Texas 2023 - 88th Regular

Texas House Bill HB2649 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R15860 KFF-F
2	2	By: Allison, Cortez, Lujan, Bernal, H.B. No. 2649
3	3	Lopez of Bexar, et al.
4	4	Substitute the following for H.B. No. 2649:
5	5	By: Capriglione C.S.H.B. No. 2649
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the retirement system in certain municipalities for
11	11	firefighters and police officers.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Sections 1.02(4-a), (5), (7), and (17), Chapter
14	14	824 (S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
15	15	(Article 6243o, Vernon's Texas Civil Statutes), are amended to read
16	16	as follows:
17	17	(4-a) "Catastrophic injury" means, except as provided
18	18	by Section 5.03(a-2) of this Act, irreparable physical bodily
19	19	injury sustained by a member as a direct and immediate result of the
20	20	member's engaging in an activity that:
21	21	(A) constitutes the performance of the member's
22	22	duties as a firefighter or police officer;
23	23	(B) involves an extraordinary degree of risk of
24	24	bodily injury or death; and
25	25	(C) does not result in death.
26	26	(5) "Code" means the United States Internal Revenue
27	27	Code of 1986 or a successor statute, unless the context requires
28	28	otherwise.
29	29	(7) "Dependent child" means:
30	30	(A) a person who is less than 18 years of age and
31	31	is a natural or adopted child of a deceased member or deceased
32	32	retiree; or
33	33	(B) a person:
34	34	(i) who is at least 18 years of age;
35	35	(ii) who is mentally or physically disabled
36	36	to the extent that the person is not capable of being
37	37	self-supporting; and
38	38	(iii) whose natural or adoptive parent is a
39	39	deceased member or deceased retiree[, provided that, for the year
40	40	immediately preceding the death of the member or retiree, the
41	41	deceased member or retiree claimed the person as a dependent on the
42	42	member's or retiree's federal income tax return].
43	43	(17) "Total salary" means all salary of a member:
44	44	(A) including:
45	45	(i) amounts picked up by the municipality
46	46	under Section 4.04(b) of this Act; and
47	47	(ii) amounts that would be included in
48	48	salary but for an election under Section 125(d), 132(f)(4), 401(k),
49	49	402(e)(3), 402(h)(1)(B), or 457(b) of the code; and
50	50	(B) excluding[, except]:
51	51	(i) [(A)] overtime pay, field training
52	52	officer's pay, bomb squad pay, SWAT team pay, K-9 pay, and hostage
53	53	team pay; and
54	54	(ii) [(B)] pay for unused accrued vacation
55	55	and sick leave, holiday pay, compensatory time pay, and bonus days
56	56	leave, or any similar items of compensation that may be paid in the
57	57	future.
58	58	SECTION 2. Section 2.02, Chapter 824 (S.B. 817), Acts of the
59	59	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
60	60	Texas Civil Statutes), is amended by amending Subsections (a) and
61	61	(b) and adding Subsection (b-1) to read as follows:
62	62	(a) The mayor of a municipality to which this Act applies,
63	63	or a qualified mayoral designee, serves on the board for the term of
64	64	the mayor's office, provided [except] that, if the mayor appoints a
65	65	qualified mayoral designee, the mayor may replace or remove that
66	66	qualified mayoral designee at the mayor's discretion, and the term
67	67	of the mayor or the mayor's qualified mayoral designee, as
68	68	applicable, on the board expires on the date the mayor ceases to be
69	69	mayor of the municipality for any reason. An individual designated
70	70	by the mayor to serve on the board under this subsection may only
71	71	serve on the board while the individual is a qualified mayoral
72	72	designee.
73	73	(b) The two members of the municipal governing body serve on
74	74	the board for the term of the office to which they are elected or
75	75	appointed, provided that the term of the member on the board expires
76	76	on the day the member ceases to be a member of the municipal
77	77	governing body for any reason.
78	78	(b-1) The governing body of a municipality shall fill a
79	79	vacancy on the board under Section 2.01(a)(2) of this Act in the
80	80	manner provided by Subsection (b) of this section.
81	81	SECTION 3. Section 3.01(a), Chapter 824 (S.B. 817), Acts of
82	82	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
83	83	Vernon's Texas Civil Statutes), is amended to read as follows:
84	84	(a) The board has complete authority and power to:
85	85	(1) administer the fund for the exclusive benefit of
86	86	all members, retirees, and beneficiaries;
87	87	(2) disburse benefits or otherwise order payments from
88	88	the fund as required by this Act;
89	89	(3) control the fund independently;
90	90	(4) conduct all litigation on behalf of the fund; and
91	91	(5) purchase with fund assets from one or more
92	92	insurers licensed to do business in this state one or more insurance
93	93	policies that provide for reimbursement of the fund and any
94	94	trustee, officer, or employee of the board for liability imposed or
95	95	damages because of an alleged act, error, or omission committed in
96	96	the trustee's, officer's, or employee's capacity as a fiduciary
97	97	officer or employee of the fund and for costs and expenses incurred
98	98	as a trustee, officer, or employee in defense of a claim for an
99	99	alleged act, error, or omission, as long as the insurance policy
100	100	does not provide for reimbursement of a trustee, officer, or
101	101	employee for liability imposed or expenses incurred because of the
102	102	trustee's, officer's, or employee's personal dishonesty, fraud,
103	103	lack of good faith, or intentional failure to act prudently.
104	104	SECTION 4. The heading to Section 3.03, Chapter 824 (S.B.
105	105	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
106	106	6243o, Vernon's Texas Civil Statutes), is amended to read as
107	107	follows:
108	108	Sec. 3.03. [ORDERS FOR] DISBURSEMENTS OF BENEFITS.
109	109	SECTION 5. Section 3.03(b), Chapter 824 (S.B. 817), Acts of
110	110	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
111	111	Vernon's Texas Civil Statutes), is amended to read as follows:
112	112	(b) Disbursements of benefits may not be made without a
113	113	record vote of the board.
114	114	SECTION 6. Section 4.03, Chapter 824 (S.B. 817), Acts of the
115	115	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
116	116	Texas Civil Statutes), is amended by amending Subsections (b), (c),
117	117	and (f) and adding Subsections (f-1) and (i) to read as follows:
118	118	(b) Subject to Subsections (c) and (e) of this section, a
119	119	[Not later than the 90th day after the date of the member's
120	120	reinstatement to an active status in the fire or police department,
121	121	the] member may restore credit not established during the period
122	122	the member was engaged in active service in any uniformed service by
123	123	paying [must file with the secretary of the board a written
124	124	statement of intent to pay] into the fund an amount equal to what
125	125	the member would have paid during that period if the member had
126	126	remained on active status in the fire or police department [during
127	127	the period of the member's absence in the uniformed service].
128	128	(c) The member must make the payment described by Subsection
129	129	(b) of this section in full within an amount of time after the
130	130	member's return to active status in the fire or police department
131	131	that is equal to three times the amount of time the member was
132	132	engaged in active service with the uniformed service [absent],
133	133	except that the maximum period for payment may not exceed five
134	134	years.
135	135	(f) If a [person who became a] member [before October 1,
136	136	1997,] does not make the payment authorized [required] under
137	137	Subsection (b) [(c)] of this section within the [required amount
138	138	of] time prescribed by Subsection (c) of this section and the member
139	139	would otherwise be eligible for credit under federal law, the
140	140	member may receive credit for the uniformed service if:
141	141	(1) the board determines that the member had good
142	142	cause for not complying with Subsection (b) or (c) of this section;
143	143	and
144	144	(2) the member [also] pays interest, compounded
145	145	annually, on the then current rate of a member's contribution from
146	146	the date the payment was required to the date the payment was made.
147	147	(f-1) The board shall set the rate of interest for purposes
148	148	of Subsection (f)(2) of this section.
149	149	(i) The survivors of a member of the fund who dies while
150	150	performing qualified military service, as defined in Section 414(u)
151	151	of the code, are entitled to any additional benefits, other than
152	152	benefit accruals relating to the period of qualified military
153	153	service, that would have been provided if the member had returned to
154	154	active status in the fire or police department and then terminated
155	155	employment as the result of death.
156	156	SECTION 7. Section 5.03, Chapter 824 (S.B. 817), Acts of the
157	157	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
158	158	Texas Civil Statutes), is amended by amending Subsections (a),
159	159	(a-1), (c), and (d) and adding Subsection (a-3) to read as follows:
160	160	(a) An active member of the fund who is not eligible to
161	161	receive a catastrophic injury disability annuity under Subsection
162	162	(a-1) of this section is eligible to retire and receive a regular
163	163	disability retirement annuity only if the member:
164	164	(1) makes a written application for regular disability
165	165	retirement with the board;
166	166	(2) establishes to the satisfaction of the board that
167	167	the member is permanently disabled through injury or disease so as
168	168	to be unable to perform the duties of any available position in the
169	169	department and, unless waived by the board, has been off active duty
170	170	because of that injury or disease for a continuous period of not
171	171	less than the 30 days preceding [before] the date of the application
172	172	for disability retirement;
173	173	(3) has had all member contributions required by this
174	174	Act made on the member's behalf;
175	175	(4) is not disqualified from receiving a disability
176	176	retirement annuity under [on indefinite suspension as described in]
177	177	Subsection (d) of this section; and
178	178	(5) has authorized the release to the board of all
179	179	medical records dated on or after the date of initial application
180	180	for employment with the department.
181	181	(a-1) An active member of the fund is eligible to retire and
182	182	receive a catastrophic injury disability retirement annuity only if
183	183	the member:
184	184	(1) makes a written application for catastrophic
185	185	injury disability retirement with the board;
186	186	(2) establishes to the satisfaction of the board that
187	187	the member is permanently so disabled as a result of a catastrophic
188	188	injury as to:
189	189	(A) be unable to secure any type of third-party
190	190	employment, or engage in any self-employment, other than sporadic
191	191	third-party or self-employment; and
192	192	(B) have, as a result of the lack of third-party
193	193	employment or self-employment, an annual income less than the
194	194	poverty level for one person in the 48 contiguous states of the
195	195	United States as provided under the poverty guidelines published
196	196	from time to time by the United States Department of Health and
197	197	Human Services, or similar guidelines selected by the board;
198	198	(3) has had all member contributions required by this
199	199	Act made on the member's behalf;
200	200	(4) is not disqualified from receiving a disability
201	201	retirement annuity under [on indefinite suspension as described in]
202	202	Subsection (d) of this section; and
203	203	(5) has authorized the release to the board of all
204	204	medical records dated on or after the date of initial application
205	205	for employment with the department.
206	206	(a-3) In making any determination under this section, the
207	207	board may consider or require any evidence the board considers
208	208	necessary or appropriate to make the determination.
209	209	(c) A [Except as provided by Subsection (d) of this section,
210	210	a] member [of the fund] who is on suspension for a specific period,
211	211	including a member whose indefinite suspension is reversed or
212	212	modified to a suspension for a specific period, and who becomes
213	213	disabled as a result of an injury sustained or disease contracted
214	214	while the member is on suspension is eligible for a disability
215	215	retirement annuity under Subsection (a) or (a-1) of this section,
216	216	as applicable, only if the suspended member makes up each
217	217	[deducted] contribution to the fund not made by the member [lost] by
218	218	reason of the suspension not later than the 30th day after the later
219	219	of the termination date of the suspension or the date the suspension
220	220	becomes final in accordance with Section 6.105 of this Act
221	221	[exhaustion of any appeal with respect to the suspension]. A
222	222	municipality to which this Act applies shall double-match all
223	223	contributions made by a member under this subsection.
224	224	(d) A member of the fund who is on indefinite suspension,
225	225	excluding an indefinite suspension reversed or modified to be a
226	226	suspension for a specific period, that becomes [is not eligible for
227	227	a disability retirement annuity until the] final in accordance with
228	228	Section 6.105 of this Act or who is terminated by the municipality,
229	229	[determination of the suspension and all appeals of that
230	230	determination are exhausted. A member of the fund who is on
231	231	indefinite suspension] is not entitled to a disability retirement
232	232	annuity [if the member is finally discharged]. [A member of the
233	233	fund who is on indefinite suspension but who is restored to duty or
234	234	who is given a suspension for a specific period is eligible for a
235	235	disability retirement annuity as provided by Subsection (a) of this
236	236	section.]
237	237	SECTION 8. Sections 5.04(a) and (a-1), Chapter 824 (S.B.
238	238	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
239	239	6243o, Vernon's Texas Civil Statutes), are amended to read as
240	240	follows:
241	241	(a) A member who is eligible to retire and receive a
242	242	disability retirement annuity under Section 5.03(a) of this Act is
243	243	entitled to receive an annuity from the fund equal to:
244	244	(1) 50 percent of the member's average total salary, if
245	245	the member has served three years or more before the date of
246	246	retirement;
247	247	(2) 50 percent of the member's average monthly total
248	248	salary as of the date of retirement multiplied by 12, if the member
249	249	has served at least two months and less than three years before the
250	250	date of retirement; or
251	251	(3) 50 percent of the member's average daily total
252	252	salary as of the date of retirement multiplied by 360, if the member
253	253	has served less than two months before the date of retirement.
254	254	(a-1) Subject to Subsection (a-2) of this section a member
255	255	who is eligible to retire and receive a catastrophic injury
256	256	disability retirement annuity under Section 5.03(a-1) of this Act
257	257	is entitled to receive an annuity from the fund equal to:
258	258	(1) 87.5 percent of the member's average total salary,
259	259	if the member has served three years or more before the date of
260	260	retirement;
261	261	(2) 87.5 percent of the member's average monthly total
262	262	salary as of the date of retirement multiplied by 12, if the member
263	263	has served at least two months and less than three years before the
264	264	date of retirement; or
265	265	(3) 87.5 percent of the member's average daily total
266	266	salary as of the date of retirement multiplied by 360, if the member
267	267	has served less than two months before the date of retirement.
268	268	SECTION 9. Sections 5.05(a-1), (a-3), (c), and (c-1),
269	269	Chapter 824 (S.B. 817), Acts of the 73rd Legislature, Regular
270	270	Session, 1993 (Article 6243o, Vernon's Texas Civil Statutes), are
271	271	amended to read as follows:
272	272	(a-1) A disability retiree who is awarded a catastrophic
273	273	injury disability annuity under Section 5.03(a-1) of this Act
274	274	shall, if required by the board, undergo a medical examination by
275	275	any reputable physician or physicians selected by the board:
276	276	(1) not later than 60 months after the date of the
277	277	award of the annuity by the board; and
278	278	(2) thereafter, not later than 60 months following the
279	279	last required medical examination of the disability retiree under
280	280	this subsection.
281	281	(a-3) Subject to Subsections (b) and [Subsection] (c) of
282	282	this section, based on an examination under Subsection
283	283	[Subsections] (a), (a-1), or (a-2) of this section, the board shall
284	284	determine whether the disability retirement annuity shall be
285	285	continued, decreased, restored to the original amount if it had
286	286	been decreased, or discontinued.
287	287	(c) For those retired because of disability on or after
288	288	August 30, 1971, the disability retirement annuity may not, except
289	289	in the case of discontinuance, be reduced to an amount that is less
290	290	than the product of:
291	291	(1) 2.25 percent multiplied by the number of years
292	292	that the retiree served in the department and contributed a portion
293	293	of salary as a member of the fund multiplied by the retiree's
294	294	average total salary, if the retiree served three years or more
295	295	before the date of retirement;
296	296	(2) 2.25 percent multiplied by the number of years
297	297	that the retiree served in the department and contributed a portion
298	298	of salary as a member of the fund multiplied by the retiree's
299	299	average monthly total salary as of the date of retirement
300	300	multiplied by 12, if the retiree served at least two months and less
301	301	than three years before the date of retirement; or
302	302	(3) 2.25 percent multiplied by the number of years
303	303	that the retiree served in the department and contributed a portion
304	304	of salary as a member of the fund multiplied by the retiree's
305	305	average daily total salary as of the date of retirement multiplied
306	306	by 360, if the member has served less than two months before the
307	307	date of retirement.
308	308	(c-1) In making the computation under Subsections (b) and
309	309	[Subsection] (c) of this section, all fractional years shall be
310	310	prorated based on full months served in the department as a
311	311	contributing member of the fund before the date of retirement.
312	312	SECTION 10. The heading to Section 5.07, Chapter 824 (S.B.
313	313	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
314	314	6243o, Vernon's Texas Civil Statutes), is amended to read as
315	315	follows:
316	316	Sec. 5.07. OUTSIDE INCOME PENSION SUSPENSION OR REDUCTION.
317	317	SECTION 11. Section 5.07, Chapter 824 (S.B. 817), Acts of
318	318	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
319	319	Vernon's Texas Civil Statutes), is amended by adding Subsections
320	320	(a-1) and (c) and amending Subsection (b) to read as follows:
321	321	(a-1) If a retiree fails to provide an income tax return to
322	322	the board under Subsection (a) of this section, the board may
323	323	suspend the retiree's disability retirement annuity until the
324	324	retiree provides the required income tax return.
325	325	(b) Subject to Subsection (c) of this section, if [If] the
326	326	retiree received income from other employment, including
327	327	self-employment, during the preceding year, the board may reduce
328	328	the retiree's disability retirement annuity by the amount of $1 for
329	329	each month for each $2 of income earned by the retiree from the
330	330	other employment during each month of the previous year, except
331	331	that the disability retirement annuity may not be decreased below
332	332	the amount determined under Section 5.05(c) of this Act.
333	333	(c) The board may restore a disability retirement annuity
334	334	that has been reduced under Subsection (b) of this section. The
335	335	amount of the restored annuity must be the same as the amount of the
336	336	annuity before the reduction plus any applicable cost-of-living
337	337	increases under Section 5.09 of this Act that occurred during the
338	338	period the annuity was reduced. This subsection does not require
339	339	the board to allow or deny cost-of-living increases in any other
340	340	circumstances.
341	341	SECTION 12. Section 5.10, Chapter 824 (S.B. 817), Acts of
342	342	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
343	343	Vernon's Texas Civil Statutes), is amended by amending Subsections
344	344	(b), (c), (d), (f), and (j) and adding Subsections (b-1) and (d-1)
345	345	to read as follows:
346	346	(b) A distributee may elect, at the time and in the manner
347	347	prescribed by the board, to have any portion of an eligible rollover
348	348	distribution paid directly to an eligible retirement plan specified
349	349	by the distributee in a direct rollover. [Any member or beneficiary
350	350	who is entitled to receive any distribution that is an eligible
351	351	rollover distribution as defined by Section 402(c)(4) of the code
352	352	is entitled to have that distribution transferred directly to
353	353	another eligible retirement plan of the member's or beneficiary's
354	354	choice on providing direction to the fund regarding that transfer
355	355	in accordance with procedures established by the board.]
356	356	(b-1) For purposes of this subsection and Subsection (b) of
357	357	this section:
358	358	(1) "Direct rollover" means a payment by the fund to
359	359	the eligible retirement plan specified by a distributee.
360	360	(2) "Distributee" means a member or former member.
361	361	The term includes a member's or former member's surviving spouse or
362	362	designated beneficiary and a member's or former member's spouse or
363	363	former spouse who is the alternate payee under a qualified domestic
364	364	relations order, as defined by Section 414(p) of the code, with
365	365	regard to the interest of the spouse or former spouse.
366	366	(3) "Eligible retirement plan" means:
367	367	(A) an individual retirement account described
368	368	by Section 408(a) of the code;
369	369	(B) an individual retirement annuity described
370	370	by Section 408(b) of the code;
371	371	(C) a qualified annuity plan described by Section
372	372	403(a) of the code;
373	373	(D) a qualified trust described by Section 401(a)
374	374	of the code;
375	375	(E) an eligible deferred compensation plan
376	376	described by Section 457(b) of the code that is maintained by an
377	377	eligible employer described by Section 457(e)(1)(A) of the code;
378	378	(F) an annuity contract described by Section
379	379	403(b) of the code that accepts the distributee's eligible rollover
380	380	distribution; or
381	381	(G) in the case of an eligible rollover
382	382	distribution to a designated beneficiary who is not the surviving
383	383	spouse, or the spouse or former spouse under a qualified domestic
384	384	relations order, an individual retirement account or individual
385	385	retirement annuity only.
386	386	(4) "Eligible rollover distribution" means a
387	387	distribution of all or any portion of the balance to the credit of
388	388	the distributee. The term does not include:
389	389	(A) a distribution that is one of a series of
390	390	substantially equal periodic payments, paid not less frequently
391	391	than once a year, made over the life or life expectancy of the
392	392	distributee or the joint lives or joint life expectancies of the
393	393	distributee and the distributee's designated beneficiary;
394	394	(B) a series of payments for a specified period
395	395	of 10 years or more;
396	396	(C) a distribution to the extent the distribution
397	397	is required under Section 401(a)(9) of the code; or
398	398	(D) the portion of a distribution that is not
399	399	includable in gross income, unless the distributee directs that the
400	400	eligible rollover distribution be transferred directly to a
401	401	qualified trust that is part of a defined contribution plan that
402	402	agrees to separately account for the portion that is includable in
403	403	gross income and the portion that is not or to an individual
404	404	retirement account or individual annuity.
405	405	(c) The total salary taken into account for any purpose
406	406	under this Act [for any member of the fund] may not exceed the
407	407	annual compensation limitation under Section 401(a)(17) of the
408	408	code, effective January 1, 2017, which is $405,000 [$200,000 per
409	409	year] for an eligible member [participant] or $270,000 [$150,000
410	410	per year] for an ineligible member [participant]. For purposes of
411	411	this subsection, an eligible member is any employee who first
412	412	became a member before 1996 and an ineligible member is any other
413	413	member. The [These] dollar limits shall be [periodically] adjusted
414	414	annually for cost-of-living increases as provided by Section
415	415	401(a)(17) of the code [in accordance with guidelines provided by
416	416	the United States secretary of the treasury. For purposes of this
417	417	subsection, an eligible participant is any person who first became
418	418	a member before 1996, and an ineligible participant is any member
419	419	who is not an eligible participant].
420	420	(d) Accrued benefits under this Act become 100 percent
421	421	vested for a member on the earlier of:
422	422	(1) the date the member attains normal retirement age
423	423	[has completed 20 years of service];
424	424	(2) the earlier termination or partial termination of
425	425	the pension plan created by this Act, if it affects the member; or
426	426	(3) the complete discontinuance of contributions by
427	427	the municipality to the fund.
428	428	(d-1) For purposes of Subsection (d)(1) of this section,
429	429	"normal retirement age" means the age at which a member is entitled
430	430	to receive a service retirement benefit without reduction because
431	431	of age.
432	432	(f) Distribution of benefits must:
433	433	(1) begin not later than April 1 of the year following
434	434	the later of the calendar year in [during] which the member:
435	435	(A) becomes 70-1/2 years of age; or
436	436	(B) retires; and
437	437	(2) [must] otherwise conform to Section 401(a)(9) of
438	438	the code and the regulations adopted under that section of the code,
439	439	including regulations governing the incidental death benefit
440	440	distribution requirements.
441	441	(j) Notwithstanding any other provision of this Act, the
442	442	limitations on benefits imposed by Section 415 of the code and
443	443	Subsection (a) of this section must be adjusted each year to the
444	444	extent permitted by cost-of-living increases announced by the
445	445	secretary of the treasury under Section 415(d) of the code and
446	446	applicable law. A cost-of-living increase described by this
447	447	subsection applies to members who have terminated employment,
448	448	including members who have begun receiving benefits before the
449	449	effective date of the increase, and any benefits previously denied.
450	450	Benefits paid to make up for benefits previously denied are
451	451	considered the delayed payment of benefits earned before retirement
452	452	and not extra compensation earned after retirement. [To the extent
453	453	permitted by law, the board may adjust the benefits of retired
454	454	members and beneficiaries by increasing any retirement benefit that
455	455	was reduced because of Section 415 of the code. If Section 415 of
456	456	the code is amended to permit the payment of amounts previously
457	457	precluded under Section 415 of the code, the board may adjust the
458	458	benefits of retired members and beneficiaries, including the
459	459	restoration of benefits previously denied. Benefits paid under
460	460	this subsection are not considered as extra compensation earned
461	461	after retirement but as the delayed payment of benefits earned
462	462	before retirement.]
463	463	SECTION 13. Section 5.11, Chapter 824 (S.B. 817), Acts of
464	464	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
465	465	Vernon's Texas Civil Statutes), is amended by adding Subsection
466	466	(b-1) to read as follows:
467	467	(b-1) If a retiree is entitled to receive a 13th check in
468	468	accordance with Subsection (b) of this section, but dies before
469	469	payment of the 13th check and has no surviving spouse or dependent
470	470	child, the 13th check shall be paid to the retiree's estate.
471	471	SECTION 14. Section 5.12, Chapter 824 (S.B. 817), Acts of
472	472	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
473	473	Vernon's Texas Civil Statutes), is amended by adding Subsection
474	474	(c-1) to read as follows:
475	475	(c-1) If a retiree is entitled to receive a 14th check in
476	476	accordance with Subsection (c) of this section, but dies before
477	477	payment of the 14th check and has no surviving spouse or dependent
478	478	child, the 14th check shall be paid to the retiree's estate.
479	479	SECTION 15. Section 6.01(b), Chapter 824 (S.B. 817), Acts
480	480	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
481	481	Vernon's Texas Civil Statutes), is amended to read as follows:
482	482	(b) Subject to the applicable provisions of this Act,
483	483	including Section 6.02(j) of this Act, a [A] dependent child is
484	484	entitled to receive benefits based on the service of any parent who
485	485	is a member of the fund.
486	486	SECTION 16. Section 6.02, Chapter 824 (S.B. 817), Acts of
487	487	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
488	488	Vernon's Texas Civil Statutes), is amended by amending Subsections
489	489	(a), (d), (d-2), (e), (f), (g), and (j) and adding Subsections (a-1)
490	490	and (c-1) to read as follows:
491	491	(a) Subject to Section 6.03 of this Act and the provisions
492	492	of this section, if a member [or retiree receiving a disability
493	493	pension under Section 5.03(a) of this Act] dies leaving a surviving
494	494	spouse or at least one dependent child, the surviving spouse and the
495	495	children are entitled to receive from the fund an aggregate death
496	496	benefit annuity, computed and payable from the date of the member's
497	497	death. The surviving spouse may elect the annuity in an amount
498	498	that is equal to either:
499	499	(1) 75 [50] percent of the member's average total
500	500	salary; or
501	501	(2) the same percentage of the member's average total
502	502	salary that the member would have been entitled to receive as a
503	503	retirement annuity if the member could have retired on the date of
504	504	death.
505	505	(a-1) This subsection applies only to a death benefit
506	506	annuity payable under Subsection (a) of this section on August 31,
507	507	2023, that is based on the service of a member who died after
508	508	September 1, 2005, but before September 1, 2023. If the amount of a
509	509	death benefit annuity subject to this section is less than 75
510	510	percent of the member's average total salary, excluding any
511	511	applicable cost-of-living increases to the annuity under Section
512	512	5.09 of this Act, and the member's surviving spouse did not elect to
513	513	receive a portion of the benefit in a lump-sum payment under Section
514	514	6.14 of this Act, the amount of the annuity shall increase beginning
515	515	on September 1, 2023, to an amount equal to 75 percent of the
516	516	member's average total salary plus the amount of any cost-of-living
517	517	increases provided under Section 5.09 of this Act. A member's
518	518	surviving spouse or dependent child who is receiving an annuity
519	519	subject to this section is not entitled to any additional payment
520	520	under this subsection for the period before September 1, 2023.
521	521	(c-1) Subject to the provisions of this section, if a
522	522	retiree receiving a disability pension under Section 5.03(a) of
523	523	this Act dies leaving a surviving spouse or at least one dependent
524	524	child, the surviving spouse and dependent children are entitled to
525	525	receive from the fund an aggregate death benefit annuity, computed
526	526	and payable from the date of the retiree's death, equal to 50
527	527	percent of the retiree's average total salary as of the date of
528	528	retirement.
529	529	(d) Subject to Subsection (d-2) of this section, if, at the
530	530	time a death benefit annuity becomes payable under Subsection (a),
531	531	[or] (c), or (c-1) of this section, the deceased member or retiree
532	532	leaves a surviving spouse and at least one dependent child, the
533	533	board shall award:
534	534	(1) 75 percent of the annuity to the surviving spouse;
535	535	and
536	536	(2) 25 percent of the annuity:
537	537	(A) to the dependent child, if there is only one;
538	538	or
539	539	(B) if there is more than one dependent child, in
540	540	equal shares to each child.
541	541	(d-2) If, at the time a death benefit annuity becomes
542	542	payable under Subsection (a), [or] (c), or (c-1) of this section, a
543	543	[deceased member or] retiree leaves a surviving spouse who is not
544	544	entitled to an annuity on the date of the retiree's death under
545	545	Subsection (g-1) of this section as the result of Subsection (g-3)
546	546	of this section and the deceased retiree has one or more dependent
547	547	children, the dependent child or children shall be awarded 100
548	548	percent of the death benefit annuity until the annuity to the
549	549	surviving spouse becomes payable [effective] under Subsection
550	550	(g-3) of this section.
551	551	(e) If, at the time a death benefit annuity under Subsection
552	552	(a), [or] (c), or (c-1) of this section becomes payable, the
553	553	deceased leaves a surviving spouse and no dependent child, the
554	554	board shall award the annuity to the surviving spouse.
555	555	(f) If, at the time a death benefit annuity under Subsection
556	556	(a), [or] (c), or (c-1) of this section becomes payable, the
557	557	deceased leaves no surviving spouse and at least one dependent
558	558	child, the board shall award the annuity:
559	559	(1) to the dependent child, if there is only one; or
560	560	(2) if there is more than one child, in equal shares to
561	561	each child.
562	562	(g) A child who is adopted after the date of retirement of
563	563	the member is not entitled to a death benefit annuity under this
564	564	Act. A child who is born after the date of retirement of the member
565	565	is not entitled to a death benefit annuity under this Act unless the
566	566	retiree was married to the other parent of the child on the date of
567	567	retirement. A surviving spouse of a retiree whose status as a
568	568	surviving spouse resulted from a marriage after the date of the
569	569	retirement of the retiree is entitled to receive only the benefits,
570	570	if any, provided under Subsection (g-1) of this section or Section
571	571	6.08 of this Act.
572	572	(j) A dependent child as defined by Section 1.02(7)(B) of
573	573	this Act has the same rights as a dependent child as defined by
574	574	Section 1.02(7)(A) of this Act, except that any death benefit
575	575	annuity paid under this section [subsection] to a dependent child
576	576	as defined by Section 1.02(7)(B) of this Act may, at the discretion
577	577	of the board, be reduced to the extent of any state pension or aid,
578	578	including Medicaid, or any state-funded assistance received by the
579	579	child, regardless of whether the funds were made available to the
580	580	state by the federal government. In no other instance under this Act
581	581	is a child entitled to any benefit after becoming 18 years of age.
582	582	SECTION 17. Section 6.03, Chapter 824 (S.B. 817), Acts of
583	583	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
584	584	Vernon's Texas Civil Statutes), is amended to read as follows:
585	585	Sec. 6.03. DEATH BENEFIT ANNUITY FOR SPOUSE AND CHILDREN OF
586	586	MEMBER KILLED IN LINE OF DUTY. (a) The death benefit annuity of a
587	587	surviving spouse and any dependent child of a member of the fund who
588	588	is killed in the line of duty is governed by this section.
589	589	(a-1) A member of the fund is considered to have been killed
590	590	in the line of duty if the member's death directly resulted from
591	591	traumatic injury sustained while engaging in or conducting
592	592	simulated training of a law enforcement activity, fire suppression
593	593	activity, rescue, hazardous material response, emergency medical
594	594	services, disaster relief, or other emergency response activity.
595	595	For purposes of this subsection, "traumatic injury" means severe
596	596	physical injury of sudden onset and of a life-ending or
597	597	life-threatening nature.
598	598	(b) [The board shall consider the finding of a municipality
599	599	to which this Act applies that a member was killed in the line of
600	600	duty as a guideline for its determination in applying this
601	601	section.] On an application for survivor's benefits by a surviving
602	602	spouse or dependent child, the fund shall pay the normal benefits
603	603	payable under Section 6.02 of this Act. When a benefit is payable
604	604	under this section, the death benefit annuity shall be recomputed,
605	605	applying Subsection (c) of this section, and any deficiency payment
606	606	shall be paid to the eligible beneficiaries.
607	607	(c) Notwithstanding the formulas for computing the total
608	608	amounts of annuities otherwise provided by this Act, if a member is
609	609	killed in the line of duty, the member's surviving spouse and
610	610	dependent children are entitled to a death benefit annuity equal
611	611	to:
612	612	(1) the total salary [of] the member received during
613	613	the 12-month period before the date of the member's death, if the
614	614	member served 12 months or more before the date of the member's
615	615	death;
616	616	(2) the average monthly total salary the member
617	617	received before the date of the member's death multiplied by 12, if
618	618	the member served at least two months and less than 12 months before
619	619	the date of the member's death; or
620	620	(3) the average daily total salary the member received
621	621	before the date of the member's death multiplied by 360, if the
622	622	member served less than two months before the date of the member's
623	623	death [at the time of death].
624	624	(d) The provisions of this Act [Rules provided by this
625	625	section] relating to qualification and disqualification for and
626	626	apportionment of benefits apply to a death benefit annuity computed
627	627	under this section [subsection]. A death benefit annuity computed
628	628	under this section [subsection] is divided in the manner described
629	629	by Section 6.02 of this Act and is subject to the same
630	630	cost-of-living adjustments that apply to annuities [pensions] for
631	631	service retirement.
632	632	SECTION 18. Section 6.04, Chapter 824 (S.B. 817), Acts of
633	633	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
634	634	Vernon's Texas Civil Statutes), is amended to read as follows:
635	635	Sec. 6.04. EFFECT OF MARRIAGE ON [REMARRIAGE;] BENEFITS
636	636	[AFTER TERMINATION OF MARRIAGE]. (a) Except as provided by
637	637	Subsection (e) of this section, the [The] right of a surviving
638	638	spouse or dependent child to annuity payments under this Act is not
639	639	affected by the surviving spouse's marriage [remarriage] or
640	640	dependent child's marriage under either statutory or common law if
641	641	the marriage [or remarriage] takes place on or after October 1,
642	642	1995.
643	643	(b) This subsection applies to a surviving spouse or
644	644	dependent child whose marriage under either statutory or common law
645	645	took place before October 1, 1995, and resulted in a termination of
646	646	benefits under the law in effect at the time of the marriage.
647	647	Subject to Subsection (d) of this section and except as provided by
648	648	Subsection (e) of this section, if on [If after] October 1, 1995,
649	649	the surviving spouse or dependent child is unmarried or if after
650	650	October 1, 1995, there is a termination of the marriage
651	651	[remarriage] of a surviving spouse or [of the marriage of a]
652	652	dependent child, the surviving spouse or dependent child, as
653	653	applicable, [that person] is entitled, on application, to 100
654	654	percent of the annuity that was in effect on the date of the
655	655	termination of benefits, payable from the date of the termination
656	656	of the marriage. A surviving spouse or dependent child entitled to
657	657	an annuity under this subsection is also entitled to any applicable
658	658	cost-of-living increases under Section 5.09 of this Act that
659	659	occurred on or after the date the marriage terminated.
660	660	[(c) A surviving spouse or dependent child who is unmarried
661	661	but receiving reduced benefits because of a prior marriage that
662	662	caused the benefits to be terminated is entitled to 100 percent of
663	663	the annuity that was in effect on the original date of termination
664	664	of benefits.]
665	665	(d) The benefit provided under Subsection [Subsections] (b)
666	666	[and (c)] of this section shall be provided prospectively beginning
667	667	October 1, 1995, and the surviving spouse or dependent child is not
668	668	entitled to receive any benefits or increases in benefits relating
669	669	to any period before October 1, 1995.
670	670	(e) A person must be living at the time of application to be
671	671	eligible for benefits under this section.
672	672	SECTION 19. Section 6.06, Chapter 824 (S.B. 817), Acts of
673	673	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
674	674	Vernon's Texas Civil Statutes), is amended to read as follows:
675	675	Sec. 6.06. COMMON-LAW MARRIAGES. Common-law marriages are
676	676	not recognized under this Act and benefits may not be conferred on
677	677	common-law spouses as beneficiaries unless a declaration of
678	678	informal marriage was made and recorded under Sections 2.402 and
679	679	2.404, Family Code, and their subsequent amendments, or any
680	680	successor statutes, before the member's death. The date the
681	681	declaration of informal marriage is recorded under Section 2.404,
682	682	Family Code, is the date of marriage for the purpose of determining
683	683	whether any benefit is to be awarded to a surviving common-law
684	684	spouse as a beneficiary under this Act.
685	685	SECTION 20. Section 6.09(b), Chapter 824 (S.B. 817), Acts
686	686	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
687	687	Vernon's Texas Civil Statutes), is amended to read as follows:
688	688	(b) An application for benefits under Subsection (a) of this
689	689	section must be accompanied by a copy of the deceased member's or
690	690	retiree's tax return filed for the last year ending before the
691	691	member's or retiree's death or an explanation satisfactory to the
692	692	board of why the tax return cannot be provided. The board may, on
693	693	its own initiative, make a thorough investigation, determine the
694	694	facts as to the dependency with respect to an application for
695	695	benefits made under Subsection (a) of this section, and at any time,
696	696	on the request of any beneficiary or any contributor to the fund,
697	697	reopen any award made to any member or dependent of any member who
698	698	is receiving annuity payments under this section and discontinue
699	699	those payments as to all or any of them. [The findings of the board
700	700	under this section and all annuities granted under this section are
701	701	final on all parties unless set aside or revoked by a court of
702	702	competent jurisdiction.]
703	703	SECTION 21. Section 6.10, Chapter 824 (S.B. 817), Acts of
704	704	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
705	705	Vernon's Texas Civil Statutes), is amended to read as follows:
706	706	Sec. 6.10. SUSPENSION RIGHTS. (a) Except as provided by
707	707	Subsection (b) of this section, if [If] a member dies who is on
708	708	[under] suspension at the time of the member's death, [including an
709	709	indefinite suspension that has not become final,] the member's
710	710	beneficiary has [beneficiaries have] the same rights as the
711	711	beneficiaries of any other member under this Act.
712	712	(b) If a member dies who is on indefinite suspension that
713	713	has not become final as of the date of the member's death, the
714	714	member's beneficiary has the same rights as the beneficiaries of
715	715	any other member under this Act in accordance with Subsection (a) of
716	716	this section only if the member's beneficiary provides sufficient
717	717	evidence to the board to establish to the board's satisfaction
718	718	that:
719	719	(1) an administrative appeal of the indefinite
720	720	suspension to the municipality was being actively pursued at the
721	721	time of death; and
722	722	(2) the member had a reasonable chance of having the
723	723	indefinite suspension reversed or modified to be a suspension for a
724	724	specific period.
725	725	SECTION 22. Chapter 824 (S.B. 817), Acts of the 73rd
726	726	Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
727	727	Civil Statutes), is amended by adding Section 6.105 to read as
728	728	follows:
729	729	Sec. 6.105. DATE SUSPENSION FINAL. For purposes of this
730	730	Act, an indefinite suspension or a suspension for a specific period
731	731	becomes final on the date:
732	732	(1) any administrative appeal of the suspension to the
733	733	municipality has been finally adjudicated by the municipality; or
734	734	(2) if no administrative appeal of the suspension is
735	735	made to the municipality, after the last day of the period for
736	736	initiating an administrative appeal has elapsed.
737	737	SECTION 23. Section 6.12, Chapter 824 (S.B. 817), Acts of
738	738	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
739	739	Vernon's Texas Civil Statutes), is amended by amending Subsection
740	740	(b) and adding Subsection (c) to read as follows:
741	741	(b) The amount of the 13th or 14th check is equal to the
742	742	amount of the annuity payment made in the last month of the
743	743	preceding fiscal year, except the amount of the check shall be
744	744	prorated for any beneficiary of:
745	745	(1) a member who died during the fiscal year preceding
746	746	the fiscal year in which the check is disbursed [who has been
747	747	receiving an annuity for less than one year] so that the amount of
748	748	the check is one-twelfth of the check that would have been paid to
749	749	the beneficiary receiving an annuity for a full year times the
750	750	number of full months an annuity has been paid; or
751	751	(2) a retiree who retired and died during the fiscal
752	752	year preceding the fiscal year in which the check is disbursed so
753	753	that the amount of the check is one-twelfth of the check that would
754	754	have been paid to the beneficiary receiving an annuity for a full
755	755	year times the number of full months from the date of the retiree's
756	756	retirement to the end of the fiscal year.
757	757	(c) If a beneficiary is entitled to receive a 13th or 14th
758	758	pension check in accordance with Subsection (a) of this section but
759	759	dies before payment of the 13th or 14th check, the 13th or 14th
760	760	check shall be paid to the beneficiary's estate.
761	761	SECTION 24. Section 6.14(i), Chapter 824 (S.B. 817), Acts
762	762	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
763	763	Vernon's Texas Civil Statutes), is amended to read as follows:
764	764	(i) If a surviving spouse elects to receive a lump-sum
765	765	payment under this section, the total death benefit annuity payable
766	766	[to the surviving spouse] under Section 6.02 of this Act is reduced
767	767	as provided by Subsection (j) of this section. The lump-sum
768	768	election does not affect the amount of a death benefit annuity
769	769	payable to a dependent child of a deceased member under Section 6.02
770	770	of this Act while a death benefit annuity is payable to the
771	771	surviving spouse.
772	772	SECTION 25. Chapter 824 (S.B. 817), Acts of the 73rd
773	773	Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
774	774	Civil Statutes), is amended by adding Section 6.15 to read as
775	775	follows:
776	776	Sec. 6.15. DENIAL OF BENEFITS; DEATH CAUSED BY SURVIVOR.
777	777	(a) If a person is the principal or an accomplice in wilfully
778	778	bringing about the death of a member or beneficiary whose death
779	779	would otherwise result in a benefit or benefit increase to the
780	780	person, the person is not eligible for, or entitled to, that benefit
781	781	or benefit increase. The determination of the board that a person
782	782	wilfully brought about the death, or was an accomplice in wilfully
783	783	bringing about the death, must be made during a meeting of the
784	784	board. A determination by the board under this section is not
785	785	controlled by any other finding in any other forum.
786	786	(b) A benefit or benefit increase payable under this Act
787	787	because of the death of a member or beneficiary shall be paid as if
788	788	the person who is no longer eligible for or entitled to the benefit
789	789	under Subsection (a) of this section predeceased the member or
790	790	beneficiary.
791	791	SECTION 26. Section 3.03(a), Chapter 824 (S.B. 817), Acts
792	792	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
793	793	Vernon's Texas Civil Statutes), is repealed.
794	794	SECTION 27. Section 5.03, Chapter 824 (S.B. 817), Acts of
795	795	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
796	796	Vernon's Texas Civil Statutes), as amended by this Act, applies
797	797	only to a disability retirement annuity for which an application is
798	798	made on or after the effective date of this Act. A disability
799	799	retirement annuity for which an application was made before the
800	800	effective date of this Act is governed by the law as it existed
801	801	immediately before the effective date of this Act, and that law is
802	802	continued in effect for that purpose.
803	803	SECTION 28. Sections 5.11(b-1) and 5.12(c-1), Chapter 824
804	804	(S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
805	805	(Article 6243o, Vernon's Texas Civil Statutes), as added by this
806	806	Act, and Section 6.12, Chapter 824 (S.B. 817), Acts of the 73rd
807	807	Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
808	808	Civil Statutes), as amended by this Act, apply only to a 13th or
809	809	14th check that is disbursed on or after the effective date of this
810	810	Act. A 13th or 14th check disbursed before the effective date of
811	811	this Act is governed by the law as it existed immediately before the
812	812	effective date of this Act, and that law is continued in effect for
813	813	that purpose.
814	814	SECTION 29. Except as provided by Section 6.02(a-1),
815	815	Chapter 824 (S.B. 817), Acts of the 73rd Legislature, Regular
816	816	Session, 1993 (Article 6243o, Vernon's Texas Civil Statutes), as
817	817	added by this Act, Sections 6.02 and 6.03, Chapter 824 (S.B. 817),
818	818	Acts of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
819	819	Vernon's Texas Civil Statutes), as amended by this Act, apply only
820	820	to a death benefit annuity for which an application is made on or
821	821	after the effective date of this Act. A death benefit annuity for
822	822	which an application is made before the effective date of this Act
823	823	is governed by the law as it existed immediately before the
824	824	effective date of this Act, and that law is continued in effect for
825	825	that purpose.
826	826	SECTION 30. This Act takes effect September 1, 2023.