Texas 2019 - 86th Regular

Texas Senate Bill SB2057 Compare Versions

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11 86R6247 TSR-D
22 By: Menéndez S.B. No. 2057
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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, 2019:
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 of Texas law
2727 enforcement, custodial, and peace officer supplemental retirement
2828 fund beginning January 1, 2020; 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 of Texas law enforcement, custodial,
3636 and peace officer supplemental retirement fund beginning January 1,
3737 2020.
3838 (b) For the purposes of this chapter, service credit earned
3939 by a person described by Subsection (a) is considered service
4040 credit earned in two retirement systems and is subject to Section
4141 803.201. The membership on which combined service credit is based
4242 is service credit accrued:
4343 (1) before beginning participation in the Employees
4444 Retirement System of Texas law enforcement, custodial, and peace
4545 officer supplemental retirement fund; and
4646 (2) after beginning participation in the Employees
4747 Retirement System of Texas law enforcement, custodial, and peace
4848 officer supplemental retirement fund.
4949 SECTION 3. Section 811.001, Government Code, is amended by
5050 amending Subdivisions (6) and (9) and adding Subdivisions (8-b) and
5151 (12-b) to read as follows:
5252 (6) "Combined retirement annuity" means the amount
5353 payable on retirement for service credited as a member of the
5454 employee class of membership plus any supplemental amount payable
5555 from the law enforcement, [and] custodial, and peace officer
5656 supplemental retirement fund.
5757 (8-b) "Juvenile justice officer" means a member of the
5858 retirement system who is employed by the Texas Juvenile Justice
5959 Department and certified by that department as holding a position
6060 as a juvenile correctional officer or other position the primary
6161 duties of which include the custodial supervision of or other
6262 close, regularly planned contact with youth in the custody of that
6363 department.
6464 (9) "Law enforcement officer" means a member of the
6565 retirement system who:
6666 (A) has been commissioned as a law enforcement
6767 officer by the Department of Public Safety, the Texas Alcoholic
6868 Beverage Commission, the Parks and Wildlife Department, the
6969 attorney general, or the office of inspector general at the Texas
7070 Juvenile Justice Department; and
7171 (B) is recognized as a commissioned law
7272 enforcement officer by the Texas Commission on Law Enforcement.
7373 (12-b) "Peace officer" means:
7474 (A) a person certified as being employed as a
7575 peace officer under Section 815.505; or
7676 (B) any other person employed as a peace officer
7777 who is:
7878 (i) not a law enforcement officer, juvenile
7979 justice officer, or custodial officer for purposes of this
8080 subtitle; and
8181 (ii) a peace officer under Article 2.12,
8282 Code of Criminal Procedure, employed or appointed by a department,
8383 commission, board, agency, or institution of the state.
8484 SECTION 4. Section 812.003, Government Code, is amended by
8585 amending Subsection (b) and adding Subsection (b-1) to read as
8686 follows:
8787 (b) An office or employment that is included in the coverage
8888 of the Teacher Retirement System of Texas, other than in a position
8989 identified as a peace officer position under Section 825.515, the
9090 Judicial Retirement System of Texas Plan One, or the Judicial
9191 Retirement System of Texas Plan Two or, except as provided by
9292 Section 9.01, Chapter 238 (S.B. 378), Acts of the 73rd Legislature,
9393 Regular Session, 1993, is with a university system or institution
9494 of higher education, as defined by Section 61.003, Education Code,
9595 is not a position with a department, commission, board, agency, or
9696 institution of the state for purposes of this subtitle.
9797 (b-1) Membership in the employee class includes any person
9898 who is certified as being employed in a position as a peace officer
9999 under Section 815.505.
100100 SECTION 5. Section 812.101(c), Government Code, is amended
101101 to read as follows:
102102 (c) For a law enforcement, juvenile justice, [or]
103103 custodial, or peace officer, the withdrawal of accumulated
104104 contributions under Subsection (a) includes all of the officer's
105105 contributions made under Section 815.402(h).
106106 SECTION 6. Subchapter F, Chapter 813, Government Code, is
107107 amended by adding Section 813.507 to read as follows:
108108 Sec. 813.507. JUVENILE JUSTICE OFFICER SERVICE. (a) The
109109 Texas Juvenile Justice Board by rule shall adopt standards for
110110 determining eligibility for service credit as a juvenile justice
111111 officer, based on the need to encourage early retirement of persons
112112 whose duties are hazardous and require them to have routine contact
113113 with youth in the custody of the Texas Juvenile Justice Department
114114 on a regular basis.
115115 (b) The Texas Juvenile Justice Department shall determine a
116116 person's eligibility to receive credit as a juvenile justice
117117 officer. A determination by the department may not be appealed by
118118 an employee but is subject to change by the retirement system.
119119 SECTION 7. Section 813.513(a), Government Code, is amended
120120 to read as follows:
121121 (a) An eligible member may establish not more than 36 months
122122 of equivalent membership service credit, including law
123123 enforcement, juvenile justice, [or] custodial, or peace officer
124124 service, in either the elected class or the employee class.
125125 SECTION 8. Section 814.107, Government Code, is amended to
126126 read as follows:
127127 Sec. 814.107. SERVICE RETIREMENT BENEFITS FOR CERTAIN
128128 [PEACE] OFFICERS. (a) This section applies only to a member who
129129 participates in the law enforcement, custodial, and peace officer
130130 supplemental retirement fund.
131131 (a-1) A member who has at least 20 years of service credit as
132132 a law enforcement, juvenile justice, [or] custodial, or peace
133133 officer is eligible to retire regardless of age and receive a
134134 standard service retirement annuity in an amount and to be funded as
135135 provided by this section.
136136 (b) The standard service retirement annuity payable for at
137137 least 20 years of service credit as a law enforcement, juvenile
138138 justice, [or] custodial, or peace officer is an amount computed on
139139 the basis of the member's average monthly compensation for the 60
140140 highest months of compensation in the employee class, times the sum
141141 of the percentage factor used in the computation of a standard
142142 service retirement annuity under Section 814.105 plus .5 percent.
143143 (c) The standard combined service retirement annuity that
144144 is payable under this section is based on retirement on or after the
145145 attainment of the normal retirement age, which for purposes of this
146146 section is the earlier of either the age of 57 or the age at which
147147 the sum of the member's age and amount of service credit in the
148148 employee class equals the number 80. The annuity of a law
149149 enforcement, juvenile justice, [or] custodial, or peace officer who
150150 retires before reaching the age of 57 under any eligibility
151151 criteria is actuarially reduced by five percent for each year of
152152 difference between the member's age at retirement and 57. The
153153 actuarial reduction described by this section is in addition to any
154154 other actuarial reduction required by law.
155155 (c-1) A law enforcement, juvenile justice, [or] custodial,
156156 or peace officer who retires before attaining the age of 50 is
157157 entitled only to an annuity that is actuarially reduced from the
158158 annuity available at the age of 50 to the law enforcement, juvenile
159159 justice, [or] custodial, or peace officer whose service credit
160160 annuity amount is based on the sum of the member's age and amount of
161161 law enforcement, juvenile justice, [or] custodial, or peace officer
162162 service credit and employee class service credit, and is not
163163 entitled to have the annuity recalculated at normal retirement age.
164164 The standard or reduced annuity under this section is payable from
165165 the trust fund established by Section 815.310 and the law
166166 enforcement, [and] custodial, and peace officer supplemental
167167 retirement fund in a ratio determined by the retirement system.
168168 (d) A member who retires under this section retires
169169 simultaneously from the employee class of membership. Optional
170170 retirement annuities provided by Section 814.108 are available to a
171171 member eligible to receive a service retirement annuity under this
172172 section, but the same optional plan and beneficiary must be
173173 selected for the portion of the annuity payable from the law
174174 enforcement, [and] custodial, and peace officer supplemental
175175 retirement fund and the portion payable from the trust fund
176176 established by Section 815.310.
177177 (e) The amount payable from the law enforcement, [and]
178178 custodial, and peace officer supplemental retirement fund is
179179 reducible by the amount paid from the trust fund established by
180180 Section 815.310 for service as a law enforcement, juvenile justice,
181181 [or] custodial, or peace officer. The total combined amount of an
182182 annuity under this section may not be less than the authorized
183183 benefit under Subsection (b) subtracted by any amount necessary
184184 because of selection of an optional annuity, because of retirement
185185 before the normal retirement age, or as provided by Subsection (f).
186186 (f) The standard combined service retirement annuity
187187 payable for at least 20 years of service credit as a law
188188 enforcement, juvenile justice, [or] custodial, or peace officer may
189189 not exceed 100 percent of the average compensation computed under
190190 Subsection (b).
191191 (g) For purposes of this section, service as a law
192192 enforcement, juvenile justice, [or] custodial, or peace officer is
193193 creditable as provided by rule of the board of trustees or on a
194194 month-to-month basis, whichever is greater.
195195 SECTION 9. The heading to Section 814.207, Government Code,
196196 is amended to read as follows:
197197 Sec. 814.207. DISABILITY RETIREMENT BENEFITS FOR CERTAIN
198198 [PEACE] OFFICERS.
199199 SECTION 10. Section 814.207, Government Code, is amended by
200200 amending Subsections (a) and (d) and adding Subsection (a-1) to
201201 read as follows:
202202 (a) This section applies only to a member who participates
203203 in the law enforcement, custodial, and peace officer supplemental
204204 retirement fund.
205205 (a-1) An annuity payable for an occupational disability
206206 resulting from a risk to which law enforcement, juvenile justice,
207207 [or] custodial, or peace officers are exposed because of the nature
208208 of their [law enforcement or custodial] duties is payable under the
209209 same terms and conditions that apply to other occupational
210210 disability retirement annuities under this subtitle, except that
211211 the source and amount of the annuity are as provided by this
212212 section.
213213 (d) The portions of the annuity under this section payable
214214 from the law enforcement, [and] custodial, and peace officer
215215 supplemental retirement fund are the amount remaining after
216216 deduction of any amount payable under Section 814.206, except the
217217 portion of an amount that exceeds the minimum payments provided by
218218 Section 814.206(b) and that is made for service other than as a law
219219 enforcement, juvenile justice, [or] custodial, or peace officer and
220220 any amount by which an annuity is increased under Subsection (e).
221221 SECTION 11. Section 814.305, Government Code, is amended to
222222 read as follows:
223223 Sec. 814.305. ANNUITY FOR SURVIVOR OF LAW ENFORCEMENT,
224224 JUVENILE JUSTICE, [OR] CUSTODIAL, OR PEACE OFFICER. (a) This
225225 section applies only to a member who participates in the law
226226 enforcement, custodial, and peace officer supplemental retirement
227227 fund.
228228 (b) If a member who has at least 20 years of service credit
229229 as a law enforcement, juvenile justice, [or] custodial, or peace
230230 officer dies, the amount of the death benefit annuity payable for
231231 the member's service as a law enforcement, juvenile justice, [or]
232232 custodial, or peace officer is an amount computed and funded as
233233 provided by Section 814.107, including any applicable reduction
234234 factors.
235235 SECTION 12. Section 815.103(c), Government Code, is amended
236236 to read as follows:
237237 (c) The board of trustees may authorize the executive
238238 director to acquire, hold, manage, purchase, sell, assign, trade,
239239 transfer, and dispose of any security, evidence of debt, or other
240240 investment in which assets of the law enforcement, [and] custodial,
241241 and peace officer supplemental retirement fund may be invested.
242242 SECTION 13. Section 815.208(c), Government Code, is amended
243243 to read as follows:
244244 (c) The board of trustees shall make payments from the law
245245 enforcement, [and] custodial, and peace officer supplemental
246246 retirement fund for services rendered by the actuary for that fund
247247 and approved by the board.
248248 SECTION 14. Sections 815.301(a) and (b), Government Code,
249249 are amended to read as follows:
250250 (a) The board of trustees shall:
251251 (1) invest the assets of the retirement system as a
252252 single fund without distinction as to their source; and
253253 (2) hold securities purchased with the assets
254254 described by Subsection (a)(1) collectively for the proportionate
255255 benefit of:
256256 (A) all accounts in the trust fund that are
257257 listed in Section 815.310(b); and
258258 (B) the law enforcement, [and] custodial, and
259259 peace officer supplemental retirement fund.
260260 (b) Except as provided by Section 815.3016, the board of
261261 trustees may delegate its authority under Subsection (a) to the
262262 executive director. Subject to Section 815.3016, the board of
263263 trustees or the executive director may, under the standard of care
264264 provided by Section 815.307, invest and reinvest any of the
265265 retirement system's assets and may commingle assets of the trust
266266 fund and the law enforcement, [and] custodial, and peace officer
267267 supplemental retirement fund with the assets of the Judicial
268268 Retirement System of Texas Plan Two for investment purposes, as
269269 long as proportionate ownership records are maintained and
270270 credited. Investments may include home office facilities,
271271 including land, equipment, and office building, used in
272272 administering the retirement system.
273273 SECTION 15. Section 815.308(b), Government Code, is amended
274274 to read as follows:
275275 (b) The amount of cash on hand may not exceed 10 percent of
276276 the total amount in the funds of the retirement system on deposit
277277 with the comptroller, excluding the assets of the law enforcement,
278278 [and] custodial, and peace officer supplemental retirement fund.
279279 SECTION 16. Section 815.309, Government Code, is amended to
280280 read as follows:
281281 Sec. 815.309. CREDITING SYSTEM ASSETS. All assets of the
282282 retirement system, except assets of the law enforcement, [and]
283283 custodial, and peace officer supplemental retirement fund, shall be
284284 credited to the trust fund established by Section 815.310.
285285 SECTION 17. The heading to Section 815.317, Government
286286 Code, is amended to read as follows:
287287 Sec. 815.317. LAW ENFORCEMENT, [AND] CUSTODIAL, AND PEACE
288288 OFFICER SUPPLEMENTAL RETIREMENT FUND.
289289 SECTION 18. Sections 815.317(a), (a-1), and (b), Government
290290 Code, are amended to read as follows:
291291 (a) The retirement system shall deposit in the law
292292 enforcement, [and] custodial, and peace officer supplemental
293293 retirement fund state contributions and other appropriations made
294294 by the legislature to the fund and proceeds from investment of the
295295 fund.
296296 (a-1) The comptroller shall deposit fees collected under
297297 Section 133.102(e)(5) [133.102(e)(7)], Local Government Code, to
298298 the credit of the law enforcement, [and] custodial, and peace
299299 officer supplemental retirement fund.
300300 (b) The retirement system may use money from the fund only
301301 to pay supplemental retirement and death benefits to law
302302 enforcement, juvenile justice, [and] custodial, or peace officers
303303 as provided by this subtitle and to pay for the administration of
304304 the fund.
305305 SECTION 19. Section 815.402(h), Government Code, is amended
306306 to read as follows:
307307 (h) In addition to the contribution under Subsection
308308 (a)(1), each department or agency of the state that employs a law
309309 enforcement, juvenile justice, [or] custodial, or peace officer
310310 shall deduct an additional 0.5 percent contribution from that
311311 member's compensation, to be deposited in the law enforcement,
312312 [and] custodial, and peace officer supplemental retirement fund,
313313 provided that, if the state contribution to the law enforcement,
314314 [and] custodial, and peace officer supplemental retirement fund is
315315 computed using a percentage less than 0.5 percent, the member's
316316 contribution is computed using a percentage equal to the percentage
317317 used to compute the state contribution.
318318 SECTION 20. Section 815.403(a), Government Code, is amended
319319 to read as follows:
320320 (a) During each fiscal year, the state shall contribute to
321321 the retirement system:
322322 (1) an amount equal to 7.4 percent of the total
323323 compensation of all members of the retirement system for that year;
324324 (2) money to pay lump-sum death benefits for retirees
325325 under Section 814.501;
326326 (3) an amount for the law enforcement, [and]
327327 custodial, and peace officer supplemental retirement fund equal to
328328 2.13 percent of the aggregate state compensation of all law
329329 enforcement, juvenile justice, custodial, and peace officer
330330 members [law enforcement officers] for that year;
331331 (4) money necessary for the administration of the law
332332 enforcement, [and] custodial, and peace officer supplemental
333333 retirement fund; and
334334 (5) money for service credit not previously
335335 established, as provided by Section 813.202(c) or 813.302(d).
336336 SECTION 21. Section 815.505, Government Code, is amended to
337337 read as follows:
338338 Sec. 815.505. CERTIFICATION OF NAMES OF LAW ENFORCEMENT,
339339 JUVENILE JUSTICE, [AND] CUSTODIAL, AND PEACE OFFICERS. (a) Not
340340 later than the 12th day of the month following the month in which a
341341 person begins or ceases employment as a law enforcement, juvenile
342342 justice, [officer or] custodial, or peace officer, the Public
343343 Safety Commission, the Texas Alcoholic Beverage Commission, the
344344 Parks and Wildlife Commission, the office of the attorney general,
345345 the [office of inspector general at the] Texas Juvenile Justice
346346 Department, the Board of Pardons and Paroles, or the Texas Board of
347347 Criminal Justice, and any other state employer, as applicable,
348348 shall certify to the retirement system, in the manner prescribed by
349349 the system, the name of the employee and such other information as
350350 the system determines is necessary for the crediting of service and
351351 financing of benefits under this subtitle.
352352 (b) Not later than the 12th day of the month following the
353353 month in which a person begins or ceases employment as a peace
354354 officer, an employer required to provide information about a person
355355 identified as being employed in a position as a peace officer under
356356 Section 825.515 shall certify to the retirement system, in the
357357 manner prescribed by the system, the name of the employee and such
358358 other information as the system determines is necessary for the
359359 crediting of service and financing of benefits under this subtitle.
360360 SECTION 22. Section 822.002(a), Government Code, is amended
361361 to read as follows:
362362 (a) An employee of the public school system is not permitted
363363 to be a member of the retirement system if the employee:
364364 (1) is eligible and elects to participate in the
365365 optional retirement program under Chapter 830;
366366 (2) is eligible and elects to participate in the
367367 Employees Retirement System of Texas law enforcement, custodial,
368368 and peace officer supplemental retirement fund under Section
369369 803.2015;
370370 (3) is required to participate in the Employees
371371 Retirement System of Texas law enforcement, custodial, and peace
372372 officer supplemental retirement fund as a member of the employee
373373 class under Section 812.003(b-1); or
374374 (4) [(2)] has retired under the retirement system and
375375 has not been reinstated to membership pursuant to Section 824.005
376376 or 824.307.
377377 SECTION 23. Section 840.301(a), Government Code, is amended
378378 to read as follows:
379379 (a) The board of trustees may, under the standard of care
380380 provided by Section 840.303, invest and reinvest the retirement
381381 system's assets and may commingle assets of the trust fund with the
382382 assets of the Employees Retirement System of Texas, including its
383383 trust fund and the law enforcement, [and] custodial, and peace
384384 officer supplemental retirement fund, for investment purposes, as
385385 long as proportionate ownership records are maintained and
386386 credited.
387387 SECTION 24. Section 133.102(e), Local Government Code, is
388388 amended to read as follows:
389389 (e) The comptroller shall allocate the court costs received
390390 under this section to the following accounts and funds so that each
391391 receives to the extent practicable, utilizing historical data as
392392 applicable, the same amount of money the account or fund would have
393393 received if the court costs for the accounts and funds had been
394394 collected and reported separately, except that the account or fund
395395 may not receive less than the following percentages:
396396 (1) crime stoppers assistance0.2581 percent;
397397 (2) breath alcohol testing0.5507 percent;
398398 (3) Bill Blackwood Law Enforcement Management
399399 Institute2.1683 percent;
400400 (4) law enforcement officers standards and
401401 education5.0034 percent;
402402 (5) law enforcement, [and] custodial, and peace
403403 officer supplemental retirement fund11.1426 percent;
404404 (6) criminal justice planning12.5537 percent;
405405 (7) an account in the state treasury to be used only
406406 for the establishment and operation of the Center for the Study and
407407 Prevention of Juvenile Crime and Delinquency at Prairie View A&M
408408 University1.2090 percent;
409409 (8) compensation to victims of crime fund37.6338
410410 percent;
411411 (9) emergency radio infrastructure account5.5904
412412 percent;
413413 (10) judicial and court personnel training fund4.8362
414414 percent;
415415 (11) an account in the state treasury to be used for
416416 the establishment and operation of the Correctional Management
417417 Institute of Texas and Criminal Justice Center Account1.2090
418418 percent; and
419419 (12) fair defense account17.8448 percent.
420420 SECTION 25. The name of the law enforcement and custodial
421421 officer supplemental retirement fund is changed to the law
422422 enforcement, custodial, and peace officer supplemental retirement
423423 fund. A reference in Subtitle B, Title 8, Government Code, or other
424424 law to the law enforcement and custodial officer supplemental
425425 retirement fund means the law enforcement, custodial, and peace
426426 officer supplemental retirement fund.
427427 SECTION 26. (a) Not later than December 31, 2019, a person
428428 who is a member of the Teacher Retirement System of Texas and is
429429 identified under Section 825.515, Government Code, as being
430430 employed as a peace officer shall decide whether to:
431431 (1) remain a member in the Teacher Retirement System
432432 of Texas; or
433433 (2) become a member of the employee class as a peace
434434 officer participating in the Employees Retirement System of Texas
435435 law enforcement, custodial, and peace officer supplemental
436436 retirement fund effective January 1, 2020.
437437 (b) Not later than December 31, 2019, a person who is a
438438 member of the Employees Retirement System of Texas, holds a
439439 position as a law enforcement, juvenile justice, custodial, or
440440 peace officer, and was not eligible before the effective date of
441441 this Act to participate in the law enforcement and custodial
442442 officer supplemental retirement fund shall decide whether to:
443443 (1) remain a member of the Employees Retirement System
444444 of Texas without participating in the law enforcement, custodial,
445445 and peace officer supplemental retirement fund; or
446446 (2) begin participation in the Employees Retirement
447447 System of Texas law enforcement, custodial, and peace officer
448448 supplemental retirement fund effective January 1, 2020.
449449 (c) The retirement benefits of a person who opts to begin
450450 participation in the Employees Retirement System of Texas law
451451 enforcement, custodial, and peace officer supplemental retirement
452452 fund under Subsection (a) or (b) of this section shall be divided as
453453 if the benefits were based on service credit earned in two separate
454454 retirement systems as follows:
455455 (1) service credit earned before January 1, 2020; and
456456 (2) service credit earned on or after January 1, 2020.
457457 (d) A person who earns service credit described by
458458 Subsections (c)(1) and (2) of this section is eligible to have that
459459 credit treated as combined service credit under Chapter 803,
460460 Government Code, as amended by this Act.
461461 SECTION 27. This Act takes effect September 1, 2019.