Texas 2009 - 81st Regular

Texas Senate Bill SB1628 Compare Versions

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1	1	S.B. No. 1628
2	2
3	3
4	4	AN ACT
5	5	relating to the pension retirement system in certain municipalities
6	6	for firefighters and police.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 1.02, Chapter 824 (S.B. 817), Acts of the
9	9	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
10	10	Texas Civil Statutes), is amended by adding Subdivisions (1-a),
11	11	(4-b), (4-c), (11-a), (12-b), and (12-c) and amending Subdivisions
12	12	(11) and (12-a) to read as follows:
13	13	(1-a) "Alternate payee" has the meaning assigned by
14	14	Section 804.001, Government Code, or any successor statute.
15	15	(4-b) "Class" means the trainee class of a fire
16	16	fighter or police officer training academy of a municipality to
17	17	which this Act applies from which a member graduated, as determined
18	18	by the board.
19	19	(4-c) "Class graduation date" means the date the
20	20	graduates of any class graduated, as determined by the board.
21	21	(11) "Member" means a fire fighter or police officer
22	22	who has become a member of the fund as provided by Section 4.01(a)
23	23	or 4.011 of this Act and has not retired, died, or forfeited the
24	24	person's interest in the fund.
25	25	(11-a) "Member buyback contribution amount" means the
26	26	amount of the first contribution by a member to the fund for a full
27	27	pay period, multiplied by 26, divided by 12, and multiplied by 3.
28	28	(12-a) "Probationary period" means the period
29	29	beginning on the graduation date of a graduate of a class and ending
30	30	on the date the graduate becomes a member.
31	31	(12-b) "Qualified funds" means pretax funds that are
32	32	part of an eligible rollover distribution, as described in Section
33	33	402(f)(2) of the code, or funds that have been transferred to the
34	34	fund in accordance with Section 403(b)(13) or Section 457(e)(17) of
35	35	the code to purchase years or fractions of years of service.
36	36	(12-c) "Qualified mayoral designee" means an
37	37	individual designated by the mayor of a municipality to which this
38	38	Act applies who is a member or former member of the city council of,
39	39	or an employee of, a municipality to which this Act applies.
40	40	SECTION 2. Subsection (c), Section 3.02, Chapter 824 (S.B.
41	41	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
42	42	6243o, Vernon's Texas Civil Statutes), is amended to read as
43	43	follows:
44	44	(c) Any contributing member of the fund who is in good
45	45	standing in the fire or police department may:
46	46	(1) appear in person or by attorney to contest the
47	47	application for membership participation in the fund or for an
48	48	annuity or benefit by any person claiming to be entitled to an
49	49	annuity or benefit, either as a member, [or] beneficiary, or
50	50	alternate payee; and
51	51	(2) offer supporting testimony.
52	52	SECTION 3. Subsections (c) and (d), Section 3.03, Chapter
53	53	824 (S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
54	54	(Article 6243o, Vernon's Texas Civil Statutes), are amended to read
55	55	as follows:
56	56	(c) Each member, retiree, [and] beneficiary, and alternate
57	57	payee shall provide bank depository information to the board so
58	58	that the board can disburse benefits by electronic transfer.
59	59	(d) Except as provided by Section 802.1024, Government
60	60	Code, the board may reduce the amount of a benefit to which a
61	61	retiree, [or] beneficiary, or alternate payee is otherwise entitled
62	62	in order to reimburse the fund for an overpayment or incorrect
63	63	payment of benefits to the retiree, [or] beneficiary, or alternate
64	64	payee.
65	65	SECTION 4. Article 4, Chapter 824 (S.B. 817), Acts of the
66	66	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
67	67	Texas Civil Statutes), is amended by adding Section 4.011 to read as
68	68	follows:
69	69	Sec. 4.011. MEMBERSHIP OF FIRE CHIEF AND POLICE CHIEF.
70	70	(a) Subject to Subsection (d) of this section, not later than the
71	71	30th day after the date a fire chief or a police chief of a
72	72	municipality to which this Act applies assumes office, the fire
73	73	chief or police chief may make an irrevocable election to not become
74	74	a member of the fund.
75	75	(b) An election under this section must be made by
76	76	delivering written notice of the election to the secretary of the
77	77	board.
78	78	(c) A fire chief or police chief who does not make an
79	79	election under this section becomes a member of the fund.
80	80	(d) A fire chief or police chief who was a member of the fund
81	81	at any time during the two years preceding the date the fire chief
82	82	or police chief assumes office may not make an election under this
83	83	section.
84	84	SECTION 5. Section 5.01, Chapter 824 (S.B. 817), Acts of the
85	85	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
86	86	Texas Civil Statutes), is amended by amending Subsection (g) and
87	87	adding Subsections (k), (l), and (m) to read as follows:
88	88	(g) A member may not receive an award from the fund for
89	89	service retirement until the member has at least 20 years of service
90	90	in the fire or police department and has also contributed the
91	91	required amount of money for at least 20 years. In determining the
92	92	number of years of service in a department, the member shall be
93	93	given full credit for the period the member was an active member
94	94	plus the time the member was actively engaged in service with any
95	95	uniformed service in accordance with Section 4.03 of this Act and
96	96	for absences taken under the Family and Medical Leave Act of 1993
97	97	(29 U.S.C. Section 2601 et seq.), in accordance with Section 4.02 of
98	98	this Act. Disciplinary suspensions of 15 days or less may not be
99	99	subtracted from a member's service credit under this Act if the
100	100	member has paid into the fund, within 30 days after the later of the
101	101	termination date of each suspension or the exhaustion of any appeal
102	102	with respect to the suspension, a sum of money equal to the amount
103	103	of money that would have been deducted from that person's salary
104	104	during that period of suspension if it had not been for that
105	105	suspension. A municipality to which this Act applies shall
106	106	double-match a payment made under this subsection. Members of the
107	107	fund at the time of their retirement shall also receive service
108	108	credit for all unused sick leave accumulated by them under Chapter
109	109	143, Local Government Code, but only to the extent the unused sick
110	110	leave exceeds 90 days. Service credit for unused sick leave shall
111	111	be prorated based on each full month of sick leave. A member's
112	112	service credit under this section includes any service credit
113	113	purchased in accordance with Subsections (k)-(m) of this section.
114	114	(k) A member employed for a probationary period by a
115	115	municipality to which this Act applies may elect to purchase one
116	116	month of service credit for each full month in the member's
117	117	probationary period, up to a maximum of 10 months. For each month
118	118	of service credit the member elects to purchase, the member shall
119	119	pay to the fund, on or before September 30, 2010, an amount equal to
120	120	the sum of:
121	121	(1) the member buyback contribution amount for the
122	122	member; and
123	123	(2) interest on the amount determined under
124	124	Subdivision (1) of this subsection at the rate of eight percent per
125	125	annum, compounded annually, calculated for the period beginning on
126	126	the first day after the class graduation date for the member's class
127	127	and ending on the earlier of December 31, 2009, or the date the fund
128	128	receives the payment required under this subsection.
129	129	(l) A member may not elect to purchase a partial month of
130	130	service credit under Subsection (k) of this section. A member is
131	131	not required to elect to purchase more than one month of service
132	132	credit under Subsection (k) of this section. A member may make the
133	133	payment required under Subsection (k) of this section only with
134	134	qualified funds. A member must make an election under Subsection
135	135	(k) of this section on or before December 31, 2009, in accordance
136	136	with policies and procedures adopted by the board.
137	137	(m) An election under Subsection (k) of this section is void
138	138	unless the member makes the full required payment before the
139	139	earlier of the date of the member's retirement or the date of the
140	140	member's death. If a member makes only partial payment before the
141	141	earlier of the date of the member's retirement or the date of the
142	142	member's death, the fund shall refund all payments received,
143	143	without interest, to the member, if the member is alive, or to the
144	144	member's estate, if the member is dead. The fund shall refund
145	145	payment under this subsection not later than the 60th day after the
146	146	date of the member's retirement or the date of the member's death,
147	147	as applicable.
148	148	SECTION 6. Subsection (b), Section 5.015, Chapter 824 (S.B.
149	149	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
150	150	6243o, Vernon's Texas Civil Statutes), is amended to read as
151	151	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. Subsection (a-1), Section 5.03, Chapter 824
162	162	(S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
163	163	(Article 6243o, Vernon's Texas Civil Statutes), is amended to read
164	164	as follows:
165	165	(a-1) An active member of the fund is eligible to retire and
166	166	receive a catastrophic injury disability retirement annuity if the
167	167	member:
168	168	(1) makes a written application for catastrophic
169	169	injury disability retirement with the board;
170	170	(2) is permanently so disabled as a result of a
171	171	catastrophic injury as to:
172	172	(A) be unable to secure any type of third-party
173	173	employment, or engage in any self-employment, other than sporadic
174	174	third-party or self-employment; and
175	175	(B) have, as a result of the lack of third-party
176	176	employment or self-employment, an annual income less than the
177	177	poverty level for one person in the 48 contiguous states of the
178	178	United States as provided under the poverty guidelines published
179	179	from time to time by the United States Department of Health and
180	180	Human Services, or similar guidelines selected by the board;
181	181	(3) has had all member contributions required by this
182	182	Act made on the member's behalf;
183	183	(4) is not on indefinite suspension as described in
184	184	Subsection (d) [(e)] of this section; and
185	185	(5) has authorized the release to the board of all
186	186	medical records dated on or after the date of initial application
187	187	for employment with the department.
188	188	SECTION 8. Subsection (a), Section 5.07, Chapter 824 (S.B.
189	189	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
190	190	6243o, Vernon's Texas Civil Statutes), is amended to read as
191	191	follows:
192	192	(a) The board shall require each disability retiree
193	193	retiring after August 29, 1979, to provide the board annually not
194	194	later than May 1 of each year with a true and complete copy of the
195	195	retiree's income tax return for the previous year, except for a
196	196	retiree who is 65 years of age or older as of December 31 of the
197	197	previous year.
198	198	SECTION 9. Section 5.09, Chapter 824 (S.B. 817), Acts of the
199	199	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
200	200	Texas Civil Statutes), is amended by amending Subsection (a) and
201	201	adding Subsection (a-1) to read as follows:
202	202	(a) At or before its regular meeting in the month of March,
203	203	the board annually shall review the Consumer's Price Index for All
204	204	Urban Consumers (CPI-U), U.S. City Average or the nearest
205	205	equivalent published by the United States Bureau of Labor
206	206	Statistics for the preceding calendar year. If that index shows an
207	207	increase during the preceding calendar year in the cost of living as
208	208	compared with that index at the close of the previous year, the
209	209	board shall order an increase of all service, disability, and death
210	210	benefit retirement annuities by a percentage that varies by the
211	211	date of the member's service or disability retirement, or, in the
212	212	case of a member who died before retirement, the date on which the
213	213	member died. If the member's service retirement, disability
214	214	retirement, or death before retirement occurred before August 30,
215	215	1971, the annuity shall be increased by a percentage equal to the
216	216	percentage increase in the cost of living index. If the member's
217	217	service retirement, disability retirement, or death before
218	218	retirement occurred on or after August 30, 1971, but before October
219	219	1, 1999 [1997], the annuity shall be increased as follows: if the
220	220	percentage increase in the cost of living index is eight percent or
221	221	less, the annuity shall be increased by a percentage equal to the
222	222	percentage increase, and if the percentage increase in the cost of
223	223	living index is more than eight percent, the annuity shall be
224	224	increased by eight percent plus a percentage equal to 75 percent of
225	225	the percentage increase that is more than eight percent. If the
226	226	member's service retirement, disability retirement, or death
227	227	before retirement occurred on or after October 1, 1999 [1997], the
228	228	annuity shall be increased by a percentage equal to 75 percent of
229	229	the percentage increase in the cost of living index. A percentage
230	230	increase in annuities shall be rounded to the nearest one-tenth
231	231	percentage point for a cost of living increase.
232	232	(a-1) The cost of living increases described by this section
233	233	do not apply to an annuity payable under Section 6.02(g-3) of this
234	234	Act until the annuity becomes effective.
235	235	SECTION 10. Section 6.02, Chapter 824 (S.B. 817), Acts of
236	236	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
237	237	Vernon's Texas Civil Statutes), is amended by amending Subsections
238	238	(d), (g), and (g-1) and adding Subsections (d-1), (d-2), and (g-3)
239	239	to read as follows:
240	240	(d) Subject to Subsection (d-2) of this section, if [If], at
241	241	the time a death benefit annuity becomes payable under Subsection
242	242	(a) or (c) of this section, the deceased member or retiree leaves a
243	243	surviving spouse and at least one dependent child, the board shall
244	244	award:
245	245	(1) 75 percent [one-half] of the annuity to the
246	246	surviving spouse; and
247	247	(2) 25 percent [one-half] of the annuity:
248	248	(A) to the dependent child, if there is only one;
249	249	or
250	250	(B) if there is more than one dependent child, in
251	251	equal shares to each child.
252	252	(d-1) The allocation of an annuity under Subsection (d) of
253	253	this section is effective as to all annuities payable by the fund as
254	254	of October 1, 2009, that are payable in part to a surviving spouse
255	255	and in part to one or more surviving children. This subsection
256	256	applies only to benefits payable by the fund after September 30,
257	257	2009, and does not affect benefits paid or payable by the fund
258	258	before October 1, 2009.
259	259	(d-2) If, at the time a death benefit annuity becomes
260	260	payable under Subsection (a) or (c) of this section, a deceased
261	261	member or retiree leaves a surviving spouse who is not entitled to
262	262	an annuity on the date of death under Subsection (g-1) of this
263	263	section and one or more dependent children, the dependent child or
264	264	children shall be awarded 100 percent of the death benefit annuity
265	265	until the annuity to the surviving spouse becomes effective under
266	266	Subsection (g-3) of this section.
267	267	(g) A child who is born after the date of retirement of the
268	268	member is not entitled to a death benefit annuity under this Act
269	269	unless the retiree was married to the other parent of the child on
270	270	the date of retirement. A surviving spouse of a retiree whose
271	271	status as a surviving spouse resulted from a marriage after the date
272	272	of the [who was not married to the retiree until after the
273	273	retiree's] retirement of the retiree is entitled to receive only
274	274	the benefits, if any, provided under Subsection (g-1) of this
275	275	section or Section 6.08 of this Act.
276	276	(g-1) Subject to Subsection (g-3) of this section, a [A]
277	277	surviving spouse of a retiree whose status as a surviving spouse
278	278	resulted from a marriage [who was not married to the retiree until]
279	279	after the date of the [retiree's] retirement of the retiree is
280	280	entitled to receive the entire death benefit of a surviving spouse
281	281	in this section if the surviving spouse was married to the retiree
282	282	for a period of at least the five consecutive years preceding the
283	283	date of the retiree's death. A surviving spouse of a retiree whose
284	284	status as a surviving spouse resulted from a marriage after the date
285	285	of the [who was not married to the retiree until after the
286	286	retiree's] retirement of the retiree and was not married to the
287	287	retiree for a period of the five consecutive years preceding the
288	288	date of the retiree's death is entitled to receive only the
289	289	benefits, if any, provided under Section 6.08 of this Act. The
290	290	benefit provided by this subsection applies only with respect to a
291	291	retiree death that occurs on or after October 1, 2007.
292	292	(g-3) The death benefit to which a surviving spouse is
293	293	entitled under Subsection (g-1) of this section as a result of a
294	294	retiree's death that occurs on or after October 1, 2009, is payable
295	295	by the fund on the date of the retiree's death if the surviving
296	296	spouse is 55 years of age or older on the date of the retiree's
297	297	death. If the surviving spouse is not 55 years of age or older on
298	298	the date of the retiree's death, the annuity shall be payable by the
299	299	fund on the date the surviving spouse reaches age 55. A surviving
300	300	spouse who is not 55 years of age or older on the date of the
301	301	retiree's death is not entitled to benefits from the fund during the
302	302	period beginning on the date of the retiree's death and ending on
303	303	the date the surviving spouse reaches age 55.
304	304	SECTION 11. Section 6.06, Chapter 824 (S.B. 817), Acts of
305	305	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
306	306	Vernon's Texas Civil Statutes), is amended to read as follows:
307	307	Sec. 6.06. COMMON-LAW MARRIAGES. Common-law marriages are
308	308	not recognized under this Act and benefits may not be conferred on
309	309	common-law spouses as beneficiaries unless a declaration of
310	310	informal marriage was made and recorded under Sections 2.402 and
311	311	2.404 [Section 1.92], Family Code, and their [its] subsequent
312	312	amendments, or any successor statutes, before the member's death.
313	313	SECTION 12. Subsection (a), Section 6.08, Chapter 824 (S.B.
314	314	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
315	315	6243o, Vernon's Texas Civil Statutes), is amended to read as
316	316	follows:
317	317	(a) Except as provided by Subsection (b) of this section, a
318	318	surviving spouse of a retiree whose status as such resulted from any
319	319	marriage after the date of the retirement of the retiree and who has
320	320	been married to the retiree for a period of [at least the 2-1/2 but]
321	321	less than the five consecutive years preceding the date of the
322	322	retiree's death, is entitled to a lump-sum death benefit because of
323	323	the retiree's death in the amount of $15,000 [$2,500].
324	324	SECTION 13. Subsection (f), Section 6.14, Chapter 824 (S.B.
325	325	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
326	326	6243o, Vernon's Texas Civil Statutes), is amended to read as
327	327	follows:
328	328	(f) The surviving spouse must elect the number of months
329	329	used in computing the lump-sum payment. The number of months may
330	330	not exceed the lesser of:
331	331	(1) the number of months of service credit in excess of
332	332	20 years that the deceased member has on the date of death; or
333	333	(2) 60 [48] months.
334	334	SECTION 14. Subsection (c), Section 4.01, Chapter 824 (S.B.
335	335	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
336	336	6243o, Vernon's Texas Civil Statutes), is repealed.
337	337	SECTION 15. This Act takes effect October 1, 2009.
338	338	______________________________ ______________________________
339	339	President of the Senate Speaker of the House
340	340	I hereby certify that S.B. No. 1628 passed the Senate on
341	341	April 23, 2009, by the following vote: Yeas 30, Nays 0.
342	342	______________________________
343	343	Secretary of the Senate
344	344	I hereby certify that S.B. No. 1628 passed the House on
345	345	May 15, 2009, by the following vote: Yeas 144, Nays 0, one
346	346	present not voting.
347	347	______________________________
348	348	Chief Clerk of the House
349	349	Approved:
350	350	______________________________
351	351	Date
352	352	______________________________
353	353	Governor