| 1 | 1 | | 88R9097 BDP-D |
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| 2 | 2 | | By: Parker S.B. No. 1559 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to contributions to, benefits under, and administration of |
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| 8 | 8 | | Texas local fire fighters' retirement systems. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 29(b), Texas Local Fire Fighters |
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| 11 | 11 | | Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
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| 12 | 12 | | amended to read as follows: |
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| 13 | 13 | | (b) A municipality or other political subdivision that has |
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| 14 | 14 | | employees who are participating members of a retirement system |
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| 15 | 15 | | shall make contributions to the system each payroll period. Except |
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| 16 | 16 | | as provided by Subsection (d) of this section, contributions |
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| 17 | 17 | | required under this subsection are computed on the total |
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| 18 | 18 | | compensation paid to the employees who are participating members of |
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| 19 | 19 | | the system. A municipality or other political subdivision is |
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| 20 | 20 | | required to make contributions under this subsection at the same |
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| 21 | 21 | | rate paid by employees or 12 percent, whichever is the smaller rate. |
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| 22 | 22 | | The governing body of a municipality or other political subdivision |
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| 23 | 23 | | by ordinance or, in accordance with Section 29A of this Act, by |
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| 24 | 24 | | contract may adopt a rate of employer contributions that is greater |
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| 25 | 25 | | than the rate required by this subsection. |
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| 26 | 26 | | SECTION 2. Texas Local Fire Fighters Retirement Act |
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| 27 | 27 | | (Article 6243e, Vernon's Texas Civil Statutes), is amended by |
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| 28 | 28 | | adding Section 29A to read as follows: |
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| 29 | 29 | | Sec. 29A. CONTRACT TO INCREASE EMPLOYER CONTRIBUTIONS AND |
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| 30 | 30 | | MAKE CERTAIN RELATED SYSTEM MODIFICATIONS. (a) A municipality or |
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| 31 | 31 | | other political subdivision may contract with the board of trustees |
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| 32 | 32 | | of a retirement system to adopt a rate of employer contributions |
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| 33 | 33 | | that is greater than the rate required by Section 29(b) of this Act. |
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| 34 | 34 | | (b) Notwithstanding any other law, a contract entered into |
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| 35 | 35 | | under this section may include provisions modifying the following |
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| 36 | 36 | | with respect to a retirement system: |
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| 37 | 37 | | (1) employee contributions; |
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| 38 | 38 | | (2) actuarial assumptions, provided the actuarial |
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| 39 | 39 | | assumptions are approved by an actuary who meets the qualifications |
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| 40 | 40 | | prescribed by Section 7(c) of this Act; and |
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| 41 | 41 | | (3) benefits. |
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| 42 | 42 | | SECTION 3. (a) Except as provided by Subsection (b) of this |
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| 43 | 43 | | section, a contract described by Section 29A, Texas Local Fire |
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| 44 | 44 | | Fighters Retirement Act (Article 6243e, Vernon's Texas Civil |
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| 45 | 45 | | Statutes), as added by this Act, that was entered into by a |
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| 46 | 46 | | municipality or other political subdivision and the board of |
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| 47 | 47 | | trustees of a retirement system before the effective date of this |
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| 48 | 48 | | Act is validated as of the date the contract was made or attempted |
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| 49 | 49 | | to be made. |
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| 50 | 50 | | (b) This section does not validate: |
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| 51 | 51 | | (1) an act that, under the law of this state at the |
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| 52 | 52 | | time the act occurred, was a misdemeanor or felony; or |
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| 53 | 53 | | (2) a matter that on the effective date of this Act: |
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| 54 | 54 | | (A) is involved in litigation if the litigation |
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| 55 | 55 | | ultimately results in the matter being held invalid by a final |
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| 56 | 56 | | judgment of a court; or |
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| 57 | 57 | | (B) has been held invalid by a final judgment of a |
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| 58 | 58 | | court. |
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| 59 | 59 | | SECTION 4. This Act takes effect September 1, 2023. |
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