Bill Text: TX HB1907 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to retirement benefits for certain peace officers who are members of the Teacher Retirement System of Texas.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-04-17 - No action taken in committee [HB1907 Detail]
Download: Texas-2017-HB1907-Introduced.html
85R7963 KFF-D | ||
By: Anderson of Dallas | H.B. No. 1907 |
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relating to retirement benefits for certain peace officers who are | ||
members of the Teacher Retirement System of Texas. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 821.001, Government Code, is amended by | ||
adding Subdivision (11-a) to read as follows: | ||
(11-a) "Peace officer" means a member of the | ||
retirement system who is elected, employed, or appointed as a peace | ||
officer under Article 2.12, Code of Criminal Procedure, Section | ||
37.081 or 51.203, Education Code, or other law. | ||
SECTION 2. Subchapter C, Chapter 824, Government Code, is | ||
amended by adding Sections 824.2025 and 824.2035 to read as | ||
follows: | ||
Sec. 824.2025. ELIGIBILITY FOR SERVICE RETIREMENT FOR PEACE | ||
OFFICERS. (a) This section applies notwithstanding any other law, | ||
including Section 824.202. | ||
(b) A member who is at least 55 years old and who has at | ||
least 10 years of service credit as a peace officer engaged in law | ||
enforcement activities by a school district or institution of | ||
higher education is eligible to retire and receive a service | ||
retirement annuity. | ||
(c) A member who has at least 20 years of service credit as a | ||
peace officer is eligible to retire regardless of age and receive a | ||
standard service retirement annuity in an amount provided by | ||
Section 824.203 or 824.2035, as applicable. | ||
(d) The standard combined service retirement annuity that | ||
is payable under Section 824.203 or 824.2035, as applicable, is | ||
based on retirement on or after the attainment of the normal | ||
retirement age, which for purposes of this section is the earlier of | ||
either the age of 57 or the age at which the sum of the member's age | ||
and amount of service credit equals the number 80. The annuity of a | ||
peace officer who retires before reaching the age of 57 under any | ||
eligibility criteria is actuarially reduced by five percent for | ||
each year of difference between the member's age at retirement and | ||
57. The actuarial reduction described by this section is in | ||
addition to any other actuarial reduction required by law. | ||
(e) A peace officer who retires before attaining the age of | ||
50 is entitled only to an annuity that is actuarially reduced from | ||
the annuity available at the age of 50 to the peace officer whose | ||
service credit annuity amount is based on the sum of the member's | ||
age and amount of peace officer service credit and other service | ||
credit, and is not entitled to have the annuity recalculated at | ||
normal retirement age. The standard or reduced annuity under this | ||
section is payable from appropriate accounts described by Section | ||
825.306. | ||
Sec. 824.2035. SERVICE RETIREMENT BENEFITS FOR CERTAIN | ||
PEACE OFFICERS. (a) This section applies to a member subject to | ||
Section 824.2025(c) who renders service as a peace officer after | ||
September 1, 2018. | ||
(b) The standard service retirement annuity payable for a | ||
peace officer subject to this section is an amount computed on the | ||
basis of the member's average annual compensation for the five | ||
years of service, whether or not consecutive, in which the member | ||
received the highest annual compensation, times the sum of the | ||
percentage factor used in the computation of a standard service | ||
retirement annuity under Section 824.203 plus 0.5 percent. | ||
(c) Optional retirement annuities provided by Section | ||
824.204 are available to a member eligible to receive a service | ||
retirement annuity under this section. | ||
(d) The total combined amount of an annuity under this | ||
section may not be less than the authorized benefit under | ||
Subsection (b) subtracted by any amount necessary because of | ||
selection of an optional annuity, because of retirement before the | ||
normal retirement age, or as provided by Subsection (e). | ||
(e) The standard combined service retirement annuity | ||
payable for at least 20 years of service credit as a peace officer | ||
may not exceed 100 percent of the average compensation computed | ||
under Subsection (b). | ||
(f) For purposes of this section, service as a peace officer | ||
is creditable as provided by rule of the board of trustees or on a | ||
month-to-month basis, whichever is greater. | ||
SECTION 3. Subchapter D, Chapter 824, Government Code, is | ||
amended by adding Section 824.3045 to read as follows: | ||
Sec. 824.3045. DISABILITY RETIREMENT BENEFITS FOR CERTAIN | ||
PEACE OFFICERS. (a) An annuity payable for a disability resulting | ||
from a risk to which peace officers are exposed because of the | ||
nature of the officers' duties is payable under the same terms and | ||
conditions that apply to other disability retirement annuities | ||
under this subtitle. | ||
(b) Except as provided by Subsection (c), a disability | ||
retirement annuity under this section is an amount, but not more | ||
than 100 percent, computed on the basis of the officer's average | ||
annual compensation, times a percentage derived by application of | ||
Section 824.2035(b). | ||
(c) A disability retirement annuity under this section is | ||
not reducible because of age and may not be less than 50 percent of | ||
the officer's average annual compensation regardless of the amount | ||
of service credited to the officer. | ||
(d) If a retiring member or retiree under this section | ||
presents evidence satisfactory to the retirement system that the | ||
person's disability makes the person incapable of substantial | ||
gainful activity solely because of the disability and is considered | ||
a total disability under federal social security law, the | ||
retirement system shall increase the person's disability | ||
retirement annuity to 100 percent of the officer's average annual | ||
compensation. | ||
(e) An annuity increase under Subsection (d) is not payable | ||
before the first month following the month in which the | ||
satisfactory evidence is received by the retirement system under | ||
Subsection (d). | ||
SECTION 4. Subchapter E, Chapter 824, Government Code, is | ||
amended by adding Section 824.4025 to read as follows: | ||
Sec. 824.4025. ANNUITY FOR SURVIVOR OF PEACE OFFICER. If a | ||
member who has at least 20 years of service credit as a peace | ||
officer dies, the amount of the death benefit annuity payable for | ||
the member's service as a peace officer is an amount computed under | ||
Section 824.2035, including any applicable reduction factors. | ||
SECTION 5. Section 825.402, Government Code, is amended to | ||
read as follows: | ||
Sec. 825.402. RATE OF MEMBER CONTRIBUTIONS. (a) Except as | ||
provided by Subsection (b), the [ |
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each member of the retirement system is: | ||
(1) five percent of the member's annual compensation | ||
or $180, whichever is less, for service rendered after August 31, | ||
1937, and before September 1, 1957; | ||
(2) six percent of the first $8,400 of the member's | ||
annual compensation for service rendered after August 31, 1957, and | ||
before September 1, 1969; | ||
(3) six percent of the member's annual compensation | ||
for service rendered after August 31, 1969, and before the first day | ||
of the 1977-78 school year; | ||
(4) 6.65 percent of the member's annual compensation | ||
for service rendered after the last day of the period described by | ||
Subdivision (3) and before September 1, 1985; | ||
(5) 6.4 percent of the member's annual compensation | ||
for service rendered after August 31, 1985, and before September 1, | ||
2014; | ||
(6) 6.7 percent of the member's annual compensation | ||
for service rendered after August 31, 2014, and before September 1, | ||
2015; | ||
(7) 7.2 percent of the member's annual compensation | ||
for service rendered after August 31, 2015, and before September 1, | ||
2016; | ||
(8) 7.7 percent of the member's annual compensation | ||
for service rendered after August 31, 2016, and before September 1, | ||
2017; and | ||
(9) for service rendered on or after September 1, | ||
2017, the lesser of: | ||
(A) 7.7 percent of the member's annual | ||
compensation; or | ||
(B) a percentage of the member's annual | ||
compensation equal to 7.7 percent reduced by one-tenth of one | ||
percent for each one-tenth of one percent that the state | ||
contribution rate for the fiscal year to which the service relates | ||
is less than the state contribution rate established for the 2015 | ||
fiscal year. | ||
(b) For service rendered after September 1, 2018, the rate | ||
of contributions for each member of the retirement system who is a | ||
peace officer is 9.5 percent of the member's annual compensation. | ||
SECTION 6. Subchapter E, Chapter 825, Government Code, is | ||
amended by adding Section 825.4093 to read as follows: | ||
Sec. 825.4093. EMPLOYER CONTRIBUTIONS FOR PEACE OFFICERS. | ||
(a) This section applies to an employer who reports to the | ||
retirement system the employment of a peace officer for service | ||
rendered as a peace officer after September 1, 2018. | ||
(b) In addition to employer contributions otherwise | ||
required under this subchapter, for each peace officer the employer | ||
reports to the retirement system, the employer shall contribute | ||
monthly to the retirement system one percent of the member's | ||
compensation. | ||
(c) Contributions under this section are subject to the | ||
requirements of Section 825.408. | ||
SECTION 7. Subchapter F, Chapter 825, Government Code, is | ||
amended by adding Section 825.5155 to read as follows: | ||
Sec. 825.5155. CERTIFICATION OF NAMES OF PEACE OFFICERS. | ||
Not later than the 12th day of the month following the month in | ||
which a person begins or ceases employment as a peace officer, the | ||
employer shall certify to the retirement system, in the manner | ||
prescribed by the system, the name of the employee and such other | ||
information as the system determines is necessary for the crediting | ||
of service and financing of benefits under this subtitle. | ||
SECTION 8. Section 824.3045, Government Code, as added by | ||
this Act, applies only to the disability retirement annuity of a | ||
peace officer who applies for the annuity on or after the effective | ||
date of this Act. The disability retirement annuity of a person who | ||
applies for the annuity before the effective date of this Act is | ||
governed by the law as it existed immediately before the effective | ||
date of this Act, and that law is continued in effect for that | ||
purpose. | ||
SECTION 9. Section 824.4025, Government Code, as added by | ||
this Act, applies only to a death benefit annuity that is applied | ||
for on or after the effective date of this Act. A death benefit | ||
annuity applied for before the effective date of this Act is | ||
governed by the law as it existed immediately before the effective | ||
date of this Act, and that law is continued in effect for that | ||
purpose. | ||
SECTION 10. The board of trustees of the Teacher Retirement | ||
System of Texas shall adopt rules as soon as possible after the | ||
effective date of this Act to implement the changes in law made by | ||
this Act, including rules that ensure that any benefit paid to the | ||
member under Section 824.2035, Government Code, as added by this | ||
Act, is reasonably proportionate to the member's contribution under | ||
Section 825.402, Government Code, as amended by this Act. | ||
SECTION 11. This Act takes effect September 1, 2017. |