Texas 2023 - 88th Regular

Texas Senate Bill SB1207 Compare Versions

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1	1	S.B. No. 1207
2	2
3	3
4	4	AN ACT
5	5	relating to the retirement system in certain municipalities for
6	6	firefighters and police officers.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Sections 1.02(4-a), (5), (7), and (17), Chapter
9	9	824 (S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
10	10	(Article 6243o, Vernon's Texas Civil Statutes), are amended to read
11	11	as follows:
12	12	(4-a) "Catastrophic injury" means, except as provided
13	13	by Section 5.03(a-2) of this Act, irreparable physical bodily
14	14	injury sustained by a member as a direct and immediate result of the
15	15	member's engaging in an activity that:
16	16	(A) constitutes the performance of the member's
17	17	duties as a firefighter or police officer;
18	18	(B) involves an extraordinary degree of risk of
19	19	bodily injury or death; and
20	20	(C) does not result in death.
21	21	(5) "Code" means the United States Internal Revenue
22	22	Code of 1986 or a successor statute, unless the context requires
23	23	otherwise.
24	24	(7) "Dependent child" means:
25	25	(A) a person who is less than 18 years of age and
26	26	is a natural or adopted child of a deceased member or deceased
27	27	retiree; or
28	28	(B) a person:
29	29	(i) who is at least 18 years of age;
30	30	(ii) who is mentally or physically disabled
31	31	to the extent that the person is not capable of being
32	32	self-supporting; and
33	33	(iii) whose natural or adoptive parent is a
34	34	deceased member or deceased retiree[, provided that, for the year
35	35	immediately preceding the death of the member or retiree, the
36	36	deceased member or retiree claimed the person as a dependent on the
37	37	member's or retiree's federal income tax return].
38	38	(17) "Total salary" means all salary of a member:
39	39	(A) including:
40	40	(i) amounts picked up by the municipality
41	41	under Section 4.04(b) of this Act; and
42	42	(ii) amounts that would be included in
43	43	salary but for an election under Section 125(d), 132(f)(4), 401(k),
44	44	402(e)(3), 402(h)(1)(B), or 457(b) of the code; and
45	45	(B) excluding[, except]:
46	46	(i) [(A)] overtime pay, field training
47	47	officer's pay, bomb squad pay, SWAT team pay, K-9 pay, and hostage
48	48	team pay; and
49	49	(ii) [(B)] pay for unused accrued vacation
50	50	and sick leave, holiday pay, compensatory time pay, and bonus days
51	51	leave, or any similar items of compensation that may be paid in the
52	52	future.
53	53	SECTION 2. Section 2.02, Chapter 824 (S.B. 817), Acts of the
54	54	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
55	55	Texas Civil Statutes), is amended by amending Subsections (a) and
56	56	(b) and adding Subsection (b-1) to read as follows:
57	57	(a) The mayor of a municipality to which this Act applies,
58	58	or a qualified mayoral designee, serves on the board for the term of
59	59	the mayor's office, provided [except] that, if the mayor appoints a
60	60	qualified mayoral designee, the mayor may replace or remove that
61	61	qualified mayoral designee at the mayor's discretion, and the term
62	62	of the mayor or the mayor's qualified mayoral designee, as
63	63	applicable, on the board expires on the date the mayor ceases to be
64	64	mayor of the municipality for any reason. An individual designated
65	65	by the mayor to serve on the board under this subsection may only
66	66	serve on the board while the individual is a qualified mayoral
67	67	designee.
68	68	(b) The two members of the municipal governing body serve on
69	69	the board for the term of the office to which they are elected or
70	70	appointed, provided that the term of the member on the board expires
71	71	on the day the member ceases to be a member of the municipal
72	72	governing body for any reason.
73	73	(b-1) The governing body of a municipality shall fill a
74	74	vacancy on the board under Section 2.01(a)(2) of this Act in the
75	75	manner provided by Subsection (b) of this section.
76	76	SECTION 3. Section 3.01(a), Chapter 824 (S.B. 817), Acts of
77	77	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
78	78	Vernon's Texas Civil Statutes), is amended to read as follows:
79	79	(a) The board has complete authority and power to:
80	80	(1) administer the fund for the exclusive benefit of
81	81	all members, retirees, and beneficiaries;
82	82	(2) disburse benefits or otherwise order payments from
83	83	the fund as required by this Act;
84	84	(3) control the fund independently;
85	85	(4) conduct all litigation on behalf of the fund; and
86	86	(5) purchase with fund assets from one or more
87	87	insurers licensed to do business in this state one or more insurance
88	88	policies that provide for reimbursement of the fund and any
89	89	trustee, officer, or employee of the board for liability imposed or
90	90	damages because of an alleged act, error, or omission committed in
91	91	the trustee's, officer's, or employee's capacity as a fiduciary
92	92	officer or employee of the fund and for costs and expenses incurred
93	93	as a trustee, officer, or employee in defense of a claim for an
94	94	alleged act, error, or omission, as long as the insurance policy
95	95	does not provide for reimbursement of a trustee, officer, or
96	96	employee for liability imposed or expenses incurred because of the
97	97	trustee's, officer's, or employee's personal dishonesty, fraud,
98	98	lack of good faith, or intentional failure to act prudently.
99	99	SECTION 4. The heading to Section 3.03, Chapter 824 (S.B.
100	100	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
101	101	6243o, Vernon's Texas Civil Statutes), is amended to read as
102	102	follows:
103	103	Sec. 3.03. [ORDERS FOR] DISBURSEMENTS OF BENEFITS.
104	104	SECTION 5. Section 3.03(b), Chapter 824 (S.B. 817), Acts of
105	105	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
106	106	Vernon's Texas Civil Statutes), is amended to read as follows:
107	107	(b) Disbursements of benefits may not be made without a
108	108	record vote of the board.
109	109	SECTION 6. Section 4.03, Chapter 824 (S.B. 817), Acts of the
110	110	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
111	111	Texas Civil Statutes), is amended by amending Subsections (b), (c),
112	112	and (f) and adding Subsections (f-1) and (i) to read as follows:
113	113	(b) Subject to Subsections (c) and (e) of this section, a
114	114	[Not later than the 90th day after the date of the member's
115	115	reinstatement to an active status in the fire or police department,
116	116	the] member may restore credit not established during the period
117	117	the member was engaged in active service in any uniformed service by
118	118	paying [must file with the secretary of the board a written
119	119	statement of intent to pay] into the fund an amount equal to what
120	120	the member would have paid during that period if the member had
121	121	remained on active status in the fire or police department [during
122	122	the period of the member's absence in the uniformed service].
123	123	(c) The member must make the payment described by Subsection
124	124	(b) of this section in full within an amount of time after the
125	125	member's return to active status in the fire or police department
126	126	that is equal to three times the amount of time the member was
127	127	engaged in active service with the uniformed service [absent],
128	128	except that the maximum period for payment may not exceed five
129	129	years.
130	130	(f) If a [person who became a] member [before October 1,
131	131	1997,] does not make the payment authorized [required] under
132	132	Subsection (b) [(c)] of this section within the [required amount
133	133	of] time prescribed by Subsection (c) of this section and the member
134	134	would otherwise be eligible for credit under federal law, the
135	135	member may receive credit for the uniformed service if:
136	136	(1) the board determines that the member had good
137	137	cause for not complying with Subsection (b) or (c) of this section;
138	138	and
139	139	(2) the member [also] pays interest, compounded
140	140	annually, on the then current rate of a member's contribution from
141	141	the date the payment was required to the date the payment was made.
142	142	(f-1) The board shall set the rate of interest for purposes
143	143	of Subsection (f)(2) of this section.
144	144	(i) The survivors of a member of the fund who dies while
145	145	performing qualified military service, as defined in Section 414(u)
146	146	of the code, are entitled to any additional benefits, other than
147	147	benefit accruals relating to the period of qualified military
148	148	service, that would have been provided if the member had returned to
149	149	active status in the fire or police department and then terminated
150	150	employment as the result of death.
151	151	SECTION 7. Section 5.03, Chapter 824 (S.B. 817), Acts of the
152	152	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
153	153	Texas Civil Statutes), is amended by amending Subsections (a),
154	154	(a-1), (c), and (d) and adding Subsection (a-3) to read as follows:
155	155	(a) An active member of the fund who is not eligible to
156	156	receive a catastrophic injury disability annuity under Subsection
157	157	(a-1) of this section is eligible to retire and receive a regular
158	158	disability retirement annuity only if the member:
159	159	(1) makes a written application for regular disability
160	160	retirement with the board;
161	161	(2) establishes to the satisfaction of the board that
162	162	the member is permanently disabled through injury or disease so as
163	163	to be unable to perform the duties of any available position in the
164	164	department and, unless waived by the board, has been off active duty
165	165	because of that injury or disease for a continuous period of not
166	166	less than the 30 days preceding [before] the date of the application
167	167	for disability retirement;
168	168	(3) has had all member contributions required by this
169	169	Act made on the member's behalf;
170	170	(4) is not disqualified from receiving a disability
171	171	retirement annuity under [on indefinite suspension as described in]
172	172	Subsection (d) of this section; and
173	173	(5) has authorized the release to the board of all
174	174	medical records dated on or after the date of initial application
175	175	for employment with the department.
176	176	(a-1) An active member of the fund is eligible to retire and
177	177	receive a catastrophic injury disability retirement annuity only if
178	178	the member:
179	179	(1) makes a written application for catastrophic
180	180	injury disability retirement with the board;
181	181	(2) establishes to the satisfaction of the board that
182	182	the member is permanently so disabled as a result of a catastrophic
183	183	injury as to:
184	184	(A) be unable to secure any type of third-party
185	185	employment, or engage in any self-employment, other than sporadic
186	186	third-party or self-employment; and
187	187	(B) have, as a result of the lack of third-party
188	188	employment or self-employment, an annual income less than the
189	189	poverty level for one person in the 48 contiguous states of the
190	190	United States as provided under the poverty guidelines published
191	191	from time to time by the United States Department of Health and
192	192	Human Services, or similar guidelines selected by the board;
193	193	(3) has had all member contributions required by this
194	194	Act made on the member's behalf;
195	195	(4) is not disqualified from receiving a disability
196	196	retirement annuity under [on indefinite suspension as described in]
197	197	Subsection (d) of this section; and
198	198	(5) has authorized the release to the board of all
199	199	medical records dated on or after the date of initial application
200	200	for employment with the department.
201	201	(a-3) In making any determination under this section, the
202	202	board may consider or require any evidence the board considers
203	203	necessary or appropriate to make the determination.
204	204	(c) A [Except as provided by Subsection (d) of this section,
205	205	a] member [of the fund] who is on suspension for a specific period,
206	206	including a member whose indefinite suspension is reversed or
207	207	modified to a suspension for a specific period, and who becomes
208	208	disabled as a result of an injury sustained or disease contracted
209	209	while the member is on suspension is eligible for a disability
210	210	retirement annuity under Subsection (a) or (a-1) of this section,
211	211	as applicable, only if the suspended member makes up each
212	212	[deducted] contribution to the fund not made by the member [lost] by
213	213	reason of the suspension not later than the 30th day after the later
214	214	of the termination date of the suspension or the date the suspension
215	215	becomes final in accordance with Section 6.105 of this Act
216	216	[exhaustion of any appeal with respect to the suspension]. A
217	217	municipality to which this Act applies shall double-match all
218	218	contributions made by a member under this subsection.
219	219	(d) A member of the fund who is on indefinite suspension,
220	220	excluding an indefinite suspension reversed or modified to be a
221	221	suspension for a specific period, that becomes [is not eligible for
222	222	a disability retirement annuity until the] final in accordance with
223	223	Section 6.105 of this Act or who is terminated by the municipality,
224	224	[determination of the suspension and all appeals of that
225	225	determination are exhausted. A member of the fund who is on
226	226	indefinite suspension] is not entitled to a disability retirement
227	227	annuity [if the member is finally discharged]. [A member of the
228	228	fund who is on indefinite suspension but who is restored to duty or
229	229	who is given a suspension for a specific period is eligible for a
230	230	disability retirement annuity as provided by Subsection (a) of this
231	231	section.]
232	232	SECTION 8. Sections 5.04(a) and (a-1), Chapter 824 (S.B.
233	233	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
234	234	6243o, Vernon's Texas Civil Statutes), are amended to read as
235	235	follows:
236	236	(a) A member who is eligible to retire and receive a
237	237	disability retirement annuity under Section 5.03(a) of this Act is
238	238	entitled to receive an annuity from the fund equal to:
239	239	(1) 50 percent of the member's average total salary, if
240	240	the member has served three years or more before the date of
241	241	retirement;
242	242	(2) 50 percent of the member's average monthly total
243	243	salary as of the date of retirement multiplied by 12, if the member
244	244	has served at least two months and less than three years before the
245	245	date of retirement; or
246	246	(3) 50 percent of the member's average daily total
247	247	salary as of the date of retirement multiplied by 360, if the member
248	248	has served less than two months before the date of retirement.
249	249	(a-1) Subject to Subsection (a-2) of this section a member
250	250	who is eligible to retire and receive a catastrophic injury
251	251	disability retirement annuity under Section 5.03(a-1) of this Act
252	252	is entitled to receive an annuity from the fund equal to:
253	253	(1) 87.5 percent of the member's average total salary,
254	254	if the member has served three years or more before the date of
255	255	retirement;
256	256	(2) 87.5 percent of the member's average monthly total
257	257	salary as of the date of retirement multiplied by 12, if the member
258	258	has served at least two months and less than three years before the
259	259	date of retirement; or
260	260	(3) 87.5 percent of the member's average daily total
261	261	salary as of the date of retirement multiplied by 360, if the member
262	262	has served less than two months before the date of retirement.
263	263	SECTION 9. Sections 5.05(a-1), (a-3), (c), and (c-1),
264	264	Chapter 824 (S.B. 817), Acts of the 73rd Legislature, Regular
265	265	Session, 1993 (Article 6243o, Vernon's Texas Civil Statutes), are
266	266	amended to read as follows:
267	267	(a-1) A disability retiree who is awarded a catastrophic
268	268	injury disability annuity under Section 5.03(a-1) of this Act
269	269	shall, if required by the board, undergo a medical examination by
270	270	any reputable physician or physicians selected by the board:
271	271	(1) not later than 60 months after the date of the
272	272	award of the annuity by the board; and
273	273	(2) thereafter, not later than 60 months following the
274	274	last required medical examination of the disability retiree under
275	275	this subsection.
276	276	(a-3) Subject to Subsections (b) and [Subsection] (c) of
277	277	this section, based on an examination under Subsection
278	278	[Subsections] (a), (a-1), or (a-2) of this section, the board shall
279	279	determine whether the disability retirement annuity shall be
280	280	continued, decreased, restored to the original amount if it had
281	281	been decreased, or discontinued.
282	282	(c) For those retired because of disability on or after
283	283	August 30, 1971, the disability retirement annuity may not, except
284	284	in the case of discontinuance, be reduced to an amount that is less
285	285	than the product of:
286	286	(1) 2.25 percent multiplied by the number of years
287	287	that the retiree served in the department and contributed a portion
288	288	of salary as a member of the fund multiplied by the retiree's
289	289	average total salary, if the retiree served three years or more
290	290	before the date of retirement;
291	291	(2) 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 monthly total salary as of the date of retirement
295	295	multiplied by 12, if the retiree served at least two months and less
296	296	than three years before the date of retirement; or
297	297	(3) 2.25 percent multiplied by the number of years
298	298	that the retiree served in the department and contributed a portion
299	299	of salary as a member of the fund multiplied by the retiree's
300	300	average daily total salary as of the date of retirement multiplied
301	301	by 360, if the member has served less than two months before the
302	302	date of retirement.
303	303	(c-1) In making the computation under Subsections (b) and
304	304	[Subsection] (c) of this section, all fractional years shall be
305	305	prorated based on full months served in the department as a
306	306	contributing member of the fund before the date of retirement.
307	307	SECTION 10. The heading to Section 5.07, Chapter 824 (S.B.
308	308	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
309	309	6243o, Vernon's Texas Civil Statutes), is amended to read as
310	310	follows:
311	311	Sec. 5.07. OUTSIDE INCOME PENSION SUSPENSION OR REDUCTION.
312	312	SECTION 11. Section 5.07, Chapter 824 (S.B. 817), Acts of
313	313	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
314	314	Vernon's Texas Civil Statutes), is amended by adding Subsections
315	315	(a-1) and (c) and amending Subsection (b) to read as follows:
316	316	(a-1) If a retiree fails to provide an income tax return to
317	317	the board under Subsection (a) of this section, the board may
318	318	suspend the retiree's disability retirement annuity until the
319	319	retiree provides the required income tax return.
320	320	(b) Subject to Subsection (c) of this section, if [If] the
321	321	retiree received income from other employment, including
322	322	self-employment, during the preceding year, the board may reduce
323	323	the retiree's disability retirement annuity by the amount of $1 for
324	324	each month for each $2 of income earned by the retiree from the
325	325	other employment during each month of the previous year, except
326	326	that the disability retirement annuity may not be decreased below
327	327	the amount determined under Section 5.05(c) of this Act.
328	328	(c) The board may restore a disability retirement annuity
329	329	that has been reduced under Subsection (b) of this section. The
330	330	amount of the restored annuity must be the same as the amount of the
331	331	annuity before the reduction plus any applicable cost-of-living
332	332	increases under Section 5.09 of this Act that occurred during the
333	333	period the annuity was reduced. This subsection does not require
334	334	the board to allow or deny cost-of-living increases in any other
335	335	circumstances.
336	336	SECTION 12. Section 5.10, Chapter 824 (S.B. 817), Acts of
337	337	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
338	338	Vernon's Texas Civil Statutes), is amended by amending Subsections
339	339	(b), (c), (d), (f), and (j) and adding Subsections (b-1) and (d-1)
340	340	to read as follows:
341	341	(b) A distributee may elect, at the time and in the manner
342	342	prescribed by the board, to have any portion of an eligible rollover
343	343	distribution paid directly to an eligible retirement plan specified
344	344	by the distributee in a direct rollover. [Any member or beneficiary
345	345	who is entitled to receive any distribution that is an eligible
346	346	rollover distribution as defined by Section 402(c)(4) of the code
347	347	is entitled to have that distribution transferred directly to
348	348	another eligible retirement plan of the member's or beneficiary's
349	349	choice on providing direction to the fund regarding that transfer
350	350	in accordance with procedures established by the board.]
351	351	(b-1) For purposes of this subsection and Subsection (b) of
352	352	this section:
353	353	(1) "Direct rollover" means a payment by the fund to
354	354	the eligible retirement plan specified by a distributee.
355	355	(2) "Distributee" means a member or former member.
356	356	The term includes a member's or former member's surviving spouse or
357	357	designated beneficiary and a member's or former member's spouse or
358	358	former spouse who is the alternate payee under a qualified domestic
359	359	relations order, as defined by Section 414(p) of the code, with
360	360	regard to the interest of the spouse or former spouse.
361	361	(3) "Eligible retirement plan" means:
362	362	(A) an individual retirement account described
363	363	by Section 408(a) of the code;
364	364	(B) an individual retirement annuity described
365	365	by Section 408(b) of the code;
366	366	(C) a qualified annuity plan described by Section
367	367	403(a) of the code;
368	368	(D) a qualified trust described by Section 401(a)
369	369	of the code;
370	370	(E) an eligible deferred compensation plan
371	371	described by Section 457(b) of the code that is maintained by an
372	372	eligible employer described by Section 457(e)(1)(A) of the code;
373	373	(F) an annuity contract described by Section
374	374	403(b) of the code that accepts the distributee's eligible rollover
375	375	distribution; or
376	376	(G) in the case of an eligible rollover
377	377	distribution to a designated beneficiary who is not the surviving
378	378	spouse, or the spouse or former spouse under a qualified domestic
379	379	relations order, an individual retirement account or individual
380	380	retirement annuity only.
381	381	(4) "Eligible rollover distribution" means a
382	382	distribution of all or any portion of the balance to the credit of
383	383	the distributee. The term does not include:
384	384	(A) a distribution that is one of a series of
385	385	substantially equal periodic payments, paid not less frequently
386	386	than once a year, made over the life or life expectancy of the
387	387	distributee or the joint lives or joint life expectancies of the
388	388	distributee and the distributee's designated beneficiary;
389	389	(B) a series of payments for a specified period
390	390	of 10 years or more;
391	391	(C) a distribution to the extent the distribution
392	392	is required under Section 401(a)(9) of the code; or
393	393	(D) the portion of a distribution that is not
394	394	includable in gross income, unless the distributee directs that the
395	395	eligible rollover distribution be transferred directly to a
396	396	qualified trust that is part of a defined contribution plan that
397	397	agrees to separately account for the portion that is includable in
398	398	gross income and the portion that is not or to an individual
399	399	retirement account or individual annuity.
400	400	(c) The total salary taken into account for any purpose
401	401	under this Act [for any member of the fund] may not exceed the
402	402	annual compensation limitation under Section 401(a)(17) of the
403	403	code, effective January 1, 2017, which is $405,000 [$200,000 per
404	404	year] for an eligible member [participant] or $270,000 [$150,000
405	405	per year] for an ineligible member [participant]. For purposes of
406	406	this subsection, an eligible member is any employee who first
407	407	became a member before 1996 and an ineligible member is any other
408	408	member. The [These] dollar limits shall be [periodically] adjusted
409	409	annually for cost-of-living increases as provided by Section
410	410	401(a)(17) of the code [in accordance with guidelines provided by
411	411	the United States secretary of the treasury. For purposes of this
412	412	subsection, an eligible participant is any person who first became
413	413	a member before 1996, and an ineligible participant is any member
414	414	who is not an eligible participant].
415	415	(d) Accrued benefits under this Act become 100 percent
416	416	vested for a member on the earlier of:
417	417	(1) the date the member attains normal retirement age
418	418	[has completed 20 years of service];
419	419	(2) the earlier termination or partial termination of
420	420	the pension plan created by this Act, if it affects the member; or
421	421	(3) the complete discontinuance of contributions by
422	422	the municipality to the fund.
423	423	(d-1) For purposes of Subsection (d)(1) of this section,
424	424	"normal retirement age" means the age at which a member is entitled
425	425	to receive a service retirement benefit without reduction because
426	426	of age.
427	427	(f) Distribution of benefits must:
428	428	(1) begin not later than April 1 of the year following
429	429	the later of the calendar year in [during] which the member:
430	430	(A) becomes 70-1/2 years of age; or
431	431	(B) retires; and
432	432	(2) [must] otherwise conform to Section 401(a)(9) of
433	433	the code and the regulations adopted under that section of the code,
434	434	including regulations governing the incidental death benefit
435	435	distribution requirements.
436	436	(j) Notwithstanding any other provision of this Act, the
437	437	limitations on benefits imposed by Section 415 of the code and
438	438	Subsection (a) of this section must be adjusted each year to the
439	439	extent permitted by cost-of-living increases announced by the
440	440	secretary of the treasury under Section 415(d) of the code and
441	441	applicable law. A cost-of-living increase described by this
442	442	subsection applies to members who have terminated employment,
443	443	including members who have begun receiving benefits before the
444	444	effective date of the increase, and any benefits previously denied.
445	445	Benefits paid to make up for benefits previously denied are
446	446	considered the delayed payment of benefits earned before retirement
447	447	and not extra compensation earned after retirement. [To the extent
448	448	permitted by law, the board may adjust the benefits of retired
449	449	members and beneficiaries by increasing any retirement benefit that
450	450	was reduced because of Section 415 of the code. If Section 415 of
451	451	the code is amended to permit the payment of amounts previously
452	452	precluded under Section 415 of the code, the board may adjust the
453	453	benefits of retired members and beneficiaries, including the
454	454	restoration of benefits previously denied. Benefits paid under
455	455	this subsection are not considered as extra compensation earned
456	456	after retirement but as the delayed payment of benefits earned
457	457	before retirement.]
458	458	SECTION 13. Section 5.11, Chapter 824 (S.B. 817), Acts of
459	459	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
460	460	Vernon's Texas Civil Statutes), is amended by adding Subsection
461	461	(b-1) to read as follows:
462	462	(b-1) If a retiree is entitled to receive a 13th check in
463	463	accordance with Subsection (b) of this section, but dies before
464	464	payment of the 13th check and has no surviving spouse or dependent
465	465	child, the 13th check shall be paid to the retiree's estate.
466	466	SECTION 14. Section 5.12, Chapter 824 (S.B. 817), Acts of
467	467	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
468	468	Vernon's Texas Civil Statutes), is amended by adding Subsection
469	469	(c-1) to read as follows:
470	470	(c-1) If a retiree is entitled to receive a 14th check in
471	471	accordance with Subsection (c) of this section, but dies before
472	472	payment of the 14th check and has no surviving spouse or dependent
473	473	child, the 14th check shall be paid to the retiree's estate.
474	474	SECTION 15. Section 6.01(b), Chapter 824 (S.B. 817), Acts
475	475	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
476	476	Vernon's Texas Civil Statutes), is amended to read as follows:
477	477	(b) Subject to the applicable provisions of this Act,
478	478	including Section 6.02(j) of this Act, a [A] dependent child is
479	479	entitled to receive benefits based on the service of any parent who
480	480	is a member of the fund.
481	481	SECTION 16. Section 6.02, Chapter 824 (S.B. 817), Acts of
482	482	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
483	483	Vernon's Texas Civil Statutes), is amended by amending Subsections
484	484	(a), (d), (d-2), (e), (f), (g), and (j) and adding Subsections (a-1)
485	485	and (c-1) to read as follows:
486	486	(a) Subject to Section 6.03 of this Act and the provisions
487	487	of this section, if a member [or retiree receiving a disability
488	488	pension under Section 5.03(a) of this Act] dies leaving a surviving
489	489	spouse or at least one dependent child, the surviving spouse and the
490	490	children are entitled to receive from the fund an aggregate death
491	491	benefit annuity, computed and payable from the date of the member's
492	492	death. The surviving spouse may elect the annuity in an amount
493	493	that is equal to either:
494	494	(1) 75 [50] percent of the member's average total
495	495	salary; or
496	496	(2) the same percentage of the member's average total
497	497	salary that the member would have been entitled to receive as a
498	498	retirement annuity if the member could have retired on the date of
499	499	death.
500	500	(a-1) This subsection applies only to a death benefit
501	501	annuity payable under Subsection (a) of this section on August 31,
502	502	2023, that is based on the service of a member who died after
503	503	September 1, 2005, but before September 1, 2023. If the amount of a
504	504	death benefit annuity subject to this section is less than 75
505	505	percent of the member's average total salary, excluding any
506	506	applicable cost-of-living increases to the annuity under Section
507	507	5.09 of this Act, and the member's surviving spouse did not elect to
508	508	receive a portion of the benefit in a lump-sum payment under Section
509	509	6.14 of this Act, the amount of the annuity shall increase beginning
510	510	on September 1, 2023, to an amount equal to 75 percent of the
511	511	member's average total salary plus the amount of any cost-of-living
512	512	increases provided under Section 5.09 of this Act. A member's
513	513	surviving spouse or dependent child who is receiving an annuity
514	514	subject to this section is not entitled to any additional payment
515	515	under this subsection for the period before September 1, 2023.
516	516	(c-1) Subject to the provisions of this section, if a
517	517	retiree receiving a disability pension under Section 5.03(a) of
518	518	this Act dies leaving a surviving spouse or at least one dependent
519	519	child, the surviving spouse and dependent children are entitled to
520	520	receive from the fund an aggregate death benefit annuity, computed
521	521	and payable from the date of the retiree's death, equal to 50
522	522	percent of the retiree's average total salary as of the date of
523	523	retirement.
524	524	(d) Subject to Subsection (d-2) of this section, if, at the
525	525	time a death benefit annuity becomes payable under Subsection (a),
526	526	[or] (c), or (c-1) of this section, the deceased member or retiree
527	527	leaves a surviving spouse and at least one dependent child, the
528	528	board shall award:
529	529	(1) 75 percent of the annuity to the surviving spouse;
530	530	and
531	531	(2) 25 percent of the annuity:
532	532	(A) to the dependent child, if there is only one;
533	533	or
534	534	(B) if there is more than one dependent child, in
535	535	equal shares to each child.
536	536	(d-2) If, at the time a death benefit annuity becomes
537	537	payable under Subsection (a), [or] (c), or (c-1) of this section, a
538	538	[deceased member or] retiree leaves a surviving spouse who is not
539	539	entitled to an annuity on the date of the retiree's death under
540	540	Subsection (g-1) of this section as the result of Subsection (g-3)
541	541	of this section and the deceased retiree has one or more dependent
542	542	children, the dependent child or children shall be awarded 100
543	543	percent of the death benefit annuity until the annuity to the
544	544	surviving spouse becomes payable [effective] under Subsection
545	545	(g-3) of this section.
546	546	(e) If, at the time a death benefit annuity under Subsection
547	547	(a), [or] (c), or (c-1) of this section becomes payable, the
548	548	deceased leaves a surviving spouse and no dependent child, the
549	549	board shall award the annuity to the surviving spouse.
550	550	(f) If, at the time a death benefit annuity under Subsection
551	551	(a), [or] (c), or (c-1) of this section becomes payable, the
552	552	deceased leaves no surviving spouse and at least one dependent
553	553	child, the board shall award the annuity:
554	554	(1) to the dependent child, if there is only one; or
555	555	(2) if there is more than one child, in equal shares to
556	556	each child.
557	557	(g) A child who is adopted after the date of retirement of
558	558	the member is not entitled to a death benefit annuity under this
559	559	Act. A child who is born after the date of retirement of the member
560	560	is not entitled to a death benefit annuity under this Act unless the
561	561	retiree was married to the other parent of the child on the date of
562	562	retirement. A surviving spouse of a retiree whose status as a
563	563	surviving spouse resulted from a marriage after the date of the
564	564	retirement of the retiree is entitled to receive only the benefits,
565	565	if any, provided under Subsection (g-1) of this section or Section
566	566	6.08 of this Act.
567	567	(j) A dependent child as defined by Section 1.02(7)(B) of
568	568	this Act has the same rights as a dependent child as defined by
569	569	Section 1.02(7)(A) of this Act, except that any death benefit
570	570	annuity paid under this section [subsection] to a dependent child
571	571	as defined by Section 1.02(7)(B) of this Act may, at the discretion
572	572	of the board, be reduced to the extent of any state pension or aid,
573	573	including Medicaid, or any state-funded assistance received by the
574	574	child, regardless of whether the funds were made available to the
575	575	state by the federal government. In no other instance under this
576	576	Act is a child entitled to any benefit after becoming 18 years of
577	577	age.
578	578	SECTION 17. Section 6.03, Chapter 824 (S.B. 817), Acts of
579	579	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
580	580	Vernon's Texas Civil Statutes), is amended to read as follows:
581	581	Sec. 6.03. DEATH BENEFIT ANNUITY FOR SPOUSE AND CHILDREN OF
582	582	MEMBER KILLED IN LINE OF DUTY. (a) The death benefit annuity of a
583	583	surviving spouse and any dependent child of a member of the fund who
584	584	is killed in the line of duty is governed by this section.
585	585	(a-1) A member of the fund is considered to have been killed
586	586	in the line of duty if the member's death directly resulted from
587	587	traumatic injury sustained while engaging in or conducting
588	588	simulated training of a law enforcement activity, fire suppression
589	589	activity, rescue, hazardous material response, emergency medical
590	590	services, disaster relief, or other emergency response activity.
591	591	For purposes of this subsection, "traumatic injury" means severe
592	592	physical injury of sudden onset and of a life-ending or
593	593	life-threatening nature.
594	594	(b) [The board shall consider the finding of a municipality
595	595	to which this Act applies that a member was killed in the line of
596	596	duty as a guideline for its determination in applying this
597	597	section.] On an application for survivor's benefits by a surviving
598	598	spouse or dependent child, the fund shall pay the normal benefits
599	599	payable under Section 6.02 of this Act. When a benefit is payable
600	600	under this section, the death benefit annuity shall be recomputed,
601	601	applying Subsection (c) of this section, and any deficiency payment
602	602	shall be paid to the eligible beneficiaries.
603	603	(c) Notwithstanding the formulas for computing the total
604	604	amounts of annuities otherwise provided by this Act, if a member is
605	605	killed in the line of duty, the member's surviving spouse and
606	606	dependent children are entitled to a death benefit annuity equal
607	607	to:
608	608	(1) the total salary [of] the member received during
609	609	the 12-month period before the date of the member's death, if the
610	610	member served 12 months or more before the date of the member's
611	611	death;
612	612	(2) the average monthly total salary the member
613	613	received before the date of the member's death multiplied by 12, if
614	614	the member served at least two months and less than 12 months before
615	615	the date of the member's death; or
616	616	(3) the average daily total salary the member received
617	617	before the date of the member's death multiplied by 360, if the
618	618	member served less than two months before the date of the member's
619	619	death [at the time of death].
620	620	(d) The provisions of this Act [Rules provided by this
621	621	section] relating to qualification and disqualification for and
622	622	apportionment of benefits apply to a death benefit annuity computed
623	623	under this section [subsection]. A death benefit annuity computed
624	624	under this section [subsection] is divided in the manner described
625	625	by Section 6.02 of this Act and is subject to the same
626	626	cost-of-living adjustments that apply to annuities [pensions] for
627	627	service retirement.
628	628	SECTION 18. Section 6.04, Chapter 824 (S.B. 817), Acts of
629	629	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
630	630	Vernon's Texas Civil Statutes), is amended to read as follows:
631	631	Sec. 6.04. EFFECT OF MARRIAGE ON [REMARRIAGE;] BENEFITS
632	632	[AFTER TERMINATION OF MARRIAGE]. (a) Except as provided by
633	633	Subsection (e) of this section, the [The] right of a surviving
634	634	spouse or dependent child to annuity payments under this Act is not
635	635	affected by the surviving spouse's marriage [remarriage] or
636	636	dependent child's marriage under either statutory or common law if
637	637	the marriage [or remarriage] takes place on or after October 1,
638	638	1995.
639	639	(b) This subsection applies to a surviving spouse or
640	640	dependent child whose marriage under either statutory or common law
641	641	took place before October 1, 1995, and resulted in a termination of
642	642	benefits under the law in effect at the time of the marriage.
643	643	Subject to Subsection (d) of this section and except as provided by
644	644	Subsection (e) of this section, if on [If after] October 1, 1995,
645	645	the surviving spouse or dependent child is unmarried or if after
646	646	October 1, 1995, there is a termination of the marriage
647	647	[remarriage] of a surviving spouse or [of the marriage of a]
648	648	dependent child, the surviving spouse or dependent child, as
649	649	applicable, [that person] is entitled, on application, to 100
650	650	percent of the annuity that was in effect on the date of the
651	651	termination of benefits, payable from the date of the termination
652	652	of the marriage. A surviving spouse or dependent child entitled to
653	653	an annuity under this subsection is also entitled to any applicable
654	654	cost-of-living increases under Section 5.09 of this Act that
655	655	occurred on or after the date the marriage terminated.
656	656	[(c) A surviving spouse or dependent child who is unmarried
657	657	but receiving reduced benefits because of a prior marriage that
658	658	caused the benefits to be terminated is entitled to 100 percent of
659	659	the annuity that was in effect on the original date of termination
660	660	of benefits.]
661	661	(d) The benefit provided under Subsection [Subsections] (b)
662	662	[and (c)] of this section shall be provided prospectively beginning
663	663	October 1, 1995, and the surviving spouse or dependent child is not
664	664	entitled to receive any benefits or increases in benefits relating
665	665	to any period before October 1, 1995.
666	666	(e) A person must be living at the time of application to be
667	667	eligible for benefits under this section.
668	668	SECTION 19. Section 6.06, Chapter 824 (S.B. 817), Acts of
669	669	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
670	670	Vernon's Texas Civil Statutes), is amended to read as follows:
671	671	Sec. 6.06. COMMON-LAW MARRIAGES. Common-law marriages are
672	672	not recognized under this Act and benefits may not be conferred on
673	673	common-law spouses as beneficiaries unless a declaration of
674	674	informal marriage was made and recorded under Sections 2.402 and
675	675	2.404, Family Code, and their subsequent amendments, or any
676	676	successor statutes, before the member's death. The date the
677	677	declaration of informal marriage is recorded under Section 2.404,
678	678	Family Code, is the date of marriage for the purpose of determining
679	679	whether any benefit is to be awarded to a surviving common-law
680	680	spouse as a beneficiary under this Act.
681	681	SECTION 20. Section 6.09(b), Chapter 824 (S.B. 817), Acts
682	682	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
683	683	Vernon's Texas Civil Statutes), is amended to read as follows:
684	684	(b) An application for benefits under Subsection (a) of this
685	685	section must be accompanied by a copy of the deceased member's or
686	686	retiree's tax return filed for the last year ending before the
687	687	member's or retiree's death or an explanation satisfactory to the
688	688	board of why the tax return cannot be provided. The board may, on
689	689	its own initiative, make a thorough investigation, determine the
690	690	facts as to the dependency with respect to an application for
691	691	benefits made under Subsection (a) of this section, and at any time,
692	692	on the request of any beneficiary or any contributor to the fund,
693	693	reopen any award made to any member or dependent of any member who
694	694	is receiving annuity payments under this section and discontinue
695	695	those payments as to all or any of them. [The findings of the board
696	696	under this section and all annuities granted under this section are
697	697	final on all parties unless set aside or revoked by a court of
698	698	competent jurisdiction.]
699	699	SECTION 21. Section 6.10, Chapter 824 (S.B. 817), Acts of
700	700	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
701	701	Vernon's Texas Civil Statutes), is amended to read as follows:
702	702	Sec. 6.10. SUSPENSION RIGHTS. (a) Except as provided by
703	703	Subsection (b) of this section, if [If] a member dies who is on
704	704	[under] suspension at the time of the member's death, [including an
705	705	indefinite suspension that has not become final,] the member's
706	706	beneficiary has [beneficiaries have] the same rights as the
707	707	beneficiaries of any other member under this Act.
708	708	(b) If a member dies who is on indefinite suspension that
709	709	has not become final as of the date of the member's death, the
710	710	member's beneficiary has the same rights as the beneficiaries of
711	711	any other member under this Act in accordance with Subsection (a) of
712	712	this section only if the member's beneficiary provides sufficient
713	713	evidence to the board to establish to the board's satisfaction
714	714	that:
715	715	(1) an administrative appeal of the indefinite
716	716	suspension to the municipality was being actively pursued at the
717	717	time of death; and
718	718	(2) the member had a reasonable chance of having the
719	719	indefinite suspension reversed or modified to be a suspension for a
720	720	specific period.
721	721	SECTION 22. Chapter 824 (S.B. 817), Acts of the 73rd
722	722	Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
723	723	Civil Statutes), is amended by adding Section 6.105 to read as
724	724	follows:
725	725	Sec. 6.105. DATE SUSPENSION FINAL. For purposes of this
726	726	Act, an indefinite suspension or a suspension for a specific period
727	727	becomes final on the date:
728	728	(1) any administrative appeal of the suspension to the
729	729	municipality has been finally adjudicated by the municipality; or
730	730	(2) if no administrative appeal of the suspension is
731	731	made to the municipality, after the last day of the period for
732	732	initiating an administrative appeal has elapsed.
733	733	SECTION 23. Section 6.12, Chapter 824 (S.B. 817), Acts of
734	734	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
735	735	Vernon's Texas Civil Statutes), is amended by amending Subsection
736	736	(b) and adding Subsection (c) to read as follows:
737	737	(b) The amount of the 13th or 14th check is equal to the
738	738	amount of the annuity payment made in the last month of the
739	739	preceding fiscal year, except the amount of the check shall be
740	740	prorated for any beneficiary of:
741	741	(1) a member who died during the fiscal year preceding
742	742	the fiscal year in which the check is disbursed [who has been
743	743	receiving an annuity for less than one year] so that the amount of
744	744	the check is one-twelfth of the check that would have been paid to
745	745	the beneficiary receiving an annuity for a full year times the
746	746	number of full months an annuity has been paid; or
747	747	(2) a retiree who retired and died during the fiscal
748	748	year preceding the fiscal year in which the check is disbursed so
749	749	that the amount of the check is one-twelfth of the check that would
750	750	have been paid to the beneficiary receiving an annuity for a full
751	751	year times the number of full months from the date of the retiree's
752	752	retirement to the end of the fiscal year.
753	753	(c) If a beneficiary is entitled to receive a 13th or 14th
754	754	pension check in accordance with Subsection (a) of this section but
755	755	dies before payment of the 13th or 14th check, the 13th or 14th
756	756	check shall be paid to the beneficiary's estate.
757	757	SECTION 24. Section 6.14(i), Chapter 824 (S.B. 817), Acts
758	758	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
759	759	Vernon's Texas Civil Statutes), is amended to read as follows:
760	760	(i) If a surviving spouse elects to receive a lump-sum
761	761	payment under this section, the total death benefit annuity payable
762	762	[to the surviving spouse] under Section 6.02 of this Act is reduced
763	763	as provided by Subsection (j) of this section. The lump-sum
764	764	election does not affect the amount of a death benefit annuity
765	765	payable to a dependent child of a deceased member under Section 6.02
766	766	of this Act while a death benefit annuity is payable to the
767	767	surviving spouse.
768	768	SECTION 25. Chapter 824 (S.B. 817), Acts of the 73rd
769	769	Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
770	770	Civil Statutes), is amended by adding Section 6.15 to read as
771	771	follows:
772	772	Sec. 6.15. DENIAL OF BENEFITS; DEATH CAUSED BY SURVIVOR.
773	773	(a) If a person is the principal or an accomplice in wilfully
774	774	bringing about the death of a member or beneficiary whose death
775	775	would otherwise result in a benefit or benefit increase to the
776	776	person, the person is not eligible for, or entitled to, that benefit
777	777	or benefit increase. The determination of the board that a person
778	778	wilfully brought about the death, or was an accomplice in wilfully
779	779	bringing about the death, must be made during a meeting of the
780	780	board. A determination by the board under this section is not
781	781	controlled by any other finding in any other forum.
782	782	(b) A benefit or benefit increase payable under this Act
783	783	because of the death of a member or beneficiary shall be paid as if
784	784	the person who is no longer eligible for or entitled to the benefit
785	785	under Subsection (a) of this section predeceased the member or
786	786	beneficiary.
787	787	SECTION 26. Section 3.03(a), Chapter 824 (S.B. 817), Acts
788	788	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
789	789	Vernon's Texas Civil Statutes), is repealed.
790	790	SECTION 27. Section 5.03, Chapter 824 (S.B. 817), Acts of
791	791	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
792	792	Vernon's Texas Civil Statutes), as amended by this Act, applies
793	793	only to a disability retirement annuity for which an application is
794	794	made on or after the effective date of this Act. A disability
795	795	retirement annuity for which an application was made before the
796	796	effective date of this Act is governed by the law as it existed
797	797	immediately before the effective date of this Act, and that law is
798	798	continued in effect for that purpose.
799	799	SECTION 28. Sections 5.11(b-1) and 5.12(c-1), Chapter 824
800	800	(S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
801	801	(Article 6243o, Vernon's Texas Civil Statutes), as added by this
802	802	Act, and Section 6.12, Chapter 824 (S.B. 817), Acts of the 73rd
803	803	Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
804	804	Civil Statutes), as amended by this Act, apply only to a 13th or
805	805	14th check that is disbursed on or after the effective date of this
806	806	Act. A 13th or 14th check disbursed before the effective date of
807	807	this Act is governed by the law as it existed immediately before the
808	808	effective date of this Act, and that law is continued in effect for
809	809	that purpose.
810	810	SECTION 29. Except as provided by Section 6.02(a-1),
811	811	Chapter 824 (S.B. 817), Acts of the 73rd Legislature, Regular
812	812	Session, 1993 (Article 6243o, Vernon's Texas Civil Statutes), as
813	813	added by this Act, Sections 6.02 and 6.03, Chapter 824 (S.B. 817),
814	814	Acts of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
815	815	Vernon's Texas Civil Statutes), as amended by this Act, apply only
816	816	to a death benefit annuity for which an application is made on or
817	817	after the effective date of this Act. A death benefit annuity for
818	818	which an application is made before the effective date of this Act
819	819	is governed by the law as it existed immediately before the
820	820	effective date of this Act, and that law is continued in effect for
821	821	that purpose.
822	822	SECTION 30. This Act takes effect September 1, 2023.
823	823	______________________________ ______________________________
824	824	President of the Senate Speaker of the House
825	825	I hereby certify that S.B. No. 1207 passed the Senate on
826	826	April 5, 2023, by the following vote: Yeas 31, Nays 0.
827	827	______________________________
828	828	Secretary of the Senate
829	829	I hereby certify that S.B. No. 1207 passed the House on
830	830	May 2, 2023, by the following vote: Yeas 143, Nays 1,
831	831	three present not voting.
832	832	______________________________
833	833	Chief Clerk of the House
834	834	Approved:
835	835	______________________________
836	836	Date
837	837	______________________________
838	838	Governor