Texas 2025 - 89th Regular

Texas Senate Bill SB2234 Compare Versions

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

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1	1	89R15291 KFF-D
2	2	By: Creighton S.B. No. 2234
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5	5
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the firefighters' relief and retirement fund of certain
10	10	municipalities.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. The heading to Article 6243e.2(1), Revised
13	13	Statutes, is amended to read as follows:
14	14	Art. 6243e.2(1). FIREFIGHTERS' RELIEF AND RETIREMENT FUND IN
15	15	MUNICIPALITIES OF AT LEAST 2,000,000 [1,600,000] POPULATION.
16	16	SECTION 2. Section 1(13-e), Article 6243e.2(1), Revised
17	17	Statutes, is amended to read as follows:
18	18	(13-e) "Normal retirement age" means:
19	19	(A) [for a member, including a member who was
20	20	hired before the year 2017 effective date and who involuntarily
21	21	separated from service but has been retroactively reinstated in
22	22	accordance with an arbitration, civil service, or court ruling,
23	23	hired before the year 2017 effective date,] the age at which a [the]
24	24	member attains 20 years of service; or
25	25	(B) [except as provided by Paragraph (A) of this
26	26	subdivision, for a member hired or rehired on or after the year 2017
27	27	effective date,] the age at which the member first attains both the
28	28	age of at least 50 and at least 10 years of service [sum of the
29	29	member's age, in years, and the member's years of participation in
30	30	the fund equals at least 70].
31	31	SECTION 3. Section 2(a), Article 6243e.2(1), Revised
32	32	Statutes, is amended to read as follows:
33	33	(a) A firefighters' relief and retirement fund is
34	34	established in each incorporated municipality that has a population
35	35	of at least 2,000,000 [1,600,000] and a fully paid fire department.
36	36	SECTION 4. Section 4(a), Article 6243e.2(1), Revised
37	37	Statutes, is amended to read as follows:
38	38	(a) A member who terminates active service for any reason
39	39	other than death is entitled to receive a service pension provided
40	40	by this section if the member was:
41	41	(1) hired as a firefighter before the year 2017
42	42	effective date, including a member who was hired before the year
43	43	2017 effective date and who involuntarily separated from service
44	44	but has been retroactively reinstated in accordance with an
45	45	arbitration, civil service, or court ruling, at the age at which the
46	46	member attains 20 years of service; and
47	47	(2) except as provided by Subdivision (1) of this
48	48	subsection and subject to Subsection (b-2) of this section, hired
49	49	or rehired as a firefighter on or after the year 2017 effective
50	50	date, at the age at which the member attains 20 years of service
51	51	[when the sum of the member's age in years and the member's years of
52	52	participation in the fund equals at least 70].
53	53	SECTION 5. Sections 5(a), (b), (b-1), (c), (d), (l), and
54	54	(m), Article 6243e.2(1), Revised Statutes, are amended to read as
55	55	follows:
56	56	(a) A member who is eligible to receive a service pension
57	57	under Section 4 [4(a)(1)] of this article and who remains in active
58	58	service may elect to participate in the deferred retirement option
59	59	plan provided by this section. [A member who is eligible to receive
60	60	a service pension under Section 4(a)(2) of this article may not
61	61	elect to participate in the deferred retirement option plan
62	62	provided by this section.] On subsequently terminating active
63	63	service, a member who elected the DROP may apply for a monthly
64	64	service pension under Section 4 of this article, except that the
65	65	effective date of the member's election to participate in the DROP
66	66	will be considered the member's retirement date for determining the
67	67	amount of the member's monthly service pension. The member may also
68	68	apply for any DROP benefit provided under this section on
69	69	terminating active service. An election to participate in the
70	70	DROP, once approved by the board, is irrevocable.
71	71	(b) A member may elect to participate in the DROP by
72	72	complying with the election process established by the board. The
73	73	member's election may be made at any time beginning on the date the
74	74	member has completed 20 years of participation in the fund and is
75	75	otherwise eligible for a service pension under Section 4 [4(a)(1)]
76	76	of this article. Beginning on the first day of the month following
77	77	the month in which the member makes an election to participate in
78	78	the DROP, subject to board approval, and ending on the year 2017
79	79	effective date, amounts equal to the deductions made from the
80	80	member's salary under Section 13(c) of this article shall be
81	81	credited to the member's DROP account. Beginning after the year
82	82	2017 effective date, amounts equal to the deductions made from the
83	83	member's salary under Section 13(c) of this article may not be
84	84	credited to the member's DROP account.
85	85	(b-1) On or after the year 2017 effective date, an active
86	86	member may not participate in the DROP for more than 20 [13] years.
87	87	If a DROP participant remains in active service after the 20th
88	88	[13th] anniversary of the effective date of the member's DROP
89	89	election:
90	90	(1) subsequent deductions from the member's salary
91	91	under Section 13(c) of this article, except for unused leave pay,
92	92	may not be credited to the member's DROP account; and
93	93	(2) the account shall continue to be credited with
94	94	earnings in accordance with Subsection (d) of this section.
95	95	(c) After a member's DROP election becomes effective, an
96	96	amount equal to the monthly service pension the member would have
97	97	received under Section 4 of this article, if applicable, had the
98	98	member terminated active service on the effective date of the
99	99	member's DROP election shall be credited to a DROP account
100	100	maintained for the member. That monthly credit to the member's DROP
101	101	account shall continue until the earlier of the date the member
102	102	terminates active service or the 20th [13th] anniversary of the
103	103	date of the first credit to the member's DROP account.
104	104	(d) A member's DROP account shall be credited with earnings
105	105	at an annual rate equal to 70 [65] percent of the [compounded]
106	106	average annual return earned by the fund over the five years
107	107	preceding, but not including, the year during which the credit is
108	108	given. Notwithstanding the preceding, however, the credit to the
109	109	member's DROP account shall be at an annual rate of not less than
110	110	2.5 percent, irrespective of actual earnings.
111	111	(l) A member who participates in the DROP is ineligible for
112	112	disability benefits described by Section 6 of this article, except
113	113	that a member with less than 13 years of DROP participation is
114	114	eligible for the benefits described by Section 6(c). If a member
115	115	who has a disability described by Section 6(c) of this article is a
116	116	DROP participant with less than 13 years of DROP participation, the
117	117	disability benefit provided by Section 6(c)(1) shall be paid to the
118	118	member, as a monthly pension benefit, in addition to payments from
119	119	the DROP account balance. If a member who dies under the conditions
120	120	described by Section 7(c) of this article is a DROP participant at
121	121	the time of death or disability resulting in death, the benefit
122	122	provided by Section 7(c) shall be paid to the member's eligible
123	123	survivors, as a monthly pension benefit, in addition to payments
124	124	from the DROP account balance.
125	125	(m) A DROP participant with a break in service may receive
126	126	service credit within DROP for days worked after the regular
127	127	expiration of the maximum DROP participation period prescribed by
128	128	this section. The service credit shall be limited to the number of
129	129	days in which the participant experienced a break in service or the
130	130	number of days required to constitute 20 [13] years of DROP
131	131	participation, whichever is smaller. A retired member who
132	132	previously participated in the DROP and who returns to active
133	133	service is subject to the terms of this section in effect at the
134	134	time of the member's return to active service.
135	135	SECTION 6. Sections 8(a) and (c), Article 6243e.2(1),
136	136	Revised Statutes, are amended to read as follows:
137	137	(a) A [On or after the year 2017 effective date, a] member
138	138	who [is hired as a firefighter before the year 2017 effective date,
139	139	including a member who was hired before the year 2017 effective date
140	140	and who involuntarily separated from service but has been
141	141	retroactively reinstated in accordance with an arbitration, civil
142	142	service, or court ruling,] terminates active service for any reason
143	143	other than death with at least 10 years of participation, but less
144	144	than 20 years of participation, is entitled to a monthly deferred
145	145	pension benefit, beginning at age 50, in an amount equal to 1.7
146	146	percent of the member's average monthly salary multiplied by the
147	147	amount of the member's years of participation.
148	148	(c) A [Except as provided by Subsection (a) of this section,
149	149	a member who is hired or rehired as a firefighter on or after the
150	150	year 2017 effective date or a] member who terminates active service
151	151	[employment] for any reason other than death before the member has
152	152	completed 10 years of participation is entitled only to a refund of
153	153	the member's contributions without interest and is not entitled to
154	154	a deferred pension benefit under this section or to any other
155	155	benefit under this article. The member's refund shall be paid as
156	156	soon as administratively practicable after the effective date of
157	157	the member's termination of active service.
158	158	SECTION 7. Sections 1(13-e) and 4(a), Article 6243e.2(1),
159	159	Revised Statutes, as amended by this Act, apply to a member who
160	160	retires on or after the effective date of this Act.
161	161	SECTION 8. Section 5, Article 6243e.2(1), Revised Statutes,
162	162	as amended by this Act, applies to a member who participates in the
163	163	deferred retirement option plan on or after the effective date of
164	164	this Act regardless of whether the member began participation in
165	165	the plan before, on, or after the effective date of this Act.
166	166	SECTION 9. Section 8, Article 6243e.2(1), Revised Statutes,
167	167	as amended by this Act, applies to a member who terminates active
168	168	service on or after the effective date of this Act.
169	169	SECTION 10. This Act takes effect January 1, 2026.