Texas 2023 88th Regular

Texas House Bill HB4034 House Committee Report / Bill

Filed 04/16/2023

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                    88R12602 KFF-F
 By: Johnson of Dallas, Rose, Bryant, H.B. No. 4034
 González of Dallas, Frazier, et al.


 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.  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 2.  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 3.  The changes in law made by this Act apply only to
 a disability pension or death benefit for which an application is
 filed on or after the effective date of this Act. A disability
 pension or death benefit 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 4.  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