Texas 2019 - 86th Regular

Texas House Bill HB2469 Compare Versions

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Old	New	Differences
1	1	86R6248 KFF-D
2	2	By: Gutierrez H.B. No. 2469
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to retirement benefits for certain peace officers who are
8	8	members of the Teacher Retirement System of Texas.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 821.001, Government Code, is amended by
11	11	adding Subdivision (11-a) to read as follows:
12	12	(11-a) "Peace officer" means a member of the
13	13	retirement system who is elected, employed, or appointed as a peace
14	14	officer under Article 2.12, Code of Criminal Procedure, Section
15	15	37.081 or 51.203, Education Code, or other law.
16	16	SECTION 2. Subchapter C, Chapter 824, Government Code, is
17	17	amended by adding Sections 824.2025 and 824.2035 to read as
18	18	follows:
19	19	Sec. 824.2025. ELIGIBILITY FOR SERVICE RETIREMENT FOR PEACE
20	20	OFFICERS. (a) This section applies notwithstanding any other law,
21	21	including Section 824.202.
22	22	(b) A member who is at least 55 years old and who has at
23	23	least 10 years of service credit as a peace officer engaged in law
24	24	enforcement activities by a school district or institution of
25	25	higher education is eligible to retire and receive a service
26	26	retirement annuity.
27	27	(c) A member who has at least 20 years of service credit as a
28	28	peace officer is eligible to retire regardless of age and receive a
29	29	standard service retirement annuity in an amount provided by
30	30	Section 824.203 or 824.2035, as applicable.
31	31	(d) The standard combined service retirement annuity that
32	32	is payable under Section 824.203 or 824.2035, as applicable, is
33	33	based on retirement on or after the attainment of the normal
34	34	retirement age, which for purposes of this section is the earlier of
35	35	either the age of 57 or the age at which the sum of the member's age
36	36	and amount of service credit equals the number 80. The annuity of a
37	37	peace officer who retires before reaching the age of 57 under any
38	38	eligibility criteria is actuarially reduced by five percent for
39	39	each year of difference between the member's age at retirement and
40	40	57. The actuarial reduction described by this section is in
41	41	addition to any other actuarial reduction required by law.
42	42	(e) A peace officer who retires before attaining the age of
43	43	50 is entitled only to an annuity that is actuarially reduced from
44	44	the annuity available at the age of 50 to the peace officer whose
45	45	service credit annuity amount is based on the sum of the member's
46	46	age and amount of peace officer service credit and other service
47	47	credit, and is not entitled to have the annuity recalculated at
48	48	normal retirement age. The standard or reduced annuity under this
49	49	section is payable from appropriate accounts described by Section
50	50	825.306.
51	51	Sec. 824.2035. SERVICE RETIREMENT BENEFITS FOR CERTAIN
52	52	PEACE OFFICERS. (a) This section applies to a member subject to
53	53	Section 824.2025(c) who renders service as a peace officer after
54	54	September 1, 2020.
55	55	(b) The standard service retirement annuity payable for a
56	56	peace officer subject to this section is an amount computed on the
57	57	basis of the member's average annual compensation for the five
58	58	years of service, whether or not consecutive, in which the member
59	59	received the highest annual compensation, times the sum of the
60	60	percentage factor used in the computation of a standard service
61	61	retirement annuity under Section 824.203 plus 0.5 percent.
62	62	(c) Optional retirement annuities provided by Section
63	63	824.204 are available to a member eligible to receive a service
64	64	retirement annuity under this section.
65	65	(d) The total combined amount of an annuity under this
66	66	section may not be less than the authorized benefit under
67	67	Subsection (b) subtracted by any amount necessary because of
68	68	selection of an optional annuity, because of retirement before the
69	69	normal retirement age, or as provided by Subsection (e).
70	70	(e) The standard combined service retirement annuity
71	71	payable for at least 20 years of service credit as a peace officer
72	72	may not exceed 100 percent of the average compensation computed
73	73	under Subsection (b).
74	74	(f) For purposes of this section, service as a peace officer
75	75	is creditable as provided by rule of the board of trustees or on a
76	76	month-to-month basis, whichever is greater.
77	77	SECTION 3. Subchapter D, Chapter 824, Government Code, is
78	78	amended by adding Section 824.3045 to read as follows:
79	79	Sec. 824.3045. DISABILITY RETIREMENT BENEFITS FOR CERTAIN
80	80	PEACE OFFICERS. (a) An annuity payable for a disability resulting
81	81	from a risk to which peace officers are exposed because of the
82	82	nature of the officers' duties is payable under the same terms and
83	83	conditions that apply to other disability retirement annuities
84	84	under this subtitle.
85	85	(b) Except as provided by Subsection (c), a disability
86	86	retirement annuity under this section is an amount, but not more
87	87	than 100 percent, computed on the basis of the officer's average
88	88	annual compensation, times a percentage derived by application of
89	89	Section 824.2035(b).
90	90	(c) A disability retirement annuity under this section is
91	91	not reducible because of age and may not be less than 50 percent of
92	92	the officer's average annual compensation regardless of the amount
93	93	of service credited to the officer.
94	94	(d) If a retiring member or retiree under this section
95	95	presents evidence satisfactory to the retirement system that the
96	96	person's disability makes the person incapable of substantial
97	97	gainful activity solely because of the disability and is considered
98	98	a total disability under federal social security law, the
99	99	retirement system shall increase the person's disability
100	100	retirement annuity to 100 percent of the officer's average annual
101	101	compensation.
102	102	(e) An annuity increase under Subsection (d) is not payable
103	103	before the first month following the month in which the
104	104	satisfactory evidence is received by the retirement system under
105	105	Subsection (d).
106	106	SECTION 4. Subchapter E, Chapter 824, Government Code, is
107	107	amended by adding Section 824.4025 to read as follows:
108	108	Sec. 824.4025. ANNUITY FOR SURVIVOR OF PEACE OFFICER. If a
109	109	member who has at least 20 years of service credit as a peace
110	110	officer dies, the amount of the death benefit annuity payable for
111	111	the member's service as a peace officer is an amount computed under
112	112	Section 824.2035, including any applicable reduction factors.
113	113	SECTION 5. Section 825.402, Government Code, is amended to
114	114	read as follows:
115	115	Sec. 825.402. RATE OF MEMBER CONTRIBUTIONS. (a) Except as
116	116	provided by Subsection (b), the [The] rate of contributions for
117	117	each member of the retirement system is:
118	118	(1) five percent of the member's annual compensation
119	119	or $180, whichever is less, for service rendered after August 31,
120	120	1937, and before September 1, 1957;
121	121	(2) six percent of the first $8,400 of the member's
122	122	annual compensation for service rendered after August 31, 1957, and
123	123	before September 1, 1969;
124	124	(3) six percent of the member's annual compensation
125	125	for service rendered after August 31, 1969, and before the first day
126	126	of the 1977-78 school year;
127	127	(4) 6.65 percent of the member's annual compensation
128	128	for service rendered after the last day of the period described by
129	129	Subdivision (3) and before September 1, 1985;
130	130	(5) 6.4 percent of the member's annual compensation
131	131	for service rendered after August 31, 1985, and before September 1,
132	132	2014;
133	133	(6) 6.7 percent of the member's annual compensation
134	134	for service rendered after August 31, 2014, and before September 1,
135	135	2015;
136	136	(7) 7.2 percent of the member's annual compensation
137	137	for service rendered after August 31, 2015, and before September 1,
138	138	2016;
139	139	(8) 7.7 percent of the member's annual compensation
140	140	for service rendered after August 31, 2016, and before September 1,
141	141	2017; and
142	142	(9) for service rendered on or after September 1,
143	143	2017, the lesser of:
144	144	(A) 7.7 percent of the member's annual
145	145	compensation; or
146	146	(B) a percentage of the member's annual
147	147	compensation equal to 7.7 percent reduced by one-tenth of one
148	148	percent for each one-tenth of one percent that the state
149	149	contribution rate for the fiscal year to which the service relates
150	150	is less than the state contribution rate established for the 2015
151	151	fiscal year.
152	152	(b) For service rendered after September 1, 2020, the rate
153	153	of contributions for each member of the retirement system who is a
154	154	peace officer is 9.5 percent of the member's annual compensation.
155	155	SECTION 6. Subchapter E, Chapter 825, Government Code, is
156	156	amended by adding Section 825.4093 to read as follows:
157	157	Sec. 825.4093. EMPLOYER CONTRIBUTIONS FOR PEACE OFFICERS.
158	158	(a) This section applies to an employer who reports to the
159	159	retirement system the employment of a peace officer for service
160	160	rendered as a peace officer after September 1, 2020.
161	161	(b) In addition to employer contributions otherwise
162	162	required under this subchapter, for each peace officer the employer
163	163	reports to the retirement system, the employer shall contribute
164	164	monthly to the retirement system one percent of the member's
165	165	compensation.
166	166	(c) Contributions under this section are subject to the
167	167	requirements of Section 825.408.
168	168	SECTION 7. Subchapter F, Chapter 825, Government Code, is
169	169	amended by adding Section 825.5155 to read as follows:
170	170	Sec. 825.5155. CERTIFICATION OF NAMES OF PEACE OFFICERS.
171	171	Not later than the 12th day of the month following the month in
172	172	which a person begins or ceases employment as a peace officer, the
173	173	employer shall certify to the retirement system, in the manner
174	174	prescribed by the system, the name of the employee and such other
175	175	information as the system determines is necessary for the crediting
176	176	of service and financing of benefits under this subtitle.
177	177	SECTION 8. Section 824.3045, Government Code, as added by
178	178	this Act, applies only to the disability retirement annuity of a
179	179	peace officer who applies for the annuity on or after the effective
180	180	date of this Act. The disability retirement annuity of a person who
181	181	applies for the annuity before the effective date of this Act is
182	182	governed by the law as it existed immediately before the effective
183	183	date of this Act, and that law is continued in effect for that
184	184	purpose.
185	185	SECTION 9. Section 824.4025, Government Code, as added by
186	186	this Act, applies only to a death benefit annuity that is applied
187	187	for on or after the effective date of this Act. A death benefit
188	188	annuity applied for before the effective date of this Act is
189	189	governed by the law as it existed immediately before the effective
190	190	date of this Act, and that law is continued in effect for that
191	191	purpose.
192	192	SECTION 10. The board of trustees of the Teacher Retirement
193	193	System of Texas shall adopt rules as soon as possible after the
194	194	effective date of this Act to implement the changes in law made by
195	195	this Act, including rules that ensure that any benefit paid to the
196	196	member under Section 824.2035, Government Code, as added by this
197	197	Act, is reasonably proportionate to the member's contribution under
198	198	Section 825.402, Government Code, as amended by this Act.
199	199	SECTION 11. This Act takes effect September 1, 2019.