Texas 2019 - 86th Regular

Texas House Bill HB2619 Compare Versions

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11 86R2527 TSR-F
22 By: Cole H.B. No. 2619
33
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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 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. Section 811.001, Government Code, is amended by
1717 amending Subdivisions (6) and (14) and adding Subdivision (12-b) to
1818 read as follows:
1919 (6) "Combined retirement annuity" means the amount
2020 payable on retirement for service credited as a member of the
2121 employee class of membership plus any supplemental amount payable
2222 from the law enforcement, [and] custodial, and peace officer
2323 supplemental retirement fund.
2424 (12-b) "Peace officer" means a person:
2525 (A) identified under Section 825.515 as being
2626 employed in a position as a peace officer; and
2727 (B) certified as being a peace officer under
2828 Section 815.505.
2929 (14) "Retiree" means a person who, except as provided
3030 by Section 812.203 or 812.2035, receives an annuity based on
3131 service that was credited to the person in a class of membership.
3232 SECTION 3. Section 812.003, Government Code, is amended by
3333 amending Subsections (b) and (c) and adding Subsection (b-1) to
3434 read as follows:
3535 (b) An office or employment that is included in the coverage
3636 of the Teacher Retirement System of Texas, other than in a position
3737 identified as a peace officer position under Section 825.515 in
3838 which an election is made under Section 812.0035 or 812.0036, the
3939 Judicial Retirement System of Texas Plan One, or the Judicial
4040 Retirement System of Texas Plan Two or, except as provided by
4141 Section 9.01, Chapter 238 (S.B. 378), Acts of the 73rd Legislature,
4242 Regular Session, 1993, is with a university system or institution
4343 of higher education, as defined by Section 61.003, Education Code,
4444 is not a position with a department, commission, board, agency, or
4545 institution of the state for purposes of this subtitle.
4646 (b-1) Membership in the employee class includes any person
4747 who is certified as being employed in a position as a peace officer
4848 under Section 815.505.
4949 (c) Membership in the employee class is mandatory for
5050 eligible persons, other than eligible persons who do not make an
5151 election under Section 812.0035.
5252 SECTION 4. Subchapter A, Chapter 812, Government Code, is
5353 amended by adding Sections 812.0035 and 812.0036 to read as
5454 follows:
5555 Sec. 812.0035. OPTIONAL MEMBERSHIP FOR CERTAIN LAW
5656 ENFORCEMENT OFFICERS. (a) In lieu of participating in the Teacher
5757 Retirement System of Texas, a person who is employed in a position
5858 identified as a peace officer position for a public school other
5959 than an institution of higher education under Section 825.515 may
6060 elect, not later than the 60th day after the first date of
6161 employment, to participate, or return to participation, in the
6262 retirement system.
6363 (b) An election by a person described by Subsection (a) to
6464 participate in the retirement system must be on a form prescribed by
6565 the retirement system for that purpose.
6666 (c) Sections 812.205 and 812.206 do not apply to a person
6767 who makes an election under this section.
6868 Sec. 812.0036. CERTAIN PEACE OFFICERS EMPLOYED ON AUGUST
6969 31, 2019. (a) This section applies to a person who, on August 31,
7070 2019:
7171 (1) is a member of the Teacher Retirement System of
7272 Texas, who:
7373 (A) is identified under Section 825.515 as being
7474 employed in a position as a peace officer for a public school that
7575 is not an institution of higher education; and
7676 (B) elects, not later than November 1, 2019, to
7777 begin membership as a peace officer participating in the Employees
7878 Retirement System of Texas law enforcement, custodial, and peace
7979 officer supplemental retirement fund beginning January 1, 2020; or
8080 (2) is a member of the Teacher Retirement System of
8181 Texas and is a retiree of the Employees Retirement System of Texas
8282 or a member of that system who is absent from service and who:
8383 (A) was employed as a law enforcement or
8484 custodial officer;
8585 (B) is identified under Section 825.515 as being
8686 employed in a position as a peace officer for a public school that
8787 is not an institution of higher education; and
8888 (C) elects, not later than November 1, 2019, to
8989 return to membership as a peace officer participating in the
9090 Employees Retirement System of Texas law enforcement, custodial,
9191 and peace officer supplemental retirement fund beginning January 1,
9292 2020.
9393 (b) For the purposes of this chapter, service credit earned
9494 by a person described by Subsection (a)(1) is considered service
9595 credit earned in two retirement systems and is subject to Section
9696 803.201. The membership on which combined service credit is based
9797 is service credit accrued:
9898 (1) before beginning participation in the Employees
9999 Retirement System of Texas law enforcement, custodial, and peace
100100 officer supplemental retirement fund; and
101101 (2) after beginning participation in the Employees
102102 Retirement System of Texas law enforcement, custodial, and peace
103103 officer supplemental retirement fund.
104104 (c) For purposes of this chapter, service credit earned by a
105105 person who makes an election under Subsection (a)(2) is governed by
106106 Sections 812.201(d) and 812.2035. Service credit earned by that
107107 person in the Teacher Retirement System of Texas before the
108108 effective date of the election is transferred to the Employees
109109 Retirement System of Texas as provided by Chapter 805 without
110110 regard to the amount of service credit held in either system.
111111 SECTION 5. Section 812.101(c), Government Code, is amended
112112 to read as follows:
113113 (c) For a law enforcement, [or] custodial, or peace officer,
114114 the withdrawal of accumulated contributions under Subsection (a)
115115 includes all of the officer's contributions made under Section
116116 815.402(h).
117117 SECTION 6. Section 812.201, Government Code, is amended by
118118 amending Subsection (a) and adding Subsection (d) to read as
119119 follows:
120120 (a) Except as provided by Subsection (c) or (d), a retiree
121121 may not rejoin the retirement system as a member of the class from
122122 which the person retired.
123123 (d) A person who is retired from the employee class of
124124 membership and who is employed in a position identified as a peace
125125 officer position for a public school other than an institution of
126126 higher education under Section 825.515 may elect to become a member
127127 again under Section 812.0035 by filing notice with the retirement
128128 system. Except as provided by Section 812.2035(c), when benefit
129129 payments are resumed, the retirement system shall recompute the
130130 annuity selected at the time of the officer's original retirement
131131 to include the additional service established during membership
132132 under this subsection.
133133 SECTION 7. Section 812.202(b), Government Code, is amended
134134 to read as follows:
135135 (b) Except as provided by Section 812.2035, the [The]
136136 payment of benefits to a retiree for service credited in the
137137 employee class of membership is not affected by the retiree's
138138 taking a position included in the employee class.
139139 SECTION 8. The heading to Section 812.203, Government Code,
140140 is amended to read as follows:
141141 Sec. 812.203. ELECTED CLASS BENEFITS AFFECTED.
142142 SECTION 9. Subchapter C, Chapter 812, Government Code, is
143143 amended by adding Section 812.2035 to read as follows:
144144 Sec. 812.2035. CERTAIN EMPLOYEE CLASS BENEFITS AFFECTED.
145145 (a) If a retiree takes a position as a peace officer and elects to
146146 participate again in the system under Section 812.0035, the
147147 retirement system shall suspend annuity payments to the person for
148148 service that was credited in that class until the person no longer
149149 holds that position.
150150 (b) Time during which annuity payments are suspended as
151151 provided by this section does not reduce the number of months
152152 payments are to be made under an optional benefit selection
153153 providing for a specific amount of benefits for a guaranteed number
154154 of months after retirement.
155155 (c) If a member who originally retired with service that
156156 was, at the time of that retirement, credited only in the employee
157157 class of membership again retires, the person at the time of
158158 subsequent retirement may select an annuity based on service in the
159159 employee class as if the person were retiring for the first time.
160160 If the person selects an annuity under Section 814.108(c)(3) or
161161 (c)(4), the retirement system shall reduce the number of months of
162162 guaranteed payment by the number of months for which an annuity was
163163 paid under the person's original retirement.
164164 SECTION 10. Section 813.513(a), Government Code, is amended
165165 to read as follows:
166166 (a) An eligible member may establish not more than 36 months
167167 of equivalent membership service credit, including law
168168 enforcement, [or] custodial, or peace officer service, in either
169169 the elected class or the employee class.
170170 SECTION 11. Section 814.107, Government Code, is amended to
171171 read as follows:
172172 Sec. 814.107. SERVICE RETIREMENT BENEFITS FOR CERTAIN
173173 [PEACE] OFFICERS. (a) This section applies only to a member who
174174 participates in the law enforcement, custodial, and peace officer
175175 supplemental retirement fund.
176176 (a-1) A member who has at least 20 years of service credit as
177177 a law enforcement, [or] custodial, or peace officer is eligible to
178178 retire regardless of age and receive a standard service retirement
179179 annuity in an amount and to be funded as provided by this section.
180180 (b) The standard service retirement annuity payable for at
181181 least 20 years of service credit as a law enforcement, [or]
182182 custodial, or peace officer is an amount computed on the basis of
183183 the member's average monthly compensation for the 60 highest months
184184 of compensation in the employee class, times the sum of the
185185 percentage factor used in the computation of a standard service
186186 retirement annuity under Section 814.105 plus .5 percent.
187187 (c) The standard combined service retirement annuity that
188188 is payable under this section is based on retirement on or after the
189189 attainment of the normal retirement age, which for purposes of this
190190 section is the earlier of either the age of 57 or the age at which
191191 the sum of the member's age and amount of service credit in the
192192 employee class equals the number 80. The annuity of a law
193193 enforcement, [or] custodial, or peace officer who retires before
194194 reaching the age of 57 under any eligibility criteria is
195195 actuarially reduced by five percent for each year of difference
196196 between the member's age at retirement and 57. The actuarial
197197 reduction described by this section is in addition to any other
198198 actuarial reduction required by law.
199199 (c-1) A law enforcement, [or] custodial, or peace officer
200200 who retires before attaining the age of 50 is entitled only to an
201201 annuity that is actuarially reduced from the annuity available at
202202 the age of 50 to the law enforcement, [or] custodial, or peace
203203 officer whose service credit annuity amount is based on the sum of
204204 the member's age and amount of law enforcement, [or] custodial, or
205205 peace officer service credit and employee class service credit, and
206206 is not entitled to have the annuity recalculated at normal
207207 retirement age. The standard or reduced annuity under this section
208208 is payable from the trust fund established by Section 815.310 and
209209 the law enforcement, [and] custodial, and peace officer
210210 supplemental retirement fund in a ratio determined by the
211211 retirement system.
212212 (d) A member who retires under this section retires
213213 simultaneously from the employee class of membership. Optional
214214 retirement annuities provided by Section 814.108 are available to a
215215 member eligible to receive a service retirement annuity under this
216216 section, but the same optional plan and beneficiary must be
217217 selected for the portion of the annuity payable from the law
218218 enforcement, [and] custodial, and peace officer supplemental
219219 retirement fund and the portion payable from the trust fund
220220 established by Section 815.310.
221221 (e) The amount payable from the law enforcement, [and]
222222 custodial, and peace officer supplemental retirement fund is
223223 reducible by the amount paid from the trust fund established by
224224 Section 815.310 for service as a law enforcement, [or] custodial,
225225 or peace officer. The total combined amount of an annuity under
226226 this section may not be less than the authorized benefit under
227227 Subsection (b) subtracted by any amount necessary because of
228228 selection of an optional annuity, because of retirement before the
229229 normal retirement age, or as provided by Subsection (f).
230230 (f) The standard combined service retirement annuity
231231 payable for at least 20 years of service credit as a law
232232 enforcement, [or] custodial, or peace officer may not exceed 100
233233 percent of the average compensation computed under Subsection (b).
234234 (g) For purposes of this section, service as a law
235235 enforcement, [or] custodial, or peace officer is creditable as
236236 provided by rule of the board of trustees or on a month-to-month
237237 basis, whichever is greater.
238238 SECTION 12. The heading to Section 814.207, Government
239239 Code, is amended to read as follows:
240240 Sec. 814.207. DISABILITY RETIREMENT BENEFITS FOR CERTAIN
241241 [PEACE] OFFICERS.
242242 SECTION 13. Section 814.207, Government Code, is amended by
243243 amending Subsections (a) and (d) and adding Subsection (a-1) to
244244 read as follows:
245245 (a) This section applies only to a member who participates
246246 in the law enforcement, custodial, and peace officer supplemental
247247 retirement fund.
248248 (a-1) An annuity payable for an occupational disability
249249 resulting from a risk to which law enforcement, [or] custodial, or
250250 peace officers are exposed because of the nature of their [law
251251 enforcement or custodial] duties is payable under the same terms
252252 and conditions that apply to other occupational disability
253253 retirement annuities under this subtitle, except that the source
254254 and amount of the annuity are as provided by this section.
255255 (d) The portions of the annuity under this section payable
256256 from the law enforcement, [and] custodial, and peace officer
257257 supplemental retirement fund are the amount remaining after
258258 deduction of any amount payable under Section 814.206, except the
259259 portion of an amount that exceeds the minimum payments provided by
260260 Section 814.206(b) and that is made for service other than as a law
261261 enforcement, [or] custodial, or peace officer and any amount by
262262 which an annuity is increased under Subsection (e).
263263 SECTION 14. Section 814.305, Government Code, is amended to
264264 read as follows:
265265 Sec. 814.305. ANNUITY FOR SURVIVOR OF LAW ENFORCEMENT, [OR]
266266 CUSTODIAL, OR PEACE OFFICER. (a) This section applies only to a
267267 member who participates in the law enforcement, custodial, and
268268 peace officer supplemental retirement fund.
269269 (b) If a member who has at least 20 years of service credit
270270 as a law enforcement, [or] custodial, or peace officer dies, the
271271 amount of the death benefit annuity payable for the member's
272272 service as a law enforcement, [or] custodial, or peace officer is an
273273 amount computed and funded as provided by Section 814.107,
274274 including any applicable reduction factors.
275275 SECTION 15. Section 815.103(c), Government Code, is amended
276276 to read as follows:
277277 (c) The board of trustees may authorize the executive
278278 director to acquire, hold, manage, purchase, sell, assign, trade,
279279 transfer, and dispose of any security, evidence of debt, or other
280280 investment in which assets of the law enforcement, [and] custodial,
281281 and peace officer supplemental retirement fund may be invested.
282282 SECTION 16. Section 815.208(c), Government Code, is amended
283283 to read as follows:
284284 (c) The board of trustees shall make payments from the law
285285 enforcement, [and] custodial, and peace officer supplemental
286286 retirement fund for services rendered by the actuary for that fund
287287 and approved by the board.
288288 SECTION 17. Sections 815.301(a) and (b), Government Code,
289289 are amended to read as follows:
290290 (a) The board of trustees shall:
291291 (1) invest the assets of the retirement system as a
292292 single fund without distinction as to their source; and
293293 (2) hold securities purchased with the assets
294294 described by Subsection (a)(1) collectively for the proportionate
295295 benefit of:
296296 (A) all accounts in the trust fund that are
297297 listed in Section 815.310(b); and
298298 (B) the law enforcement, [and] custodial, and
299299 peace officer supplemental retirement fund.
300300 (b) Except as provided by Section 815.3016, the board of
301301 trustees may delegate its authority under Subsection (a) to the
302302 executive director. Subject to Section 815.3016, the board of
303303 trustees or the executive director may, under the standard of care
304304 provided by Section 815.307, invest and reinvest any of the
305305 retirement system's assets and may commingle assets of the trust
306306 fund and the law enforcement, [and] custodial, and peace officer
307307 supplemental retirement fund with the assets of the Judicial
308308 Retirement System of Texas Plan Two for investment purposes, as
309309 long as proportionate ownership records are maintained and
310310 credited. Investments may include home office facilities,
311311 including land, equipment, and office building, used in
312312 administering the retirement system.
313313 SECTION 18. Section 815.308(b), Government Code, is amended
314314 to read as follows:
315315 (b) The amount of cash on hand may not exceed 10 percent of
316316 the total amount in the funds of the retirement system on deposit
317317 with the comptroller, excluding the assets of the law enforcement,
318318 [and] custodial, and peace officer supplemental retirement fund.
319319 SECTION 19. Section 815.309, Government Code, is amended to
320320 read as follows:
321321 Sec. 815.309. CREDITING SYSTEM ASSETS. All assets of the
322322 retirement system, except assets of the law enforcement, [and]
323323 custodial, and peace officer supplemental retirement fund, shall be
324324 credited to the trust fund established by Section 815.310.
325325 SECTION 20. The heading to Section 815.317, Government
326326 Code, is amended to read as follows:
327327 Sec. 815.317. LAW ENFORCEMENT, [AND] CUSTODIAL, AND PEACE
328328 OFFICER SUPPLEMENTAL RETIREMENT FUND.
329329 SECTION 21. Sections 815.317(a), (a-1), and (b), Government
330330 Code, are amended to read as follows:
331331 (a) The retirement system shall deposit in the law
332332 enforcement, [and] custodial, and peace officer supplemental
333333 retirement fund state contributions and other appropriations made
334334 by the legislature to the fund and proceeds from investment of the
335335 fund.
336336 (a-1) The comptroller shall deposit fees collected under
337337 Section 133.102(e)(5) [133.102(e)(7)], Local Government Code, to
338338 the credit of the law enforcement, [and] custodial, and peace
339339 officer supplemental retirement fund.
340340 (b) The retirement system may use money from the fund only
341341 to pay supplemental retirement and death benefits to law
342342 enforcement, [and] custodial, or peace officers as provided by this
343343 subtitle and to pay for the administration of the fund.
344344 SECTION 22. Section 815.402(h), Government Code, is amended
345345 to read as follows:
346346 (h) In addition to the contribution under Subsection
347347 (a)(1), each department or agency of the state that employs a law
348348 enforcement, [or] custodial, or peace officer shall deduct an
349349 additional 0.5 percent contribution from that member's
350350 compensation, to be deposited in the law enforcement, [and]
351351 custodial, and peace officer supplemental retirement fund,
352352 provided that, if the state contribution to the law enforcement,
353353 [and] custodial, and peace officer supplemental retirement fund is
354354 computed using a percentage less than 0.5 percent, the member's
355355 contribution is computed using a percentage equal to the percentage
356356 used to compute the state contribution.
357357 SECTION 23. Section 815.403(a), Government Code, is amended
358358 to read as follows:
359359 (a) During each fiscal year, the state shall contribute to
360360 the retirement system:
361361 (1) an amount equal to 7.4 percent of the total
362362 compensation of all members of the retirement system for that year;
363363 (2) money to pay lump-sum death benefits for retirees
364364 under Section 814.501;
365365 (3) an amount for the law enforcement, [and]
366366 custodial, and peace officer supplemental retirement fund equal to
367367 2.13 percent of the aggregate state compensation of all law
368368 enforcement, custodial, and peace [law enforcement] officers for
369369 that year;
370370 (4) money necessary for the administration of the law
371371 enforcement, [and] custodial, and peace officer supplemental
372372 retirement fund; and
373373 (5) money for service credit not previously
374374 established, as provided by Section 813.202(c) or 813.302(d).
375375 SECTION 24. Section 815.505, Government Code, is amended to
376376 read as follows:
377377 Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT,
378378 [AND] CUSTODIAL, AND PEACE OFFICERS. (a) Not later than the 12th
379379 day of the month following the month in which a person begins or
380380 ceases employment as a law enforcement officer or custodial
381381 officer, the Public Safety Commission, the Texas Alcoholic Beverage
382382 Commission, the Parks and Wildlife Commission, the office of
383383 inspector general at the Texas Juvenile Justice Department, the
384384 Board of Pardons and Paroles, or the Texas Board of Criminal
385385 Justice, as applicable, shall certify to the retirement system, in
386386 the manner prescribed by the system, the name of the employee and
387387 such other information as the system determines is necessary for
388388 the crediting of service and financing of benefits under this
389389 subtitle.
390390 (b) This subsection applies only to a person who elects or
391391 elected to participate in the retirement system as a peace officer.
392392 Not later than the 12th day of the month following the month in
393393 which a person begins or ceases employment as a peace officer, an
394394 employer required to provide information about a person identified
395395 as being employed in a position as a peace officer in a public
396396 school other than an institution of higher education under Section
397397 825.515 shall certify to the retirement system, in the manner
398398 prescribed by the system, the name of the employee and such other
399399 information as the system determines is necessary for the crediting
400400 of service and financing of benefits under this subtitle.
401401 SECTION 25. Section 822.001(a), Government Code, is amended
402402 to read as follows:
403403 (a) Membership in the retirement system includes:
404404 (1) all persons who were members of the retirement
405405 system on the day before the effective date of this subtitle; and
406406 (2) all employees of the public school system, unless
407407 an employee is excluded from membership under Section 822.002.
408408 SECTION 26. Section 822.002(a), Government Code, is amended
409409 to read as follows:
410410 (a) An employee of the public school system is not permitted
411411 to be a member of the retirement system if the employee:
412412 (1) is eligible and elects to participate in the
413413 optional retirement program under Chapter 830;
414414 (2) is eligible and elects to participate in the
415415 Employees Retirement System of Texas under Section 812.0035 or
416416 812.0036(a); or
417417 (3) [(2)] has retired under the retirement system and
418418 has not been reinstated to membership pursuant to Section 824.005
419419 or 824.307.
420420 SECTION 27. Section 840.301(a), Government Code, is amended
421421 to read as follows:
422422 (a) The board of trustees may, under the standard of care
423423 provided by Section 840.303, invest and reinvest the retirement
424424 system's assets and may commingle assets of the trust fund with the
425425 assets of the Employees Retirement System of Texas, including its
426426 trust fund and the law enforcement, [and] custodial, and peace
427427 officer supplemental retirement fund, for investment purposes, as
428428 long as proportionate ownership records are maintained and
429429 credited.
430430 SECTION 28. Section 133.102(e), Local Government Code, is
431431 amended to read as follows:
432432 (e) The comptroller shall allocate the court costs received
433433 under this section to the following accounts and funds so that each
434434 receives to the extent practicable, utilizing historical data as
435435 applicable, the same amount of money the account or fund would have
436436 received if the court costs for the accounts and funds had been
437437 collected and reported separately, except that the account or fund
438438 may not receive less than the following percentages:
439439 (1) crime stoppers assistance0.2581 percent;
440440 (2) breath alcohol testing0.5507 percent;
441441 (3) Bill Blackwood Law Enforcement Management
442442 Institute2.1683 percent;
443443 (4) law enforcement officers standards and
444444 education5.0034 percent;
445445 (5) law enforcement, [and] custodial, and peace
446446 officer supplemental retirement fund11.1426 percent;
447447 (6) criminal justice planning12.5537 percent;
448448 (7) an account in the state treasury to be used only
449449 for the establishment and operation of the Center for the Study and
450450 Prevention of Juvenile Crime and Delinquency at Prairie View A&M
451451 University1.2090 percent;
452452 (8) compensation to victims of crime fund
453453 37.6338 percent;
454454 (9) emergency radio infrastructure account
455455 5.5904 percent;
456456 (10) judicial and court personnel training fund
457457 4.8362 percent;
458458 (11) an account in the state treasury to be used for
459459 the establishment and operation of the Correctional Management
460460 Institute of Texas and Criminal Justice Center
461461 Account1.2090 percent; and
462462 (12) fair defense account17.8448 percent.
463463 SECTION 29. The name of the law enforcement and custodial
464464 officer supplemental retirement fund is changed to the law
465465 enforcement, custodial, and peace officer supplemental retirement
466466 fund. A reference in Subtitle B, Title 8, Government Code, or other
467467 law to the law enforcement and custodial officer supplemental
468468 retirement fund means the law enforcement, custodial, and peace
469469 officer supplemental retirement fund.
470470 SECTION 30. This Act takes effect September 1, 2019.