Texas 2025 - 89th Regular

Texas House Bill HB4591 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R16864 KFF-F
2	2	By: González of El Paso H.B. No. 4591
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to contributions to and benefits under certain fire and
10	10	police pension funds.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 1A, Chapter 101 (H.B. 31), Acts of the
13	13	43rd Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
14	14	Texas Civil Statutes), is amended by adding Subdivision (3-a) to
15	15	read as follows:
16	16	(3-a) "Qualified actuary" means an actuary that meets the
17	17	qualifications under Section 10A(b)(1) of this Act.
18	18	SECTION 2. Section 2, Chapter 101 (H.B. 31), Acts of the
19	19	43rd Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
20	20	Texas Civil Statutes), is amended to read as follows:
21	21	Sec. 2. PARTICIPATION IN FUND; WAGE DEDUCTIONS. Each
22	22	member fireman and policeman in the employment of such city or town
23	23	must participate in said fund, except in times of national
24	24	emergency those persons as are employed during that time shall not
25	25	be required to participate in the fund, and said city or town shall
26	26	be authorized to deduct a sum of not less than one per cent (1%) nor
27	27	in excess of six per cent (6%) of his wages from each month to form a
28	28	part of the fund known as the Firemen and Policemen Pension Fund,
29	29	except that the city or town shall deduct a sum less than one per
30	30	cent (1%) or more than six per cent (6%) of the member's wages each
31	31	month to form a part of the fund if the board of trustees of that
32	32	fund increases or decreases the percentage of wages to be
33	33	contributed to the fund under the provisions of Section 10A, 14A-1,
34	34	or 14B [14A] of this Act. The amount to be deducted from the wages
35	35	of those named above who must participate in the fund is to be
36	36	determined by the board of trustees as provided for in Section 1 of
37	37	this Act within the minimum and maximum deductions herein provided
38	38	or as otherwise provided under the provisions of Section 10A,
39	39	14A-1, or 14B [14A] of this Act.
40	40	SECTION 3. Section 3, Chapter 101 (H.B. 31), Acts of the
41	41	43rd Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
42	42	Texas Civil Statutes), is amended to read as follows:
43	43	Sec. 3. PAYMENTS TO FUND. There shall be deducted for such
44	44	fund from the wages of each fireman and policeman a sum to be
45	45	determined by the board of trustees under the provisions of Section
46	46	[Sections] 2, 10A, 14A-1, or 14B [and 14A] of this Act. Any
47	47	donations made to such fund and rewards received by any member of
48	48	either of said funds, and all funds received from any source for
49	49	such fund shall be deposited in like manner to the credit of such
50	50	fund.
51	51	SECTION 4. Sections 10A(b) and (c), Chapter 101 (H.B. 31),
52	52	Acts of the 43rd Legislature, 1st Called Session, 1933 (Article
53	53	6243b, Vernon's Texas Civil Statutes), are amended to read as
54	54	follows:
55	55	(b) None of the changes made under Subsection (a) of this
56	56	section may be made unless all of the following conditions are
57	57	sequentially complied with:
58	58	(1) the change must be approved by a qualified actuary
59	59	selected by a four-fifths vote of the Board; the actuary's approval
60	60	must be based on an actuarial finding that the change is supported
61	61	by the existing funding status of the fund or by a contribution
62	62	increase by the city or town or by both the city or town and the
63	63	members of the pension fund; the actuary, if an individual, must be
64	64	a Fellow of the Society of Actuaries or a Fellow of the Conference
65	65	of Actuaries in Public Practice or a Member of the American Academy
66	66	of Actuaries; the actuary, if an actuarial consulting firm, must
67	67	be established in the business of providing actuarial consulting
68	68	services to pension plans and have experienced personnel able to
69	69	provide the requested services; the findings upon which the
70	70	properly selected and qualified actuary's approval are based are
71	71	not subject to judicial review;
72	72	(2) the change must be approved by a majority of all
73	73	persons then making contributions to the fund as employees of a
74	74	department to which the change would directly apply, voting by
75	75	secret ballot at an election held after 10 [ten (10)] days' notice
76	76	given by posting at a prominent place in every station or substation
77	77	of a department to which the change would directly apply and in the
78	78	city hall;
79	79	(3) the changes, except changes made under the
80	80	provisions of [Subdivision (1),] Subsection (a)(1) [(a),] of this
81	81	section, shall apply only to active member employees who are
82	82	members of the affected departments at the time the change becomes
83	83	effective and those who enter the departments thereafter; and
84	84	(4) the changes shall not deprive any person, without
85	85	his written consent, of any right to receive a pension or benefits
86	86	which have already become vested and matured.
87	87	(c) If the Board of Trustees proposes to change benefits
88	88	under [Subdivision (1),] Subsection (a)(1) [(a),] of this section,
89	89	the change is not effective until the change is finally approved in
90	90	accordance with this subsection. The Board shall submit the change
91	91	for approval by the city's or town's governing body. If disapproved
92	92	by the governing body, or if the governing body fails to act not
93	93	later than the 60th day after the date [within sixty (60) days] of
94	94	presentation to the governing body, the Board, by resolution passed
95	95	by a majority of the whole Board, plus one, may require the city's
96	96	or town's governing body to hold an election, as soon as
97	97	practicable, for approval of the change by the qualified voters of
98	98	the city or town. Any change proposed and subsequently approved by
99	99	the governing body of the city or town or by the voters, as
100	100	applicable, under this subsection becomes effective as of the
101	101	beginning of the city's or town's next fiscal year.
102	102	SECTION 5. Chapter 101 (H.B. 31), Acts of the 43rd
103	103	Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
104	104	Texas Civil Statutes), is amended by amending Sections 14, 14A, and
105	105	14B and adding Section 14A-1 to read as follows:
106	106	Sec. 14. USE OF PUBLIC FUNDS; CITY OR TOWN MINIMUM
107	107	CONTRIBUTION. (a) Except as provided by this section and Section
108	108	14A, 14A-1, or 14B of this Act, no funds shall be paid out of the
109	109	public treasury of any such incorporated city or town, in carrying
110	110	out any of the provisions of this law, except on a majority vote of
111	111	the voters of such city or town, and where such funds have been
112	112	voted on as provided by law, said city or town shall contribute such
113	113	amount.
114	114	(b) Subject to an increase under Section 14A or 14A-1 of
115	115	this Act or a decrease under Section 14B of this Act, the city or
116	116	town shall contribute an amount to the pension fund that is not less
117	117	than 18 percent of the total amount expended by the city or town on
118	118	member wages.
119	119	Sec. 14A. CITY OR TOWN CONTRIBUTION INCREASES. (a) The
120	120	city or town may increase its contribution rate above the rate
121	121	prescribed by Section 14(b) of this Act based on a qualified
122	122	actuary's report only if the governing body of the city or town, or
123	123	a majority vote of the voters of the city or town, approves the
124	124	increase to the city or town contribution rate.
125	125	(b) The Board of Trustees may submit for approval by the
126	126	city's or town's governing body a proposed contribution rate
127	127	increase under Subsection (a) of this section. If the proposed
128	128	contribution rate increase is disapproved by the governing body, or
129	129	if the governing body fails to act not later than the 60th day after
130	130	the date the proposal is presented to the governing body, the Board,
131	131	by resolution passed by a majority of the whole Board, plus one, may
132	132	require the city's or town's governing body to hold an election, as
133	133	soon as practicable, for approval of the change by the qualified
134	134	voters of the city or town. Any change proposed and subsequently
135	135	approved by the governing body or by the voters, as applicable,
136	136	under this subsection becomes effective as of the beginning of the
137	137	city's or town's next fiscal year.
138	138	Sec. 14A-1. JOINT CITY OR TOWN AND MEMBER CONTRIBUTION
139	139	INCREASES. (a) If at any time a qualified actuary [that meets the
140	140	requirements of Subdivision (1), Subsection (b), Section 10A of
141	141	this Act,] determines that the total contribution rate, expressed
142	142	as a percentage of wages, is insufficient to amortize the unfunded
143	143	actuarial accrued liability, as defined under the applicable
144	144	Governmental Accounting Standards Board Statement [No. 25], over a
145	145	30-year [40-year] period:
146	146	(1) the city's or town's governing body may increase
147	147	the city or town contribution rate; and
148	148	(2) to the extent that the city or town contribution
149	149	rate increases under Subdivision (1) of this subsection, the member
150	150	contribution rate must increase by an amount equal to the member
151	151	contribution rate before the increase multiplied by a fraction:
152	152	(A) the numerator of which is the increase in the
153	153	amount of the city or town contribution rate; and
154	154	(B) the denominator of which is the amount of the
155	155	city or town contribution rate before the increase.
156	156	(b) The sum of the city or town contribution rate and the
157	157	member contribution rate after an increase under this section may
158	158	not exceed the total contribution rate determined by the qualified
159	159	actuary to be necessary to amortize the unfunded actuarial accrued
160	160	liability over a 30-year [forty (40) year] period.
161	161	Sec. 14B. CITY OR TOWN AND MEMBER CONTRIBUTION DECREASES.
162	162	(a) If at any time a qualified actuary [that meets the requirements
163	163	of Section 10A(b)(1) of this Act] determines that the pension fund
164	164	has sufficient assets to have no [total contribution rate,
165	165	expressed as a percentage of wages, is sufficient to amortize the]
166	166	unfunded actuarial accrued liability, as defined under the
167	167	applicable Governmental Accounting Standards Board Statement
168	168	[No. 25, over a 25-year period]:
169	169	(1) the city's or town's governing body may decrease
170	170	the city or town contribution rate; and
171	171	(2) to the extent that the city or town contribution
172	172	rate decreases under Subdivision (1) of this subsection, the member
173	173	contribution rate must decrease by an amount equal to the member
174	174	contribution rate before the decrease multiplied by a fraction:
175	175	(A) the numerator of which is the decrease in the
176	176	amount of the city or town contribution rate; and
177	177	(B) the denominator of which is the amount of the
178	178	city or town contribution rate before the decrease.
179	179	(b) The sum of the city or town contribution rate and the
180	180	member contribution rate after a decrease under this section may
181	181	not be less than the total contribution rate, as determined by the
182	182	qualified actuary, required for the pension fund to have no [be
183	183	necessary to amortize the] unfunded actuarial accrued liability
184	184	[over a 25-year period].
185	185	SECTION 6. Section 14(b), Chapter 101 (H.B. 31), Acts of the
186	186	43rd Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
187	187	Texas Civil Statutes), as added by this Act, applies to
188	188	contributions made to the pension fund subject to that section on or
189	189	after May 1, 2023.
190	190	SECTION 7. This Act takes effect September 1, 2025.