Texas 2009 - 81st Regular

Texas House Bill HB1554 Compare Versions

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1	1	81R7178 TJS-F
2	2	By: McClendon H.B. No. 1554
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the pension retirement system in certain municipalities
8	8	for firefighters and police.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 1.02, Chapter 824 (S.B. 817), Acts of the
11	11	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
12	12	Texas Civil Statutes), is amended by adding Subdivisions (1-a),
13	13	(4-b), (4-c), (11-a), (12-b), and (12-c) and amending Subdivisions
14	14	(11) and (12-a) to read as follows:
15	15	(1-a) "Alternate payee" has the meaning assigned by
16	16	Section 804.001, Government Code, or any successor statute.
17	17	(4-b) "Class" means the trainee class of a fire
18	18	fighter or police officer training academy of a municipality to
19	19	which this Act applies from which a member graduated, as determined
20	20	by the board.
21	21	(4-c) "Class graduation date" means the date the
22	22	graduates of any class graduated, as determined by the board.
23	23	(11) "Member" means a fire fighter or police officer
24	24	who has become a member of the fund as provided by Section 4.01(a)
25	25	or 4.011 of this Act and has not retired, died, or forfeited the
26	26	person's interest in the fund.
27	27	(11-a) "Member buyback contribution amount" means the
28	28	amount of the first contribution by a member to the fund for a full
29	29	pay period, multiplied by 26, divided by 12, and multiplied by 3.
30	30	(12-a) "Probationary period" means the period
31	31	beginning on the graduation date of a graduate of a class and ending
32	32	on the date the graduate becomes a member.
33	33	(12-b) "Qualified funds" means pretax funds that are
34	34	part of an eligible rollover distribution, as described in Section
35	35	402(f)(2) of the code, or funds that have been transferred to the
36	36	fund in accordance with Section 403(b)(13) or Section 457(e)(17) of
37	37	the code to purchase years or fractions of years of service.
38	38	(12-c) "Qualified mayoral designee" means an
39	39	individual designated by the mayor of a municipality to which this
40	40	Act applies who is a member or former member of the city council of,
41	41	or an employee of, a municipality to which this Act applies.
42	42	SECTION 2. Section 3.02(c), Chapter 824 (S.B. 817), Acts of
43	43	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
44	44	Vernon's Texas Civil Statutes), is amended to read as follows:
45	45	(c) Any contributing member of the fund who is in good
46	46	standing in the fire or police department may:
47	47	(1) appear in person or by attorney to contest the
48	48	application for membership participation in the fund or for an
49	49	annuity or benefit by any person claiming to be entitled to an
50	50	annuity or benefit, either as a member, [or] beneficiary, or
51	51	alternate payee; and
52	52	(2) offer supporting testimony.
53	53	SECTION 3. Sections 3.03(c) and (d), Chapter 824 (S.B.
54	54	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
55	55	6243o, Vernon's Texas Civil Statutes), are amended to read as
56	56	follows:
57	57	(c) Each member, retiree, [and] beneficiary, and alternate
58	58	payee shall provide bank depository information to the board so
59	59	that the board can disburse benefits by electronic transfer.
60	60	(d) Except as provided by Section 802.1024, Government
61	61	Code, the board may reduce the amount of a benefit to which a
62	62	retiree, [or] beneficiary, or alternate payee is otherwise entitled
63	63	in order to reimburse the fund for an overpayment or incorrect
64	64	payment of benefits to the retiree, [or] beneficiary, or alternate
65	65	payee.
66	66	SECTION 4. Article 4, Chapter 824 (S.B. 817), Acts of the
67	67	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
68	68	Texas Civil Statutes), is amended by adding Section 4.011 to read as
69	69	follows:
70	70	Sec. 4.011. MEMBERSHIP OF FIRE CHIEF AND POLICE CHIEF. (a)
71	71	Subject to Subsection (d) of this section, not later than the 30th
72	72	day after the date a fire chief or a police chief of a municipality
73	73	to which this Act applies assumes office, the fire chief or police
74	74	chief may make an irrevocable election to not become a member of the
75	75	fund.
76	76	(b) An election under this section must be made by
77	77	delivering written notice of the election to the secretary of the
78	78	board.
79	79	(c) A fire chief or police chief who does not make an
80	80	election under this section becomes a member of the fund.
81	81	(d) A fire chief or police chief who was a member of the fund
82	82	at any time during the two years preceding the date the fire chief
83	83	or police chief assumes office may not make an election under this
84	84	section.
85	85	SECTION 5. Section 5.01, Chapter 824 (S.B. 817), Acts of the
86	86	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
87	87	Texas Civil Statutes), is amended by amending Subsection (g) and
88	88	adding Subsections (k), (l), and (m) to read as follows:
89	89	(g) A member may not receive an award from the fund for
90	90	service retirement until the member has at least 20 years of service
91	91	in the fire or police department and has also contributed the
92	92	required amount of money for at least 20 years. In determining the
93	93	number of years of service in a department, the member shall be
94	94	given full credit for the period the member was an active member
95	95	plus the time the member was actively engaged in service with any
96	96	uniformed service in accordance with Section 4.03 of this Act and
97	97	for absences taken under the Family and Medical Leave Act of 1993
98	98	(29 U.S.C. Section 2601 et seq.), in accordance with Section 4.02 of
99	99	this Act. Disciplinary suspensions of 15 days or less may not be
100	100	subtracted from a member's service credit under this Act if the
101	101	member has paid into the fund, within 30 days after the later of the
102	102	termination date of each suspension or the exhaustion of any appeal
103	103	with respect to the suspension, a sum of money equal to the amount
104	104	of money that would have been deducted from that person's salary
105	105	during that period of suspension if it had not been for that
106	106	suspension. A municipality to which this Act applies shall
107	107	double-match a payment made under this subsection. Members of the
108	108	fund at the time of their retirement shall also receive service
109	109	credit for all unused sick leave accumulated by them under Chapter
110	110	143, Local Government Code, but only to the extent the unused sick
111	111	leave exceeds 90 days. Service credit for unused sick leave shall
112	112	be prorated based on each full month of sick leave. A member's
113	113	service credit under this section includes any service credit
114	114	purchased in accordance with Subsections (k)-(m) of this section.
115	115	(k) A member employed for a probationary period by a
116	116	municipality to which this Act applies may elect to purchase one
117	117	month of service credit for each full month in the member's
118	118	probationary period, up to a maximum of 10 months. For each month
119	119	of service credit the member elects to purchase, the member shall
120	120	pay to the fund, on or before September 30, 2010, an amount equal to
121	121	the sum of:
122	122	(1) the member buyback contribution amount for the
123	123	member; and
124	124	(2) interest on the amount determined under
125	125	Subdivision (1) of this subsection at the rate of eight percent per
126	126	annum, compounded annually, calculated for the period beginning on
127	127	the first day after the class graduation date for the member's class
128	128	and ending on the earlier of December 31, 2009, or the date the fund
129	129	receives the payment required under this subsection.
130	130	(l) A member may not elect to purchase a partial month of
131	131	service credit under Subsection (k) of this section. A member is
132	132	not required to elect to purchase more than one month of service
133	133	credit under Subsection (k) of this section. A member may make the
134	134	payment required under Subsection (k) of this section only with
135	135	qualified funds. A member must make an election under Subsection
136	136	(k) of this section on or before December 31, 2009, in accordance
137	137	with policies and procedures adopted by the board.
138	138	(m) An election under Subsection (k) of this section is void
139	139	unless the member makes the full required payment before the
140	140	earlier of the date of the member's retirement or the date of the
141	141	member's death. If a member makes only partial payment before the
142	142	earlier of the date of the member's retirement or the date of the
143	143	member's death, the fund shall refund all payments received,
144	144	without interest, to the member, if the member is alive, or to the
145	145	member's estate, if the member is dead. The fund shall refund
146	146	payment under this subsection not later than the 60th day after the
147	147	date of the member's retirement or the date of the member's death,
148	148	as applicable.
149	149	SECTION 6. Section 5.015(b), Chapter 824 (S.B. 817), Acts
150	150	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
151	151	Vernon's Texas Civil Statutes), is amended to read as follows:
152	152	(b) The Back DROP election:
153	153	(1) results in a lump-sum payment for a number of full
154	154	months of service elected by the member that does not exceed the
155	155	lesser of the number of months of service credit the member has in
156	156	excess of 20 years or 60 [48] months;
157	157	(2) is available only to a member who takes a service
158	158	retirement; and
159	159	(3) must be made at the time of application for
160	160	retirement.
161	161	SECTION 7. Section 5.03(a-1), Chapter 824 (S.B. 817), Acts
162	162	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
163	163	Vernon's Texas Civil Statutes), is amended to read as follows:
164	164	(a-1) An active member of the fund is eligible to retire and
165	165	receive a catastrophic injury disability retirement annuity if the
166	166	member:
167	167	(1) makes a written application for catastrophic
168	168	injury disability retirement with the board;
169	169	(2) is permanently so disabled as a result of a
170	170	catastrophic injury as to:
171	171	(A) be unable to secure any type of third-party
172	172	employment, or engage in any self-employment, other than sporadic
173	173	third-party or self-employment; and
174	174	(B) have, as a result of the lack of third-party
175	175	employment or self-employment, an annual income less than the
176	176	poverty level for one person in the 48 contiguous states of the
177	177	United States as provided under the poverty guidelines published
178	178	from time to time by the United States Department of Health and
179	179	Human Services, or similar guidelines selected by the board;
180	180	(3) has had all member contributions required by this
181	181	Act made on the member's behalf;
182	182	(4) is not on indefinite suspension as described in
183	183	Subsection (d) [(e)] of this section; and
184	184	(5) has authorized the release to the board of all
185	185	medical records dated on or after the date of initial application
186	186	for employment with the department.
187	187	SECTION 8. Section 5.07(a), Chapter 824 (S.B. 817), Acts of
188	188	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
189	189	Vernon's Texas Civil Statutes), is amended to read as follows:
190	190	(a) The board shall require each disability retiree
191	191	retiring after August 29, 1979, to provide the board annually not
192	192	later than May 1 of each year with a true and complete copy of the
193	193	retiree's income tax return for the previous year, except for a
194	194	retiree who is 65 years of age or older as of December 31 of the
195	195	previous year.
196	196	SECTION 9. Section 5.09, Chapter 824 (S.B. 817), Acts of the
197	197	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
198	198	Texas Civil Statutes), is amended by amending Subsection (a) and
199	199	adding Subsection (a-1) to read as follows:
200	200	(a) At or before its regular meeting in the month of March,
201	201	the board annually shall review the Consumer's Price Index for All
202	202	Urban Consumers (CPI-U), U.S. City Average or the nearest
203	203	equivalent published by the United States Bureau of Labor
204	204	Statistics for the preceding calendar year. If that index shows an
205	205	increase during the preceding calendar year in the cost of living as
206	206	compared with that index at the close of the previous year, the
207	207	board shall order an increase of all service, disability, and death
208	208	benefit retirement annuities by a percentage that varies by the
209	209	date of the member's service or disability retirement, or, in the
210	210	case of a member who died before retirement, the date on which the
211	211	member died. If the member's service retirement, disability
212	212	retirement, or death before retirement occurred before August 30,
213	213	1971, the annuity shall be increased by a percentage equal to the
214	214	percentage increase in the cost of living index. If the member's
215	215	service retirement, disability retirement, or death before
216	216	retirement occurred on or after August 30, 1971, but before October
217	217	1, 1999 [1997], the annuity shall be increased as follows: if the
218	218	percentage increase in the cost of living index is eight percent or
219	219	less, the annuity shall be increased by a percentage equal to the
220	220	percentage increase, and if the percentage increase in the cost of
221	221	living index is more than eight percent, the annuity shall be
222	222	increased by eight percent plus a percentage equal to 75 percent of
223	223	the percentage increase that is more than eight percent. If the
224	224	member's service retirement, disability retirement, or death
225	225	before retirement occurred on or after October 1, 1999 [1997], the
226	226	annuity shall be increased by a percentage equal to 75 percent of
227	227	the percentage increase in the cost of living index. A percentage
228	228	increase in annuities shall be rounded to the nearest one-tenth
229	229	percentage point for a cost of living increase.
230	230	(a-1) The cost of living increases described by this section
231	231	do not apply to an annuity payable under Section 6.02(g-3) of this
232	232	Act until the annuity becomes effective.
233	233	SECTION 10. Section 6.02, Chapter 824 (S.B. 817), Acts of
234	234	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
235	235	Vernon's Texas Civil Statutes), is amended by amending Subsections
236	236	(d), (g), and (g-1) and adding Subsections (d-1), (d-2), and (g-3)
237	237	to read as follows:
238	238	(d) Subject to Subsection (d-2) of this section, if [If], at
239	239	the time a death benefit annuity becomes payable under Subsection
240	240	(a) or (c) of this section, the deceased member or retiree leaves a
241	241	surviving spouse and at least one dependent child, the board shall
242	242	award:
243	243	(1) 75 percent [one-half] of the annuity to the
244	244	surviving spouse; and
245	245	(2) 25 percent [one-half] of the annuity:
246	246	(A) to the dependent child, if there is only one;
247	247	or
248	248	(B) if there is more than one dependent child, in
249	249	equal shares to each child.
250	250	(d-1) The allocation of an annuity under Subsection (d) of
251	251	this section is effective as to all annuities payable by the fund as
252	252	of October 1, 2009, that are payable in part to a surviving spouse
253	253	and in part to one or more surviving children. This subsection
254	254	applies only to benefits payable by the fund after September 30,
255	255	2009, and does not affect benefits paid or payable by the fund
256	256	before October 1, 2009.
257	257	(d-2) If, at the time a death benefit annuity becomes
258	258	payable under Subsection (a) or (c) of this section, a deceased
259	259	member or retiree leaves a surviving spouse who is not entitled to
260	260	an annuity on the date of death under Subsection (g-1) of this
261	261	section and one or more dependent children, the dependent child or
262	262	children shall be awarded 100 percent of the death benefit annuity
263	263	until the annuity to the surviving spouse becomes effective under
264	264	Subsection (g-3) of this section.
265	265	(g) A child who is born after the date of retirement of the
266	266	member is not entitled to a death benefit annuity under this Act
267	267	unless the retiree was married to the other parent of the child on
268	268	the date of retirement. A surviving spouse of a retiree whose
269	269	status as a surviving spouse resulted from a marriage after the date
270	270	of the [who was not married to the retiree until after the
271	271	retiree's] retirement of the retiree is entitled to receive only
272	272	the benefits, if any, provided under Subsection (g-1) of this
273	273	section or Section 6.08 of this Act.
274	274	(g-1) Subject to Subsection (g-3) of this section, a [A]
275	275	surviving spouse of a retiree whose status as a surviving spouse
276	276	resulted from a marriage [who was not married to the retiree until]
277	277	after the date of the [retiree's] retirement of the retiree is
278	278	entitled to receive the entire death benefit of a surviving spouse
279	279	in this section if the surviving spouse was married to the retiree
280	280	for a period of at least the five consecutive years preceding the
281	281	date of the retiree's death. A surviving spouse of a retiree whose
282	282	status as a surviving spouse resulted from a marriage after the date
283	283	of the [who was not married to the retiree until after the
284	284	retiree's] retirement of the retiree and was not married to the
285	285	retiree for a period of the five consecutive years preceding the
286	286	date of the retiree's death is entitled to receive only the
287	287	benefits, if any, provided under Section 6.08 of this Act. The
288	288	benefit provided by this subsection applies only with respect to a
289	289	retiree death that occurs on or after October 1, 2007.
290	290	(g-3) The death benefit to which a surviving spouse is
291	291	entitled under Subsection (g-1) of this section as a result of a
292	292	retiree's death that occurs on or after October 1, 2009, is payable
293	293	by the fund on the date of the retiree's death if the surviving
294	294	spouse is 55 years of age or older on the date of the retiree's
295	295	death. If the surviving spouse is not 55 years of age or older on the
296	296	date of the retiree's death, the annuity shall be payable by the
297	297	fund on the date the surviving spouse reaches age 55. A surviving
298	298	spouse who is not 55 years of age or older on the date of the
299	299	retiree's death is not entitled to benefits from the fund during the
300	300	period beginning on the date of the retiree's death and ending on
301	301	the date the surviving spouse reaches age 55.
302	302	SECTION 11. Section 6.06, Chapter 824 (S.B. 817), Acts of
303	303	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
304	304	Vernon's Texas Civil Statutes), is amended to read as follows:
305	305	Sec. 6.06. COMMON-LAW MARRIAGES. Common-law marriages are
306	306	not recognized under this Act and benefits may not be conferred on
307	307	common-law spouses as beneficiaries unless a declaration of
308	308	informal marriage was made and recorded under Sections 2.402 and
309	309	2.404 [Section 1.92], Family Code, and their [its] subsequent
310	310	amendments, or any successor statutes, before the member's death.
311	311	SECTION 12. Section 6.08(a), Chapter 824 (S.B. 817), Acts
312	312	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
313	313	Vernon's Texas Civil Statutes), is amended to read as follows:
314	314	(a) Except as provided by Subsection (b) of this section, a
315	315	surviving spouse of a retiree whose status as such resulted from any
316	316	marriage after the date of the retirement of the retiree and who has
317	317	been married to the retiree for a period of [at least the 2-1/2 but]
318	318	less than the five consecutive years preceding the date of the
319	319	retiree's death, is entitled to a lump-sum death benefit because of
320	320	the retiree's death in the amount of $15,000 [$2,500].
321	321	SECTION 13. Section 6.14(f), Chapter 824 (S.B. 817), Acts
322	322	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
323	323	Vernon's Texas Civil Statutes), is amended to read as follows:
324	324	(f) The surviving spouse must elect the number of months
325	325	used in computing the lump-sum payment. The number of months may
326	326	not exceed the lesser of:
327	327	(1) the number of months of service credit in excess of
328	328	20 years that the deceased member has on the date of death; or
329	329	(2) 60 [48] months.
330	330	SECTION 14. Section 4.01(c), Chapter 824 (S.B. 817), Acts
331	331	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
332	332	Vernon's Texas Civil Statutes), is repealed.
333	333	SECTION 15. This Act takes effect October 1, 2009.