By: Johnson of Dallas, et al. H.B. No. 4034
(Senate Sponsor - Johnson)
(In the Senate - Received from the House May 3, 2023;
May 4, 2023, read first time and referred to Committee on Finance;
May 16, 2023, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 16, Nays 1; May 16, 2023,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 4034 By: West
A BILL TO BE ENTITLED
AN ACT
relating to certain disability and death benefits payable by the
public retirement systems for police and fire fighters in certain
municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the David Walters Act.
SECTION 2. Section 6.04(f), Article 6243a-1, Revised
Statutes, is amended to read as follows:
(f) Subject to Subsections (f-1), (f-3), and (g) of this
section, the disability pension of a Group B member shall be
calculated as follows:
(1) for a member who began active service before March
1, 2011, the member's disability pension shall be the sum of:
(A) the member's number of years of pension
service earned before September 1, 2017, prorated for fractional
years, times three percent of the average computation pay
determined over the 36 consecutive months of pension service in
which the member received the highest computation pay; plus
(B) the number of years of pension service,
including pension service credit imputed under Section 6.05(c) of
this article, earned on or after September 1, 2017, prorated for
fractional years, times 2.5 percent [the applicable percentage
prescribed by Section 6.02(b-1) of this article] of the average
computation pay determined over the 60 consecutive months of
pension service in which the member received the highest
computation pay; or
(2) for a member who began active service on or after
March 1, 2011, the member's disability pension shall be the number
of years of pension service, including pension service credit
imputed under Section 6.05(c) of this article, prorated for
fractional years, times 2.5 percent of the average computation pay
determined over the 60 consecutive months of pension service in
which the member received the highest computation pay.
SECTION 3. Section 6.08, Article 6243a-1, Revised Statutes,
is amended by amending Subsections (b) and (b-2) and adding
Subsections (b-4) and (b-5) to read as follows:
(b) Subject to Subsection (b-2) of this section, death
benefits shall be computed as follows for the qualified survivors
of Group B members who die while on active service:
(1) the death benefit of a qualified survivor who is
the spouse of a member who began active service:
(A) before March 1, 2011, shall be the sum of:
(i) the number of years of pension service
earned before September 1, 2017, prorated for fractional years,
times, except as provided by Subsection (b-4) of this section, 1.5
percent of the average computation pay determined over the 36
consecutive months of pension service in which the Group B member
received the highest computation pay; plus
(ii) the number of years of pension
service, including pension service credit imputed under Section
6.05(c) of this article, after September 1, 2017, prorated for
fractional years, times, except as provided by Subsection (b-4) of
this section, 1.25 percent [the applicable percentage rate set
forth below] of the average computation pay determined over the 60
consecutive months of pension service in which the Group B member
received the highest computation pay[:
[Age of Member When Retirement Pension Begins Percent [Age of Member When Retirement Pension Begins Percent
[Age of Member When Retirement Pension Begins Percent
[58 and older 1.25% [58 and older 1.25%
[58 and older 1.25%
[57 1.2% [57 1.2%
[57 1.2%
[56 1.15% [56 1.15%
[56 1.15%
[55 1.10% [55 1.10%
[55 1.10%
[54 1.05% [54 1.05%
[54 1.05%
[53 and younger 1.0%]; or [53 and younger 1.0%]; or
[53 and younger 1.0%]; or
(B) on or after March 1, 2011, shall be the number
of years of pension service, including pension service imputed
under Section 6.05(c) of this article, prorated for fractional
years, times, except as provided by Subsection (b-4) of this
section, 1.25 percent of the average computation pay determined
over the 60 consecutive months of pension service in which the Group
B member received the highest computation pay;
(2) the death benefit of qualified survivors who are a
member's children shall be computed in the same manner as a spouse's
benefit is computed under Subdivision (1)(A) or (B) of this
subsection, as applicable, and shall be divided equally among all
of the children who are qualified survivors; and
(3) the death benefit of each qualified survivor who
is a member's dependent parent shall be computed in the same manner
as a spouse's Group B benefit is computed under Subdivision (1)(A)
or (B) of this subsection, as applicable.
(b-2) The death benefit calculated under Subsection (b) of
this section may not exceed the greater of:
(1) except as provided by Subsection (b-4) of this
section, 45 percent of the member's average computation pay
determined over the 36 or 60 consecutive months, as applicable, in
which the Group B member received the highest computation pay; or
(2) the vested and accrued death benefit as determined
on August 31, 2017.
(b-4) If a member dies in the line of duty, as determined by
the board under Subsection (b-5) of this section, the percentage
rate applied to the member's average computation pay under:
(1) Subsection (b)(1)(A)(i) of this section is 3
percent instead of 1.5 percent at such time as there are qualified
survivors who are either the member's children or surviving spouse,
but not both;
(2) Subsection (b)(1)(A)(ii) of this section is 2.5
percent instead of 1.25 percent at such time as there are qualified
survivors who are either the member's children or surviving spouse,
but not both;
(3) Subsection (b)(1)(B) of this section is 2.5
percent instead of 1.25 percent at such time as there are qualified
survivors who are either the member's children or surviving spouse,
but not both; and
(4) Subsection (b-2)(1) is 90 percent instead of 45
percent.
(b-5) A member is considered to have died in the line of duty
if the member's death is caused by the performance of the member's
duties for the member's department. The board shall determine
whether a member died in the line of duty. In making a determination
under this subsection, the board may consider as guidance the
determination of the same or similar issue made by another
governmental entity.
SECTION 4. Section 6.04(f), Article 6243a-1, Revised
Statutes, as amended by this Act, applies only to a disability
pension for which an application is filed on or after the effective
date of this Act. A disability pension for which an application is
filed before the effective date of this Act is governed by the law
in effect immediately before the effective date of this Act, and the
former law is continued in effect for that purpose.
SECTION 5. (a) In this section, "board" and "member" have
the meanings assigned by Section 2.01, Article 6243a-1, Revised
Statutes.
(b) Subject to Subsection (c) of this section, Section 6.08,
Article 6243a-1, Revised Statutes, as amended by this Act, applies
only to a death benefit payable on or after the effective date of
this Act.
(c) If a member died in the line of duty before September 1,
2023, as determined by the board in accordance with Section
6.08(b-5), Article 6243a-1, Revised Statutes, as added by this Act,
the death benefit payable on or after September 1, 2023, to the
member's surviving spouse or children shall be adjusted in
accordance with Section 6.08(b-4), Article 6243a-1, Revised
Statutes, as added by this Act, as applicable. The surviving spouse
or children of a member described by this subsection are not
entitled to payment of any adjusted benefits relating to death
benefits paid before September 1, 2023.
SECTION 6. This Act takes effect September 1, 2023.
* * * * *
[Age of Member When Retirement Pension Begins Percent
[58 and older 1.25%
[57 1.2%
[56 1.15%
[55 1.10%
[54 1.05%
[53 and younger 1.0%]; or