81R3445 TJS-D
By: Lewis H.B. No. 997
A BILL TO BE ENTITLED
AN ACT
relating to retirement and health insurance benefits of school
district peace officers under the Teacher Retirement System of
Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 821.001, Government Code, is amended by
adding Subdivision (11-a) to read as follows:
(11-a) "Peace officer" means a member of the
retirement system who has been commissioned by a public school
district as a law enforcement officer under Section 37.081,
Education Code.
SECTION 2. Section 824.202, Government Code, is amended by
adding Subsection (d-2) to read as follows:
(d-2) A member who is at least 55 years old and who has at
least 10 years of service credit as a commissioned peace officer for
a public school district is eligible to retire and receive a service
retirement annuity.
SECTION 3. Subchapter C, Chapter 824, Government Code, is
amended by adding Section 824.207 to read as follows:
Sec. 824.207. SERVICE RETIREMENT BENEFITS FOR CERTAIN PEACE
OFFICERS. (a) A member who has at least 20 years of service credit
as a peace officer is eligible to retire regardless of age and
receive a standard service retirement annuity in an amount and to be
funded as provided by this section.
(b) The standard service retirement annuity payable for at
least 20 years of service credit as a peace officer is an amount
computed on the basis of the member's average monthly compensation
for the 36 highest months of compensation times the sum of the
percentage factor used in the computation of a standard service
retirement annuity under Section 824.203(a) plus .5 percent.
(c) The standard combined service retirement annuity that
is payable under this section is based on retirement on or after the
attainment of the normal retirement age, which for purposes of this
section is the earlier of either the age of 50 or the age at which
the sum of the member's age and amount of service credit equals the
number 80. A peace officer who retires before attaining the normal
retirement age is entitled to an annuity that is actuarially
reduced from the annuity available at the normal retirement age to
the peace officer service credit annuity amount available at the
sum of the member's age and amount of service credit. The annuity
is payable from the peace officer supplemental retirement fund.
(d) Benefits for service as a peace officer become payable
from the retired reserve account established by Section 825.309 at
the normal retirement age under the computation provided by Section
824.203. Optional retirement annuities provided by Section 824.204
are available to a member eligible to receive a service retirement
annuity under this section, but the same optional plan and designee
must be selected for the portion of the annuity payable from the
peace officer supplemental retirement fund and the portion payable
from the retired reserve account established by Section 825.309.
(e) The amount payable from the peace officer supplemental
retirement fund is reducible by the amount paid from the retired
reserve account established by Section 825.309 for service as a
peace officer. The total combined amount of an annuity under this
section may not be less than the authorized benefit under
Subsection (b) subtracted by any amount necessary because of
selection of an optional annuity, because of retirement before the
normal retirement age, or as provided by Subsection (f).
(f) The standard combined service retirement annuity
payable for at least 20 years of service credit as a peace officer
may not exceed 100 percent of the average compensation computed
under Subsection (b).
(g) For purposes of this section, service as a peace officer
is creditable as provided by rule of the board of trustees or on a
month-to-month basis, whichever is greater.
SECTION 4. Subchapter D, Chapter 824, Government Code, is
amended by adding Section 824.311 to read as follows:
Sec. 824.311. DISABILITY RETIREMENT BENEFITS FOR CERTAIN
PEACE OFFICERS. (a) An annuity payable for an occupational
disability resulting from a risk to which peace officers are
exposed because of the nature of peace officer duties is payable
under the same terms and conditions that apply to other
occupational disability retirement annuities under this subtitle,
except that the source and amount of the annuity are as provided by
this section.
(b) Except as provided by Subsection (c), an occupational
disability retirement annuity under this section is an amount, but
not more than 100 percent, computed on the basis of the officer's
average monthly compensation, times a percentage derived by
application of Section 824.207(b).
(c) A disability retirement annuity under this section is
not reducible because of age and may not be less than 50 percent of
the officer's average monthly compensation regardless of the amount
of service credited to the officer.
(d) The portions of the annuity under this section payable
from the peace officer supplemental retirement fund are the amount
remaining after deduction of any amount payable under Section
824.304, except the portion of an amount that exceeds the minimum
payments provided by Section 824.304(b) and that is made for
service other than as a peace officer and any amount by which an
annuity is increased under Subsection (e).
(e) If a retiring member or retiree under this section
presents evidence satisfactory to the retirement system that the
person's occupational disability makes the person incapable of
substantial gainful activity solely because of the disability and
is considered a total disability under federal social security law,
the retirement system shall increase the person's occupational
disability retirement annuity to 100 percent of the officer's
average monthly compensation.
(f) An annuity increase under Subsection (e) is not payable
before the first month following the month in which the
satisfactory evidence is received by the retirement system under
Subsection (e).
SECTION 5. Subchapter E, Chapter 824, Government Code, is
amended by adding Section 824.408 to read as follows:
Sec. 824.408. ANNUITY FOR SURVIVOR OF PEACE OFFICER. If a
member who has at least 20 years of service credit as a peace
officer dies, the amount of the death benefit annuity payable for
the member's service as a peace officer is an amount computed and
funded as provided by Section 824.207, including any applicable
reduction factors.
SECTION 6. Section 825.102, Government Code, is amended to
read as follows:
Sec. 825.102. RULEMAKING. Subject to the limitations of
this subtitle, the board of trustees may adopt rules for:
(1) eligibility for membership;
(2) the administration of the funds of the retirement
system; [and]
(3) the program of supplemental benefits for peace
officers; and
(4) the transaction of business of the board.
SECTION 7. Section 825.103, Government Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) The board of trustees may authorize the executive
director to acquire, hold, manage, purchase, sell, assign, trade,
transfer, and dispose of any security, evidence of debt, or other
investment in which assets of the peace officer supplemental
retirement fund may be invested.
SECTION 8. Section 825.208, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) The board of trustees shall make payments from the peace
officer supplemental retirement fund for services rendered by the
actuary for that fund and approved by the board.
SECTION 9. Section 825.301, Government Code, is amended by
adding Subsection (a-4) to read as follows:
(a-4) The board of trustees shall hold securities purchased
with the assets described by Subsection (a) collectively for the
proportionate benefit of:
(1) all accounts that are listed in Section 825.306;
and
(2) the peace officer supplemental retirement fund.
SECTION 10. Section 825.305, Government Code, is amended to
read as follows:
Sec. 825.305. AVAILABLE CASH. The board of trustees may
keep on deposit with the comptroller available cash not exceeding
10 percent of the total assets of the retirement system, excluding
the assets of the peace officer supplemental retirement fund, to
pay annuity and other disbursements.
SECTION 11. Section 825.306, Government Code, is amended to
read as follows:
Sec. 825.306. CREDITING SYSTEM ASSETS. The assets of the
retirement system, except assets of the peace officer supplemental
retirement fund, shall be credited, according to the purpose for
which they are held, to one of the following accounts:
(1) member savings account;
(2) state contribution account;
(3) retired reserve account;
(4) interest account;
(5) expense account; or
(6) deferred retirement option account.
SECTION 12. Subchapter D, Chapter 825, Government Code, is
amended by adding Section 825.3122 to read as follows:
Sec. 825.3122. PEACE OFFICER SUPPLEMENTAL RETIREMENT FUND.
(a) The retirement system shall deposit in the peace officer
supplemental retirement fund state contributions and other
appropriations made by the legislature to the fund and proceeds
from investment of the fund.
(b) The retirement system may use money from the fund only
to pay supplemental retirement and death benefits to peace officers
as provided by this subtitle and to pay for the administration of
the fund.
(c) Money appropriated to pay benefits from the fund as
provided by this subtitle may not be diverted or used to pay any
other benefits.
SECTION 13. Section 825.402(a), Government Code, is amended
to read as follows:
(a) The rate of contributions for each member of the
retirement system is:
(1) five percent of the member's annual compensation
or $180, whichever is less, for service rendered after August 31,
1937, and before September 1, 1957;
(2) six percent of the first $8,400 of the member's
annual compensation for service rendered after August 31, 1957, and
before September 1, 1969;
(3) six percent of the member's annual compensation
for service rendered after August 31, 1969, and before the first day
of the 1977-78 school year;
(4) 6.65 percent of the member's annual compensation
for service rendered after the last day of the period described by
Subdivision (3) and before September 1, 1985; [and]
(5) 6.4 percent of the member's annual compensation
for service rendered after August 31, 1985, other than service
rendered as a peace officer and subject to Subsection (b); and
(6) seven percent of the member's annual compensation
for service rendered as a peace officer after August 31, 1985.
SECTION 14. Section 825.404, Government Code, is amended by
amending Subsections (a), (b), and (e) and adding Subsection (a-2)
to read as follows:
(a) During each fiscal year, the state shall contribute to
the retirement system:
(1) an amount equal to at least six and not more than
10 percent of the aggregate annual compensation of all members of
the retirement system during that fiscal year;
(2) an amount for the peace officer supplemental
retirement fund equal to 2.13 percent of the aggregate state
compensation of all peace officers for that year; and
(3) money necessary for the administration of the
peace officer supplemental retirement fund.
(a-2) The amount of the state contribution made under
Subsection (a)(1) [this section] may not be less than the amount
contributed by members during that fiscal year in accordance with
Section 825.402.
(b) Before November 2 of each even-numbered year, the board
of trustees shall certify to the comptroller of public accounts for
review and adoption:
(1) an estimate of the amount necessary to pay the
state's contributions to the retirement system for the following
biennium; and
(2) as a separate item, an estimate of the amount
required to administer the peace officer supplemental retirement
fund for the following biennium.
(e) All money appropriated by the state to the retirement
system shall be paid to the state contribution account in equal
monthly installments as provided by Section 403.093(c), Government
Code, except:
(1) money appropriated under Subsection (d), which
remains in the general revenue fund until expenses are approved
under Chapter 2103; and
(2) money for the payment of benefits from the peace
officer supplemental retirement fund.
SECTION 15. Subchapter F, Chapter 825, Government Code, is
amended by adding Section 825.521 to read as follows:
Sec. 825.521. CERTIFICATION OF NAMES OF PEACE OFFICERS.
Not later than the 12th day of the month following the month in
which a person begins or ceases employment as a peace officer, the
public school district that commissioned the officer shall certify
to the retirement system, in the manner prescribed by the system,
the name of the employee and such other information as the system
determines is necessary for the crediting of service and financing
of benefits under this subtitle.
SECTION 16. Subchapter A, Chapter 1575, Insurance Code, is
amended by adding Section 1575.009 to read as follows:
Sec. 1575.009. COVERAGE FOR RETIRED PEACE OFFICERS. (a)
The trustee shall implement for those retirees who qualify for a
benefit under Subtitle C, Title 8, Government Code, as a peace
officer, a program under this subtitle that provides health
benefits at least as comprehensive as the benefits provided by the
Employees Retirement System of Texas for basic coverage provided to
an annuitant eligible to participate under Section 1551.102.
(b) The trustee may require that a retiree eligible to
participate in the program implemented under Subsection (a) make an
additional contribution as determined by the trustee under Section
1575.212.
SECTION 17. (a) The change in law made by this Act applies
to a benefit payment made by the Teacher Retirement System of Texas
that becomes payable on or after the effective date of this Act.
(b) Not later than the 30th day after the effective date of
this Act, a school district shall provide the certified names of all
peace officers commissioned and employed by the district on the
effective date of this Act to the Teacher Retirement System of Texas
as required by Section 825.521, Government Code, as added by this
Act.
SECTION 18. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2009, and applies
beginning with the 2009-2010 school year.
(b) Section 1575.009, Insurance Code, as added by this Act,
takes effect September 1, 2010, and applies beginning with the
2010-2011 school year.