Texas 2019 - 86th Regular

Texas House Bill HB3188 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		86R22497 LED-F
2		-	By: Gervin-Hawkins, Allison H.B. No. 3188
	2	+	By: Gervin-Hawkins H.B. No. 3188
	3	+	Substitute the following for H.B. No. 3188:
	4	+	By: Gutierrez C.S.H.B. No. 3188
3	5
4	6
5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to the retirement system in certain municipalities for
8	10		firefighters and police officers.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Sections 1.02(4-a), (5), (7), and (17), Chapter
11	13		824 (S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
12	14		(Article 6243o, Vernon's Texas Civil Statutes), are amended to read
13	15		as follows:
14	16		(4-a) "Catastrophic injury" means, except as provided
15	17		by Section 5.03(a-2) of this Act, irreparable physical bodily
16	18		injury sustained by a member as a direct and immediate result of the
17	19		member's engaging in an activity that:
18	20		(A) constitutes the performance of the member's
19	21		duties as a firefighter or police officer;
20	22		(B) involves an extraordinary degree of risk of
21	23		bodily injury or death; and
22	24		(C) does not result in death.
23	25		(5) "Code," unless the context requires otherwise,
24	26		means the United States Internal Revenue Code of 1986 or a successor
25	27		statute.
26	28		(7) "Dependent child" means:
27	29		(A) a person who is less than 18 years of age and
28	30		is a natural or adopted child of a deceased member or deceased
29	31		retiree; or
30	32		(B) a person:
31	33		(i) who is at least 18 years of age;
32	34		(ii) who is mentally or physically disabled
33	35		to the extent that the person is not capable of being
34	36		self-supporting; and
35	37		(iii) whose natural or adoptive parent is a
36	38		deceased member or deceased retiree[, provided that, for the year
37	39		immediately preceding the death of the member or retiree, the
38	40		deceased member or retiree claimed the person as a dependent on the
39	41		member's or retiree's federal income tax return].
40	42		(17) "Total salary" means all salary of a member:
41	43		(A) including:
42	44		(i) amounts picked up by the municipality
43	45		under Section 4.04(b) of this Act; and
44	46		(ii) amounts that would be included in
45	47		salary but for an election under Section 125(d), 132(f)(4), 401(k),
46	48		402(e)(3), 402(h)(1)(B), or 457(b) of the code; and
47	49		(B) excluding[, except]:
48	50		(i) [(A)] overtime pay, field training
49	51		officer's pay, bomb squad pay, SWAT team pay, K-9 pay, and hostage
50	52		team pay; and
51	53		(ii) [(B)] pay for unused accrued vacation
52	54		and sick leave, holiday pay, compensatory time pay, and bonus days
53	55		leave, or any similar items of compensation that may be paid in the
54	56		future.
55	57		SECTION 2. Section 2.02, Chapter 824 (S.B. 817), Acts of the
56	58		73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
57	59		Texas Civil Statutes), is amended by amending Subsections (a) and
58	60		(b) and adding Subsections (a-1) and (b-1) to read as follows:
59	61		(a) The mayor of a municipality to which this Act applies,
60	62		or a qualified mayoral designee, serves on the board for the term of
61	63		the mayor's office, provided [except] that, if the mayor appoints a
62	64		qualified mayoral designee, the mayor may replace or remove that
63	65		qualified mayoral designee at the mayor's discretion, and the term
64	66		of the mayor or the mayor's qualified mayoral designee, as
65	67		applicable, on the board expires on the date the mayor ceases to be
66	68		mayor of the municipality for any reason. An individual designated
67	69		by the mayor to serve on the board under this subsection may only
68	70		serve on the board while the individual is a qualified mayoral
69	71		designee.
70	72		(a-1) The mayor of a municipality shall fill a vacancy on
71	73		the board under Section 2.01(a) of this Act in the manner provided
72	74		by that section.
73	75		(b) The two members of the municipal governing body serve on
74	76		the board for the term of the office to which they are elected or
75	77		appointed, provided that the term of the member on the board expires
76	78		on the day the member ceases to be a member of the municipal
77	79		governing body for any reason.
78	80		(b-1) The governing body of a municipality shall fill a
79	81		vacancy on the board under Section 2.01(b) of this Act in the manner
80	82		provided by that section.
81	83		SECTION 3. Section 3.01(a), Chapter 824 (S.B. 817), Acts of
82	84		the 73rd Legislature, Regular Session, 1993 (Article 6243o,
83	85		Vernon's Texas Civil Statutes), is amended to read as follows:
84	86		(a) The board has complete authority and power to:
85	87		(1) administer the fund for the exclusive benefit of
86	88		all members, retirees, and beneficiaries;
87	89		(2) disburse benefits or otherwise order payments from
88	90		the fund as required by this Act;
89	91		(3) control the fund independently;
90	92		(4) conduct all litigation on behalf of the fund; and
91	93		(5) purchase with fund assets from one or more
92	94		insurers licensed to do business in this state one or more insurance
93	95		policies that provide for reimbursement of the fund and any
94	96		trustee, officer, or employee of the board for liability imposed or
95	97		damages because of an alleged act, error, or omission committed in
96	98		the trustee's, officer's, or employee's capacity as a fiduciary
97	99		officer or employee of the fund and for costs and expenses incurred
98	100		as a trustee, officer, or employee in defense of a claim for an
99	101		alleged act, error, or omission, as long as the insurance policy
100	102		does not provide for reimbursement of a trustee, officer, or
101	103		employee for liability imposed or expenses incurred because of the
102	104		trustee's, officer's, or employee's personal dishonesty, fraud,
103	105		lack of good faith, or intentional failure to act prudently.
104	106		SECTION 4. The heading to Section 3.03, Chapter 824 (S.B.
105	107		817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
106	108		6243o, Vernon's Texas Civil Statutes), is amended to read as
107	109		follows:
108	110		Sec. 3.03. [ORDERS FOR] DISBURSEMENTS OF BENEFITS.
109	111		SECTION 5. Section 3.03(b), Chapter 824 (S.B. 817), Acts of
110	112		the 73rd Legislature, Regular Session, 1993 (Article 6243o,
111	113		Vernon's Texas Civil Statutes), is amended to read as follows:
112	114		(b) Disbursements of benefits may not be made without a
113	115		record vote of the board.
114	116		SECTION 6. Section 4.03, Chapter 824 (S.B. 817), Acts of the
115	117		73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
116	118		Texas Civil Statutes), is amended by amending Subsections (b), (c),
117	119		and (f) and adding Subsections (f-1) and (i) to read as follows:
118	120		(b) Subject to Subsections (c) and (e) of this section, a
119	121		[Not later than the 90th day after the date of the member's
120	122		reinstatement to an active status in the fire or police department,
121	123		the] member may restore credit not established during the period
122	124		the member was engaged in active service in any uniformed service by
123	125		paying [must file with the secretary of the board a written
124	126		statement of intent to pay] into the fund an amount equal to what
125	127		the member would have paid during that period if the member had
126	128		remained on active status in the fire or police department [during
127	129		the period of the member's absence in the uniformed service].
128	130		(c) The member must make the payment described by Subsection
129	131		(b) of this section in full within an amount of time after the
130	132		member's return to active status in the fire or police department
131	133		that is equal to three times the amount of time the member was
132	134		engaged in active service with the uniformed service [absent],
133	135		except that the maximum period for payment may not exceed five
134	136		years.
135	137		(f) If a [person who became a] member [before October 1,
136	138		1997,] does not make the payment authorized [required] under
137	139		Subsection (b) [(c)] of this section within the [required amount
138	140		of] time prescribed by Subsection (c) of this section and the member
139	141		would otherwise be eligible for credit under federal law, the
140	142		member may receive credit for the uniformed service if:
141	143		(1) the board determines that the member had good
142	144		cause for not complying with Subsection (b) or (c) of this section;
143	145		and
144	146		(2) the member [also] pays interest, compounded
145	147		annually, on the then current rate of a member's contribution from
146	148		the date the payment was required to the date the payment was made.
147	149		(f-1) The board shall set the rate of interest for purposes
148	150		of Subsection (f)(2) of this section.
149	151		(i) The survivors of a member of the fund who dies while
150	152		performing qualified military service, as defined in Section 414(u)
151	153		of the code, are entitled to any additional benefits, other than
152	154		benefit accruals relating to the period of qualified military
153	155		service, that would have been provided if the member had returned to
154	156		active status in the fire or police department and then terminated
155	157		employment as the result of death.
156	158		SECTION 7. Section 5.03, Chapter 824 (S.B. 817), Acts of the
157	159		73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
158	160		Texas Civil Statutes), is amended by amending Subsections (a),
159	161		(a-1), (c), and (d) and adding Subsection (a-3) to read as follows:
160	162		(a) An active member of the fund who is not eligible to
161	163		receive a catastrophic injury disability annuity under Subsection
162	164		(a-1) of this section is eligible to retire and receive a regular
163	165		disability retirement annuity only if the member:
164	166		(1) makes a written application for regular disability
165	167		retirement with the board;
166	168		(2) establishes to the satisfaction of the board that
167	169		the member is permanently disabled through injury or disease so as
168	170		to be unable to perform the duties of any available position in the
169	171		department and has been off active duty for a continuous period of
170	172		not less than 30 days before the date of the application for
171	173		disability retirement;
172	174		(3) has had all member contributions required by this
173	175		Act made on the member's behalf;
174	176		(4) is not disqualified from receiving a disability
175	177		retirement annuity under [on indefinite suspension as described in]
176	178		Subsection (d) of this section; and
177	179		(5) has authorized the release to the board of all
178	180		medical records dated on or after the date of initial application
179	181		for employment with the department.
180	182		(a-1) An active member of the fund is eligible to retire and
181	183		receive a catastrophic injury disability retirement annuity only if
182	184		the member:
183	185		(1) makes a written application for catastrophic
184	186		injury disability retirement with the board;
185	187		(2) establishes to the satisfaction of the board that
186	188		the member is permanently so disabled as a result of a catastrophic
187	189		injury as to:
188	190		(A) be unable to secure any type of third-party
189	191		employment, or engage in any self-employment, other than sporadic
190	192		third-party or self-employment; and
191	193		(B) have, as a result of the lack of third-party
192	194		employment or self-employment, an annual income less than the
193	195		poverty level for one person in the 48 contiguous states of the
194	196		United States as provided under the poverty guidelines published
195	197		from time to time by the United States Department of Health and
196	198		Human Services, or similar guidelines selected by the board;
197	199		(3) has had all member contributions required by this
198	200		Act made on the member's behalf;
199	201		(4) is not disqualified from receiving a disability
200	202		retirement annuity under [on indefinite suspension as described in]
201	203		Subsection (d) of this section; and
202	204		(5) has authorized the release to the board of all
203	205		medical records dated on or after the date of initial application
204	206		for employment with the department.
205	207		(a-3) In making a determination under this section, the
206	208		board may consider or require any evidence the board considers
207	209		necessary or appropriate to make the determination.
208	210		(c) A [Except as provided by Subsection (d) of this section,
209	211		a] member [of the fund] who is on suspension for a specific period,
210	212		including a member whose indefinite suspension is reversed or
211	213		modified to a suspension for a specific period, and who becomes
212	214		disabled as a result of an injury sustained or disease contracted
213	215		while the member is on suspension is eligible for a disability
214	216		retirement annuity under Subsection (a) or (a-1) of this section,
215	217		as applicable, only if the suspended member makes up each
216	218		[deducted] contribution to the fund not made by the member [lost] by
217	219		reason of the suspension not later than the 30th day after the later
218	220		of the termination date of the suspension or the date the suspension
219	221		becomes final in accordance with Section 6.105 of this Act
220	222		[exhaustion of any appeal with respect to the suspension]. A
221	223		municipality to which this Act applies shall double-match all
222	224		contributions made by a member under this subsection.
223	225		(d) A member of the fund who is on indefinite suspension,
224	226		excluding an indefinite suspension reversed or modified to be a
225	227		suspension for a specific period, that becomes [is not eligible for
226	228		a disability retirement annuity until the] final in accordance with
227	229		Section 6.105 of this Act or who is terminated by the municipality,
228	230		[determination of the suspension and all appeals of that
229	231		determination are exhausted. A member of the fund who is on
230	232		indefinite suspension] is not entitled to a disability retirement
231	233		annuity [if the member is finally discharged]. [A member of the
232	234		fund who is on indefinite suspension but who is restored to duty or
233	235		who is given a suspension for a specific period is eligible for a
234	236		disability retirement annuity as provided by Subsection (a) of this
235	237		section.]
236	238		SECTION 8. Sections 5.04(a) and (a-1), Chapter 824 (S.B.
237	239		817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
238	240		6243o, Vernon's Texas Civil Statutes), are amended to read as
239	241		follows:
240	242		(a) A member who is eligible to retire and receive a
241	243		disability retirement annuity under Section 5.03(a) of this Act is
242	244		entitled to receive an annuity from the fund equal to:
243	245		(1) 50 percent of the member's average total salary, if
244	246		the member has served three years or more before the date of
245	247		retirement;
246	248		(2) 50 percent of the member's average monthly total
247	249		salary as of the date of retirement multiplied by 12, if the member
248	250		has served at least two months and less than three years before the
249	251		date of retirement; or
250	252		(3) 50 percent of the member's average daily total
251	253		salary as of the date of retirement multiplied by 360, if the member
252	254		has served less than two months before the date of retirement.
253	255		(a-1) Subject to Subsection (a-2) of this section a member
254	256		who is eligible to retire and receive a catastrophic injury
255	257		disability retirement annuity under Section 5.03(a-1) of this Act
256	258		is entitled to receive an annuity from the fund equal to:
257	259		(1) 87.5 percent of the member's average total salary,
258	260		if the member has served three years or more before the date of
259	261		retirement;
260	262		(2) 87.5 percent of the member's average monthly total
261	263		salary as of the date of retirement multiplied by 12, if the member
262	264		has served at least two months and less than three years before the
263	265		date of retirement; or
264	266		(3) 87.5 percent of the member's average daily total
265	267		salary as of the date of retirement multiplied by 360, if the member
266	268		has served less than two months before the date of retirement.
267	269		SECTION 9. Sections 5.05(a-1), (a-3), (c), and (c-1),
268	270		Chapter 824 (S.B. 817), Acts of the 73rd Legislature, Regular
269	271		Session, 1993 (Article 6243o, Vernon's Texas Civil Statutes), are
270	272		amended to read as follows:
271	273		(a-1) A disability retiree who is awarded a catastrophic
272	274		injury disability annuity under Section 5.03(a-1) of this Act
273	275		shall, if required by the board, undergo a medical examination by
274	276		any reputable physician or physicians selected by the board:
275	277		(1) not later than 60 months after the date of the
276	278		award of the annuity by the board; and
277	279		(2) thereafter, not later than 60 months following the
278	280		last required medical examination of the disability retiree under
279	281		this subsection.
280	282		(a-3) Subject to Subsections (b) and [Subsection] (c) of
281	283		this section, based on an examination under Subsections (a), (a-1),
282	284		or (a-2) of this section, the board shall determine whether the
283	285		disability retirement annuity shall be continued, decreased,
284	286		restored to the original amount if it had been decreased, or
285	287		discontinued.
286	288		(c) For those retired because of disability on or after
287	289		August 30, 1971, the disability retirement annuity may not, except
288	290		in the case of discontinuance, be reduced to an amount that is less
289	291		than the product of:
290	292		(1) 2.25 percent multiplied by the number of years
291	293		that the retiree served in the department and contributed a portion
292	294		of salary as a member of the fund multiplied by the retiree's
293	295		average total salary, if the retiree served three years or more
294	296		before the date of retirement;
295	297		(2) 2.25 percent multiplied by the number of years
296	298		that the retiree served in the department and contributed a portion
297	299		of salary as a member of the fund multiplied by the retiree's
298	300		average monthly total salary as of the date of retirement
299	301		multiplied by 12, if the retiree served at least two months and less
300	302		than three years before the date of retirement; or
301	303		(3) 2.25 percent multiplied by the number of years
302	304		that the retiree served in the department and contributed a portion
303	305		of salary as a member of the fund multiplied by the retiree's
304	306		average daily total salary as of the date of retirement multiplied
305	307		by 360, if the member has served less than two months before the
306	308		date of retirement.
307	309		(c-1) In making the computation under Subsections (b) and
308	310		[Subsection] (c) of this section, all fractional years shall be
309	311		prorated based on full months served in the department as a
310	312		contributing member of the fund before the date of retirement.
311	313		SECTION 10. Section 5.07, Chapter 824 (S.B. 817), Acts of
312	314		the 73rd Legislature, Regular Session, 1993 (Article 6243o,
313	315		Vernon's Texas Civil Statutes), is amended by amending Subsection
314	316		(b) and adding Subsection (b-1) to read as follows:
315	317		(b) Subject to Subsection (b-1) of this section, if [If] the
316	318		retiree received income from other employment, including
317	319		self-employment, during the preceding year, the board may reduce
318	320		the retiree's disability retirement annuity by the amount of $1 for
319	321		each month for each $2 of income earned by the retiree from the
320	322		other employment during each month of the previous year, except
321	323		that the disability retirement annuity may not be decreased below
322	324		the amount determined under Section 5.05(c) of this Act.
323	325		(b-1) The board may restore a disability retirement annuity
324	326		that has been reduced under Subsection (b) of this section. The
325	327		amount of the restored annuity must be the same as the amount of the
326	328		annuity before the reduction plus any applicable cost-of-living
327	329		increases under Section 5.09 of this Act that occurred during the
328	330		period the annuity was reduced. This subsection does not require
329	331		the board to allow or deny cost-of-living increases in any other
330	332		circumstances.
331	333		SECTION 11. Section 5.10, Chapter 824 (S.B. 817), Acts of
332	334		the 73rd Legislature, Regular Session, 1993 (Article 6243o,
333	335		Vernon's Texas Civil Statutes), is amended by amending Subsections
334	336		(b), (c), (d), (f), and (j) and adding Subsections (b-1) and (d-1)
335	337		to read as follows:
336	338		(b) A distributee may elect, at the time and in the manner
337	339		prescribed by the board, to have any portion of an eligible rollover
338	340		distribution paid directly to an eligible retirement plan specified
339	341		by the distributee in a direct rollover. [Any member or beneficiary
340	342		who is entitled to receive any distribution that is an eligible
341	343		rollover distribution as defined by Section 402(c)(4) of the code
342	344		is entitled to have that distribution transferred directly to
343	345		another eligible retirement plan of the member's or beneficiary's
344	346		choice on providing direction to the fund regarding that transfer
345	347		in accordance with procedures established by the board.]
346	348		(b-1) For purposes of this subsection and Subsection (b) of
347	349		this section:
348	350		(1) "Direct rollover" means a payment by the fund to
349	351		the eligible retirement plan specified by a distributee.
350	352		(2) "Distributee" means a member or former member.
351	353		The term includes a member's or former member's surviving spouse or
352	354		designated beneficiary and a member's or former member's spouse or
353	355		former spouse who is the alternate payee under a qualified domestic
354	356		relations order, as defined by Section 414(p) of the code, with
355	357		regard to the interest of the spouse or former spouse.
356	358		(3) "Eligible retirement plan" means:
357	359		(A) an individual retirement account described
358	360		by Section 408(a) of the code;
359	361		(B) an individual retirement annuity described
360	362		by Section 408(b) of the code;
361	363		(C) a qualified annuity plan described by Section
362	364		403(a) of the code;
363	365		(D) a qualified trust described by Section 401(a)
364	366		of the code;
365	367		(E) an eligible deferred compensation plan
366	368		described by Section 457(b) of the code that is maintained by an
367	369		eligible employer described by Section 457(e)(1)(A) of the code;
368	370		(F) an annuity contract described by Section
369	371		403(b) of the code that accepts the distributee's eligible rollover
370	372		distribution; or
371	373		(G) in the case of an eligible rollover
372	374		distribution to a designated beneficiary who is not the surviving
373	375		spouse, or the spouse or former spouse under a qualified domestic
374	376		relations order, an individual retirement account or individual
375	377		retirement annuity only.
376	378		(4) "Eligible rollover distribution" means a
377	379		distribution of all or any portion of the balance to the credit of
378	380		the distributee. The term does not include:
379	381		(A) a distribution that is one of a series of
380	382		substantially equal periodic payments, paid not less frequently
381	383		than once a year, made over the life or life expectancy of the
382	384		distributee or the joint lives or joint life expectancies of the
383	385		distributee and the distributee's designated beneficiary;
384	386		(B) a series of payments for a specified period
385	387		of 10 years or more;
386	388		(C) a distribution to the extent the distribution
387	389		is required under Section 401(a)(9) of the code; or
388	390		(D) the portion of a distribution that is not
389	391		includable in gross income, unless the distributee directs that the
390	392		eligible rollover distribution be transferred directly to a
391	393		qualified trust that is part of a defined contribution plan that
392	394		agrees to separately account for the portion that is includable in
393	395		gross income and the portion that is not or to an individual
394	396		retirement account or individual annuity.
395	397		(c) The total salary taken into account for any purpose
396	398		under this Act [for any member of the fund] may not exceed the
397	399		annual compensation limitation under Section 401(a)(17) of the
398	400		code, effective January 1, 2017, which is $405,000 [$200,000 per
399	401		year] for an eligible member [participant] or $270,000 [$150,000
400	402		per year] for an ineligible member [participant]. For purposes of
401	403		this subsection, an eligible member is any employee who first
402	404		became a member before 1996 and an ineligible member is any other
403	405		member. The [These] dollar limits shall be [periodically] adjusted
404	406		annually for cost-of-living increases as provided by Section
405	407		401(a)(17) of the code [in accordance with guidelines provided by
406	408		the United States secretary of the treasury. For purposes of this
407	409		subsection, an eligible participant is any person who first became
408	410		a member before 1996, and an ineligible participant is any member
409	411		who is not an eligible participant].
410	412		(d) Accrued benefits under this Act become 100 percent
411	413		vested for a member on the earlier of:
412	414		(1) the date the member attains normal retirement age
413	415		[has completed 20 years of service];
414	416		(2) the earlier termination or partial termination of
415	417		the pension plan created by this Act, if it affects the member; or
416	418		(3) the complete discontinuance of contributions by
417	419		the municipality to the fund.
418	420		(d-1) For purposes of Subsection (d)(1), "normal retirement
419	421		age" means the age at which a member is entitled to receive a
420	422		service retirement benefit without reduction because of age.
421	423		(f) Distribution of benefits must:
422	424		(1) begin not later than April 1 of the year following
423	425		the later of the calendar year in [during] which the member:
424	426		(A) becomes 70-1/2 years of age; or
425	427		(B) retires; and
426	428		(2) [must] otherwise conform to Section 401(a)(9) of
427	429		the code and the regulations adopted under that section of the code,
428	430		including regulations governing the incidental death benefit
429	431		distribution requirements.
430	432		(j) Notwithstanding any other provision of this Act, the
431	433		limitations on benefits imposed by Section 415 of the code and
432	434		Subsection (a) of this section must be adjusted each year to the
433	435		extent permitted by cost-of-living increases announced by the
434	436		secretary of the treasury under Section 415(d) of the code and
435	437		applicable law. A cost-of-living increase described by this
436	438		subsection applies to members who have terminated employment,
437	439		including members who have begun receiving benefits before the
438	440		effective date of the increase, and any benefits previously denied.
439	441		Benefits paid to make up for benefits previously denied are
440	442		considered the delayed payment of benefits earned before retirement
441	443		and not extra compensation earned after retirement. [To the extent
442	444		permitted by law, the board may adjust the benefits of retired
443	445		members and beneficiaries by increasing any retirement benefit that
444	446		was reduced because of Section 415 of the code. If Section 415 of
445	447		the code is amended to permit the payment of amounts previously
446	448		precluded under Section 415 of the code, the board may adjust the
447	449		benefits of retired members and beneficiaries, including the
448	450		restoration of benefits previously denied. Benefits paid under
449	451		this subsection are not considered as extra compensation earned
450	452		after retirement but as the delayed payment of benefits earned
451	453		before retirement.]
452	454		SECTION 12. Section 6.01(b), Chapter 824 (S.B. 817), Acts
453	455		of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
454	456		Vernon's Texas Civil Statutes), is amended to read as follows:
455	457		(b) Subject to the applicable provisions of this Act,
456	458		including Section 6.02(j) of this Act, a [A] dependent child is
457	459		entitled to receive benefits based on the service of any parent who
458	460		is a member of the fund.
459	461		SECTION 13. Sections 6.02(d-2), (g), and (j), Chapter 824
460	462		(S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
461	463		(Article 6243o, Vernon's Texas Civil Statutes), are amended to read
462	464		as follows:
463	465		(d-2) If, at the time a death benefit annuity becomes
464	466		payable under Subsection (a) or (c) of this section, a [deceased
465	467		member or] retiree leaves a surviving spouse who is not entitled to
466	468		an annuity on the date of the retiree's death under Subsection (g-1)
467	469		of this section as the result of Subsection (g-3) of this section
468	470		and the deceased retiree has one or more dependent children, the
469	471		dependent child or children shall be awarded 100 percent of the
470	472		death benefit annuity until the annuity to the surviving spouse
471	473		becomes payable [effective] under Subsection (g-3) of this section.
472	474		(g) A child who is adopted after the date of retirement of
473	475		the member is not entitled to a death benefit annuity under this
474	476		Act. A child who is born after the date of retirement of the member
475	477		is not entitled to a death benefit annuity under this Act unless the
476	478		retiree was married to the other parent of the child on the date of
477	479		retirement. A surviving spouse of a retiree whose status as a
478	480		surviving spouse resulted from a marriage after the date of the
479	481		retirement of the retiree is entitled to receive only the benefits,
480	482		if any, provided under Subsection (g-1) of this section or Section
481	483		6.08 of this Act.
482	484		(j) A dependent child as defined by Section 1.02(7)(B) of
483	485		this Act has the same rights as a dependent child as defined by
484	486		Section 1.02(7)(A) of this Act, except that any death benefit
485	487		annuity paid under this section [subsection] to a dependent child
486	488		as defined by Section 1.02(7)(B) of this Act may, at the discretion
487	489		of the board, be reduced to the extent of any state pension or aid,
488	490		including Medicaid, or any state-funded assistance received by the
489	491		child, regardless of whether the funds were made available to the
490	492		state by the federal government. In no other instance under this Act
491	493		is a child entitled to any benefit after becoming 18 years of age.
492	494		SECTION 14. Section 6.03, Chapter 824 (S.B. 817), Acts of
493	495		the 73rd Legislature, Regular Session, 1993 (Article 6243o,
494	496		Vernon's Texas Civil Statutes), is amended to read as follows:
495	497		Sec. 6.03. DEATH BENEFIT ANNUITY FOR SPOUSE AND CHILDREN OF
496	498		MEMBER KILLED IN LINE OF DUTY. (a) The death benefit annuity of a
497	499		surviving spouse and any dependent child of a member of the fund who
498	500		is killed in the line of duty is governed by this section.
499	501		(b) [The board shall consider the finding of a municipality
500	502		to which this Act applies that a member was killed in the line of
501	503		duty as a guideline for its determination in applying this
502	504		section.] On an application for survivor's benefits by a surviving
503	505		spouse or dependent child, the fund shall pay the normal benefits
504	506		payable under Section 6.02 of this Act. When a benefit is payable
505	507		under this section, the death benefit annuity shall be recomputed,
506	508		applying Subsection (c) of this section, and any deficiency payment
507	509		shall be paid to the eligible beneficiaries.
508	510		(c) Notwithstanding the formulas for computing the total
509	511		amounts of annuities otherwise provided by this Act, if a member is
510	512		killed in the line of duty, the member's surviving spouse and
511	513		dependent children are entitled to a death benefit annuity equal
512	514		to:
513	515		(1) the total salary [of] the member received during
514	516		the 12-month period before the date of the member's death, if the
515	517		member served 12 months or more before the date of the member's
516	518		death;
517	519		(2) the average monthly total salary the member
518	520		received before the date of the member's death multiplied by 12, if
519	521		the member served at least two months and less than 12 months before
520	522		the date of the member's death; or
521	523		(3) the average daily total salary the member received
522	524		before the date of the member's death multiplied by 360, if the
523	525		member served less than two months before the date of the member's
524	526		death [at the time of death].
525	527		(d) The provisions of this Act [Rules provided by this
526	528		section] relating to qualification and disqualification for and
527	529		apportionment of benefits apply to a death benefit annuity computed
528	530		under this section [subsection]. A death benefit annuity computed
529	531		under this section [subsection] is divided in the manner described
530	532		by Section 6.02 of this Act and is subject to the same
531	533		cost-of-living adjustments that apply to annuities [pensions] for
532	534		service retirement.
533	535		SECTION 15. Section 6.04, Chapter 824 (S.B. 817), Acts of
534	536		the 73rd Legislature, Regular Session, 1993 (Article 6243o,
535	537		Vernon's Texas Civil Statutes), is amended to read as follows:
536	538		Sec. 6.04. EFFECT OF MARRIAGE ON [REMARRIAGE;] BENEFITS
537	539		[AFTER TERMINATION OF MARRIAGE]. (a) Except as provided by
538	540		Subsection (e) of this section, the [The] right of a surviving
539	541		spouse or dependent child to annuity payments under this Act is not
540	542		affected by the surviving spouse's marriage [remarriage] or
541	543		dependent child's marriage under either statutory or common law if
542	544		the marriage [or remarriage] takes place on or after October 1,
543	545		1995.
544	546		(b) This subsection applies to a surviving spouse or
545	547		dependent child whose marriage under either statutory or common law
546	548		took place before October 1, 1995, and resulted in a termination of
547	549		benefits under the law in effect at the time of the marriage.
548	550		Subject to Subsection (d) of this section and except as provided by
549	551		Subsection (e) of this section, if on [If after] October 1, 1995,
550	552		the surviving spouse or dependent child is unmarried or if after
551	553		October 1, 1995, there is a termination of the marriage
552	554		[remarriage] of a surviving spouse or [of the marriage of a]
553	555		dependent child, the surviving spouse or dependent child, as
554	556		applicable, [that person] is entitled, on application, to 100
555	557		percent of the annuity that was in effect on the date of the
556	558		termination of benefits, payable from the date of the termination
557	559		of the marriage. A surviving spouse or dependent child entitled to
558	560		an annuity under this subsection is also entitled to any applicable
559	561		cost-of-living increases under Section 5.09 of this Act that
560	562		occurred on or after the date the marriage terminated.
561	563		[(c) A surviving spouse or dependent child who is unmarried
562	564		but receiving reduced benefits because of a prior marriage that
563	565		caused the benefits to be terminated is entitled to 100 percent of
564	566		the annuity that was in effect on the original date of termination
565	567		of benefits.]
566	568		(d) The benefit provided under Subsection [Subsections] (b)
567	569		[and (c)] of this section shall be provided prospectively beginning
568	570		October 1, 1995, and the surviving spouse or dependent child is not
569	571		entitled to receive any benefits or increases in benefits relating
570	572		to any period before October 1, 1995.
571	573		(e) A person must be living at the time of application to be
572	574		eligible for benefits under this section.
573	575		SECTION 16. Section 6.06, Chapter 824 (S.B. 817), Acts of
574	576		the 73rd Legislature, Regular Session, 1993 (Article 6243o,
575	577		Vernon's Texas Civil Statutes), is amended to read as follows:
576	578		Sec. 6.06. COMMON-LAW MARRIAGES. Common-law marriages are
577	579		not recognized under this Act and benefits may not be conferred on
578	580		common-law spouses as beneficiaries unless a declaration of
579	581		informal marriage was made and recorded under Sections 2.402 and
580	582		2.404, Family Code, and their subsequent amendments, or any
581	583		successor statutes, before the member's death. The date the
582	584		declaration of informal marriage is recorded under Section 2.404,
583	585		Family Code, is the date of marriage for the purpose of determining
584	586		whether any benefit is to be awarded to a surviving common-law
585	587		spouse as a beneficiary under this Act.
586	588		SECTION 17. Section 6.09(b), Chapter 824 (S.B. 817), Acts
587	589		of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
588	590		Vernon's Texas Civil Statutes), is amended to read as follows:
589	591		(b) An application for benefits under Subsection (a) of this
590	592		section must be accompanied by a copy of the deceased member's or
591	593		retiree's tax return filed for the last year ending before the
592	594		member's or retiree's death or an explanation satisfactory to the
593	595		board of why the tax return cannot be provided. The board may, on
594	596		its own initiative, make a thorough investigation, determine the
595	597		facts as to the dependency with respect to an application for
596	598		benefits made under Subsection (a) of this section, and at any time,
597	599		on the request of any beneficiary or any contributor to the fund,
598	600		reopen any award made to any member or dependent of any member who
599	601		is receiving annuity payments under this section and discontinue
600	602		those payments as to all or any of them. [The findings of the board
601	603		under this section and all annuities granted under this section are
602	604		final on all parties unless set aside or revoked by a court of
603	605		competent jurisdiction.]
604	606		SECTION 18. Section 6.10, Chapter 824 (S.B. 817), Acts of
605	607		the 73rd Legislature, Regular Session, 1993 (Article 6243o,
606	608		Vernon's Texas Civil Statutes), is amended to read as follows:
607	609		Sec. 6.10. SUSPENSION RIGHTS. (a) Except as provided by
608	610		Subsection (b) of this section, if [If] a member dies who is on
609	611		[under] suspension at the time of the member's death, [including an
610	612		indefinite suspension that has not become final,] the member's
611	613		beneficiary has [beneficiaries have] the same rights as the
612	614		beneficiaries of any other member under this Act.
613	615		(b) If a member dies who is on indefinite suspension that
614	616		has not become final as of the date of the member's death, the
615	617		member's beneficiary has the same rights as the beneficiaries of
616	618		any other member under this Act in accordance with Subsection (a) of
617	619		this section only if the member's beneficiary provides sufficient
618	620		evidence to the board to establish to the board's satisfaction
619	621		that:
620	622		(1) an administrative appeal of the indefinite
621	623		suspension to the municipality was being actively pursued at the
622	624		time of death; and
623	625		(2) the member had a reasonable chance of having the
624	626		indefinite suspension reversed or modified to be a suspension for a
625	627		specific period.
626	628		SECTION 19. Chapter 824 (S.B. 817), Acts of the 73rd
627	629		Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
628	630		Civil Statutes), is amended by adding Section 6.105 to read as
629	631		follows:
630	632		Sec. 6.105. DATE SUSPENSION FINAL. For purposes of this
631	633		Act, an indefinite suspension or a suspension for a specific period
632	634		becomes final on the date:
633	635		(1) any administrative appeal of the suspension to the
634	636		municipality has been finally adjudicated by the municipality; or
635	637		(2) if no administrative appeal of the suspension is
636	638		made to the municipality, after the last day of the period for
637	639		initiating an administrative appeal has elapsed.
638	640		SECTION 20. Section 6.14(i), Chapter 824 (S.B. 817), Acts
639	641		of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
640	642		Vernon's Texas Civil Statutes), is amended to read as follows:
641	643		(i) If a surviving spouse elects to receive a lump-sum
642	644		payment under this section, the total death benefit annuity payable
643	645		[to the surviving spouse] under Section 6.02 of this Act is reduced
644	646		as provided by Subsection (j) of this section. The lump-sum
645	647		election does not affect the amount of a death benefit annuity
646	648		payable to a dependent child of a deceased member under Section 6.02
647	649		of this Act while a death benefit annuity is payable to the
648	650		surviving spouse.
649	651		SECTION 21. Chapter 824 (S.B. 817), Acts of the 73rd
650	652		Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
651	653		Civil Statutes), is amended by adding Section 6.15 to read as
652	654		follows:
653	655		Sec. 6.15. DENIAL OF BENEFITS; DEATH CAUSED BY SURVIVOR. If
654	656		a person is the principal or an accomplice in wilfully bringing
655	657		about the death of a member or beneficiary whose death would
656	658		otherwise result in a benefit or benefit increase to the person, the
657	659		person is not eligible for, or entitled to, that benefit or benefit
658	660		increase. The determination of the board that a person wilfully
659	661		brought about the death must be made during a meeting of the board
660	662		and be based on a preponderance of the evidence presented. A
661	663		determination by the board under this section is not controlled by
662	664		any other finding in any other forum, regardless of whether the
663	665		other forum considered the same or another standard of proof.
664	666		SECTION 22. Section 3.03(a), Chapter 824 (S.B. 817), Acts
665	667		of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
666	668		Vernon's Texas Civil Statutes), is repealed.
667	669		SECTION 23. This Act takes effect October 1, 2019.