Texas 2015 - 84th Regular

Texas House Bill HB1821 Compare Versions

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11 84R6292 SGA-D
22 By: Alonzo H.B. No. 1821
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to eligibility for membership and funding of benefits for
88 certain law enforcement, custodial, and other peace officers.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Section 802.305(i)(2), Government Code, is
1111 amended to read as follows:
1212 (2) "State-financed public retirement system" means
1313 the Employees Retirement System of Texas, including the law
1414 enforcement, [and] custodial, and peace officer supplemental
1515 retirement fund, or the Teacher Retirement System of Texas.
1616 SECTION 2. Subchapter C, Chapter 803, Government Code, is
1717 amended by adding Section 803.2015 to read as follows:
1818 Sec. 803.2015. COMBINED SERVICE CREDIT FOR CERTAIN PEACE
1919 OFFICERS. (a) This section applies to a person who, on December
2020 31, 2015:
2121 (1) is a member of the Teacher Retirement System of
2222 Texas, who:
2323 (A) is identified under Section 825.515 as being
2424 employed in a position as a peace officer; and
2525 (B) elects to begin membership as a peace officer
2626 participating in the Employees Retirement System law enforcement,
2727 custodial, and peace officer supplemental retirement fund
2828 beginning January 1, 2016; or
2929 (2) is a member of the Employees Retirement System of
3030 Texas who:
3131 (A) is employed in a position as a law
3232 enforcement, custodial, juvenile justice, or peace officer as those
3333 terms are defined by Section 811.001; and
3434 (B) elects to begin participation in the
3535 Employees Retirement System law enforcement, custodial, and peace
3636 officer supplemental retirement fund beginning January 1, 2016.
3737 (b) For the purposes of this chapter, service credit earned
3838 by a person described by Subsection (a) is considered service
3939 credit earned in two retirement systems and is subject to Section
4040 803.201. The membership on which combined service credit is based
4141 is service credit accrued:
4242 (1) before beginning participation in the Employees
4343 Retirement System law enforcement, custodial, and peace officer
4444 supplemental retirement fund; and
4545 (2) after beginning participation in the Employees
4646 Retirement System law enforcement, custodial, and peace officer
4747 supplemental retirement fund.
4848 SECTION 3. Section 811.001, Government Code, is amended by
4949 amending Subdivisions (6) and (9) and adding Subdivisions (8-b) and
5050 (12-b) to read as follows:
5151 (6) "Combined retirement annuity" means the amount
5252 payable on retirement for service credited as a member of the
5353 employee class of membership plus any supplemental amount payable
5454 from the law enforcement, [and] custodial, and peace officer
5555 supplemental retirement fund.
5656 (8-b) "Juvenile justice officer" means a member of the
5757 retirement system who is employed by the Texas Juvenile Justice
5858 Department and certified by that department as holding a position
5959 as a juvenile correctional officer or other position the primary
6060 duties of which include the custodial supervision of or other
6161 close, regularly planned contact with youth in the custody of that
6262 department.
6363 (9) "Law enforcement officer" means a member of the
6464 retirement system who:
6565 (A) has been commissioned as a law enforcement
6666 officer by the Department of Public Safety, the Texas Alcoholic
6767 Beverage Commission, the Parks and Wildlife Department, the office
6868 of the attorney general, or the office of inspector general at the
6969 Texas Juvenile Justice Department; and
7070 (B) is recognized as a commissioned law
7171 enforcement officer by the Texas Commission on Law Enforcement.
7272 (12-b) "Peace officer" means:
7373 (A) a person certified as being employed as a
7474 peace officer under Section 815.505; or
7575 (B) any other person employed as a peace officer
7676 who is:
7777 (i) not a custodial officer, juvenile
7878 justice officer, or law enforcement officer for purposes of this
7979 subtitle; and
8080 (ii) a peace officer under Article 2.12,
8181 Code of Criminal Procedure, employed or appointed by a department,
8282 commission, board, agency, or institution of the state.
8383 SECTION 4. Section 812.003, Government Code, is amended by
8484 amending Subsection (b) and adding Subsection (b-1) to read as
8585 follows:
8686 (b) An office or employment that is included in the coverage
8787 of the Teacher Retirement System of Texas, other than in a position
8888 identified as a peace officer position under Section 825.515, the
8989 Judicial Retirement System of Texas Plan One, or the Judicial
9090 Retirement System of Texas Plan Two or, except as provided by
9191 Section 9.01, Chapter 238 (S.B. 378), Acts of the 73rd Legislature,
9292 Regular Session, 1993, is with a university system or institution
9393 of higher education, as defined by Section 61.003, Education Code,
9494 is not a position with a department, commission, board, agency, or
9595 institution of the state for purposes of this subtitle.
9696 (b-1) Membership in the employee class includes any person
9797 who is certified as being employed in a position as a peace officer
9898 under Section 815.505.
9999 SECTION 5. Subchapter F, Chapter 813, Government Code, is
100100 amended by adding Section 813.507 to read as follows:
101101 Sec. 813.507. JUVENILE JUSTICE OFFICER SERVICE. (a) The
102102 Texas Juvenile Justice Board by rule shall adopt standards for
103103 determining eligibility for service credit as a juvenile justice
104104 officer, based on the need to encourage early retirement of persons
105105 whose duties are hazardous and require them to have routine contact
106106 with youth in the custody of the Texas Juvenile Justice Department
107107 on a regular basis.
108108 (b) The Texas Juvenile Justice Department shall determine a
109109 person's eligibility to receive credit as a juvenile justice
110110 officer. A determination by the department may not be appealed by
111111 an employee but is subject to change by the retirement system.
112112 SECTION 6. Section 814.107, Government Code, is amended to
113113 read as follows:
114114 Sec. 814.107. SERVICE RETIREMENT BENEFITS FOR CERTAIN
115115 [PEACE] OFFICERS. (a) This section applies only to a member who
116116 participates in the law enforcement, custodial, and peace officer
117117 supplemental retirement fund.
118118 (a-1) A member who has at least 20 years of service credit as
119119 a law enforcement, juvenile justice, [or] custodial, or peace
120120 officer is eligible to retire regardless of age and receive a
121121 standard service retirement annuity in an amount and to be funded as
122122 provided by this section.
123123 (b) The standard service retirement annuity payable for at
124124 least 20 years of service credit as a law enforcement, juvenile
125125 justice, [or] custodial, or peace officer is an amount computed on
126126 the basis of the member's average monthly compensation for the 60
127127 highest months of compensation in the employee class, times the sum
128128 of the percentage factor used in the computation of a standard
129129 service retirement annuity under Section 814.105 plus .5 percent.
130130 (c) The standard combined service retirement annuity that
131131 is payable under this section is based on retirement on or after the
132132 attainment of the normal retirement age, which for purposes of this
133133 section is the earlier of either the age of 57 or the age at which
134134 the sum of the member's age and amount of service credit in the
135135 employee class equals the number 80. The annuity of a law
136136 enforcement, juvenile justice, [or] custodial, or peace officer who
137137 retires before reaching the age of 57 under any eligibility
138138 criteria is actuarially reduced by five percent for each year of
139139 difference between the member's age at retirement and 57. The
140140 actuarial reduction described by this section is in addition to any
141141 other actuarial reduction required by law.
142142 (c-1) A law enforcement, juvenile justice, [or] custodial,
143143 or peace officer who retires before attaining the age of 50 is
144144 entitled only to an annuity that is actuarially reduced from the
145145 annuity available at the age of 50 to the law enforcement, juvenile
146146 justice, [or] custodial, or peace officer whose service credit
147147 annuity amount is based on the sum of the member's age and amount of
148148 law enforcement, juvenile justice, [or] custodial, or peace officer
149149 service credit and employee class service credit, and is not
150150 entitled to have the annuity recalculated at normal retirement age.
151151 The standard or reduced annuity under this section is payable from
152152 the trust fund established by Section 815.310 and the law
153153 enforcement, [and] custodial, and peace officer supplemental
154154 retirement fund in a ratio determined by the retirement system.
155155 (d) A member who retires under this section retires
156156 simultaneously from the employee class of membership. Optional
157157 retirement annuities provided by Section 814.108 are available to a
158158 member eligible to receive a service retirement annuity under this
159159 section, but the same optional plan and beneficiary must be
160160 selected for the portion of the annuity payable from the law
161161 enforcement, [and] custodial, and peace officer supplemental
162162 retirement fund and the portion payable from the trust fund
163163 established by Section 815.310.
164164 (e) The amount payable from the law enforcement, [and]
165165 custodial, and peace officer supplemental retirement fund is
166166 reducible by the amount paid from the trust fund established by
167167 Section 815.310 for service as a law enforcement, juvenile justice,
168168 [or] custodial, or peace officer. The total combined amount of an
169169 annuity under this section may not be less than the authorized
170170 benefit under Subsection (b) subtracted by any amount necessary
171171 because of selection of an optional annuity, because of retirement
172172 before the normal retirement age, or as provided by Subsection (f).
173173 (f) The standard combined service retirement annuity
174174 payable for at least 20 years of service credit as a law
175175 enforcement, juvenile justice, [or] custodial, or peace officer may
176176 not exceed 100 percent of the average compensation computed under
177177 Subsection (b).
178178 (g) For purposes of this section, service as a law
179179 enforcement, juvenile justice, [or] custodial, or peace officer is
180180 creditable as provided by rule of the board of trustees or on a
181181 month-to-month basis, whichever is greater.
182182 SECTION 7. The heading to Section 814.207, Government Code,
183183 is amended to read as follows:
184184 Sec. 814.207. DISABILITY RETIREMENT BENEFITS FOR CERTAIN
185185 [PEACE] OFFICERS.
186186 SECTION 8. Section 814.207, Government Code, is amended by
187187 amending Subsections (a) and (d) and adding Subsection (a-1) to
188188 read as follows:
189189 (a) This section applies only to a member who participates
190190 in the law enforcement, custodial, and peace officer supplemental
191191 retirement fund.
192192 (a-1) An annuity payable for an occupational disability
193193 resulting from a risk to which law enforcement, juvenile justice,
194194 [or] custodial, or peace officers are exposed because of the nature
195195 of their [law enforcement or custodial] duties is payable under the
196196 same terms and conditions that apply to other occupational
197197 disability retirement annuities under this subtitle, except that
198198 the source and amount of the annuity are as provided by this
199199 section.
200200 (d) The portions of the annuity under this section payable
201201 from the law enforcement, [and] custodial, and peace officer
202202 supplemental retirement fund are the amount remaining after
203203 deduction of any amount payable under Section 814.206, except the
204204 portion of an amount that exceeds the minimum payments provided by
205205 Section 814.206(b) and that is made for service other than as a law
206206 enforcement, juvenile justice, [or] custodial, or peace officer and
207207 any amount by which an annuity is increased under Subsection (e).
208208 SECTION 9. Section 814.305, Government Code, is amended to
209209 read as follows:
210210 Sec. 814.305. ANNUITY FOR SURVIVOR OF LAW ENFORCEMENT,
211211 JUVENILE JUSTICE, [OR] CUSTODIAL, OR PEACE OFFICER. (a) This
212212 section applies only to a member who participates in the law
213213 enforcement, custodial, and peace officer supplemental retirement
214214 fund.
215215 (b) If a member who has at least 20 years of service credit
216216 as a law enforcement, juvenile justice, [or] custodial, or peace
217217 officer dies, the amount of the death benefit annuity payable for
218218 the member's service as a law enforcement, juvenile justice, [or]
219219 custodial, or peace officer is an amount computed and funded as
220220 provided by Section 814.107, including any applicable reduction
221221 factors.
222222 SECTION 10. Section 815.103(c), Government Code, is amended
223223 to read as follows:
224224 (c) The board of trustees may authorize the executive
225225 director to acquire, hold, manage, purchase, sell, assign, trade,
226226 transfer, and dispose of any security, evidence of debt, or other
227227 investment in which assets of the law enforcement, [and] custodial,
228228 and peace officer supplemental retirement fund may be invested.
229229 SECTION 11. Section 815.208(c), Government Code, is amended
230230 to read as follows:
231231 (c) The board of trustees shall make payments from the law
232232 enforcement, [and] custodial, and peace officer supplemental
233233 retirement fund for services rendered by the actuary for that fund
234234 and approved by the board.
235235 SECTION 12. Sections 815.301(a) and (b), Government Code,
236236 are amended to read as follows:
237237 (a) The board of trustees shall:
238238 (1) invest the assets of the retirement system as a
239239 single fund without distinction as to their source; and
240240 (2) hold securities purchased with the assets
241241 described by Subsection (a)(1) collectively for the proportionate
242242 benefit of:
243243 (A) all accounts in the trust fund that are
244244 listed in Section 815.310(b); and
245245 (B) the law enforcement, [and] custodial, and
246246 peace officer supplemental retirement fund.
247247 (b) The board of trustees may delegate its authority under
248248 Subsection (a) to the executive director. The board of trustees or
249249 the executive director may, under the standard of care provided by
250250 Section 815.307, invest and reinvest any of the retirement system's
251251 assets and may commingle assets of the trust fund and the law
252252 enforcement, [and] custodial, and peace officer supplemental
253253 retirement fund with the assets of the Judicial Retirement System
254254 of Texas Plan Two for investment purposes, as long as proportionate
255255 ownership records are maintained and credited. Investments may
256256 include home office facilities, including land, equipment, and
257257 office building, used in administering the retirement system.
258258 SECTION 13. Section 815.308(b), Government Code, is amended
259259 to read as follows:
260260 (b) The amount of cash on hand may not exceed 10 percent of
261261 the total amount in the funds of the retirement system on deposit
262262 with the comptroller, excluding the assets of the law enforcement,
263263 [and] custodial, and peace officer supplemental retirement fund.
264264 SECTION 14. Section 815.309, Government Code, is amended to
265265 read as follows:
266266 Sec. 815.309. CREDITING SYSTEM ASSETS. All assets of the
267267 retirement system, except assets of the law enforcement, [and]
268268 custodial, and peace officer supplemental retirement fund, shall be
269269 credited to the trust fund established by Section 815.310.
270270 SECTION 15. The heading to Section 815.317, Government
271271 Code, is amended to read as follows:
272272 Sec. 815.317. LAW ENFORCEMENT, [AND] CUSTODIAL, AND PEACE
273273 OFFICER SUPPLEMENTAL RETIREMENT FUND.
274274 SECTION 16. Sections 815.317(a), (a-1), and (b), Government
275275 Code, are amended to read as follows:
276276 (a) The retirement system shall deposit in the law
277277 enforcement, [and] custodial, and peace officer supplemental
278278 retirement fund state contributions and other appropriations made
279279 by the legislature to the fund and proceeds from investment of the
280280 fund.
281281 (a-1) The comptroller shall deposit fees collected under
282282 Section 133.102(e)(7), Local Government Code, to the credit of the
283283 law enforcement, [and] custodial, and peace officer supplemental
284284 retirement fund.
285285 (b) The retirement system may use money from the fund only
286286 to pay supplemental retirement and death benefits to law
287287 enforcement, juvenile justice, [and] custodial, or peace officers
288288 as provided by this subtitle and to pay for the administration of
289289 the fund.
290290 SECTION 17. Section 815.402(h), Government Code, is amended
291291 to read as follows:
292292 (h) In addition to the contribution under Subsection
293293 (a)(1), each department or agency of the state that employs a law
294294 enforcement, juvenile justice, [or] custodial, or peace officer
295295 shall deduct an additional 0.5 percent contribution from that
296296 member's compensation, to be deposited in the law enforcement,
297297 [and] custodial, and peace officer supplemental retirement fund,
298298 provided that, if the state contribution to the law enforcement,
299299 [and] custodial, and peace officer supplemental retirement fund is
300300 computed using a percentage less than 0.5 percent, the member's
301301 contribution is computed using a percentage equal to the percentage
302302 used to compute the state contribution.
303303 SECTION 18. Section 815.403(a), Government Code, is amended
304304 to read as follows:
305305 (a) During each fiscal year, the state shall contribute to
306306 the retirement system:
307307 (1) an amount equal to 7.4 percent of the total
308308 compensation of all members of the retirement system for that year;
309309 (2) money to pay lump-sum death benefits for retirees
310310 under Section 814.501;
311311 (3) an amount for the law enforcement, [and]
312312 custodial, and peace officer supplemental retirement fund equal to
313313 2.13 percent of the aggregate state compensation of all law
314314 enforcement, juvenile justice, custodial, and peace [law
315315 enforcement] officers for that year;
316316 (4) money necessary for the administration of the law
317317 enforcement, [and] custodial, and peace officer supplemental
318318 retirement fund; and
319319 (5) money for service credit not previously
320320 established, as provided by Section 813.202(c) or 813.302(d).
321321 SECTION 19. Section 815.505, Government Code, is amended to
322322 read as follows:
323323 Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT,
324324 JUVENILE JUSTICE, [AND] CUSTODIAL, AND PEACE OFFICERS. (a) Not
325325 later than the 12th day of the month following the month in which a
326326 person begins or ceases employment as a law enforcement, juvenile
327327 justice, [officer or] custodial, or peace officer, the Public
328328 Safety Commission, the Texas Alcoholic Beverage Commission, the
329329 Parks and Wildlife Commission, the office of the attorney general,
330330 the [office of inspector general at the] Texas Juvenile Justice
331331 Department [Youth Commission], the Board of Pardons and Paroles, or
332332 the Texas Board of Criminal Justice, and any other state employer,
333333 as applicable, shall certify to the retirement system, in the
334334 manner prescribed by the system, the name of the employee and such
335335 other information as the system determines is necessary for the
336336 crediting of service and financing of benefits under this subtitle.
337337 (b) Not later than the 12th day of the month following the
338338 month in which a person begins or ceases employment as a peace
339339 officer, an employer required to provide information about a person
340340 identified as being employed in a position as a peace officer under
341341 Section 825.515 shall certify to the retirement system, in the
342342 manner prescribed by the system, the name of the employee and such
343343 other information as the system determines is necessary for the
344344 crediting of service and financing of benefits under this subtitle.
345345 SECTION 20. Section 822.002, Government Code, is amended to
346346 read as follows:
347347 Sec. 822.002. EXCEPTIONS TO MEMBERSHIP REQUIREMENT. An
348348 employee of the public school system is not permitted to be a member
349349 of the retirement system if the employee:
350350 (1) is eligible and elects to participate in the
351351 optional retirement program under Chapter 830;
352352 (2) is eligible and elects to participate in the law
353353 enforcement, custodial, and peace officer supplemental retirement
354354 fund under Section 803.2015;
355355 (3) is required to participate in the law enforcement,
356356 custodial, and peace officer supplemental retirement fund as a
357357 member of the employee class under Section 812.003(b-1);
358358 (4) [(2)] is solely employed by a public institution
359359 of higher education that as a condition of employment requires the
360360 employee to be enrolled as a student in the institution; or
361361 (5) [(3)] has retired under the retirement system and
362362 has not been reinstated to membership pursuant to Section 824.005
363363 or 824.307.
364364 SECTION 21. Section 840.301(a), Government Code, is amended
365365 to read as follows:
366366 (a) The board of trustees may, under the standard of care
367367 provided by Section 840.303, invest and reinvest the retirement
368368 system's assets and may commingle assets of the trust fund with the
369369 assets of the Employees Retirement System of Texas, including its
370370 trust fund and the law enforcement, [and] custodial, and peace
371371 officer supplemental retirement fund, for investment purposes, as
372372 long as proportionate ownership records are maintained and
373373 credited.
374374 SECTION 22. Section 133.102(e), Local Government Code, is
375375 amended to read as follows:
376376 (e) The comptroller shall allocate the court costs received
377377 under this section to the following accounts and funds so that each
378378 receives to the extent practicable, utilizing historical data as
379379 applicable, the same amount of money the account or fund would have
380380 received if the court costs for the accounts and funds had been
381381 collected and reported separately, except that the account or fund
382382 may not receive less than the following percentages:
383383 (1) abused children's counseling
384384 0.0088 percent;
385385 (2) crime stoppers assistance
386386 0.2581 percent;
387387 (3) breath alcohol testing
388388 0.5507 percent;
389389 (4) Bill Blackwood Law Enforcement Management
390390 Institute
391391 2.1683 percent;
392392 (5) law enforcement officers standards and education
393393 5.0034 percent;
394394 (6) comprehensive rehabilitation
395395 9.8218 percent;
396396 (7) law enforcement, [and] custodial, and peace
397397 officer supplemental retirement fund
398398 11.1426 percent;
399399 (8) criminal justice planning
400400 12.5537 percent;
401401 (9) an account in the state treasury to be used only
402402 for the establishment and operation of the Center for the Study and
403403 Prevention of Juvenile Crime and Delinquency at Prairie View A&M
404404 University
405405 1.2090 percent;
406406 (10) compensation to victims of crime fund
407407 37.6338 percent;
408408 (11) emergency radio infrastructure account
409409 5.5904 percent;
410410 (12) judicial and court personnel training fund
411411 4.8362 percent;
412412 (13) an account in the state treasury to be used for
413413 the establishment and operation of the Correctional Management
414414 Institute of Texas and Criminal Justice Center Account
415415 1.2090 percent; and
416416 (14) fair defense account
417417 8.0143 percent.
418418 SECTION 23. (a) Not later than December 31, 2015, a person
419419 who is a member of the Teacher Retirement System of Texas and is
420420 identified under Section 825.515, Government Code, as being
421421 employed as a peace officer shall decide whether to:
422422 (1) remain a member in the Teacher Retirement System
423423 of Texas; or
424424 (2) become a member of the employee class as a peace
425425 officer participating in the Employees Retirement System law
426426 enforcement, custodial, and peace officer supplemental retirement
427427 fund effective January 1, 2016.
428428 (b) Not later than December 31, 2015, a person who is a
429429 member of the Employees Retirement System of Texas, holds a
430430 position as a law enforcement, juvenile justice, custodial, or
431431 peace officer, and was not eligible before the effective date of
432432 this Act to participate in the law enforcement and custodial
433433 officer supplemental retirement fund shall decide whether to:
434434 (1) remain a member of the Employees Retirement System
435435 of Texas without participating in the law enforcement, custodial,
436436 and peace officer supplemental retirement fund; or
437437 (2) begin participation in the Employees Retirement
438438 System law enforcement, custodial, and peace officer supplemental
439439 retirement fund effective January 1, 2016.
440440 (c) The retirement benefits of a person who opts to begin
441441 participation in the Employees Retirement System law enforcement,
442442 custodial, and peace officer supplemental retirement fund under
443443 Subsection (a) or (b) of this section shall be divided as if the
444444 benefits were based on service credit earned in two separate
445445 retirement systems as follows:
446446 (1) service credit earned before September 1, 2016;
447447 and
448448 (2) service credit earned on or after September 1,
449449 2016.
450450 (d) A person who earns service credit described by
451451 Subsections (c)(1) and (2) of this section is eligible to have that
452452 credit treated as combined service credit under Chapter 803,
453453 Government Code, as amended by this Act.
454454 SECTION 24. This Act takes effect September 1, 2015.