Texas 2009 - 81st Regular

Texas Senate Bill SB1512 Compare Versions

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

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1	1	81R7478 KFF-F
2	2	By: Watson S.B. No. 1512
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to participation in and benefits and administration of
8	8	retirement systems for firefighters in certain municipalities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 1.02, Chapter 183 (S.B. 598), Acts of the
11	11	64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
12	12	Texas Civil Statutes), is amended by adding Subdivision (13) to
13	13	read as follows:
14	14	(13) "Spouse" means an individual to whom a member is
15	15	legally married under Subtitle A, Title 1, Family Code, or a
16	16	comparable law of another jurisdiction.
17	17	SECTION 2. Section 2.03(c), Chapter 183 (S.B. 598), Acts of
18	18	the 64th Legislature, Regular Session, 1975 (Article 6243e.1,
19	19	Vernon's Texas Civil Statutes), is amended to read as follows:
20	20	(c) Each election is by secret written ballot on a date the
21	21	board of trustees determines. Only persons who have been nominated
22	22	may be listed on the written ballot. Nominations may be made in
23	23	person, by mail, or by telephone to the office of the fund and must
24	24	be received between September [October] 1 and September [October]
25	25	15.
26	26	SECTION 3. Article 2, Chapter 183 (S.B. 598), Acts of the
27	27	64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
28	28	Texas Civil Statutes), is amended by adding Section 2.13 to read as
29	29	follows:
30	30	Sec. 2.13. CONFIDENTIALITY OF INFORMATION ABOUT MEMBERS,
31	31	RETIREES, ANNUITANTS, OR BENEFICIARIES. (a) Information contained
32	32	in records in the custody of the fund concerning an individual
33	33	member, retiree, annuitant, or beneficiary is confidential under
34	34	Section 552.101, Government Code, and may not be disclosed in a form
35	35	identifiable with a specific individual unless:
36	36	(1) the information is disclosed to:
37	37	(A) the individual or the individual's attorney,
38	38	guardian, executor, administrator, conservator, or other person
39	39	who the administrator of the fund determines is acting in the
40	40	interest of the individual or the individual's estate;
41	41	(B) a spouse or former spouse of the individual
42	42	after the administrator of the fund determines that the information
43	43	is relevant to the spouse's or former spouse's interest in member
44	44	accounts, benefits, or other amounts payable by the fund;
45	45	(C) a governmental official or employee after the
46	46	administrator of the fund determines that disclosure of the
47	47	information requested is reasonably necessary to the performance of
48	48	the duties of the official or employee; or
49	49	(D) a person authorized by the individual in
50	50	writing to receive the information; or
51	51	(2) the information is disclosed pursuant to a
52	52	subpoena and the administrator of the fund determines that the
53	53	individual will have a reasonable opportunity to contest the
54	54	subpoena.
55	55	(b) This section does not prevent the disclosure of the
56	56	status or identity of an individual as a member, former member,
57	57	retiree, deceased member or retiree, or beneficiary of the fund.
58	58	(c) A determination and disclosure under Subsection (a) may
59	59	be made without notice to the individual member, retiree,
60	60	annuitant, or beneficiary.
61	61	SECTION 4. Section 5.04, Chapter 183 (S.B. 598), Acts of the
62	62	64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
63	63	Texas Civil Statutes), is amended by amending Subsection (b) and
64	64	adding Subsection (b-1) to read as follows:
65	65	(b) The three percent factor used in this section may be
66	66	changed to some other percent if the change:
67	67	(1) is first approved by the board's actuary;
68	68	(2) is approved by the board of trustees;
69	69	(3) applies [only] to one or any combination of the
70	70	following groups:
71	71	(A) firefighters who are employed on an active,
72	72	full-time basis in the fire department at the time of the change;
73	73	(B) firefighters who begin service with the fire
74	74	department after the change becomes effective; and
75	75	(C) members who retire under Section 5.06 of this
76	76	Act after the change becomes effective; and
77	77	(4) does not reduce a member's benefit for service
78	78	credit accumulated before the date of the change.
79	79	(b-1) In determining whether to approve an increase in the
80	80	three percent factor under Subsection (b) of this section, the
81	81	board's actuary shall take into consideration whether the fund has
82	82	reserves sufficient to enable the payment of a cost-of-living
83	83	adjustment under Section 9.04(a) of this Act to all persons
84	84	entitled to an adjustment under that section at a level that is
85	85	equal to the average percentage increase in the Consumer Price
86	86	Index for All Urban Consumers as determined by the United States
87	87	Department of Labor for the 10 annual periods preceding the
88	88	proposed effective date of the change.
89	89	SECTION 5. Section 7.02, Chapter 183 (S.B. 598), Acts of the
90	90	64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
91	91	Texas Civil Statutes), is amended to read as follows:
92	92	Sec. 7.02. SURVIVING SPOUSE OF RETIREE. (a) On the death of
93	93	a retiree, the retiree's surviving spouse is entitled to receive an
94	94	immediate monthly benefit from the fund of 75 percent of the
95	95	retirement benefit that was being paid to the retiree if the spouse:
96	96	(1) was married to the retiree at the time of the
97	97	retiree's retirement; or
98	98	(2) married the retiree after the retiree's retirement
99	99	and was married to the retiree for at least 24 consecutive months.
100	100	(b) For purposes of Subsection (a)(1) of this section, with
101	101	respect to an informal marriage established in this state, a
102	102	surviving spouse is considered married to a retiree as of the date a
103	103	declaration of informal marriage was recorded in accordance with
104	104	Subchapter E, Chapter 2, Family Code.
105	105	SECTION 6. Section 9.04, Chapter 183 (S.B. 598), Acts of the
106	106	64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
107	107	Texas Civil Statutes), is amended by amending Subsections (a) and
108	108	(b) and adding Subsections (a-1), (a-2), (a-3), (a-4), and (b-1) to
109	109	read as follows:
110	110	(a) Subject to this section and except [Except] as provided
111	111	by Section 5.05 of this Act, a person receiving a retirement or
112	112	survivor's benefit under this Act in the month immediately
113	113	preceding the date an adjustment is to take effect is entitled to an
114	114	annual cost-of-living adjustment of that person's benefit
115	115	calculated in accordance with this section.
116	116	(a-1) The annual cost-of-living adjustment under this
117	117	section:
118	118	(1) is based on the collective adjustment amount
119	119	calculated in accordance with Subsection (a-2) of this section and
120	120	allocated among persons eligible for an adjustment under this
121	121	section in a manner and in an amount determined by the board of
122	122	trustees;
123	123	(2) may take effect at any time during a given calendar
124	124	year, as determined by the board of trustees; and
125	125	(3) may not reduce a person's benefit to an amount less
126	126	than the person received when the benefit first was paid to that
127	127	person.
128	128	(a-2) The collective adjustment amount described by
129	129	Subsection (a-1) of this section:
130	130	(1) is an amount equal to the percentage [based on any]
131	131	increase in the Consumer Price Index for All Urban Consumers as
132	132	determined by the United States Department of Labor for the
133	133	applicable determination period immediately preceding the date the
134	134	cost-of-living adjustment is to take effect, multiplied by the
135	135	total amount of benefits payable to persons who are eligible to
136	136	receive an adjustment under this section; and
137	137	(2) if applicable, is reduced by an amount that the
138	138	board's actuary determines is necessary to maintain the financial
139	139	stability of the fund.
140	140	(a-3) For purposes of Subsection (a-2) of this section, the
141	141	applicable determination period is the shorter of:
142	142	(1) 12 months; or
143	143	(2) a period determined by the board of trustees
144	144	[since the last increase in benefits under this section].
145	145	(a-4) In determining whether to reduce the collective
146	146	adjustment amount under Subsection (a-2) of this section, the
147	147	board's actuary may not take into consideration the cost of future
148	148	adjustments under this section.
149	149	(b) A cost-of-living [If an] adjustment [under Subsection
150	150	(a) of this section would exceed one percent of a person's benefit,
151	151	the portion of the adjustment that exceeds one percent of the
152	152	benefit] may not be made under this section unless:
153	153	(1) the board's actuary has advised the board of
154	154	trustees that the adjustment would not impair the financial
155	155	stability of the fund; and
156	156	(2) the adjustment has been approved by the
157	157	affirmative vote of a majority of the board of trustees. [If an
158	158	adjustment under Subsection (a) of this section would be one
159	159	percent or less of a person's benefit, the adjustment may not be
160	160	made under this section unless the board's actuary has advised the
161	161	board of trustees that the adjustment would not impair the
162	162	financial stability of the fund.]
163	163	(b-1) In determining whether an adjustment would impair the
164	164	financial stability of the fund under Subsection (b) of this
165	165	section, the board's actuary shall take into consideration the cost
166	166	of future adjustments under this section.
167	167	SECTION 7. Section 11.01, Chapter 183 (S.B. 598), Acts of
168	168	the 64th Legislature, Regular Session, 1975 (Article 6243e.1,
169	169	Vernon's Texas Civil Statutes), is amended to read as follows:
170	170	Sec. 11.01. INVESTMENTS. The board of trustees in its sole
171	171	discretion may invest, reinvest, or change the assets of the fund.
172	172	The board of trustees shall invest the funds in whatever
173	173	instruments or investments the board considers prudent. In making
174	174	investments for the fund, the board of trustees shall discharge its
175	175	duties with the care, skill, prudence, and diligence under the
176	176	circumstances then prevailing that a prudent person acting in a
177	177	similar capacity and familiar with such matters would use in the
178	178	conduct of an enterprise of a similar character and with similar
179	179	aims [PERMITTED INVESTMENTS. When the board of trustees determines
180	180	that there is in the fund a surplus exceeding the reasonable, safe
181	181	amount necessary to take care of the current demands on the fund,
182	182	the surplus, or so much of it as the board of trustees considers
183	183	prudent, may be invested in:
184	184	[(1) direct obligations of or obligations the
185	185	principal and interest of which are guaranteed by the United States
186	186	or its agencies or instrumentalities;
187	187	[(2) short-term investment funds, mutual funds, or
188	188	their equivalent that are rated as investment quality or higher by a
189	189	nationally recognized investment rating firm;
190	190	[(3) fully collateralized or direct repurchase
191	191	agreements, including direct and reverse security repurchase
192	192	agreements and security lending agreements that:
193	193	[(A) have a defined termination date;
194	194	[(B) are secured by obligations described by this
195	195	section or by cash; and
196	196	[(C) are pledged with a third party selected or
197	197	approved by a majority vote of the board of trustees;
198	198	[(4) corporate bonds, including convertible bonds,
199	199	collateralized mortgage obligations, and asset-backed securities,
200	200	rated as investment quality or higher by a nationally recognized
201	201	investment rating firm;
202	202	[(5) common stocks, preferred stocks, and convertible
203	203	preferred stocks of companies incorporated in the United States and
204	204	foreign stocks that are designated in United States dollars and
205	205	that are registered with the Securities and Exchange Commission and
206	206	listed on a United States exchange or by the National Association of
207	207	Securities Dealers Automated Quotations;
208	208	[(6) foreign equity and fixed income investments;
209	209	[(7) mutual funds, common funds, and their equivalents
210	210	that contain only items listed in Subdivisions (1)-(6) of this
211	211	section; and
212	212	[(8) convertible stocks and bonds recognized as
213	213	investment quality or higher by a nationally recognized investment
214	214	rating firm or by the investment manager].
215	215	SECTION 8. Section 11.03, Chapter 183 (S.B. 598), Acts of
216	216	the 64th Legislature, Regular Session, 1975 (Article 6243e.1,
217	217	Vernon's Texas Civil Statutes), is amended to read as follows:
218	218	Sec. 11.03. INVESTMENT POLICY. (a) The board of trustees
219	219	shall adopt and maintain a written investment policy regarding the
220	220	investment of fund assets.
221	221	(b) The board of trustees may not adopt an amendment that
222	222	amends the investment policy adopted under this section unless the
223	223	proposed amendment is approved by the affirmative vote of a
224	224	majority of the members of the board at not fewer than three regular
225	225	meetings of the board [LIMITATIONS ON INVESTMENTS. The fund may not
226	226	own more than five percent of the voting stock of any one
227	227	corporation. Under an investment measure at market:
228	228	[(1) total fixed-income investments should not
229	229	represent less than 30 percent of the value of the investment
230	230	portfolio;
231	231	[(2) total investments in common stocks should not
232	232	represent more than 70 percent of the value of the investment
233	233	portfolio;
234	234	[(3) total investments in common stocks and bonds of
235	235	foreign corporations may not represent more than 20 percent of the
236	236	value of the investment portfolio; and
237	237	[(4) total investments in any one corporation may not
238	238	represent more than five percent of the value of the investment
239	239	portfolio].
240	240	SECTION 9. Sections 9.04(c) and (d), Chapter 183 (S.B.
241	241	598), Acts of the 64th Legislature, Regular Session, 1975 (Article
242	242	6243e.1, Vernon's Texas Civil Statutes), are repealed.
243	243	SECTION 10. As soon as practicable after the effective date
244	244	of this Act, the board of trustees of the firefighters relief and
245	245	retirement fund shall adopt the written investment policy required
246	246	by Section 11.03, Chapter 183 (S.B. 598), Acts of the 64th
247	247	Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
248	248	Texas Civil Statutes), as amended by this Act.
249	249	SECTION 11. This Act takes effect September 1, 2009.