By: Turner of Harris H.B. No. 2572
A BILL TO BE ENTITLED
AN ACT
relating to the firefighters relief and retirement fund in certain
municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1, Article 6243e.2(1), Revised Statutes,
is amended by adding a new subsection (16-a) to read as follows:
(16-a) "Unused leave pay" means the accrued value of unused
leave time due to the employee at separation from service.
SECTION 2. Section 5, Article 6243e.2(1), Revised Statutes,
is amended by amending subsection (b) and adding a new subsection
(c-1) to read as follows:
(b) A member may elect to participate in the DROP by
complying with the election process established by the board. The
member's election may be made at any time beginning on the date the
member has completed 20 years of participation in the fund and is
otherwise eligible for a service pension under Section 4 of this
article. The election becomes effective on the first day of the
month following the month in which the board approves the member's
DROP election. Beginning on the effective date of the member's DROP
election, amounts equal to the deductions made from the member's
salary under Sections 13(c) and 13(e-1) of this article shall be
credited to the member's DROP account. A member may not participate
in the DROP for more than 10 years. If a DROP participant remains in
active service after the 10th anniversary of the effective date of
the member's DROP election, subsequent deductions from the member's
salary under Section 13(c) of this article may not be credited to
the member's DROP account and may not otherwise increase any
benefit payable from the fund for the member's service.
(c-1) Notwithstanding anything to the contrary in
Subsections (b) and (c) of this section, upon separation from
service, an amount equal to a DROP participant's entire unused
leave pay received as a contribution from the municipality by the
fund shall be credited to the DROP participant's DROP account in
accordance with Section 13(c) of this article.
SECTION 3. Section 13, Article 6243e.2(1), Revised
Statutes, is amended by amending subsections (c) and (d) and adding
a new subsection (e-1) to read as follows:
(c) Each member in active service shall make contributions
to the fund in an amount equal to 9 [8.35] percent of the member's
salary at the time of the contribution[, and as of July 1, 2004
, in
an amount equal to nine percent of the member's salary at the time
of the contribution]. In addition, each DROP participant, as
identified by the fund to the municipality for purposes of this
section, shall make contributions to the fund in an amount equal to
100% of the DROP participant's unused leave pay, and the unused
leave pay amounts contributed as to DROP participants shall be
credited to the DROP accounts of such DROP participants. The
governing body of the municipality shall deduct the member's
contributions [from the member's salary] and shall forward the
contributions to the fund as soon as practicable.
(d) The municipality shall make contributions to the fund
once every two weeks in an amount equal to the product of the
contribution rate certified by the board and the aggregate salaries
paid to members of the fund during the period for which the
contribution is made. The board shall certify the municipality's
contribution rate for each year or portion of a year based on the
results of actuarial valuations made at least every three years.
The municipality's contribution rate shall be composed of the
normal cost plus the level percentage of salary payment required to
amortize the unfunded actuarial liability over a constant period of
30 years computed on the basis of an acceptable actuarial reserve
funding method approved by the board. Notwithstanding any other
provision of this article, the contributions by the municipality,
when added to any contributions with respect to a qualified
governmental excess benefit arrangement maintained in accordance
with Section 14(c) of this article, may not be less than twice the
amount paid into the fund by contributions of the members, without
regard to the member contributions of unused leave pay.
(e-1) Notwithstanding anything to the contrary in
Subsections (c) and (d) of this section, or in section 3(d) of this
article, as of the effective date of the Act adding this Subsection,
the following employee and employer contribution rates, other than
with regard to unused leave pay which shall be contributed in
accordance with Subsection (c), shall be placed in effect for the
fund's fiscal years 2016, 2017 and 2018 as indicated in the schedule
below:
Fiscal Year Employee (% of salary) Employer (% of payroll) Fiscal Year Employee (% of salary) Employer (% of payroll)
Fiscal Year Employee (% of salary) Employer (% of payroll)
2016 12% 25.8% 2016 12% 25.8%
2016 12% 25.8%
2017 12% 24.0% 2017 12% 24.0%
2017 12% 24.0%
2018 12% 24.0% 2018 12% 24.0%
2018 12% 24.0%
If the fund's fiscal year 2016 begins after the effective
date of the Act adding this subsection, the employee and employer
contribution percentages for fiscal year 2016 shall only be applied
as of the effective date of the Act. This subsection expires July 1,
2018.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect August 31, 2015.
Fiscal Year Employee (% of salary) Employer (% of payroll)
2016 12% 25.8%
2017 12% 24.0%
2018 12% 24.0%