Texas 2015 - 84th Regular

Texas House Bill HB2572 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R15322 SGA-D
2	2	By: Turner of Harris, Hernandez, Walle H.B. No. 2572
3	3	Substitute the following for H.B. No. 2572:
4	4	By: Alonzo C.S.H.B. No. 2572
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the firefighters' relief and retirement fund in certain
10	10	municipalities.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 1, Article 6243e.2(1), Revised Statutes,
13	13	is amended by adding Subdivision (16-a) to read as follows:
14	14	(16-a) "Unused leave pay" means the accrued value of
15	15	unused leave time payable to an employee after separation from
16	16	service in accordance with applicable law and agreements.
17	17	SECTION 2. Section 5, Article 6243e.2(1), Revised Statutes,
18	18	is amended by amending Subsection (b) and adding Subsection (b-1)
19	19	to read as follows:
20	20	(b) A member may elect to participate in the DROP by
21	21	complying with the election process established by the board. The
22	22	member's election may be made at any time beginning on the date the
23	23	member has completed 20 years of participation in the fund and is
24	24	otherwise eligible for a service pension under Section 4 of this
25	25	article. The election becomes effective on the first day of the
26	26	month following the month in which the board approves the member's
27	27	DROP election. Beginning on the effective date of the member's DROP
28	28	election, amounts equal to the deductions made from the member's
29	29	salary under Section 13(c) or 13(e-1) of this article, as
30	30	applicable, shall be credited to the member's DROP account. A
31	31	member may not participate in the DROP for more than 10 years. If a
32	32	DROP participant remains in active service after the 10th
33	33	anniversary of the effective date of the member's DROP election,
34	34	subsequent deductions from the member's salary under Section 13(c)
35	35	of this article, except for unused leave pay, may not be credited to
36	36	the member's DROP account and may not otherwise increase any
37	37	benefit payable from the fund for the member's service.
38	38	(b-1) For an employee who is a DROP participant and in
39	39	accordance with Section 13(c) of this article, the fund shall
40	40	credit to the employee's DROP account the amount of unused leave pay
41	41	that is due to the employee and received as a contribution to the
42	42	fund from the municipality.
43	43	SECTION 3. Section 13, Article 6243e.2(1), Revised
44	44	Statutes, is amended by amending Subsections (c) and (d) and adding
45	45	Subsections (e-1) and (e-2) to read as follows:
46	46	(c) Each member in active service shall make contributions
47	47	to the fund in an amount equal to nine [8.35] percent of the
48	48	member's salary at the time of the contribution[, and as of July 1,
49	49	2004, in an amount equal to nine percent of the member's salary at
50	50	the time of the contribution]. In addition to contributing the
51	51	percentage of salary required by this subsection, each DROP
52	52	participant, as identified by the fund to the municipality for
53	53	purposes of this section, shall contribute to the fund an amount
54	54	equal to 100 percent of the DROP participant's unused leave pay as
55	55	it becomes payable to the employee. The fund shall credit any
56	56	unused leave pay amount contributed by a DROP participant to the
57	57	participant's DROP account. The governing body of the municipality
58	58	shall deduct each member's [the] contributions [from the member's
59	59	salary] and shall forward the contributions to the fund as soon as
60	60	practicable.
61	61	(d) The municipality shall make contributions to the fund
62	62	once every two weeks in an amount equal to the product of the
63	63	contribution rate certified by the board and the aggregate salaries
64	64	paid to members of the fund during the period for which the
65	65	contribution is made. The board shall certify the municipality's
66	66	contribution rate for each year or portion of a year based on the
67	67	results of actuarial valuations made at least every three years.
68	68	The municipality's contribution rate shall be composed of the
69	69	normal cost plus the level percentage of salary payment required to
70	70	amortize the unfunded actuarial liability over a constant period of
71	71	30 years computed on the basis of an acceptable actuarial reserve
72	72	funding method approved by the board. Notwithstanding any other
73	73	provision of this article, the contributions by the municipality,
74	74	when added to any contributions with respect to a qualified
75	75	governmental excess benefit arrangement maintained in accordance
76	76	with Section 14(c) of this article, may not be less than twice the
77	77	amount paid into the fund by contributions of the members, not
78	78	including member contributions of unused leave pay.
79	79	(e-1) Except as provided by Subsection (e-2) of this section
80	80	and notwithstanding contribution provisions under Subsection (c)
81	81	or (d) of this section or Section 3(d) of this article, and not
82	82	including any contributions of unused leave pay, the employee and
83	83	employer contribution rates that are in effect for the fund's
84	84	fiscal years 2016, 2017, and 2018 are as follows:
85	85	Fiscal Year Employee (% of salary) Employer (% of payroll) Fiscal Year Employee (% of salary) Employer (% of payroll)
86	86	Fiscal Year Employee (% of salary) Employer (% of payroll)
87	87	2016 12% 25.8% 2016 12% 25.8%
88	88	2016 12% 25.8%
89	89	2017 12% 24% 2017 12% 24%
90	90	2017 12% 24%
91	91	2018 12% 24% 2018 12% 24%
92	92	2018 12% 24%
93	93	(e-2) If the effective date of the Act enacting Subsection
94	94	(e-1) of this section is on or before July 1, 2015, the employee and
95	95	employer contribution percentages under Subsection (e-1) for
96	96	fiscal year 2016 apply only to contributions made on or after the
97	97	first day of that fiscal year. If the effective date of the Act
98	98	enacting Subsection (e-1) of this section is later than July 1,
99	99	2015, the employee and employer contribution percentages under that
100	100	subsection for fiscal year 2016 apply only to contributions made on
101	101	or after the effective date of the Act. Subsection (e-1) of this
102	102	section and this subsection expire July 1, 2018.
103	103	SECTION 4. This Act takes effect immediately if it receives
104	104	a vote of two-thirds of all the members elected to each house, as
105	105	provided by Section 39, Article III, Texas Constitution. If the Act
106	106	does not receive the vote necessary for immediate effect, this Act
107	107	takes effect September 1, 2015.
108	108
109	109	Fiscal Year Employee (% of salary) Employer (% of payroll)
110	110
111	111	2016 12% 25.8%
112	112
113	113	2017 12% 24%
114	114
115	115	2018 12% 24%