89R15299 RDR-F

By: Metcalf H.B. No. 4534

A BILL TO BE ENTITLED

AN ACT

relating to death benefits provided under certain police officer retirement systems.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The heading of Section 6.05, Chapter 452 (S.B. 738), Acts of the 72nd Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's Texas Civil Statutes), is amended to read as follows:

Sec. 6.05. DEATH OF A MEMBER; TREATMENT OF ACCUMULATED DEPOSITS; LUMP SUM DEATH BENEFITS.

SECTION 2. Section 6.05, Chapter 452 (S.B. 738), Acts of the 72nd Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's Texas Civil Statutes), is amended by amending Subsection (c) and adding Subsection (d) to read as follows:

(c) In the event of death of a retired member [receiving a retirement benefit], the sum of $10,000 shall be payable in a lump sum to the retired member's beneficiary or, if no beneficiary, to the retired member's estate, unless the retired member shall have directed otherwise in writing, duly acknowledged and filed with the board. The payment under this subsection shall be made from the [retiree] death benefit [benefits] fund described in Section 6.08 of this Act.

(d) In the event of the death of a member who dies as the direct and proximate result of a personal injury associated with a single event and sustained in the performance of a member's employment duties with the police department of the city, the sum of $1,000,000 shall be payable in a lump sum to the member's surviving spouse, or if the member has no surviving spouse, to the member's surviving children. If the member has no surviving spouse or surviving children at the time of the member's death, the benefit provided under this subsection shall be payable to the member's estate. If a member has more than one surviving child that is entitled to the benefit provided under this subsection, the benefit shall be split equally between each of the member's surviving children. The payment under this subsection shall be made from the death benefit fund described in Section 6.08 of this Act.

SECTION 3. Section 6.08, Chapter 452 (S.B. 738), Acts of the 72nd Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's Texas Civil Statutes), is amended to read as follows:

Sec. 6.08. [RETIREE] DEATH BENEFIT FUND. (a) The police retirement board shall establish a [retiree] death benefit fund and shall deposit in such fund contributions paid by the city to provide [retiree] death benefits in accordance with this section. The board may, but is not required to, credit interest to the [retiree] death benefit fund annually at such rate as the board may determine.

(b) The police retirement system shall pay death benefits under Sections [Section] 6.05(c) and (d) of this Act only from money in the [retiree] death benefit fund, and the benefits are not an obligation of other funds of the retirement system.

(c) Based upon the recommendation of the system's actuary, the board shall adopt such rates and tables as are considered necessary to determine the [retiree] death benefit fund contribution rate of the city. At the same time as the actuary makes a valuation of the assets and liabilities of the system pursuant to Section 3.09 of this Act, the actuary shall also make an actuarial valuation of the assets and liabilities of the [retiree] death benefit fund, and upon recommendation by the actuary, the board shall adjust the rates and tables for the [retiree] death benefit fund.

(d) If at any time the amount of payments due from the [retiree] death benefit fund exceeds the balance of such fund, the board may direct that funds be transferred from the general retirement fund to the [retiree] death benefit fund in such amounts as are necessary to cover the deficiency. Any sums transferred to the [retiree] death benefit fund under this subsection shall be repaid to the general retirement fund of the retirement system from the death benefit fund with [at such time as] subsequent contributions by the city on a schedule and in a manner determined by the system [have resulted in the accumulation of a sufficient amount in the retiree death benefit fund for such a repayment] to be [appear] prudent. The actuary of the system shall adjust the rates and tables described in Subsection (c) to reflect this repayment.

(e) Contributions by the city to the [retiree] death benefit fund shall be made at the same time as the city makes its contribution to the retirement system under Section 8.01 of this Act, and the amount of the city's contribution under Section 8.01 of this Act each pay period shall be reduced by the amount of the city's contribution to the [retiree] death benefit fund for that same pay period.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.