1 | 1 | | 84R12610 TSR-F |
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2 | 2 | | By: Menéndez S.B. No. 1772 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the retirement system in certain municipalities for |
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8 | 8 | | firefighters and police officers. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Sections 1.02(7) and (17), Chapter 824 (S.B. |
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11 | 11 | | 817), Acts of the 73rd Legislature, Regular Session, 1993 (Article |
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12 | 12 | | 6243o, Vernon's Texas Civil Statutes), are amended to read as |
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13 | 13 | | follows: |
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14 | 14 | | (7) "Dependent child" means: |
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15 | 15 | | (A) a person who is less than 18 years of age and |
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16 | 16 | | is a child of a deceased member or deceased retiree; or |
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17 | 17 | | (B) a person: |
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18 | 18 | | (i) who is at least 18 years of age; |
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19 | 19 | | (ii) who is mentally or physically disabled |
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20 | 20 | | to the extent that the person is not capable of being |
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21 | 21 | | self-supporting; and |
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22 | 22 | | (iii) whose natural or adoptive parent is a |
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23 | 23 | | deceased member or deceased retiree [, provided that, for the year |
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24 | 24 | | immediately preceding the death of the member or retiree, the |
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25 | 25 | | deceased member or retiree claimed the person as a dependent on the |
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26 | 26 | | member's or retiree's federal income tax return]. |
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27 | 27 | | (17) "Total salary" means all salary of a member: |
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28 | 28 | | (A) including: |
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29 | 29 | | (i) amounts picked up by the municipality |
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30 | 30 | | under Section 4.04(b) of this Act; and |
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31 | 31 | | (ii) amounts that would be included in |
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32 | 32 | | salary but for an election under Section 125(d), 132(f)(4), 401(k), |
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33 | 33 | | 402(e)(3), 402(h)(1)(B), or 457(b) of the code; and |
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34 | 34 | | (B) excluding [, except]: |
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35 | 35 | | (i) [(A)] overtime pay, field training |
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36 | 36 | | officer's pay, bomb squad pay, SWAT team pay, K-9 pay, and hostage |
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37 | 37 | | team pay; and |
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38 | 38 | | (ii) [(B)] pay for unused accrued vacation |
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39 | 39 | | and sick leave, holiday pay, compensatory time pay, and bonus days |
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40 | 40 | | leave, or any similar items of compensation that may be paid in the |
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41 | 41 | | future. |
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42 | 42 | | SECTION 2. Section 4.02(a), Chapter 824 (S.B. 817), Acts of |
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43 | 43 | | the 73rd Legislature, Regular Session, 1993 (Article 6243o, |
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44 | 44 | | Vernon's Texas Civil Statutes), is amended to read as follows: |
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45 | 45 | | (a) If a member takes unpaid leave as provided by the |
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46 | 46 | | federal Family and Medical Leave Act of 1993 (29 U.S.C. Section 2601 |
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47 | 47 | | et seq.), that member is entitled to make voluntary contributions |
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48 | 48 | | for the leave period in the same amount as the member would have |
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49 | 49 | | paid if the member had not taken the leave. Those payments must be |
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50 | 50 | | made not later than the 30th day after the date the member returns |
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51 | 51 | | from that leave. A computation of contributions under this section |
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52 | 52 | | shall be made in the same manner as other computations under this |
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53 | 53 | | Act. A municipality to which this Act applies shall pay to the fund |
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54 | 54 | | an amount equal to the amount the municipality would have paid under |
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55 | 55 | | Section 4.05(a) of this Act if the contributions made by the member |
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56 | 56 | | under this section had been made by the member under Section 4.04(a) |
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57 | 57 | | of this Act. The payment shall be made by the municipality not |
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58 | 58 | | later than the 30th day after the date of notification by the fund |
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59 | 59 | | that the member has made the contributions under this section |
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60 | 60 | | [match an amount equal to twice the amount of each payment a member |
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61 | 61 | | makes to the fund under this subsection]. |
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62 | 62 | | SECTION 3. Section 4.03, Chapter 824 (S.B. 817), Acts of the |
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63 | 63 | | 73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's |
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64 | 64 | | Texas Civil Statutes), is amended by amending Subsection (h) and |
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65 | 65 | | adding Subsection (i) to read as follows: |
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66 | 66 | | (h) A municipality to which this Act applies shall pay to |
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67 | 67 | | the fund an amount equal to the amount the municipality would have |
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68 | 68 | | paid under Section 4.05(a) of this Act if the contributions made by |
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69 | 69 | | the member under this section had been made by the member under |
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70 | 70 | | Section 4.04(a) of this Act. The payment shall be made by the |
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71 | 71 | | municipality not later than the 30th day after the date of |
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72 | 72 | | notification by the fund that the member has made the contributions |
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73 | 73 | | under this section [double-match payments made to the fund under |
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74 | 74 | | this section]. |
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75 | 75 | | (i) In the case of a member of the fund who dies while |
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76 | 76 | | performing qualified military service as defined by Section 414(u) |
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77 | 77 | | of the code, the survivors of the member are entitled to any |
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78 | 78 | | additional benefits, other than benefit accruals relating to the |
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79 | 79 | | period of qualified military service, that would have been provided |
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80 | 80 | | if the member had returned to active service and then immediately |
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81 | 81 | | died. |
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82 | 82 | | SECTION 4. Sections 4.05(a), (b), and (d), Chapter 824 |
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83 | 83 | | (S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993 |
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84 | 84 | | (Article 6243o, Vernon's Texas Civil Statutes), are amended to read |
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85 | 85 | | as follows: |
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86 | 86 | | (a) Except as provided by Subsection (a-1) of this section, |
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87 | 87 | | a municipality to which this Act applies shall pay into the fund: |
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88 | 88 | | (1) an amount equal to double the sum total of all |
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89 | 89 | | member contributions made in accordance with Section 4.04 of this |
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90 | 90 | | Act for full pay periods ending before October 1, 2015; and |
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91 | 91 | | (2) an amount equal to 23.25 percent of the total |
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92 | 92 | | salary of each fire fighter and police officer in the employment of |
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93 | 93 | | the municipality for full pay periods ending after September 30, |
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94 | 94 | | 2015. |
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95 | 95 | | (b) The payments into the fund by the municipality, both as |
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96 | 96 | | to deductions and payments under Subsection (a) of this section |
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97 | 97 | | [double-matching amounts], shall be made on the same day the |
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98 | 98 | | contributions are deducted from the members' total salary. |
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99 | 99 | | (d) The municipality's payments to the fund |
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100 | 100 | | [double-matching amount] under this section are [is] in place of |
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101 | 101 | | all other payments previously required by law to be made by the |
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102 | 102 | | municipality. |
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103 | 103 | | SECTION 5. Section 5.01, Chapter 824 (S.B. 817), Acts of the |
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104 | 104 | | 73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's |
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105 | 105 | | Texas Civil Statutes), is amended by adding Subsection (f-2) and |
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106 | 106 | | amending Subsection (g) to read as follows: |
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107 | 107 | | (f-2) The board shall compute the retirement annuity of a |
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108 | 108 | | member who retires after September 30, 2015, at the rate of 2.375 |
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109 | 109 | | percent of the member's average total salary for each of the first |
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110 | 110 | | 20 years of service, plus five percent of the member's average total |
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111 | 111 | | salary for each of the next seven years of service, plus 2.5 percent |
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112 | 112 | | of the member's average total salary for the next year of service, |
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113 | 113 | | plus 0.5 percent of the member's average total salary for each of |
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114 | 114 | | the next five years of service, with fractional years of service |
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115 | 115 | | prorated based on full months served as a contributing member. In |
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116 | 116 | | making the computation for a year, the year is considered to begin |
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117 | 117 | | on the first day a contribution is made. A retirement annuity under |
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118 | 118 | | this subsection may not exceed, as of the date of retirement, 87.5 |
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119 | 119 | | percent of the member's average total salary. |
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120 | 120 | | (g) A member may not receive an award from the fund for |
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121 | 121 | | service retirement until the member has at least 20 years of service |
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122 | 122 | | in the fire or police department and has also contributed the |
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123 | 123 | | required amount of money for at least 20 years. In determining the |
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124 | 124 | | number of years of service in a department, the member shall be |
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125 | 125 | | given full credit for the period the member was an active member |
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126 | 126 | | plus the time the member was actively engaged in service with any |
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127 | 127 | | uniformed service in accordance with Section 4.03 of this Act and |
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128 | 128 | | for absences taken under the Family and Medical Leave Act of 1993 |
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129 | 129 | | (29 U.S.C. Section 2601 et seq.), in accordance with Section 4.02 of |
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130 | 130 | | this Act. Disciplinary suspensions of 15 days or less may not be |
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131 | 131 | | subtracted from a member's service credit under this Act if the |
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132 | 132 | | member has paid into the fund, within 30 days after the later of the |
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133 | 133 | | termination date of each suspension or the exhaustion of any appeal |
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134 | 134 | | with respect to the suspension, a sum of money equal to the amount |
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135 | 135 | | of money that would have been deducted from that person's salary |
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136 | 136 | | during that period of suspension if it had not been for that |
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137 | 137 | | suspension. A municipality to which this Act applies shall pay to |
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138 | 138 | | the fund an amount equal to the amount the municipality would have |
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139 | 139 | | paid under Section 4.05(a) of this Act if the contributions made by |
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140 | 140 | | the member under this section had been made by the member under |
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141 | 141 | | Section 4.04(a) of this Act. The payment shall be made by the |
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142 | 142 | | municipality not later than the 30th day after the date of |
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143 | 143 | | notification by the fund that the member has made the contributions |
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144 | 144 | | under this section [double-match a payment made under this |
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145 | 145 | | subsection]. Members of the fund at the time of their retirement |
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146 | 146 | | shall also receive service credit for all unused sick leave |
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147 | 147 | | accumulated by them under Chapter 143, Local Government Code, but |
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148 | 148 | | only to the extent the unused sick leave exceeds 90 days. Service |
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149 | 149 | | credit for unused sick leave shall be prorated based on each full |
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150 | 150 | | month of sick leave. A member's service credit under this section |
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151 | 151 | | includes any service credit purchased in accordance with |
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152 | 152 | | Subsections (k)-(m) of this section. |
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153 | 153 | | SECTION 6. Sections 5.015(d) and (e), Chapter 824 (S.B. |
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154 | 154 | | 817), Acts of the 73rd Legislature, Regular Session, 1993 (Article |
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155 | 155 | | 6243o, Vernon's Texas Civil Statutes), are amended to read as |
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156 | 156 | | follows: |
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157 | 157 | | (d) The amount of a lump-sum payment to which a member |
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158 | 158 | | making a Back DROP election is entitled shall be computed in the |
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159 | 159 | | manner provided by this subsection and Subsection (d-1) of this |
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160 | 160 | | section. The member's retirement annuity shall be computed in the |
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161 | 161 | | manner provided by Section 5.01 of this Act, except that the amount |
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162 | 162 | | of service credit and average total salary used in making that |
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163 | 163 | | computation shall be determined in accordance with this |
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164 | 164 | | subsection. For purposes of this subsection, the member's average |
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165 | 165 | | total salary shall be computed based on the member's Back DROP |
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166 | 166 | | retirement date, which is the member's actual retirement date less |
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167 | 167 | | the amount of time the member elects under Subsection (b)(1) of this |
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168 | 168 | | section. For purposes of this subsection, the member's service |
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169 | 169 | | credit shall be the member's service credit determined in |
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170 | 170 | | accordance with Section 5.01(g) of this Act less the amount of time |
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171 | 171 | | for: |
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172 | 172 | | (1) any service credit in excess of 33 [34] years of |
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173 | 173 | | service, other than service credit for sick leave unused on the date |
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174 | 174 | | of actual retirement; |
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175 | 175 | | (2) any service credit given for sick leave unused on |
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176 | 176 | | the date of actual retirement; and |
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177 | 177 | | (3) any service credit in excess of 20 years but not in |
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178 | 178 | | excess of the amount permitted under Subsection (b)(1) of this |
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179 | 179 | | section that the member elects for computing the amount of the |
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180 | 180 | | lump-sum payment. |
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181 | 181 | | (e) For purposes of computing the monthly pension of a |
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182 | 182 | | member making a Back DROP election, the member's retirement annuity |
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183 | 183 | | shall be computed in the manner provided by Section 5.01 of this |
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184 | 184 | | Act, except that: |
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185 | 185 | | (1) the amount of service credit used in making that |
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186 | 186 | | computation shall be the member's service credit determined in |
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187 | 187 | | accordance with Section 5.01(g) of this Act less: |
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188 | 188 | | (A) the amount of time the member elects under |
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189 | 189 | | Subsection (b)(1) of this section; and |
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190 | 190 | | (B) any service credit in excess of 33 [34] years |
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191 | 191 | | of service excluding any service credit for sick leave unused on the |
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192 | 192 | | date of actual retirement; and |
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193 | 193 | | (2) the member's average total salary shall be |
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194 | 194 | | computed as if the member's retirement date were the member's actual |
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195 | 195 | | retirement date less the amount of time the member elects under |
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196 | 196 | | Subsection (b)(1) of this section. |
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197 | 197 | | SECTION 7. Section 5.03(c), Chapter 824 (S.B. 817), Acts of |
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198 | 198 | | the 73rd Legislature, Regular Session, 1993 (Article 6243o, |
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199 | 199 | | Vernon's Texas Civil Statutes), is amended to read as follows: |
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200 | 200 | | (c) Except as provided by Subsection (d) of this section, a |
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201 | 201 | | member of the fund who is on suspension and who becomes disabled as |
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202 | 202 | | a result of an injury sustained or disease contracted while the |
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203 | 203 | | member is on suspension is eligible for a disability retirement |
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204 | 204 | | annuity under Subsection (a) or (a-1) of this section, as |
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205 | 205 | | applicable, if the suspended member makes up each deducted |
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206 | 206 | | contribution lost by reason of the suspension not later than the |
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207 | 207 | | 30th day after the later of the termination date of the suspension |
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208 | 208 | | or the exhaustion of any appeal with respect to the suspension. A |
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209 | 209 | | municipality to which this Act applies shall pay to the fund an |
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210 | 210 | | amount equal to the amount the municipality would have paid under |
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211 | 211 | | Section 4.05(a) of this Act if the contributions made by the member |
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212 | 212 | | under this section had been made by the member under Section 4.04(a) |
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213 | 213 | | of this Act. The payment shall be made by the municipality not |
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214 | 214 | | later than the 30th day after the date of notification by the fund |
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215 | 215 | | that the member has made the contributions under this section |
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216 | 216 | | [double-match all contributions made by a member under this |
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217 | 217 | | subsection]. |
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218 | 218 | | SECTION 8. Section 5.04(a), Chapter 824 (S.B. 817), Acts of |
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219 | 219 | | the 73rd Legislature, Regular Session, 1993 (Article 6243o, |
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220 | 220 | | Vernon's Texas Civil Statutes), is amended to read as follows: |
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221 | 221 | | (a) A member who is eligible to retire and receive a |
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222 | 222 | | disability retirement annuity under Section 5.03(a) of this Act is |
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223 | 223 | | entitled to receive an annuity from the fund equal to: |
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224 | 224 | | (1) 50 percent of the member's average total salary if |
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225 | 225 | | the date of retirement is on or before September 30, 2015, or 47.5 |
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226 | 226 | | percent of the member's average total salary if the date of |
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227 | 227 | | retirement is after September 30, 2015, if the member has served |
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228 | 228 | | three years or more before the date of retirement; |
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229 | 229 | | (2) 50 percent of the member's average monthly salary |
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230 | 230 | | as of the date of retirement multiplied by 12 if the date of |
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231 | 231 | | retirement is on or before September 30, 2015, or 47.5 percent of |
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232 | 232 | | the member's average monthly salary as of the date of retirement |
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233 | 233 | | multiplied by 12 if the date of retirement is after September 30, |
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234 | 234 | | 2015, if the member has served at least two months and less than |
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235 | 235 | | three years before the date of retirement; or |
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236 | 236 | | (3) 50 percent of the member's average daily salary as |
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237 | 237 | | of the date of retirement multiplied by 360 if the date of |
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238 | 238 | | retirement is on or before September 30, 2015, or 47.5 percent of |
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239 | 239 | | the member's average daily salary as of the date of retirement if |
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240 | 240 | | the date of retirement is after September 30, 2015, if the member |
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241 | 241 | | has served less than two months before the date of retirement. |
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242 | 242 | | SECTION 9. Section 5.05(c), Chapter 824 (S.B. 817), Acts of |
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243 | 243 | | the 73rd Legislature, Regular Session, 1993 (Article 6243o, |
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244 | 244 | | Vernon's Texas Civil Statutes), is amended to read as follows: |
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245 | 245 | | (c) For those retired because of disability on or after |
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246 | 246 | | August 30, 1971, the disability retirement annuity may not be |
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247 | 247 | | reduced to an amount that is less than the product of: |
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248 | 248 | | (1) 2.375 [2.25] percent multiplied by the number of |
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249 | 249 | | years that the retiree served in the department and contributed a |
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250 | 250 | | portion of salary as a member of the fund multiplied by the |
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251 | 251 | | retiree's average total salary, if the retiree served three years |
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252 | 252 | | or more before the date of retirement; |
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253 | 253 | | (2) 2.375 [2.25] percent multiplied by the number of |
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254 | 254 | | years that the retiree served in the department and contributed a |
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255 | 255 | | portion of salary as a member of the fund multiplied by the |
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256 | 256 | | retiree's average monthly salary as of the date of retirement |
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257 | 257 | | multiplied by 12, if the retiree served at least two months and less |
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258 | 258 | | than three years before the date of retirement; or |
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259 | 259 | | (3) 2.375 [2.25] percent multiplied by the number of |
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260 | 260 | | years that the retiree served in the department and contributed a |
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261 | 261 | | portion of salary as a member of the fund multiplied by the |
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262 | 262 | | retiree's average daily salary as of the date of retirement |
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263 | 263 | | multiplied by 360, if the member has served less than two months |
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264 | 264 | | before the date of retirement. |
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265 | 265 | | SECTION 10. Section 5.09, Chapter 824 (S.B. 817), Acts of |
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266 | 266 | | the 73rd Legislature, Regular Session, 1993 (Article 6243o, |
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267 | 267 | | Vernon's Texas Civil Statutes), is amended by amending Subsection |
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268 | 268 | | (a) and adding Subsection (a-2) to read as follows: |
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269 | 269 | | (a) At or before its regular meeting in the month of March, |
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270 | 270 | | the board annually shall review the Consumer's Price Index for All |
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271 | 271 | | Urban Consumers (CPI-U), U.S. City Average or the nearest |
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272 | 272 | | equivalent published by the United States Bureau of Labor |
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273 | 273 | | Statistics for the preceding calendar year. If that index shows an |
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274 | 274 | | increase during the preceding calendar year in the cost of living as |
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275 | 275 | | compared with that index at the close of the previous year, the |
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276 | 276 | | board shall order an increase of all service, disability, and death |
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277 | 277 | | benefit retirement annuities by a percentage that varies by the |
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278 | 278 | | date of the member's service or disability retirement, or, in the |
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279 | 279 | | case of a member who died before retirement, the date on which the |
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280 | 280 | | member died. If the member's service retirement, disability |
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281 | 281 | | retirement, or death before retirement occurred before August 30, |
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282 | 282 | | 1971, the annuity shall be increased by a percentage equal to the |
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283 | 283 | | percentage increase in the cost of living index. If the member's |
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284 | 284 | | service retirement, disability retirement, or death before |
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285 | 285 | | retirement occurred on or after August 30, 1971, but before October |
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286 | 286 | | 1, 2003 [1999], or a later date the board may designate under |
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287 | 287 | | Subsection (a-2) of this section, the annuity shall be increased as |
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288 | 288 | | follows: if the percentage increase in the cost of living index is |
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289 | 289 | | eight percent or less, the annuity shall be increased by a |
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290 | 290 | | percentage equal to the percentage increase, and if the percentage |
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291 | 291 | | increase in the cost of living index is more than eight percent, the |
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292 | 292 | | annuity shall be increased by eight percent plus a percentage equal |
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293 | 293 | | to 75 percent of the percentage increase that is more than eight |
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294 | 294 | | percent. If the member's service retirement, disability |
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295 | 295 | | retirement, or death before retirement occurred on or after October |
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296 | 296 | | 1, 2003 [1999], or a later date the board may designate under |
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297 | 297 | | Subsection (a-2) of this section, the annuity shall be increased by |
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298 | 298 | | a percentage equal to 75 percent of the percentage increase in the |
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299 | 299 | | cost of living index. A percentage increase in annuities shall be |
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300 | 300 | | rounded to the nearest one-tenth percentage point for a cost of |
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301 | 301 | | living increase. |
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302 | 302 | | (a-2) The board may designate another date for the date |
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303 | 303 | | October 1, 2003, in Subsection (a) of this section, provided that |
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304 | 304 | | the designation will not cause the fund's ratio of actuarial value |
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305 | 305 | | of assets to actuarial accrued liability to be less than 90 percent |
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306 | 306 | | as of the date of the board's action. |
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307 | 307 | | SECTION 11. Section 5.10, Chapter 824 (S.B. 817), Acts of |
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308 | 308 | | the 73rd Legislature, Regular Session, 1993 (Article 6243o, |
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309 | 309 | | Vernon's Texas Civil Statutes), is amended by amending Subsections |
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310 | 310 | | (b), (c), (d), (f), and (j) and adding Subsection (b-1) to read as |
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311 | 311 | | follows: |
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312 | 312 | | (b) A distributee may elect, at the time and in the manner |
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313 | 313 | | prescribed by the board, to have any portion of an eligible rollover |
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314 | 314 | | distribution paid directly to an eligible retirement plan specified |
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315 | 315 | | by the distributee in a direct rollover. [Any member or beneficiary |
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316 | 316 | | who is entitled to receive any distribution that is an eligible |
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317 | 317 | | rollover distribution as defined by Section 402(c)(4) of the code |
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318 | 318 | | is entitled to have that distribution transferred directly to |
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319 | 319 | | another eligible retirement plan of the member's or beneficiary's |
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320 | 320 | | choice on providing direction to the fund regarding that transfer |
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321 | 321 | | in accordance with procedures established by the board.] |
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322 | 322 | | (b-1) For purposes of Subsection (b) of this section: |
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323 | 323 | | (1) "Eligible retirement plan" means an individual |
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324 | 324 | | retirement account described by Section 408(a) of the code, an |
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325 | 325 | | individual retirement annuity described by Section 408(b) of the |
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326 | 326 | | code, an annuity plan described by Section 403(a) of the code, a |
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327 | 327 | | qualified trust described by Section 401(a) of the code, an |
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328 | 328 | | eligible deferred compensation plan described by Section 457(b) of |
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329 | 329 | | the code that is maintained by an eligible employer described by |
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330 | 330 | | Section 457(e)(1)(A) of the code, or an annuity contract described |
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331 | 331 | | by Section 403(b) of the code that accepts the distributee's |
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332 | 332 | | eligible rollover distribution. However, in the case of an |
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333 | 333 | | eligible rollover distribution to a designated beneficiary who is |
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334 | 334 | | not the surviving spouse, or the spouse or former spouse under a |
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335 | 335 | | qualified domestic relations order, an eligible retirement plan is |
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336 | 336 | | an individual retirement account or individual retirement annuity |
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337 | 337 | | only. |
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338 | 338 | | (2) "Eligible rollover distribution" means a |
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339 | 339 | | distribution of all or any portion of the balance to the credit of |
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340 | 340 | | the distributee. The term does not include: |
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341 | 341 | | (A) a distribution that is one of a series of |
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342 | 342 | | substantially equal periodic payments, paid not less frequently |
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343 | 343 | | than once a year, made over the life, or life expectancy, of the |
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344 | 344 | | distributee or the joint lives, or joint life expectancies, of the |
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345 | 345 | | distributee and the distributee's designated beneficiary; |
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346 | 346 | | (B) a series of payments for a specified period |
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347 | 347 | | of 10 years or more; |
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348 | 348 | | (C) a distribution to the extent such |
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349 | 349 | | distribution is required under Section 401(a)(9) of the code; or |
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350 | 350 | | (D) the portion of a distribution that is not |
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351 | 351 | | includable in gross income, unless the distributee directs that the |
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352 | 352 | | eligible rollover distribution be transferred directly to a |
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353 | 353 | | qualified trust that is part of a defined contribution plan that |
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354 | 354 | | agrees to separately account for the portion that is includable in |
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355 | 355 | | gross income and the portion that is not, or to an individual |
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356 | 356 | | retirement account or individual annuity. |
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357 | 357 | | (3) "Direct rollover" means a payment by the |
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358 | 358 | | retirement system to the eligible retirement plan specified by a |
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359 | 359 | | distributee. |
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360 | 360 | | (4) "Distributee" means a member or former member. |
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361 | 361 | | The term includes a member's or former member's surviving spouse or |
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362 | 362 | | designated beneficiary and a member's or former member's spouse or |
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363 | 363 | | former spouse who is the alternate payee under a qualified domestic |
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364 | 364 | | relations order, as defined by Section 414(p) of the code, with |
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365 | 365 | | regard to the interest of the spouse or former spouse. |
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366 | 366 | | (c) The total salary taken into account for any purpose |
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367 | 367 | | under this Act [for any member of the fund] may not exceed the 2009 |
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368 | 368 | | annual compensation limitations under Section 401(a)(17) of the |
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369 | 369 | | code, which are $360,000 [$200,000 per year] for an eligible member |
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370 | 370 | | [participant] or $245,000 [$150,000 per year] for an ineligible |
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371 | 371 | | member [participant]. For purposes of this subsection, an eligible |
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372 | 372 | | member is any employee who first became a member in a year |
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373 | 373 | | commencing before 1996 and an ineligible member is any other |
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374 | 374 | | member. The [These] dollar limits shall be [periodically] adjusted |
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375 | 375 | | annually for cost-of-living increases as provided by Section |
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376 | 376 | | 401(a)(17) of the code [in accordance with guidelines provided by |
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377 | 377 | | the United States secretary of the treasury. For purposes of this |
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378 | 378 | | subsection, an eligible participant is any person who first became |
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379 | 379 | | a member before 1996, and an ineligible participant is any member |
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380 | 380 | | who is not an eligible participant]. |
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381 | 381 | | (d) Accrued benefits under this Act become 100 percent |
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382 | 382 | | vested for a member on the earlier of: |
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383 | 383 | | (1) the date the member has completed 20 years of |
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384 | 384 | | service; |
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385 | 385 | | (2) the earlier termination or partial termination of |
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386 | 386 | | the pension plan created by this Act, if it affects the member; [or] |
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387 | 387 | | (3) the complete discontinuance of contributions by |
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388 | 388 | | the municipality to the fund; or |
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389 | 389 | | (4) the date the member attains normal retirement age. |
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390 | 390 | | (f) Distribution of benefits must begin not later than April |
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391 | 391 | | 1 of the year following the later of the calendar year in [during] |
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392 | 392 | | which the member becomes 70-1/2 years of age, or the calendar year |
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393 | 393 | | in which the employee retires, and must otherwise conform to |
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394 | 394 | | Section 401(a)(9) of the code and the regulations under that |
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395 | 395 | | section of the code, including the incidental benefit rule. |
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396 | 396 | | (j) Notwithstanding any other provision of this Act, the |
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397 | 397 | | limit on maximum benefits imposed by Section 415 of the code and |
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398 | 398 | | Subsection (a) of this section shall be adjusted each year to the |
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399 | 399 | | extent permitted by cost-of-living increases announced by the |
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400 | 400 | | secretary of the treasury under Section 415(d) of the code and |
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401 | 401 | | applicable law. Any such benefit increases shall apply to members |
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402 | 402 | | who have terminated employment, including members who have begun |
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403 | 403 | | receiving benefits before the effective date of the change, and any |
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404 | 404 | | benefits previously denied. Benefits paid to make up for benefits |
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405 | 405 | | previously denied are not considered to be extra compensation |
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406 | 406 | | earned after retirement, but shall be considered the delayed |
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407 | 407 | | payment of benefits earned before retirement. [To the extent |
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408 | 408 | | permitted by law, the board may adjust the benefits of retired |
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409 | 409 | | members and beneficiaries by increasing any retirement benefit that |
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410 | 410 | | was reduced because of Section 415 of the code. If Section 415 of |
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411 | 411 | | the code is amended to permit the payment of amounts previously |
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412 | 412 | | precluded under Section 415 of the code, the board may adjust the |
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413 | 413 | | benefits of retired members and beneficiaries, including the |
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414 | 414 | | restoration of benefits previously denied. Benefits paid under |
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415 | 415 | | this subsection are not considered as extra compensation earned |
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416 | 416 | | after retirement but as the delayed payment of benefits earned |
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417 | 417 | | before retirement.] |
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418 | 418 | | SECTION 12. Sections 6.02(a) and (g), Chapter 824 (S.B. |
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419 | 419 | | 817), Acts of the 73rd Legislature, Regular Session, 1993 (Article |
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420 | 420 | | 6243o, Vernon's Texas Civil Statutes), are amended to read as |
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421 | 421 | | follows: |
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422 | 422 | | (a) Subject to Section 6.03 of this Act and the provisions |
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423 | 423 | | of this section, if a member or retiree receiving a disability |
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424 | 424 | | pension under Section 5.04(a) [5.03(a)] of this Act dies leaving a |
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425 | 425 | | surviving spouse or at least one dependent child, the surviving |
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426 | 426 | | spouse and the children are entitled to receive from the fund an |
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427 | 427 | | aggregate death benefit annuity, computed and payable from the date |
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428 | 428 | | of the member's death. The surviving spouse may elect the annuity |
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429 | 429 | | in an amount that is equal to [either]: |
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430 | 430 | | (1) 50 percent of the member's average total salary, if |
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431 | 431 | | the surviving spouse is the surviving spouse of a disability |
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432 | 432 | | retiree who was awarded a disability pension before October 1, |
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433 | 433 | | 2015; [or] |
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434 | 434 | | (2) 47.5 percent of the member's average total salary; |
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435 | 435 | | or |
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436 | 436 | | (3) the same percentage of the member's average total |
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437 | 437 | | salary that the member would have been entitled to receive as a |
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438 | 438 | | retirement annuity if the member could have retired on the date of |
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439 | 439 | | death. |
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440 | 440 | | (g) A child who is adopted after the date of retirement of |
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441 | 441 | | the member is not entitled to a death benefit under this Act. A |
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442 | 442 | | child who is born after the date of retirement of the member is not |
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443 | 443 | | entitled to a death benefit annuity under this Act unless the |
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444 | 444 | | retiree was married to the other parent of the child on the date of |
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445 | 445 | | retirement. A surviving spouse of a retiree whose status as a |
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446 | 446 | | surviving spouse resulted from a marriage after the date of the |
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447 | 447 | | retirement of the retiree is entitled to receive only the benefits, |
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448 | 448 | | if any, provided under Subsection (g-1) of this section or Section |
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449 | 449 | | 6.08 of this Act. |
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450 | 450 | | SECTION 13. Section 6.06, Chapter 824 (S.B. 817), Acts of |
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451 | 451 | | the 73rd Legislature, Regular Session, 1993 (Article 6243o, |
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452 | 452 | | Vernon's Texas Civil Statutes), is amended to read as follows: |
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453 | 453 | | Sec. 6.06. COMMON-LAW MARRIAGES. Common-law marriages are |
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454 | 454 | | not recognized under this Act and benefits may not be conferred on |
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455 | 455 | | common-law spouses as beneficiaries unless a declaration of |
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456 | 456 | | informal marriage was made and recorded under Sections 2.402 and |
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457 | 457 | | 2.404, Family Code, [and their subsequent amendments,] or any |
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458 | 458 | | successor statutes, before the member's death. The date the |
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459 | 459 | | declaration of informal marriage is recorded is the date of |
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460 | 460 | | marriage for the purpose of determining whether any benefit is to be |
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461 | 461 | | awarded to a surviving common-law spouse as a beneficiary. |
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462 | 462 | | SECTION 14. This Act takes effect October 1, 2015. |
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