Bill Text: TX HB2572 | 2015-2016 | 84th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the firefighters' relief and retirement fund in certain municipalities.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2015-05-07 - Committee report sent to Calendars [HB2572 Detail]
Download: Texas-2015-HB2572-Introduced.html
Bill Title: Relating to the firefighters' relief and retirement fund in certain municipalities.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2015-05-07 - Committee report sent to Calendars [HB2572 Detail]
Download: Texas-2015-HB2572-Introduced.html
By: Turner of Harris | H.B. No. 2572 |
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relating to the firefighters relief and retirement fund in certain | ||||||
municipalities. | ||||||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||||||
SECTION 1. Section 1, Article 6243e.2(1), Revised Statutes, | ||||||
is amended by adding a new subsection (16-a) to read as follows: | ||||||
(16-a) "Unused leave pay" means the accrued value of unused | ||||||
leave time due to the employee at separation from service. | ||||||
SECTION 2. Section 5, Article 6243e.2(1), Revised Statutes, | ||||||
is amended by amending subsection (b) and adding a new subsection | ||||||
(c-1) to read as follows: | ||||||
(b) A member may elect to participate in the DROP by | ||||||
complying with the election process established by the board. The | ||||||
member's election may be made at any time beginning on the date the | ||||||
member has completed 20 years of participation in the fund and is | ||||||
otherwise eligible for a service pension under Section 4 of this | ||||||
article. The election becomes effective on the first day of the | ||||||
month following the month in which the board approves the member's | ||||||
DROP election. Beginning on the effective date of the member's DROP | ||||||
election, amounts equal to the deductions made from the member's | ||||||
salary under Sections 13(c) and 13(e-1) of this article shall be | ||||||
credited to the member's DROP account. A member may not participate | ||||||
in the DROP for more than 10 years. If a DROP participant remains in | ||||||
active service after the 10th anniversary of the effective date of | ||||||
the member's DROP election, subsequent deductions from the member's | ||||||
salary under Section 13(c) of this article may not be credited to | ||||||
the member's DROP account and may not otherwise increase any | ||||||
benefit payable from the fund for the member's service. | ||||||
(c-1) Notwithstanding anything to the contrary in | ||||||
Subsections (b) and (c) of this section, upon separation from | ||||||
service, an amount equal to a DROP participant's entire unused | ||||||
leave pay received as a contribution from the municipality by the | ||||||
fund shall be credited to the DROP participant's DROP account in | ||||||
accordance with Section 13(c) of this article. | ||||||
SECTION 3. Section 13, Article 6243e.2(1), Revised | ||||||
Statutes, is amended by amending subsections (c) and (d) and adding | ||||||
a new subsection (e-1) to read as follows: | ||||||
(c) Each member in active service shall make contributions | ||||||
to the fund in an amount equal to 9 [ |
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salary at the time of the contribution[ |
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identified by the fund to the municipality for purposes of this | ||||||
section, shall make contributions to the fund in an amount equal to | ||||||
100% of the DROP participant's unused leave pay, and the unused | ||||||
leave pay amounts contributed as to DROP participants shall be | ||||||
credited to the DROP accounts of such DROP participants. The | ||||||
governing body of the municipality shall deduct the member's | ||||||
contributions [ |
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contributions to the fund as soon as practicable. | ||||||
(d) The municipality shall make contributions to the fund | ||||||
once every two weeks in an amount equal to the product of the | ||||||
contribution rate certified by the board and the aggregate salaries | ||||||
paid to members of the fund during the period for which the | ||||||
contribution is made. The board shall certify the municipality's | ||||||
contribution rate for each year or portion of a year based on the | ||||||
results of actuarial valuations made at least every three years. | ||||||
The municipality's contribution rate shall be composed of the | ||||||
normal cost plus the level percentage of salary payment required to | ||||||
amortize the unfunded actuarial liability over a constant period of | ||||||
30 years computed on the basis of an acceptable actuarial reserve | ||||||
funding method approved by the board. Notwithstanding any other | ||||||
provision of this article, the contributions by the municipality, | ||||||
when added to any contributions with respect to a qualified | ||||||
governmental excess benefit arrangement maintained in accordance | ||||||
with Section 14(c) of this article, may not be less than twice the | ||||||
amount paid into the fund by contributions of the members, without | ||||||
regard to the member contributions of unused leave pay. | ||||||
(e-1) Notwithstanding anything to the contrary in | ||||||
Subsections (c) and (d) of this section, or in section 3(d) of this | ||||||
article, as of the effective date of the Act adding this Subsection, | ||||||
the following employee and employer contribution rates, other than | ||||||
with regard to unused leave pay which shall be contributed in | ||||||
accordance with Subsection (c), shall be placed in effect for the | ||||||
fund's fiscal years 2016, 2017 and 2018 as indicated in the schedule | ||||||
below: | ||||||
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If the fund's fiscal year 2016 begins after the effective | ||||||
date of the Act adding this subsection, the employee and employer | ||||||
contribution percentages for fiscal year 2016 shall only be applied | ||||||
as of the effective date of the Act. This subsection expires July 1, | ||||||
2018. | ||||||
SECTION 4. This Act takes effect immediately if it receives | ||||||
a vote of two-thirds of all the members elected to each house, as | ||||||
provided by Section 39, Article III, Texas Constitution. If this | ||||||
Act does not receive the vote necessary for immediate effect, this | ||||||
Act takes effect August 31, 2015. |