3)  the complete discontinuance of contributions by
  the municipality to the fund.
         (d-1)  For purposes of Subsection (d)(1) of this section,
  "normal retirement age" means the age at which a member is entitled
  to receive a service retirement benefit without reduction because
  of age.
         (f)  Distribution of benefits must:
               (1)  begin not later than April 1 of the year following
  the later of the calendar year in [during] which the member:
                     (A)  becomes 70-1/2 years of age; or
                     (B)  retires; and
               (2)  [must] otherwise conform to Section 401(a)(9) of
  the code and the regulations adopted under that section of the code,
  including regulations governing the incidental death benefit
  distribution requirements.
         (j)  Notwithstanding any other provision of this Act, the
  limitations on benefits imposed by Section 415 of the code and
  Subsection (a) of this section must be adjusted each year to the
  extent permitted by cost-of-living increases announced by the
  secretary of the treasury under Section 415(d) of the code and
  applicable law. A cost-of-living increase described by this
  subsection applies to members who have terminated employment,
  including members who have begun receiving benefits before the
  effective date of the increase, and any benefits previously denied.
  Benefits paid to make up for benefits previously denied are
  considered the delayed payment of benefits earned before retirement
  and not extra compensation earned after retirement. [To the extent
  permitted by law, the board may adjust the benefits of retired
  members and beneficiaries by increasing any retirement benefit that
  was reduced because of Section 415 of the code. If Section 415 of
  the code is amended to permit the payment of amounts previously
  precluded under Section 415 of the code, the board may adjust the
  benefits of retired members and beneficiaries, including the
  restoration of benefits previously denied. Benefits paid under
  this subsection are not considered as extra compensation earned
  after retirement but as the delayed payment of benefits earned
  before retirement.]
         SECTION 13.  Section 5.11, Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended by adding Subsection
  (b-1) to read as follows:
         (b-1)  If a retiree is entitled to receive a 13th check in
  accordance with Subsection (b) of this section, but dies before
  payment of the 13th check and has no surviving spouse or dependent
  child, the 13th check shall be paid to the retiree's estate.
         SECTION 14.  Section 5.12, Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended by adding Subsection
  (c-1) to read as follows:
         (c-1)  If a retiree is entitled to receive a 14th check in
  accordance with Subsection (c) of this section, but dies before
  payment of the 14th check and has no surviving spouse or dependent
  child, the 14th check shall be paid to the retiree's estate.
         SECTION 15.  Section 6.01(b), Chapter 824 (S.B. 817), Acts
  of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         (b)  Subject to the applicable provisions of this Act,
  including Section 6.02(j) of this Act, a [A] dependent child is
  entitled to receive benefits based on the service of any parent who
  is a member of the fund.
         SECTION 16.  Section 6.02, Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended by amending Subsections
  (a), (d), (d-2), (e), (f), (g), and (j) and adding Subsections (a-1)
  and (c-1) to read as follows:
         (a)  Subject to Section 6.03 of this Act and the provisions
  of this section, if a member [or retiree receiving a disability
  pension under Section 5.03(a) of this Act] dies leaving a surviving
  spouse or at least one dependent child, the surviving spouse and the
  children are entitled to receive from the fund an aggregate death
  benefit annuity, computed and payable from the date of the member's
  death.  The surviving spouse may elect the annuity in an amount
  that is equal to either:
               (1)  75 [50] percent of the member's average total
  salary; or
               (2)  the same percentage of the member's average total
  salary that the member would have been entitled to receive as a
  retirement annuity if the member could have retired on the date of
  death.
         (a-1)  This subsection applies only to a death benefit
  annuity payable under Subsection (a) of this section on August 31,
  2023, that is based on the service of a member who died after
  September 1, 2005, but before September 1, 2023. If the amount of a
  death benefit annuity subject to this section is less than 75
  percent of the member's average total salary, excluding any
  applicable cost-of-living increases to the annuity under Section
  5.09 of this Act, and the member's surviving spouse did not elect to
  receive a portion of the benefit in a lump-sum payment under Section
  6.14 of this Act, the amount of the annuity shall increase beginning
  on September 1, 2023, to an amount equal to 75 percent of the
  member's average total salary plus the amount of any cost-of-living
  increases provided under Section 5.09 of this Act. A member's
  surviving spouse or dependent child who is receiving an annuity
  subject to this section is not entitled to any additional payment
  under this subsection for the period before September 1, 2023.
         (c-1)  Subject to the provisions of this section, if a
  retiree receiving a disability pension under Section 5.03(a) of
  this Act dies leaving a surviving spouse or at least one dependent
  child, the surviving spouse and dependent children are entitled to
  receive from the fund an aggregate death benefit annuity, computed
  and payable from the date of the retiree's death, equal to 50
  percent of the retiree's average total salary as of the date of
  retirement.
         (d)  Subject to Subsection (d-2) of this section, if, at the
  time a death benefit annuity becomes payable under Subsection (a),
  [or] (c), or (c-1) of this section, the deceased member or retiree
  leaves a surviving spouse and at least one dependent child, the
  board shall award:
               (1)  75 percent of the annuity to the surviving spouse;
  and
               (2)  25 percent of the annuity:
                     (A)  to the dependent child, if there is only one;
  or
                     (B)  if there is more than one dependent child, in
  equal shares to each child.
         (d-2)  If, at the time a death benefit annuity becomes
  payable under Subsection (a), [or] (c), or (c-1) of this section, a
  [deceased member or] retiree leaves a surviving spouse who is not
  entitled to an annuity on the date of the retiree's death under
  Subsection (g-1) of this section as the result of Subsection (g-3)
  of this section and the deceased retiree has one or more dependent
  children, the dependent child or children shall be awarded 100
  percent of the death benefit annuity until the annuity to the
  surviving spouse becomes payable [effective] under Subsection
  (g-3) of this section.
         (e)  If, at the time a death benefit annuity under Subsection
  (a), [or] (c), or (c-1) of this section becomes payable, the
  deceased leaves a surviving spouse and no dependent child, the
  board shall award the annuity to the surviving spouse.
         (f)  If, at the time a death benefit annuity under Subsection
  (a), [or] (c), or (c-1) of this section becomes payable, the
  deceased leaves no surviving spouse and at least one dependent
  child, the board shall award the annuity:
               (1)  to the dependent child, if there is only one; or
               (2)  if there is more than one child, in equal shares to
  each child.
         (g)  A child who is adopted after the date of retirement of
  the member is not entitled to a death benefit annuity under this
  Act. A child who is born after the date of retirement of the member
  is not entitled to a death benefit annuity under this Act unless the
  retiree was married to the other parent of the child on the date of
  retirement. A surviving spouse of a retiree whose status as a
  surviving spouse resulted from a marriage after the date of the
  retirement of the retiree is entitled to receive only the benefits,
  if any, provided under Subsection (g-1) of this section or Section
  6.08 of this Act.
         (j)  A dependent child as defined by Section 1.02(7)(B) of
  this Act has the same rights as a dependent child as defined by
  Section 1.02(7)(A) of this Act, except that any death benefit
  annuity paid under this section [subsection] to a dependent child
  as defined by Section 1.02(7)(B) of this Act may, at the discretion
  of the board, be reduced to the extent of any state pension or aid,
  including Medicaid, or any state-funded assistance received by the
  child, regardless of whether the funds were made available to the
  state by the federal government.  In no other instance under this
  Act is a child entitled to any benefit after becoming 18 years of
  age.
         SECTION 17.  Section 6.03, Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         Sec. 6.03.  DEATH BENEFIT ANNUITY FOR SPOUSE AND CHILDREN OF
  MEMBER KILLED IN LINE OF DUTY.  (a) The death benefit annuity of a
  surviving spouse and any dependent child of a member of the fund who
  is killed in the line of duty is governed by this section.
         (a-1)  A member of the fund is considered to have been killed
  in the line of duty if the member's death directly resulted from
  traumatic injury sustained while engaging in or conducting
  simulated training of a law enforcement activity, fire suppression
  activity, rescue, hazardous material response, emergency medical
  services, disaster relief, or other emergency response activity.
  For purposes of this subsection, "traumatic injury" means severe
  physical injury of sudden onset and of a life-ending or
  life-threatening nature.
         (b)  [The board shall consider the finding of a municipality
  to which this Act applies that a member was killed in the line of
  duty as a guideline for its determination in applying this
  section.] On an application for survivor's benefits by a surviving
  spouse or dependent child, the fund shall pay the normal benefits
  payable under Section 6.02 of this Act. When a benefit is payable
  under this section, the death benefit annuity shall be recomputed,
  applying Subsection (c) of this section, and any deficiency payment
  shall be paid to the eligible beneficiaries.
         (c)  Notwithstanding the formulas for computing the total
  amounts of annuities otherwise provided by this Act, if a member is
  killed in the line of duty, the member's surviving spouse and
  dependent children are entitled to a death benefit annuity equal
  to:
               (1)  the total salary [of] the member received during
  the 12-month period before the date of the member's death, if the
  member served 12 months or more before the date of the member's
  death;
               (2)  the average monthly total salary the member
  received before the date of the member's death multiplied by 12, if
  the member served at least two months and less than 12 months before
  the date of the member's death; or
               (3)  the average daily total salary the member received
  before the date of the member's death multiplied by 360, if the
  member served less than two months before the date of the member's
  death [at the time of death].
         (d)  The provisions of this Act [Rules provided by this
  section] relating to qualification and disqualification for and
  apportionment of benefits apply to a death benefit annuity computed
  under this section [subsection]. A death benefit annuity computed
  under this section [subsection] is divided in the manner described
  by Section 6.02 of this Act and is subject to the same
  cost-of-living adjustments that apply to annuities [pensions] for
  service retirement.
         SECTION 18.  Section 6.04, Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         Sec. 6.04.  EFFECT OF MARRIAGE ON [REMARRIAGE;] BENEFITS
  [AFTER TERMINATION OF MARRIAGE]. (a) Except as provided by
  Subsection (e) of this section, the [The] right of a surviving
  spouse or dependent child to annuity payments under this Act is not
  affected by the surviving spouse's marriage [remarriage] or
  dependent child's marriage under either statutory or common law if
  the marriage [or remarriage] takes place on or after October 1,
  1995.
         (b)  This subsection applies to a surviving spouse or
  dependent child whose marriage under either statutory or common law
  took place before October 1, 1995, and resulted in a termination of
  benefits under the law in effect at the time of the marriage.
  Subject to Subsection (d) of this section and except as provided by
  Subsection (e) of this section, if on [If after] October 1, 1995,
  the surviving spouse or dependent child is unmarried or if after
  October 1, 1995, there is a termination of the marriage
  [remarriage] of a surviving spouse or [of the marriage of a]
  dependent child, the surviving spouse or dependent child, as
  applicable, [that person] is entitled, on application, to 100
  percent of the annuity that was in effect on the date of the
  termination of benefits, payable from the date of the termination
  of the marriage. A surviving spouse or dependent child entitled to
  an annuity under this subsection is also entitled to any applicable
  cost-of-living increases under Section 5.09 of this Act that
  occurred on or after the date the marriage terminated.
         [(c)  A surviving spouse or dependent child who is unmarried
  but receiving reduced benefits because of a prior marriage that
  caused the benefits to be terminated is entitled to 100 percent of
  the annuity that was in effect on the original date of termination
  of benefits.]
         (d)  The benefit provided under Subsection [Subsections] (b)
  [and (c)] of this section shall be provided prospectively beginning
  October 1, 1995, and the surviving spouse or dependent child is not
  entitled to receive any benefits or increases in benefits relating
  to any period before October 1, 1995.
         (e)  A person must be living at the time of application to be
  eligible for benefits under this section.
         SECTION 19.  Section 6.06, Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         Sec. 6.06.  COMMON-LAW MARRIAGES. Common-law marriages are
  not recognized under this Act and benefits may not be conferred on
  common-law spouses as beneficiaries unless a declaration of
  informal marriage was made and recorded under Sections 2.402 and
  2.404, Family Code, and their subsequent amendments, or any
  successor statutes, before the member's death. The date the
  declaration of informal marriage is recorded under Section 2.404,
  Family Code, is the date of marriage for the purpose of determining
  whether any benefit is to be awarded to a surviving common-law
  spouse as a beneficiary under this Act.
         SECTION 20.  Section 6.09(b), Chapter 824 (S.B. 817), Acts
  of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         (b)  An application for benefits under Subsection (a) of this
  section must be accompanied by a copy of the deceased member's or
  retiree's tax return filed for the last year ending before the
  member's or retiree's death or an explanation satisfactory to the
  board of why the tax return cannot be provided. The board may, on
  its own initiative, make a thorough investigation, determine the
  facts as to the dependency with respect to an application for
  benefits made under Subsection (a) of this section, and at any time,
  on the request of any beneficiary or any contributor to the fund,
  reopen any award made to any member or dependent of any member who
  is receiving annuity payments under this section and discontinue
  those payments as to all or any of them. [The findings of the board
  under this section and all annuities granted under this section are
  final on all parties unless set aside or revoked by a court of
  competent jurisdiction.]
         SECTION 21.  Section 6.10, Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         Sec. 6.10.  SUSPENSION RIGHTS. (a) Except as provided by
  Subsection (b) of this section, if [If] a member dies who is on
  [under] suspension at the time of the member's death, [including an
  indefinite suspension that has not become final,] the member's
  beneficiary has [beneficiaries have] the same rights as the
  beneficiaries of any other member under this Act.
         (b)  If a member dies who is on indefinite suspension that
  has not become final as of the date of the member's death, the
  member's beneficiary has the same rights as the beneficiaries of
  any other member under this Act in accordance with Subsection (a) of
  this section only if the member's beneficiary provides sufficient
  evidence to the board to establish to the board's satisfaction
  that:
               (1)  an administrative appeal of the indefinite
  suspension to the municipality was being actively pursued at the
  time of death; and
               (2)  the member had a reasonable chance of having the
  indefinite suspension reversed or modified to be a suspension for a
  specific period.
         SECTION 22.  Chapter 824 (S.B. 817), Acts of the 73rd
  Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
  Civil Statutes), is amended by adding Section 6.105 to read as
  follows:
         Sec. 6.105.  DATE SUSPENSION FINAL. For purposes of this
  Act, an indefinite suspension or a suspension for a specific period
  becomes final on the date:
               (1)  any administrative appeal of the suspension to the
  municipality has been finally adjudicated by the municipality; or
               (2)  if no administrative appeal of the suspension is
  made to the municipality, after the last day of the period for
  initiating an administrative appeal has elapsed.
         SECTION 23.  Section 6.12, Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended by amending Subsection
  (b) and adding Subsection (c) to read as follows:
         (b)  The amount of the 13th or 14th check is equal to the
  amount of the annuity payment made in the last month of the
  preceding fiscal year, except the amount of the check shall be
  prorated for any beneficiary of:
               (1)  a member who died during the fiscal year preceding
  the fiscal year in which the check is disbursed [who has been
  receiving an annuity for less than one year] so that the amount of
  the check is one-twelfth of the check that would have been paid to
  the beneficiary receiving an annuity for a full year times the
  number of full months an annuity has been paid; or
               (2)  a retiree who retired and died during the fiscal
  year preceding the fiscal year in which the check is disbursed so
  that the amount of the check is one-twelfth of the check that would
  have been paid to the beneficiary receiving an annuity for a full
  year times the number of full months from the date of the retiree's
  retirement to the end of the fiscal year.
         (c)  If a beneficiary is entitled to receive a 13th or 14th
  pension check in accordance with Subsection (a) of this section but
  dies before payment of the 13th or 14th check, the 13th or 14th
  check shall be paid to the beneficiary's estate.
         SECTION 24.  Section 6.14(i), Chapter 824 (S.B. 817), Acts
  of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is amended to read as follows:
         (i)  If a surviving spouse elects to receive a lump-sum
  payment under this section, the total death benefit annuity payable
  [to the surviving spouse] under Section 6.02 of this Act is reduced
  as provided by Subsection (j) of this section. The lump-sum
  election does not affect the amount of a death benefit annuity
  payable to a dependent child of a deceased member under Section 6.02
  of this Act while a death benefit annuity is payable to the
  surviving spouse.
         SECTION 25.  Chapter 824 (S.B. 817), Acts of the 73rd
  Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
  Civil Statutes), is amended by adding Section 6.15 to read as
  follows:
         Sec. 6.15.  DENIAL OF BENEFITS; DEATH CAUSED BY SURVIVOR.
  (a) If a person is the principal or an accomplice in wilfully
  bringing about the death of a member or beneficiary whose death
  would otherwise result in a benefit or benefit increase to the
  person, the person is not eligible for, or entitled to, that benefit
  or benefit increase. The determination of the board that a person
  wilfully brought about the death, or was an accomplice in wilfully
  bringing about the death, must be made during a meeting of the
  board. A determination by the board under this section is not
  controlled by any other finding in any other forum.
         (b)  A benefit or benefit increase payable under this Act
  because of the death of a member or beneficiary shall be paid as if
  the person who is no longer eligible for or entitled to the benefit
  under Subsection (a) of this section predeceased the member or
  beneficiary.
         SECTION 26.  Section 3.03(a), Chapter 824 (S.B. 817), Acts
  of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), is repealed.
         SECTION 27.  Section 5.03, Chapter 824 (S.B. 817), Acts of
  the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), as amended by this Act, applies
  only to a disability retirement annuity for which an application is
  made on or after the effective date of this Act. A disability
  retirement annuity for which an application was made before the
  effective date of this Act is governed by the law as it existed
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         SECTION 28.  Sections 5.11(b-1) and 5.12(c-1), Chapter 824
  (S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
  (Article 6243o, Vernon's Texas Civil Statutes), as added by this
  Act, and Section 6.12, Chapter 824 (S.B. 817), Acts of the 73rd
  Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
  Civil Statutes), as amended by this Act, apply only to a 13th or
  14th check that is disbursed on or after the effective date of this
  Act. A 13th or 14th check disbursed before the effective date of
  this Act is governed by the law as it existed immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 29.  Except as provided by Section 6.02(a-1),
  Chapter 824 (S.B. 817), Acts of the 73rd Legislature, Regular
  Session, 1993 (Article 6243o, Vernon's Texas Civil Statutes), as
  added by this Act, Sections 6.02 and 6.03, Chapter 824 (S.B. 817),
  Acts of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
  Vernon's Texas Civil Statutes), as amended by this Act, apply only
  to a death benefit annuity for which an application is made on or
  after the effective date of this Act. A death benefit annuity for
  which an application is made before the effective date of this Act
  is governed by the law as it existed immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 30.  This Act takes effect September 1, 2023.
 
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