Texas 2009 - 81st Regular

Texas House Bill HB997 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R3445 TJS-D
2	2	By: Lewis H.B. No. 997
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to retirement and health insurance benefits of school
8	8	district peace officers under the Teacher Retirement System of
9	9	Texas.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 821.001, Government Code, is amended by
12	12	adding Subdivision (11-a) to read as follows:
13	13	(11-a) "Peace officer" means a member of the
14	14	retirement system who has been commissioned by a public school
15	15	district as a law enforcement officer under Section 37.081,
16	16	Education Code.
17	17	SECTION 2. Section 824.202, Government Code, is amended by
18	18	adding Subsection (d-2) to read as follows:
19	19	(d-2) A member who is at least 55 years old and who has at
20	20	least 10 years of service credit as a commissioned peace officer for
21	21	a public school district is eligible to retire and receive a service
22	22	retirement annuity.
23	23	SECTION 3. Subchapter C, Chapter 824, Government Code, is
24	24	amended by adding Section 824.207 to read as follows:
25	25	Sec. 824.207. SERVICE RETIREMENT BENEFITS FOR CERTAIN PEACE
26	26	OFFICERS. (a) A member who has at least 20 years of service credit
27	27	as a peace officer is eligible to retire regardless of age and
28	28	receive a standard service retirement annuity in an amount and to be
29	29	funded as provided by this section.
30	30	(b) The standard service retirement annuity payable for at
31	31	least 20 years of service credit as a peace officer is an amount
32	32	computed on the basis of the member's average monthly compensation
33	33	for the 36 highest months of compensation times the sum of the
34	34	percentage factor used in the computation of a standard service
35	35	retirement annuity under Section 824.203(a) plus .5 percent.
36	36	(c) The standard combined service retirement annuity that
37	37	is payable under this section is based on retirement on or after the
38	38	attainment of the normal retirement age, which for purposes of this
39	39	section is the earlier of either the age of 50 or the age at which
40	40	the sum of the member's age and amount of service credit equals the
41	41	number 80. A peace officer who retires before attaining the normal
42	42	retirement age is entitled to an annuity that is actuarially
43	43	reduced from the annuity available at the normal retirement age to
44	44	the peace officer service credit annuity amount available at the
45	45	sum of the member's age and amount of service credit. The annuity
46	46	is payable from the peace officer supplemental retirement fund.
47	47	(d) Benefits for service as a peace officer become payable
48	48	from the retired reserve account established by Section 825.309 at
49	49	the normal retirement age under the computation provided by Section
50	50	824.203. Optional retirement annuities provided by Section 824.204
51	51	are available to a member eligible to receive a service retirement
52	52	annuity under this section, but the same optional plan and designee
53	53	must be selected for the portion of the annuity payable from the
54	54	peace officer supplemental retirement fund and the portion payable
55	55	from the retired reserve account established by Section 825.309.
56	56	(e) The amount payable from the peace officer supplemental
57	57	retirement fund is reducible by the amount paid from the retired
58	58	reserve account established by Section 825.309 for service as a
59	59	peace officer. The total combined amount of an annuity under this
60	60	section may not be less than the authorized benefit under
61	61	Subsection (b) subtracted by any amount necessary because of
62	62	selection of an optional annuity, because of retirement before the
63	63	normal retirement age, or as provided by Subsection (f).
64	64	(f) The standard combined service retirement annuity
65	65	payable for at least 20 years of service credit as a peace officer
66	66	may not exceed 100 percent of the average compensation computed
67	67	under Subsection (b).
68	68	(g) For purposes of this section, service as a peace officer
69	69	is creditable as provided by rule of the board of trustees or on a
70	70	month-to-month basis, whichever is greater.
71	71	SECTION 4. Subchapter D, Chapter 824, Government Code, is
72	72	amended by adding Section 824.311 to read as follows:
73	73	Sec. 824.311. DISABILITY RETIREMENT BENEFITS FOR CERTAIN
74	74	PEACE OFFICERS. (a) An annuity payable for an occupational
75	75	disability resulting from a risk to which peace officers are
76	76	exposed because of the nature of peace officer duties is payable
77	77	under the same terms and conditions that apply to other
78	78	occupational disability retirement annuities under this subtitle,
79	79	except that the source and amount of the annuity are as provided by
80	80	this section.
81	81	(b) Except as provided by Subsection (c), an occupational
82	82	disability retirement annuity under this section is an amount, but
83	83	not more than 100 percent, computed on the basis of the officer's
84	84	average monthly compensation, times a percentage derived by
85	85	application of Section 824.207(b).
86	86	(c) A disability retirement annuity under this section is
87	87	not reducible because of age and may not be less than 50 percent of
88	88	the officer's average monthly compensation regardless of the amount
89	89	of service credited to the officer.
90	90	(d) The portions of the annuity under this section payable
91	91	from the peace officer supplemental retirement fund are the amount
92	92	remaining after deduction of any amount payable under Section
93	93	824.304, except the portion of an amount that exceeds the minimum
94	94	payments provided by Section 824.304(b) and that is made for
95	95	service other than as a peace officer and any amount by which an
96	96	annuity is increased under Subsection (e).
97	97	(e) If a retiring member or retiree under this section
98	98	presents evidence satisfactory to the retirement system that the
99	99	person's occupational disability makes the person incapable of
100	100	substantial gainful activity solely because of the disability and
101	101	is considered a total disability under federal social security law,
102	102	the retirement system shall increase the person's occupational
103	103	disability retirement annuity to 100 percent of the officer's
104	104	average monthly compensation.
105	105	(f) An annuity increase under Subsection (e) is not payable
106	106	before the first month following the month in which the
107	107	satisfactory evidence is received by the retirement system under
108	108	Subsection (e).
109	109	SECTION 5. Subchapter E, Chapter 824, Government Code, is
110	110	amended by adding Section 824.408 to read as follows:
111	111	Sec. 824.408. ANNUITY FOR SURVIVOR OF PEACE OFFICER. If a
112	112	member who has at least 20 years of service credit as a peace
113	113	officer dies, the amount of the death benefit annuity payable for
114	114	the member's service as a peace officer is an amount computed and
115	115	funded as provided by Section 824.207, including any applicable
116	116	reduction factors.
117	117	SECTION 6. Section 825.102, Government Code, is amended to
118	118	read as follows:
119	119	Sec. 825.102. RULEMAKING. Subject to the limitations of
120	120	this subtitle, the board of trustees may adopt rules for:
121	121	(1) eligibility for membership;
122	122	(2) the administration of the funds of the retirement
123	123	system; [and]
124	124	(3) the program of supplemental benefits for peace
125	125	officers; and
126	126	(4) the transaction of business of the board.
127	127	SECTION 7. Section 825.103, Government Code, is amended by
128	128	adding Subsection (b-1) to read as follows:
129	129	(b-1) The board of trustees may authorize the executive
130	130	director to acquire, hold, manage, purchase, sell, assign, trade,
131	131	transfer, and dispose of any security, evidence of debt, or other
132	132	investment in which assets of the peace officer supplemental
133	133	retirement fund may be invested.
134	134	SECTION 8. Section 825.208, Government Code, is amended by
135	135	adding Subsection (d) to read as follows:
136	136	(d) The board of trustees shall make payments from the peace
137	137	officer supplemental retirement fund for services rendered by the
138	138	actuary for that fund and approved by the board.
139	139	SECTION 9. Section 825.301, Government Code, is amended by
140	140	adding Subsection (a-4) to read as follows:
141	141	(a-4) The board of trustees shall hold securities purchased
142	142	with the assets described by Subsection (a) collectively for the
143	143	proportionate benefit of:
144	144	(1) all accounts that are listed in Section 825.306;
145	145	and
146	146	(2) the peace officer supplemental retirement fund.
147	147	SECTION 10. Section 825.305, Government Code, is amended to
148	148	read as follows:
149	149	Sec. 825.305. AVAILABLE CASH. The board of trustees may
150	150	keep on deposit with the comptroller available cash not exceeding
151	151	10 percent of the total assets of the retirement system, excluding
152	152	the assets of the peace officer supplemental retirement fund, to
153	153	pay annuity and other disbursements.
154	154	SECTION 11. Section 825.306, Government Code, is amended to
155	155	read as follows:
156	156	Sec. 825.306. CREDITING SYSTEM ASSETS. The assets of the
157	157	retirement system, except assets of the peace officer supplemental
158	158	retirement fund, shall be credited, according to the purpose for
159	159	which they are held, to one of the following accounts:
160	160	(1) member savings account;
161	161	(2) state contribution account;
162	162	(3) retired reserve account;
163	163	(4) interest account;
164	164	(5) expense account; or
165	165	(6) deferred retirement option account.
166	166	SECTION 12. Subchapter D, Chapter 825, Government Code, is
167	167	amended by adding Section 825.3122 to read as follows:
168	168	Sec. 825.3122. PEACE OFFICER SUPPLEMENTAL RETIREMENT FUND.
169	169	(a) The retirement system shall deposit in the peace officer
170	170	supplemental retirement fund state contributions and other
171	171	appropriations made by the legislature to the fund and proceeds
172	172	from investment of the fund.
173	173	(b) The retirement system may use money from the fund only
174	174	to pay supplemental retirement and death benefits to peace officers
175	175	as provided by this subtitle and to pay for the administration of
176	176	the fund.
177	177	(c) Money appropriated to pay benefits from the fund as
178	178	provided by this subtitle may not be diverted or used to pay any
179	179	other benefits.
180	180	SECTION 13. Section 825.402(a), Government Code, is amended
181	181	to read as follows:
182	182	(a) The rate of contributions for each member of the
183	183	retirement system is:
184	184	(1) five percent of the member's annual compensation
185	185	or $180, whichever is less, for service rendered after August 31,
186	186	1937, and before September 1, 1957;
187	187	(2) six percent of the first $8,400 of the member's
188	188	annual compensation for service rendered after August 31, 1957, and
189	189	before September 1, 1969;
190	190	(3) six percent of the member's annual compensation
191	191	for service rendered after August 31, 1969, and before the first day
192	192	of the 1977-78 school year;
193	193	(4) 6.65 percent of the member's annual compensation
194	194	for service rendered after the last day of the period described by
195	195	Subdivision (3) and before September 1, 1985; [and]
196	196	(5) 6.4 percent of the member's annual compensation
197	197	for service rendered after August 31, 1985, other than service
198	198	rendered as a peace officer and subject to Subsection (b); and
199	199	(6) seven percent of the member's annual compensation
200	200	for service rendered as a peace officer after August 31, 1985.
201	201	SECTION 14. Section 825.404, Government Code, is amended by
202	202	amending Subsections (a), (b), and (e) and adding Subsection (a-2)
203	203	to read as follows:
204	204	(a) During each fiscal year, the state shall contribute to
205	205	the retirement system:
206	206	(1) an amount equal to at least six and not more than
207	207	10 percent of the aggregate annual compensation of all members of
208	208	the retirement system during that fiscal year;
209	209	(2) an amount for the peace officer supplemental
210	210	retirement fund equal to 2.13 percent of the aggregate state
211	211	compensation of all peace officers for that year; and
212	212	(3) money necessary for the administration of the
213	213	peace officer supplemental retirement fund.
214	214	(a-2) The amount of the state contribution made under
215	215	Subsection (a)(1) [this section] may not be less than the amount
216	216	contributed by members during that fiscal year in accordance with
217	217	Section 825.402.
218	218	(b) Before November 2 of each even-numbered year, the board
219	219	of trustees shall certify to the comptroller of public accounts for
220	220	review and adoption:
221	221	(1) an estimate of the amount necessary to pay the
222	222	state's contributions to the retirement system for the following
223	223	biennium; and
224	224	(2) as a separate item, an estimate of the amount
225	225	required to administer the peace officer supplemental retirement
226	226	fund for the following biennium.
227	227	(e) All money appropriated by the state to the retirement
228	228	system shall be paid to the state contribution account in equal
229	229	monthly installments as provided by Section 403.093(c), Government
230	230	Code, except:
231	231	(1) money appropriated under Subsection (d), which
232	232	remains in the general revenue fund until expenses are approved
233	233	under Chapter 2103; and
234	234	(2) money for the payment of benefits from the peace
235	235	officer supplemental retirement fund.
236	236	SECTION 15. Subchapter F, Chapter 825, Government Code, is
237	237	amended by adding Section 825.521 to read as follows:
238	238	Sec. 825.521. CERTIFICATION OF NAMES OF PEACE OFFICERS.
239	239	Not later than the 12th day of the month following the month in
240	240	which a person begins or ceases employment as a peace officer, the
241	241	public school district that commissioned the officer shall certify
242	242	to the retirement system, in the manner prescribed by the system,
243	243	the name of the employee and such other information as the system
244	244	determines is necessary for the crediting of service and financing
245	245	of benefits under this subtitle.
246	246	SECTION 16. Subchapter A, Chapter 1575, Insurance Code, is
247	247	amended by adding Section 1575.009 to read as follows:
248	248	Sec. 1575.009. COVERAGE FOR RETIRED PEACE OFFICERS. (a)
249	249	The trustee shall implement for those retirees who qualify for a
250	250	benefit under Subtitle C, Title 8, Government Code, as a peace
251	251	officer, a program under this subtitle that provides health
252	252	benefits at least as comprehensive as the benefits provided by the
253	253	Employees Retirement System of Texas for basic coverage provided to
254	254	an annuitant eligible to participate under Section 1551.102.
255	255	(b) The trustee may require that a retiree eligible to
256	256	participate in the program implemented under Subsection (a) make an
257	257	additional contribution as determined by the trustee under Section
258	258	1575.212.
259	259	SECTION 17. (a) The change in law made by this Act applies
260	260	to a benefit payment made by the Teacher Retirement System of Texas
261	261	that becomes payable on or after the effective date of this Act.
262	262	(b) Not later than the 30th day after the effective date of
263	263	this Act, a school district shall provide the certified names of all
264	264	peace officers commissioned and employed by the district on the
265	265	effective date of this Act to the Teacher Retirement System of Texas
266	266	as required by Section 825.521, Government Code, as added by this
267	267	Act.
268	268	SECTION 18. (a) Except as provided by Subsection (b) of
269	269	this section, this Act takes effect September 1, 2009, and applies
270	270	beginning with the 2009-2010 school year.
271	271	(b) Section 1575.009, Insurance Code, as added by this Act,
272	272	takes effect September 1, 2010, and applies beginning with the
273	273	2010-2011 school year.