| 1 | 1 | | 88R7621 KFF-D |
|---|
| 2 | 2 | | By: West S.B. No. 2590 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to participation in a deferred retirement option plan by |
|---|
| 8 | 8 | | members of the retirement systems for police and fire fighters in |
|---|
| 9 | 9 | | certain municipalities. |
|---|
| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 11 | 11 | | SECTION 1. Section 6.14(c), Article 6243a-1, Revised |
|---|
| 12 | 12 | | Statutes, is amended to read as follows: |
|---|
| 13 | 13 | | (c) Each month after a member has made an election to |
|---|
| 14 | 14 | | participate in the DROP and indicated a desire to receive a |
|---|
| 15 | 15 | | retirement pension under Sections 6.01(b) and (c), Section 6.01(e), |
|---|
| 16 | 16 | | or Section 6.02(b), (c), (d), or (e) of this article, whichever is |
|---|
| 17 | 17 | | applicable, and through the month before the month in which the |
|---|
| 18 | 18 | | member leaves active service, an amount equal to the retirement |
|---|
| 19 | 19 | | pension the member would have received under the applicable |
|---|
| 20 | 20 | | subsection for that month if the member had left active service and |
|---|
| 21 | 21 | | been granted a retirement pension by the board on the effective date |
|---|
| 22 | 22 | | of DROP participation shall be credited to a separate DROP account |
|---|
| 23 | 23 | | maintained within the fund for the benefit of the member. Amounts |
|---|
| 24 | 24 | | held in the DROP account of a member shall be credited at the end of |
|---|
| 25 | 25 | | each calendar month. Notwithstanding this section, effective |
|---|
| 26 | 26 | | January 1, 2018, a member on active service who has 20 [10] years or |
|---|
| 27 | 27 | | more of participation in DROP shall no longer have the amount of the |
|---|
| 28 | 28 | | member's retirement pension credited to the member's DROP account |
|---|
| 29 | 29 | | while the member is on active service. |
|---|
| 30 | 30 | | SECTION 2. Section 6.14(c), Article 6243a-1, Revised |
|---|
| 31 | 31 | | Statutes, as amended by this Act, applies to a member who |
|---|
| 32 | 32 | | participates in the deferred retirement option plan established |
|---|
| 33 | 33 | | under that section regardless of whether the member began |
|---|
| 34 | 34 | | participation in the plan before, on, or after the effective date of |
|---|
| 35 | 35 | | this Act. |
|---|
| 36 | 36 | | SECTION 3. This Act takes effect September 1, 2023. |
|---|