Texas 2017 - 85th Regular

Texas House Bill HB1163 Compare Versions

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11 85R4709 LED-D
22 By: Alonzo H.B. No. 1163
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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, 2017:
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, 2018; 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, 2018.
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. Section 812.101(c), Government Code, is amended
100100 to read as follows:
101101 (c) For a law enforcement, juvenile justice, [or]
102102 custodial, or peace officer, the withdrawal of accumulated
103103 contributions under Subsection (a) includes all of the officer's
104104 contributions made under Section 815.402(h).
105105 SECTION 6. Subchapter F, Chapter 813, Government Code, is
106106 amended by adding Section 813.507 to read as follows:
107107 Sec. 813.507. JUVENILE JUSTICE OFFICER SERVICE. (a) The
108108 Texas Juvenile Justice Board by rule shall adopt standards for
109109 determining eligibility for service credit as a juvenile justice
110110 officer, based on the need to encourage early retirement of persons
111111 whose duties are hazardous and require them to have routine contact
112112 with youth in the custody of the Texas Juvenile Justice Department
113113 on a regular basis.
114114 (b) The Texas Juvenile Justice Department shall determine a
115115 person's eligibility to receive credit as a juvenile justice
116116 officer. A determination by the department may not be appealed by
117117 an employee but is subject to change by the retirement system.
118118 SECTION 7. Section 813.513(a), Government Code, is amended
119119 to read as follows:
120120 (a) An eligible member may establish not more than 36 months
121121 of equivalent membership service credit, including law
122122 enforcement, juvenile justice, [or] custodial, or peace officer
123123 service, in either the elected class or the employee class.
124124 SECTION 8. Section 814.107, Government Code, is amended to
125125 read as follows:
126126 Sec. 814.107. SERVICE RETIREMENT BENEFITS FOR CERTAIN
127127 [PEACE] OFFICERS. (a) This section applies only to a member who
128128 participates in the law enforcement, custodial, and peace officer
129129 supplemental retirement fund.
130130 (a-1) A member who has at least 20 years of service credit as
131131 a law enforcement, juvenile justice, [or] custodial, or peace
132132 officer is eligible to retire regardless of age and receive a
133133 standard service retirement annuity in an amount and to be funded as
134134 provided by this section.
135135 (b) The standard service retirement annuity payable for at
136136 least 20 years of service credit as a law enforcement, juvenile
137137 justice, [or] custodial, or peace officer is an amount computed on
138138 the basis of the member's average monthly compensation for the 60
139139 highest months of compensation in the employee class, times the sum
140140 of the percentage factor used in the computation of a standard
141141 service retirement annuity under Section 814.105 plus .5 percent.
142142 (c) The standard combined service retirement annuity that
143143 is payable under this section is based on retirement on or after the
144144 attainment of the normal retirement age, which for purposes of this
145145 section is the earlier of either the age of 57 or the age at which
146146 the sum of the member's age and amount of service credit in the
147147 employee class equals the number 80. The annuity of a law
148148 enforcement, juvenile justice, [or] custodial, or peace officer who
149149 retires before reaching the age of 57 under any eligibility
150150 criteria is actuarially reduced by five percent for each year of
151151 difference between the member's age at retirement and 57. The
152152 actuarial reduction described by this section is in addition to any
153153 other actuarial reduction required by law.
154154 (c-1) A law enforcement, juvenile justice, [or] custodial,
155155 or peace officer who retires before attaining the age of 50 is
156156 entitled only to an annuity that is actuarially reduced from the
157157 annuity available at the age of 50 to the law enforcement, juvenile
158158 justice, [or] custodial, or peace officer whose service credit
159159 annuity amount is based on the sum of the member's age and amount of
160160 law enforcement, juvenile justice, [or] custodial, or peace officer
161161 service credit and employee class service credit, and is not
162162 entitled to have the annuity recalculated at normal retirement age.
163163 The standard or reduced annuity under this section is payable from
164164 the trust fund established by Section 815.310 and the law
165165 enforcement, [and] custodial, and peace officer supplemental
166166 retirement fund in a ratio determined by the retirement system.
167167 (d) A member who retires under this section retires
168168 simultaneously from the employee class of membership. Optional
169169 retirement annuities provided by Section 814.108 are available to a
170170 member eligible to receive a service retirement annuity under this
171171 section, but the same optional plan and beneficiary must be
172172 selected for the portion of the annuity payable from the law
173173 enforcement, [and] custodial, and peace officer supplemental
174174 retirement fund and the portion payable from the trust fund
175175 established by Section 815.310.
176176 (e) The amount payable from the law enforcement, [and]
177177 custodial, and peace officer supplemental retirement fund is
178178 reducible by the amount paid from the trust fund established by
179179 Section 815.310 for service as a law enforcement, juvenile justice,
180180 [or] custodial, or peace officer. The total combined amount of an
181181 annuity under this section may not be less than the authorized
182182 benefit under Subsection (b) subtracted by any amount necessary
183183 because of selection of an optional annuity, because of retirement
184184 before the normal retirement age, or as provided by Subsection (f).
185185 (f) The standard combined service retirement annuity
186186 payable for at least 20 years of service credit as a law
187187 enforcement, juvenile justice, [or] custodial, or peace officer may
188188 not exceed 100 percent of the average compensation computed under
189189 Subsection (b).
190190 (g) For purposes of this section, service as a law
191191 enforcement, juvenile justice, [or] custodial, or peace officer is
192192 creditable as provided by rule of the board of trustees or on a
193193 month-to-month basis, whichever is greater.
194194 SECTION 9. The heading to Section 814.207, Government Code,
195195 is amended to read as follows:
196196 Sec. 814.207. DISABILITY RETIREMENT BENEFITS FOR CERTAIN
197197 [PEACE] OFFICERS.
198198 SECTION 10. Section 814.207, Government Code, is amended by
199199 amending Subsections (a) and (d) and adding Subsection (a-1) to
200200 read as follows:
201201 (a) This section applies only to a member who participates
202202 in the law enforcement, custodial, and peace officer supplemental
203203 retirement fund.
204204 (a-1) An annuity payable for an occupational disability
205205 resulting from a risk to which law enforcement, juvenile justice,
206206 [or] custodial, or peace officers are exposed because of the nature
207207 of their [law enforcement or custodial] duties is payable under the
208208 same terms and conditions that apply to other occupational
209209 disability retirement annuities under this subtitle, except that
210210 the source and amount of the annuity are as provided by this
211211 section.
212212 (d) The portions of the annuity under this section payable
213213 from the law enforcement, [and] custodial, and peace officer
214214 supplemental retirement fund are the amount remaining after
215215 deduction of any amount payable under Section 814.206, except the
216216 portion of an amount that exceeds the minimum payments provided by
217217 Section 814.206(b) and that is made for service other than as a law
218218 enforcement, juvenile justice, [or] custodial, or peace officer and
219219 any amount by which an annuity is increased under Subsection (e).
220220 SECTION 11. Section 814.305, Government Code, is amended to
221221 read as follows:
222222 Sec. 814.305. ANNUITY FOR SURVIVOR OF LAW ENFORCEMENT,
223223 JUVENILE JUSTICE, [OR] CUSTODIAL, OR PEACE OFFICER. (a) This
224224 section applies only to a member who participates in the law
225225 enforcement, custodial, and peace officer supplemental retirement
226226 fund.
227227 (b) If a member who has at least 20 years of service credit
228228 as a law enforcement, juvenile justice, [or] custodial, or peace
229229 officer dies, the amount of the death benefit annuity payable for
230230 the member's service as a law enforcement, juvenile justice, [or]
231231 custodial, or peace officer is an amount computed and funded as
232232 provided by Section 814.107, including any applicable reduction
233233 factors.
234234 SECTION 12. Section 815.103(c), Government Code, is amended
235235 to read as follows:
236236 (c) The board of trustees may authorize the executive
237237 director to acquire, hold, manage, purchase, sell, assign, trade,
238238 transfer, and dispose of any security, evidence of debt, or other
239239 investment in which assets of the law enforcement, [and] custodial,
240240 and peace officer supplemental retirement fund may be invested.
241241 SECTION 13. Section 815.208(c), Government Code, is amended
242242 to read as follows:
243243 (c) The board of trustees shall make payments from the law
244244 enforcement, [and] custodial, and peace officer supplemental
245245 retirement fund for services rendered by the actuary for that fund
246246 and approved by the board.
247247 SECTION 14. Sections 815.301(a) and (b), Government Code,
248248 are amended to read as follows:
249249 (a) The board of trustees shall:
250250 (1) invest the assets of the retirement system as a
251251 single fund without distinction as to their source; and
252252 (2) hold securities purchased with the assets
253253 described by Subsection (a)(1) collectively for the proportionate
254254 benefit of:
255255 (A) all accounts in the trust fund that are
256256 listed in Section 815.310(b); and
257257 (B) the law enforcement, [and] custodial, and
258258 peace officer supplemental retirement fund.
259259 (b) The board of trustees may delegate its authority under
260260 Subsection (a) to the executive director. The board of trustees or
261261 the executive director may, under the standard of care provided by
262262 Section 815.307, invest and reinvest any of the retirement system's
263263 assets and may commingle assets of the trust fund and the law
264264 enforcement, [and] custodial, and peace officer supplemental
265265 retirement fund with the assets of the Judicial Retirement System
266266 of Texas Plan Two for investment purposes, as long as proportionate
267267 ownership records are maintained and credited. Investments may
268268 include home office facilities, including land, equipment, and
269269 office building, used in administering the retirement system.
270270 SECTION 15. Section 815.308(b), Government Code, is amended
271271 to read as follows:
272272 (b) The amount of cash on hand may not exceed 10 percent of
273273 the total amount in the funds of the retirement system on deposit
274274 with the comptroller, excluding the assets of the law enforcement,
275275 [and] custodial, and peace officer supplemental retirement fund.
276276 SECTION 16. Section 815.309, Government Code, is amended to
277277 read as follows:
278278 Sec. 815.309. CREDITING SYSTEM ASSETS. All assets of the
279279 retirement system, except assets of the law enforcement, [and]
280280 custodial, and peace officer supplemental retirement fund, shall be
281281 credited to the trust fund established by Section 815.310.
282282 SECTION 17. The heading to Section 815.317, Government
283283 Code, is amended to read as follows:
284284 Sec. 815.317. LAW ENFORCEMENT, [AND] CUSTODIAL, AND PEACE
285285 OFFICER SUPPLEMENTAL RETIREMENT FUND.
286286 SECTION 18. Sections 815.317(a), (a-1), and (b), Government
287287 Code, are amended to read as follows:
288288 (a) The retirement system shall deposit in the law
289289 enforcement, [and] custodial, and peace officer supplemental
290290 retirement fund state contributions and other appropriations made
291291 by the legislature to the fund and proceeds from investment of the
292292 fund.
293293 (a-1) The comptroller shall deposit fees collected under
294294 Section 133.102(e)(7), Local Government Code, to the credit of the
295295 law enforcement, [and] custodial, and peace officer supplemental
296296 retirement fund.
297297 (b) The retirement system may use money from the fund only
298298 to pay supplemental retirement and death benefits to law
299299 enforcement, juvenile justice, [and] custodial, or peace officers
300300 as provided by this subtitle and to pay for the administration of
301301 the fund.
302302 SECTION 19. Section 815.402(h), Government Code, is amended
303303 to read as follows:
304304 (h) In addition to the contribution under Subsection
305305 (a)(1), each department or agency of the state that employs a law
306306 enforcement, juvenile justice, [or] custodial, or peace officer
307307 shall deduct an additional 0.5 percent contribution from that
308308 member's compensation, to be deposited in the law enforcement,
309309 [and] custodial, and peace officer supplemental retirement fund,
310310 provided that, if the state contribution to the law enforcement,
311311 [and] custodial, and peace officer supplemental retirement fund is
312312 computed using a percentage less than 0.5 percent, the member's
313313 contribution is computed using a percentage equal to the percentage
314314 used to compute the state contribution.
315315 SECTION 20. Section 815.403(a), Government Code, is amended
316316 to read as follows:
317317 (a) During each fiscal year, the state shall contribute to
318318 the retirement system:
319319 (1) an amount equal to 7.4 percent of the total
320320 compensation of all members of the retirement system for that year;
321321 (2) money to pay lump-sum death benefits for retirees
322322 under Section 814.501;
323323 (3) an amount for the law enforcement, [and]
324324 custodial, and peace officer supplemental retirement fund equal to
325325 2.13 percent of the aggregate state compensation of all law
326326 enforcement, juvenile justice, custodial, and peace [law
327327 enforcement] officers for that year;
328328 (4) money necessary for the administration of the law
329329 enforcement, [and] custodial, and peace officer supplemental
330330 retirement fund; and
331331 (5) money for service credit not previously
332332 established, as provided by Section 813.202(c) or 813.302(d).
333333 SECTION 21. Section 815.505, Government Code, is amended to
334334 read as follows:
335335 Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT,
336336 JUVENILE JUSTICE, [AND] CUSTODIAL, AND PEACE OFFICERS. (a) Not
337337 later than the 12th day of the month following the month in which a
338338 person begins or ceases employment as a law enforcement, juvenile
339339 justice, [officer or] custodial, or peace officer, the Public
340340 Safety Commission, the Texas Alcoholic Beverage Commission, the
341341 Parks and Wildlife Commission, the office of the attorney general,
342342 the [office of inspector general at the] Texas Juvenile Justice
343343 Department, the Board of Pardons and Paroles, or the Texas Board of
344344 Criminal Justice, and any other state employer, as applicable,
345345 shall certify to the retirement system, in the manner prescribed by
346346 the system, the name of the employee and such other information as
347347 the system determines is necessary for the crediting of service and
348348 financing of benefits under this subtitle.
349349 (b) Not later than the 12th day of the month following the
350350 month in which a person begins or ceases employment as a peace
351351 officer, an employer required to provide information about a person
352352 identified as being employed in a position as a peace officer under
353353 Section 825.515 shall certify to the retirement system, in the
354354 manner prescribed by the system, the name of the employee and such
355355 other information as the system determines is necessary for the
356356 crediting of service and financing of benefits under this subtitle.
357357 SECTION 22. Section 822.002, Government Code, is amended to
358358 read as follows:
359359 Sec. 822.002. EXCEPTIONS TO MEMBERSHIP REQUIREMENT. An
360360 employee of the public school system is not permitted to be a member
361361 of the retirement system if the employee:
362362 (1) is eligible and elects to participate in the
363363 optional retirement program under Chapter 830;
364364 (2) is eligible and elects to participate in the law
365365 enforcement, custodial, and peace officer supplemental retirement
366366 fund under Section 803.2015;
367367 (3) is required to participate in the law enforcement,
368368 custodial, and peace officer supplemental retirement fund as a
369369 member of the employee class under Section 812.003(b-1);
370370 (4) [(2)] is solely employed by a public institution
371371 of higher education that as a condition of employment requires the
372372 employee to be enrolled as a student in the institution; or
373373 (5) [(3)] has retired under the retirement system and
374374 has not been reinstated to membership pursuant to Section 824.005
375375 or 824.307.
376376 SECTION 23. Section 840.301(a), Government Code, is amended
377377 to read as follows:
378378 (a) The board of trustees may, under the standard of care
379379 provided by Section 840.303, invest and reinvest the retirement
380380 system's assets and may commingle assets of the trust fund with the
381381 assets of the Employees Retirement System of Texas, including its
382382 trust fund and the law enforcement, [and] custodial, and peace
383383 officer supplemental retirement fund, for investment purposes, as
384384 long as proportionate ownership records are maintained and
385385 credited.
386386 SECTION 24. Section 133.102(e), Local Government Code, is
387387 amended to read as follows:
388388 (e) The comptroller shall allocate the court costs received
389389 under this section to the following accounts and funds so that each
390390 receives to the extent practicable, utilizing historical data as
391391 applicable, the same amount of money the account or fund would have
392392 received if the court costs for the accounts and funds had been
393393 collected and reported separately, except that the account or fund
394394 may not receive less than the following percentages:
395395 (1) abused children's counseling
396396 0.0088 percent;
397397 (2) crime stoppers assistance
398398 0.2581 percent;
399399 (3) breath alcohol testing
400400 0.5507 percent;
401401 (4) Bill Blackwood Law Enforcement Management
402402 Institute
403403 2.1683 percent;
404404 (5) law enforcement officers standards and education
405405 5.0034 percent;
406406 (6) comprehensive rehabilitation
407407 9.8218 percent;
408408 (7) law enforcement, [and] custodial, and peace
409409 officer supplemental retirement fund
410410 11.1426 percent;
411411 (8) criminal justice planning
412412 12.5537 percent;
413413 (9) an account in the state treasury to be used only
414414 for the establishment and operation of the Center for the Study and
415415 Prevention of Juvenile Crime and Delinquency at Prairie View A&M
416416 University
417417 1.2090 percent;
418418 (10) compensation to victims of crime fund
419419 37.6338 percent;
420420 (11) emergency radio infrastructure account
421421 5.5904 percent;
422422 (12) judicial and court personnel training fund
423423 4.8362 percent;
424424 (13) an account in the state treasury to be used for
425425 the establishment and operation of the Correctional Management
426426 Institute of Texas and Criminal Justice Center Account
427427 1.2090 percent; and
428428 (14) fair defense account
429429 8.0143 percent.
430430 SECTION 25. (a) Not later than December 31, 2017, a person
431431 who is a member of the Teacher Retirement System of Texas and is
432432 identified under Section 825.515, Government Code, as being
433433 employed as a peace officer shall decide whether to:
434434 (1) remain a member in the Teacher Retirement System
435435 of Texas; or
436436 (2) become a member of the employee class as a peace
437437 officer participating in the Employees Retirement System law
438438 enforcement, custodial, and peace officer supplemental retirement
439439 fund effective January 1, 2018.
440440 (b) Not later than December 31, 2017, a person who is a
441441 member of the Employees Retirement System of Texas, holds a
442442 position as a law enforcement, juvenile justice, custodial, or
443443 peace officer, and was not eligible before the effective date of
444444 this Act to participate in the law enforcement and custodial
445445 officer supplemental retirement fund shall decide whether to:
446446 (1) remain a member of the Employees Retirement System
447447 of Texas without participating in the law enforcement, custodial,
448448 and peace officer supplemental retirement fund; or
449449 (2) begin participation in the Employees Retirement
450450 System law enforcement, custodial, and peace officer supplemental
451451 retirement fund effective January 1, 2018.
452452 (c) The retirement benefits of a person who opts to begin
453453 participation in the Employees Retirement System law enforcement,
454454 custodial, and peace officer supplemental retirement fund under
455455 Subsection (a) or (b) of this section shall be divided as if the
456456 benefits were based on service credit earned in two separate
457457 retirement systems as follows:
458458 (1) service credit earned before January 1, 2018; and
459459 (2) service credit earned on or after January 1, 2018.
460460 (d) A person who earns service credit described by
461461 Subsections (c)(1) and (2) of this section is eligible to have that
462462 credit treated as combined service credit under Chapter 803,
463463 Government Code, as amended by this Act.
464464 SECTION 26. This Act takes effect September 1, 2017.