84R8831 SGA-F
By: Rodriguez of Travis H.B. No. 1756
A BILL TO BE ENTITLED
AN ACT
relating to the board of trustees of and distribution of certain
benefits by a retirement system for firefighters in certain
municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2.03(b), Chapter 183 (S.B. 598), Acts of
the 64th Legislature, Regular Session, 1975 (Article 6243e.1,
Vernon's Texas Civil Statutes), is amended to read as follows:
(b) Between November 1 of each year and the first Monday in
January of the following year, the board of trustees shall hold an
election to elect one member of the board of trustees. If only one
firefighter or retiree is nominated for a position under Subsection
(c) of this section, instead of holding an election, the board of
trustees may appoint the sole nominated candidate at the first
board meeting in January. The board shall adopt procedures for the
appointment of a sole nominated candidate under this subsection. A
board member appointed under this subsection is considered elected
for purposes of this Act.
SECTION 2. Section 7.09, Chapter 183 (S.B. 598), Acts of the
64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
Texas Civil Statutes), is amended by adding Subsection (d) to read
as follows:
(d) The board of trustees may adopt rules to establish
procedures for and requirements governing a member's designation of
a beneficiary under this section.
SECTION 3. Section 8.05, Chapter 183 (S.B. 598), Acts of the
64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's
Texas Civil Statutes), is amended by adding Subsection (d) to read
as follows:
(d) The board of trustees may adopt rules that modify the
availability of distributions under Subsection (a) of this section,
provided that the modifications do not:
(1) impair the distribution rights under that
subsection; or
(2) cause distributions to occur later than required
under Section 401(a)(9), Internal Revenue Code of 1986.
SECTION 4. Sections 8.07(b), (c), and (d), Chapter 183
(S.B. 598), Acts of the 64th Legislature, Regular Session, 1975
(Article 6243e.1, Vernon's Texas Civil Statutes), are amended to
read as follows:
(b) If a member who participates in the DROP dies before
distribution of the member's entire DROP account [while in active
service or if the member has not filed an election with the board of
trustees as described by Subsection (c) of this section],
distributions to the designated beneficiary will begin not more
than one year after the date of the member's death and shall be made
either as a single-payment distribution of the member's DROP
account balance or in not more than four equal annual installments
over a period of not more than 37 months.
(c) [If a member who participates in the DROP dies after
terminating active service and has filed an election with the board
of trustees to be paid in not more than four equal annual
installments over a period of not more than 37 months, the balance
of the member's DROP account shall be distributed to the designated
beneficiary in the manner that the member selected.
[(d)] If the member has not designated a beneficiary to
receive distributions from the member's DROP account or if the
person so designated does not survive the member by at least 72
hours, the member's DROP account shall be distributed in a
single-sum payment as soon as administratively possible after the
member's death to any surviving spouse who survives the member by at
least 72 hours, if any, or to the member's estate if there is no
surviving spouse.
SECTION 5. Section 9.04(a-2), Chapter 183 (S.B. 598), Acts
of the 64th Legislature, Regular Session, 1975 (Article 6243e.1,
Vernon's Texas Civil Statutes), is amended to read as follows:
(a-2) The collective adjustment amount described by
Subsection (a-1) of this section:
(1) is an amount equal to the actuarial value, as
determined by the board's actuary based on the interest and
mortality assumptions adopted by the board of trustees for the most
recent actuarial valuation of the fund, of the percentage increase
in the Consumer Price Index for All Urban Consumers as determined by
the United States Department of Labor for the applicable
determination period ending in a calendar month that precedes by
not more than four months the month in which [immediately preceding
the date] the cost-of-living adjustment is to take effect,
multiplied by the total amount of benefits payable in the month
immediately preceding the date an adjustment is to take effect to
persons who are eligible to receive an adjustment under this
section; and
(2) if applicable:
(A) is reduced by an amount that the board's
actuary determines is necessary to maintain the financial stability
of the fund; or
(B) is increased in accordance with Subsection
(b) of this section.
SECTION 6. The board of trustees of a retirement system
subject to this Act shall adopt procedures required under Section
2.03(b), Chapter 183 (S.B. 598), Acts of the 64th Legislature,
Regular Session, 1975 (Article 6243e.1, Vernon's Texas Civil
Statutes), as amended by this Act, before a sole nominated
candidate may be appointed to the board of trustees.
SECTION 7. This Act takes effect September 1, 2015.