S.B. No. 1207

	AN ACT
	relating to the retirement system in certain municipalities for
	firefighters and police officers.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 1.02(4-a), (5), (7), and (17), Chapter
	824 (S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
	(Article 6243o, Vernon's Texas Civil Statutes), are amended to read
	as follows:
	(4-a)  "Catastrophic injury" means, except as provided
	by Section 5.03(a-2) of this Act, irreparable physical bodily
	injury sustained by a member as a direct and immediate result of the
	member's engaging in an activity that:
	(A)  constitutes the performance of the member's
	duties as a firefighter or police officer;
	(B)  involves an extraordinary degree of risk of
	bodily injury or death; and
	(C)  does not result in death.
	(5)  "Code" means the United States Internal Revenue
	Code of 1986 or a successor statute, unless the context requires
	otherwise.
	(7)  "Dependent child" means:
	(A)  a person who is less than 18 years of age and
	is a natural or adopted child of a deceased member or deceased
	retiree; or
	(B)  a person:
	(i)  who is at least 18 years of age;
	(ii)  who is mentally or physically disabled
	to the extent that the person is not capable of being
	self-supporting; and
	(iii)  whose natural or adoptive parent is a
	deceased member or deceased retiree[, provided that, for the year
	immediately preceding the death of the member or retiree, the
	deceased member or retiree claimed the person as a dependent on the
	member's or retiree's federal income tax return].
	(17)  "Total salary" means all salary of a member:
	(A)  including:
	(i)  amounts picked up by the municipality
	under Section 4.04(b) of this Act; and
	(ii)  amounts that would be included in
	salary but for an election under Section 125(d), 132(f)(4), 401(k),
	402(e)(3), 402(h)(1)(B), or 457(b) of the code; and
	(B)  excluding[, except]:
	(i) [(A)]  overtime pay, field training
	officer's pay, bomb squad pay, SWAT team pay, K-9 pay, and hostage
	team pay; and
	(ii) [(B)]  pay for unused accrued vacation
	and sick leave, holiday pay, compensatory time pay, and bonus days
	leave, or any similar items of compensation that may be paid in the
	future.
	SECTION 2.  Section 2.02, Chapter 824 (S.B. 817), Acts of the
	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
	Texas Civil Statutes), is amended by amending Subsections (a) and
	(b) and adding Subsection (b-1) to read as follows:
	(a)  The mayor of a municipality to which this Act applies,
	or a qualified mayoral designee, serves on the board for the term of
	the mayor's office, provided [except] that, if the mayor appoints a
	qualified mayoral designee, the mayor may replace or remove that
	qualified mayoral designee at the mayor's discretion, and the term
	of the mayor or the mayor's qualified mayoral designee, as
	applicable, on the board expires on the date the mayor ceases to be
	mayor of the municipality for any reason. An individual designated
	by the mayor to serve on the board under this subsection may only
	serve on the board while the individual is a qualified mayoral
	designee.
	(b)  The two members of the municipal governing body serve on
	the board for the term of the office to which they are elected or
	appointed, provided that the term of the member on the board expires
	on the day the member ceases to be a member of the municipal
	governing body for any reason.
	(b-1)  The governing body of a municipality shall fill a
	vacancy on the board under Section 2.01(a)(2) of this Act in the
	manner provided by Subsection (b) of this section.
	SECTION 3.  Section 3.01(a), Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	(a)  The board has complete authority and power to:
	(1)  administer the fund for the exclusive benefit of
	all members, retirees, and beneficiaries;
	(2)  disburse benefits or otherwise order payments from
	the fund as required by this Act;
	(3)  control the fund independently;
	(4)  conduct all litigation on behalf of the fund; and
	(5)  purchase with fund assets from one or more
	insurers licensed to do business in this state one or more insurance
	policies that provide for reimbursement of the fund and any
	trustee, officer, or employee of the board for liability imposed or
	damages because of an alleged act, error, or omission committed in
	the trustee's, officer's, or employee's capacity as a fiduciary
	officer or employee of the fund and for costs and expenses incurred
	as a trustee, officer, or employee in defense of a claim for an
	alleged act, error, or omission, as long as the insurance policy
	does not provide for reimbursement of a trustee, officer, or
	employee for liability imposed or expenses incurred because of the
	trustee's, officer's, or employee's personal dishonesty, fraud,
	lack of good faith, or intentional failure to act prudently.
	SECTION 4.  The heading to Section 3.03, Chapter 824 (S.B.
	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
	6243o, Vernon's Texas Civil Statutes), is amended to read as
	follows:
	Sec. 3.03.  [ORDERS FOR] DISBURSEMENTS OF BENEFITS.
	SECTION 5.  Section 3.03(b), Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	(b)  Disbursements of benefits may not be made without a
	record vote of the board.
	SECTION 6.  Section 4.03, Chapter 824 (S.B. 817), Acts of the
	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
	Texas Civil Statutes), is amended by amending Subsections (b), (c),
	and (f) and adding Subsections (f-1) and (i) to read as follows:
	(b)  Subject to Subsections (c) and (e) of this section, a
	[Not later than the 90th day after the date of the member's
	reinstatement to an active status in the fire or police department,
	the] member may restore credit not established during the period
	the member was engaged in active service in any uniformed service by
	paying [must file with the secretary of the board a written
	statement of intent to pay] into the fund an amount equal to what
	the member would have paid during that period if the member had
	remained on active status in the fire or police department [during
	the period of the member's absence in the uniformed service].
	(c)  The member must make the payment described by Subsection
	(b) of this section in full within an amount of time after the
	member's return to active status in the fire or police department
	that is equal to three times the amount of time the member was
	engaged in active service with the uniformed service [absent],
	except that the maximum period for payment may not exceed five
	years.
	(f)  If a [person who became a] member [before October 1,
	1997,] does not make the payment authorized [required] under
	Subsection (b) [(c)] of this section within the [required amount
	of] time prescribed by Subsection (c) of this section and the member
	would otherwise be eligible for credit under federal law, the
	member may receive credit for the uniformed service if:
	(1)  the board determines that the member had good
	cause for not complying with Subsection (b) or (c) of this section;
	and
	(2)  the member [also] pays interest, compounded
	annually, on the then current rate of a member's contribution from
	the date the payment was required to the date the payment was made.
	(f-1)  The board shall set the rate of interest for purposes
	of Subsection (f)(2) of this section.
	(i)  The survivors of a member of the fund who dies while
	performing qualified military service, as defined in Section 414(u)
	of the code, are entitled to any additional benefits, other than
	benefit accruals relating to the period of qualified military
	service, that would have been provided if the member had returned to
	active status in the fire or police department and then terminated
	employment as the result of death.
	SECTION 7.  Section 5.03, Chapter 824 (S.B. 817), Acts of the
	73rd Legislature, Regular Session, 1993 (Article 6243o, Vernon's
	Texas Civil Statutes), is amended by amending Subsections (a),
	(a-1), (c), and (d) and adding Subsection (a-3) to read as follows:
	(a)  An active member of the fund who is not eligible to
	receive a catastrophic injury disability annuity under Subsection
	(a-1) of this section is eligible to retire and receive a regular
	disability retirement annuity only if the member:
	(1)  makes a written application for regular disability
	retirement with the board;
	(2)  establishes to the satisfaction of the board that
	the member is permanently disabled through injury or disease so as
	to be unable to perform the duties of any available position in the
	department and, unless waived by the board, has been off active duty
	because of that injury or disease for a continuous period of not
	less than the 30 days preceding [before] the date of the application
	for disability retirement;
	(3)  has had all member contributions required by this
	Act made on the member's behalf;
	(4)  is not disqualified from receiving a disability
	retirement annuity under [on indefinite suspension as described in]
	Subsection (d) of this section; and
	(5)  has authorized the release to the board of all
	medical records dated on or after the date of initial application
	for employment with the department.
	(a-1)  An active member of the fund is eligible to retire and
	receive a catastrophic injury disability retirement annuity only if
	the member:
	(1)  makes a written application for catastrophic
	injury disability retirement with the board;
	(2)  establishes to the satisfaction of the board that
	the member is permanently so disabled as a result of a catastrophic
	injury as to:
	(A)  be unable to secure any type of third-party
	employment, or engage in any self-employment, other than sporadic
	third-party or self-employment; and
	(B)  have, as a result of the lack of third-party
	employment or self-employment, an annual income less than the
	poverty level for one person in the 48 contiguous states of the
	United States as provided under the poverty guidelines published
	from time to time by the United States Department of Health and
	Human Services, or similar guidelines selected by the board;
	(3)  has had all member contributions required by this
	Act made on the member's behalf;
	(4)  is not disqualified from receiving a disability
	retirement annuity under [on indefinite suspension as described in]
	Subsection (d) of this section; and
	(5)  has authorized the release to the board of all
	medical records dated on or after the date of initial application
	for employment with the department.
	(a-3)  In making any determination under this section, the
	board may consider or require any evidence the board considers
	necessary or appropriate to make the determination.
	(c)  A [Except as provided by Subsection (d) of this section,
	a] member [of the fund] who is on suspension for a specific period,
	including a member whose indefinite suspension is reversed or
	modified to a suspension for a specific period, and who becomes
	disabled as a result of an injury sustained or disease contracted
	while the member is on suspension is eligible for a disability
	retirement annuity under Subsection (a) or (a-1) of this section,
	as applicable, only if the suspended member makes up each
	[deducted] contribution to the fund not made by the member [lost] by
	reason of the suspension not later than the 30th day after the later
	of the termination date of the suspension or the date the suspension
	becomes final in accordance with Section 6.105 of this Act
	[exhaustion of any appeal with respect to the suspension].  A
	municipality to which this Act applies shall double-match all
	contributions made by a member under this subsection.
	(d)  A member of the fund who is on indefinite suspension,
	excluding an indefinite suspension reversed or modified to be a
	suspension for a specific period, that becomes [is not eligible for
	a disability retirement annuity until the] final in accordance with
	Section 6.105 of this Act or who is terminated by the municipality,
	[determination of the suspension and all appeals of that
	determination are exhausted. A member of the fund who is on
	indefinite suspension] is not entitled to a disability retirement
	annuity [if the member is finally discharged]. [A member of the
	fund who is on indefinite suspension but who is restored to duty or
	who is given a suspension for a specific period is eligible for a
	disability retirement annuity as provided by Subsection (a) of this
	section.]
	SECTION 8.  Sections 5.04(a) and (a-1), Chapter 824 (S.B.
	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
	6243o, Vernon's Texas Civil Statutes), are amended to read as
	follows:
	(a)  A member who is eligible to retire and receive a
	disability retirement annuity under Section 5.03(a) of this Act is
	entitled to receive an annuity from the fund equal to:
	(1)  50 percent of the member's average total salary, if
	the member has served three years or more before the date of
	retirement;
	(2)  50 percent of the member's average monthly total
	salary as of the date of retirement multiplied by 12, if the member
	has served at least two months and less than three years before the
	date of retirement; or
	(3)  50 percent of the member's average daily total
	salary as of the date of retirement multiplied by 360, if the member
	has served less than two months before the date of retirement.
	(a-1)  Subject to Subsection (a-2) of this section a member
	who is eligible to retire and receive a catastrophic injury
	disability retirement annuity under Section 5.03(a-1) of this Act
	is entitled to receive an annuity from the fund equal to:
	(1)  87.5 percent of the member's average total salary,
	if the member has served three years or more before the date of
	retirement;
	(2)  87.5 percent of the member's average monthly total
	salary as of the date of retirement multiplied by 12, if the member
	has served at least two months and less than three years before the
	date of retirement; or
	(3)  87.5 percent of the member's average daily total
	salary as of the date of retirement multiplied by 360, if the member
	has served less than two months before the date of retirement.
	SECTION 9.  Sections 5.05(a-1), (a-3), (c), and (c-1),
	Chapter 824 (S.B. 817), Acts of the 73rd Legislature, Regular
	Session, 1993 (Article 6243o, Vernon's Texas Civil Statutes), are
	amended to read as follows:
	(a-1)  A disability retiree who is awarded a catastrophic
	injury disability annuity under Section 5.03(a-1) of this Act
	shall, if required by the board, undergo a medical examination by
	any reputable physician or physicians selected by the board:
	(1)  not later than 60 months after the date of the
	award of the annuity by the board; and
	(2)  thereafter, not later than 60 months following the
	last required medical examination of the disability retiree under
	this subsection.
	(a-3)  Subject to Subsections (b) and [Subsection] (c) of
	this section, based on an examination under Subsection
	[Subsections] (a), (a-1), or (a-2) of this section, the board shall
	determine whether the disability retirement annuity shall be
	continued, decreased, restored to the original amount if it had
	been decreased, or discontinued.
	(c)  For those retired because of disability on or after
	August 30, 1971, the disability retirement annuity may not, except
	in the case of discontinuance, be reduced to an amount that is less
	than the product of:
	(1)  2.25 percent multiplied by the number of years
	that the retiree served in the department and contributed a portion
	of salary as a member of the fund multiplied by the retiree's
	average total salary, if the retiree served three years or more
	before the date of retirement;
	(2)  2.25 percent multiplied by the number of years
	that the retiree served in the department and contributed a portion
	of salary as a member of the fund multiplied by the retiree's
	average monthly total salary as of the date of retirement
	multiplied by 12, if the retiree served at least two months and less
	than three years before the date of retirement; or
	(3)  2.25 percent multiplied by the number of years
	that the retiree served in the department and contributed a portion
	of salary as a member of the fund multiplied by the retiree's
	average daily total salary as of the date of retirement multiplied
	by 360, if the member has served less than two months before the
	date of retirement.
	(c-1)  In making the computation under Subsections (b) and
	[Subsection] (c) of this section, all fractional years shall be
	prorated based on full months served in the department as a
	contributing member of the fund before the date of retirement.
	SECTION 10.  The heading to Section 5.07, Chapter 824 (S.B.
	817), Acts of the 73rd Legislature, Regular Session, 1993 (Article
	6243o, Vernon's Texas Civil Statutes), is amended to read as
	follows:
	Sec. 5.07.  OUTSIDE INCOME PENSION SUSPENSION OR REDUCTION.
	SECTION 11.  Section 5.07, Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended by adding Subsections
	(a-1) and (c) and amending Subsection (b) to read as follows:
	(a-1)  If a retiree fails to provide an income tax return to
	the board under Subsection (a) of this section, the board may
	suspend the retiree's disability retirement annuity until the
	retiree provides the required income tax return.
	(b)  Subject to Subsection (c) of this section, if [If] the
	retiree received income from other employment, including
	self-employment, during the preceding year, the board may reduce
	the retiree's disability retirement annuity by the amount of $1 for
	each month for each $2 of income earned by the retiree from the
	other employment during each month of the previous year, except
	that the disability retirement annuity may not be decreased below
	the amount determined under Section 5.05(c) of this Act.
	(c)  The board may restore a disability retirement annuity
	that has been reduced under Subsection (b) of this section.  The
	amount of the restored annuity must be the same as the amount of the
	annuity before the reduction plus any applicable cost-of-living
	increases under Section 5.09 of this Act that occurred during the
	period the annuity was reduced.  This subsection does not require
	the board to allow or deny cost-of-living increases in any other
	circumstances.
	SECTION 12.  Section 5.10, Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended by amending Subsections
	(b), (c), (d), (f), and (j) and adding Subsections (b-1) and (d-1)
	to read as follows:
	(b)  A distributee may elect, at the time and in the manner
	prescribed by the board, to have any portion of an eligible rollover
	distribution paid directly to an eligible retirement plan specified
	by the distributee in a direct rollover. [Any member or beneficiary
	who is entitled to receive any distribution that is an eligible
	rollover distribution as defined by Section 402(c)(4) of the code
	is entitled to have that distribution transferred directly to
	another eligible retirement plan of the member's or beneficiary's
	choice on providing direction to the fund regarding that transfer
	in accordance with procedures established by the board.]
	(b-1)  For purposes of this subsection and Subsection (b) of
	this section:
	(1)  "Direct rollover" means a payment by the fund to
	the eligible retirement plan specified by a distributee.
	(2)  "Distributee" means a member or former member.
	The term includes a member's or former member's surviving spouse or
	designated beneficiary and a member's or former member's spouse or
	former spouse who is the alternate payee under a qualified domestic
	relations order, as defined by Section 414(p) of the code, with
	regard to the interest of the spouse or former spouse.
	(3)  "Eligible retirement plan" means:
	(A)  an individual retirement account described
	by Section 408(a) of the code;
	(B)  an individual retirement annuity described
	by Section 408(b) of the code;
	(C)  a qualified annuity plan described by Section
	403(a) of the code;
	(D)  a qualified trust described by Section 401(a)
	of the code;
	(E)  an eligible deferred compensation plan
	described by Section 457(b) of the code that is maintained by an
	eligible employer described by Section 457(e)(1)(A) of the code;
	(F)  an annuity contract described by Section
	403(b) of the code that accepts the distributee's eligible rollover
	distribution; or
	(G)  in the case of an eligible rollover
	distribution to a designated beneficiary who is not the surviving
	spouse, or the spouse or former spouse under a qualified domestic
	relations order, an individual retirement account or individual
	retirement annuity only.
	(4)  "Eligible rollover distribution" means a
	distribution of all or any portion of the balance to the credit of
	the distributee. The term does not include:
	(A)  a distribution that is one of a series of
	substantially equal periodic payments, paid not less frequently
	than once a year, made over the life or life expectancy of the
	distributee or the joint lives or joint life expectancies of the
	distributee and the distributee's designated beneficiary;
	(B)  a series of payments for a specified period
	of 10 years or more;
	(C)  a distribution to the extent the distribution
	is required under Section 401(a)(9) of the code; or
	(D)  the portion of a distribution that is not
	includable in gross income, unless the distributee directs that the
	eligible rollover distribution be transferred directly to a
	qualified trust that is part of a defined contribution plan that
	agrees to separately account for the portion that is includable in
	gross income and the portion that is not or to an individual
	retirement account or individual annuity.
	(c)  The total salary taken into account for any purpose
	under this Act [for any member of the fund] may not exceed the
	annual compensation limitation under Section 401(a)(17) of the
	code, effective January 1, 2017, which is $405,000 [$200,000 per
	year] for an eligible member [participant] or $270,000 [$150,000
	per year] for an ineligible member [participant]. For purposes of
	this subsection, an eligible member is any employee who first
	became a member before 1996 and an ineligible member is any other
	member. The [These] dollar limits shall be [periodically] adjusted
	annually for cost-of-living increases as provided by Section
	401(a)(17) of the code [in accordance with guidelines provided by
	the United States secretary of the treasury. For purposes of this
	subsection, an eligible participant is any person who first became
	a member before 1996, and an ineligible participant is any member
	who is not an eligible participant].
	(d)  Accrued benefits under this Act become 100 percent
	vested for a member on the earlier of:
	(1)  the date the member attains normal retirement age
	[has completed 20 years of service];
	(2)  the earlier termination or partial termination of
	the pension plan created by this Act, if it affects the member; or
	(3)  the complete discontinuance of contributions by
	the municipality to the fund.
	(d-1)  For purposes of Subsection (d)(1) of this section,
	"normal retirement age" means the age at which a member is entitled
	to receive a service retirement benefit without reduction because
	of age.
	(f)  Distribution of benefits must:
	(1)  begin not later than April 1 of the year following
	the later of the calendar year in [during] which the member:
	(A)  becomes 70-1/2 years of age; or
	(B)  retires; and
	(2)  [must] otherwise conform to Section 401(a)(9) of
	the code and the regulations adopted under that section of the code,
	including regulations governing the incidental death benefit
	distribution requirements.
	(j)  Notwithstanding any other provision of this Act, the
	limitations on benefits imposed by Section 415 of the code and
	Subsection (a) of this section must be adjusted each year to the
	extent permitted by cost-of-living increases announced by the
	secretary of the treasury under Section 415(d) of the code and
	applicable law. A cost-of-living increase described by this
	subsection applies to members who have terminated employment,
	including members who have begun receiving benefits before the
	effective date of the increase, and any benefits previously denied.
	Benefits paid to make up for benefits previously denied are
	considered the delayed payment of benefits earned before retirement
	and not extra compensation earned after retirement. [To the extent
	permitted by law, the board may adjust the benefits of retired
	members and beneficiaries by increasing any retirement benefit that
	was reduced because of Section 415 of the code. If Section 415 of
	the code is amended to permit the payment of amounts previously
	precluded under Section 415 of the code, the board may adjust the
	benefits of retired members and beneficiaries, including the
	restoration of benefits previously denied. Benefits paid under
	this subsection are not considered as extra compensation earned
	after retirement but as the delayed payment of benefits earned
	before retirement.]
	SECTION 13.  Section 5.11, Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended by adding Subsection
	(b-1) to read as follows:
	(b-1)  If a retiree is entitled to receive a 13th check in
	accordance with Subsection (b) of this section, but dies before
	payment of the 13th check and has no surviving spouse or dependent
	child, the 13th check shall be paid to the retiree's estate.
	SECTION 14.  Section 5.12, Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended by adding Subsection
	(c-1) to read as follows:
	(c-1)  If a retiree is entitled to receive a 14th check in
	accordance with Subsection (c) of this section, but dies before
	payment of the 14th check and has no surviving spouse or dependent
	child, the 14th check shall be paid to the retiree's estate.
	SECTION 15.  Section 6.01(b), Chapter 824 (S.B. 817), Acts
	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	(b)  Subject to the applicable provisions of this Act,
	including Section 6.02(j) of this Act, a [A] dependent child is
	entitled to receive benefits based on the service of any parent who
	is a member of the fund.
	SECTION 16.  Section 6.02, Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended by amending Subsections
	(a), (d), (d-2), (e), (f), (g), and (j) and adding Subsections (a-1)
	and (c-1) to read as follows:
	(a)  Subject to Section 6.03 of this Act and the provisions
	of this section, if a member [or retiree receiving a disability
	pension under Section 5.03(a) of this Act] dies leaving a surviving
	spouse or at least one dependent child, the surviving spouse and the
	children are entitled to receive from the fund an aggregate death
	benefit annuity, computed and payable from the date of the member's
	death.  The surviving spouse may elect the annuity in an amount
	that is equal to either:
	(1)  75 [50] percent of the member's average total
	salary; or
	(2)  the same percentage of the member's average total
	salary that the member would have been entitled to receive as a
	retirement annuity if the member could have retired on the date of
	death.
	(a-1)  This subsection applies only to a death benefit
	annuity payable under Subsection (a) of this section on August 31,
	2023, that is based on the service of a member who died after
	September 1, 2005, but before September 1, 2023. If the amount of a
	death benefit annuity subject to this section is less than 75
	percent of the member's average total salary, excluding any
	applicable cost-of-living increases to the annuity under Section
	5.09 of this Act, and the member's surviving spouse did not elect to
	receive a portion of the benefit in a lump-sum payment under Section
	6.14 of this Act, the amount of the annuity shall increase beginning
	on September 1, 2023, to an amount equal to 75 percent of the
	member's average total salary plus the amount of any cost-of-living
	increases provided under Section 5.09 of this Act. A member's
	surviving spouse or dependent child who is receiving an annuity
	subject to this section is not entitled to any additional payment
	under this subsection for the period before September 1, 2023.
	(c-1)  Subject to the provisions of this section, if a
	retiree receiving a disability pension under Section 5.03(a) of
	this Act dies leaving a surviving spouse or at least one dependent
	child, the surviving spouse and dependent children are entitled to
	receive from the fund an aggregate death benefit annuity, computed
	and payable from the date of the retiree's death, equal to 50
	percent of the retiree's average total salary as of the date of
	retirement.
	(d)  Subject to Subsection (d-2) of this section, if, at the
	time a death benefit annuity becomes payable under Subsection (a),
	[or] (c), or (c-1) of this section, the deceased member or retiree
	leaves a surviving spouse and at least one dependent child, the
	board shall award:
	(1)  75 percent of the annuity to the surviving spouse;
	and
	(2)  25 percent of the annuity:
	(A)  to the dependent child, if there is only one;
	or
	(B)  if there is more than one dependent child, in
	equal shares to each child.
	(d-2)  If, at the time a death benefit annuity becomes
	payable under Subsection (a), [or] (c), or (c-1) of this section, a
	[deceased member or] retiree leaves a surviving spouse who is not
	entitled to an annuity on the date of the retiree's death under
	Subsection (g-1) of this section as the result of Subsection (g-3)
	of this section and the deceased retiree has one or more dependent
	children, the dependent child or children shall be awarded 100
	percent of the death benefit annuity until the annuity to the
	surviving spouse becomes payable [effective] under Subsection
	(g-3) of this section.
	(e)  If, at the time a death benefit annuity under Subsection
	(a), [or] (c), or (c-1) of this section becomes payable, the
	deceased leaves a surviving spouse and no dependent child, the
	board shall award the annuity to the surviving spouse.
	(f)  If, at the time a death benefit annuity under Subsection
	(a), [or] (c), or (c-1) of this section becomes payable, the
	deceased leaves no surviving spouse and at least one dependent
	child, the board shall award the annuity:
	(1)  to the dependent child, if there is only one; or
	(2)  if there is more than one child, in equal shares to
	each child.
	(g)  A child who is adopted after the date of retirement of
	the member is not entitled to a death benefit annuity under this
	Act. A child who is born after the date of retirement of the member
	is not entitled to a death benefit annuity under this Act unless the
	retiree was married to the other parent of the child on the date of
	retirement. A surviving spouse of a retiree whose status as a
	surviving spouse resulted from a marriage after the date of the
	retirement of the retiree is entitled to receive only the benefits,
	if any, provided under Subsection (g-1) of this section or Section
	6.08 of this Act.
	(j)  A dependent child as defined by Section 1.02(7)(B) of
	this Act has the same rights as a dependent child as defined by
	Section 1.02(7)(A) of this Act, except that any death benefit
	annuity paid under this section [subsection] to a dependent child
	as defined by Section 1.02(7)(B) of this Act may, at the discretion
	of the board, be reduced to the extent of any state pension or aid,
	including Medicaid, or any state-funded assistance received by the
	child, regardless of whether the funds were made available to the
	state by the federal government.  In no other instance under this
	Act is a child entitled to any benefit after becoming 18 years of
	age.
	SECTION 17.  Section 6.03, Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	Sec. 6.03.  DEATH BENEFIT ANNUITY FOR SPOUSE AND CHILDREN OF
	MEMBER KILLED IN LINE OF DUTY.  (a) The death benefit annuity of a
	surviving spouse and any dependent child of a member of the fund who
	is killed in the line of duty is governed by this section.
	(a-1)  A member of the fund is considered to have been killed
	in the line of duty if the member's death directly resulted from
	traumatic injury sustained while engaging in or conducting
	simulated training of a law enforcement activity, fire suppression
	activity, rescue, hazardous material response, emergency medical
	services, disaster relief, or other emergency response activity.
	For purposes of this subsection, "traumatic injury" means severe
	physical injury of sudden onset and of a life-ending or
	life-threatening nature.
	(b)  [The board shall consider the finding of a municipality
	to which this Act applies that a member was killed in the line of
	duty as a guideline for its determination in applying this
	section.] On an application for survivor's benefits by a surviving
	spouse or dependent child, the fund shall pay the normal benefits
	payable under Section 6.02 of this Act. When a benefit is payable
	under this section, the death benefit annuity shall be recomputed,
	applying Subsection (c) of this section, and any deficiency payment
	shall be paid to the eligible beneficiaries.
	(c)  Notwithstanding the formulas for computing the total
	amounts of annuities otherwise provided by this Act, if a member is
	killed in the line of duty, the member's surviving spouse and
	dependent children are entitled to a death benefit annuity equal
	to:
	(1)  the total salary [of] the member received during
	the 12-month period before the date of the member's death, if the
	member served 12 months or more before the date of the member's
	death;
	(2)  the average monthly total salary the member
	received before the date of the member's death multiplied by 12, if
	the member served at least two months and less than 12 months before
	the date of the member's death; or
	(3)  the average daily total salary the member received
	before the date of the member's death multiplied by 360, if the
	member served less than two months before the date of the member's
	death [at the time of death].
	(d)  The provisions of this Act [Rules provided by this
	section] relating to qualification and disqualification for and
	apportionment of benefits apply to a death benefit annuity computed
	under this section [subsection]. A death benefit annuity computed
	under this section [subsection] is divided in the manner described
	by Section 6.02 of this Act and is subject to the same
	cost-of-living adjustments that apply to annuities [pensions] for
	service retirement.
	SECTION 18.  Section 6.04, Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	Sec. 6.04.  EFFECT OF MARRIAGE ON [REMARRIAGE;] BENEFITS
	[AFTER TERMINATION OF MARRIAGE]. (a) Except as provided by
	Subsection (e) of this section, the [The] right of a surviving
	spouse or dependent child to annuity payments under this Act is not
	affected by the surviving spouse's marriage [remarriage] or
	dependent child's marriage under either statutory or common law if
	the marriage [or remarriage] takes place on or after October 1,
	1995.
	(b)  This subsection applies to a surviving spouse or
	dependent child whose marriage under either statutory or common law
	took place before October 1, 1995, and resulted in a termination of
	benefits under the law in effect at the time of the marriage.
	Subject to Subsection (d) of this section and except as provided by
	Subsection (e) of this section, if on [If after] October 1, 1995,
	the surviving spouse or dependent child is unmarried or if after
	October 1, 1995, there is a termination of the marriage
	[remarriage] of a surviving spouse or [of the marriage of a]
	dependent child, the surviving spouse or dependent child, as
	applicable, [that person] is entitled, on application, to 100
	percent of the annuity that was in effect on the date of the
	termination of benefits, payable from the date of the termination
	of the marriage. A surviving spouse or dependent child entitled to
	an annuity under this subsection is also entitled to any applicable
	cost-of-living increases under Section 5.09 of this Act that
	occurred on or after the date the marriage terminated.
	[(c)  A surviving spouse or dependent child who is unmarried
	but receiving reduced benefits because of a prior marriage that
	caused the benefits to be terminated is entitled to 100 percent of
	the annuity that was in effect on the original date of termination
	of benefits.]
	(d)  The benefit provided under Subsection [Subsections] (b)
	[and (c)] of this section shall be provided prospectively beginning
	October 1, 1995, and the surviving spouse or dependent child is not
	entitled to receive any benefits or increases in benefits relating
	to any period before October 1, 1995.
	(e)  A person must be living at the time of application to be
	eligible for benefits under this section.
	SECTION 19.  Section 6.06, Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	Sec. 6.06.  COMMON-LAW MARRIAGES. Common-law marriages are
	not recognized under this Act and benefits may not be conferred on
	common-law spouses as beneficiaries unless a declaration of
	informal marriage was made and recorded under Sections 2.402 and
	2.404, Family Code, and their subsequent amendments, or any
	successor statutes, before the member's death. The date the
	declaration of informal marriage is recorded under Section 2.404,
	Family Code, is the date of marriage for the purpose of determining
	whether any benefit is to be awarded to a surviving common-law
	spouse as a beneficiary under this Act.
	SECTION 20.  Section 6.09(b), Chapter 824 (S.B. 817), Acts
	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	(b)  An application for benefits under Subsection (a) of this
	section must be accompanied by a copy of the deceased member's or
	retiree's tax return filed for the last year ending before the
	member's or retiree's death or an explanation satisfactory to the
	board of why the tax return cannot be provided. The board may, on
	its own initiative, make a thorough investigation, determine the
	facts as to the dependency with respect to an application for
	benefits made under Subsection (a) of this section, and at any time,
	on the request of any beneficiary or any contributor to the fund,
	reopen any award made to any member or dependent of any member who
	is receiving annuity payments under this section and discontinue
	those payments as to all or any of them. [The findings of the board
	under this section and all annuities granted under this section are
	final on all parties unless set aside or revoked by a court of
	competent jurisdiction.]
	SECTION 21.  Section 6.10, Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	Sec. 6.10.  SUSPENSION RIGHTS. (a) Except as provided by
	Subsection (b) of this section, if [If] a member dies who is on
	[under] suspension at the time of the member's death, [including an
	indefinite suspension that has not become final,] the member's
	beneficiary has [beneficiaries have] the same rights as the
	beneficiaries of any other member under this Act.
	(b)  If a member dies who is on indefinite suspension that
	has not become final as of the date of the member's death, the
	member's beneficiary has the same rights as the beneficiaries of
	any other member under this Act in accordance with Subsection (a) of
	this section only if the member's beneficiary provides sufficient
	evidence to the board to establish to the board's satisfaction
	that:
	(1)  an administrative appeal of the indefinite
	suspension to the municipality was being actively pursued at the
	time of death; and
	(2)  the member had a reasonable chance of having the
	indefinite suspension reversed or modified to be a suspension for a
	specific period.
	SECTION 22.  Chapter 824 (S.B. 817), Acts of the 73rd
	Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
	Civil Statutes), is amended by adding Section 6.105 to read as
	follows:
	Sec. 6.105.  DATE SUSPENSION FINAL. For purposes of this
	Act, an indefinite suspension or a suspension for a specific period
	becomes final on the date:
	(1)  any administrative appeal of the suspension to the
	municipality has been finally adjudicated by the municipality; or
	(2)  if no administrative appeal of the suspension is
	made to the municipality, after the last day of the period for
	initiating an administrative appeal has elapsed.
	SECTION 23.  Section 6.12, Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended by amending Subsection
	(b) and adding Subsection (c) to read as follows:
	(b)  The amount of the 13th or 14th check is equal to the
	amount of the annuity payment made in the last month of the
	preceding fiscal year, except the amount of the check shall be
	prorated for any beneficiary of:
	(1)  a member who died during the fiscal year preceding
	the fiscal year in which the check is disbursed [who has been
	receiving an annuity for less than one year] so that the amount of
	the check is one-twelfth of the check that would have been paid to
	the beneficiary receiving an annuity for a full year times the
	number of full months an annuity has been paid; or
	(2)  a retiree who retired and died during the fiscal
	year preceding the fiscal year in which the check is disbursed so
	that the amount of the check is one-twelfth of the check that would
	have been paid to the beneficiary receiving an annuity for a full
	year times the number of full months from the date of the retiree's
	retirement to the end of the fiscal year.
	(c)  If a beneficiary is entitled to receive a 13th or 14th
	pension check in accordance with Subsection (a) of this section but
	dies before payment of the 13th or 14th check, the 13th or 14th
	check shall be paid to the beneficiary's estate.
	SECTION 24.  Section 6.14(i), Chapter 824 (S.B. 817), Acts
	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is amended to read as follows:
	(i)  If a surviving spouse elects to receive a lump-sum
	payment under this section, the total death benefit annuity payable
	[to the surviving spouse] under Section 6.02 of this Act is reduced
	as provided by Subsection (j) of this section. The lump-sum
	election does not affect the amount of a death benefit annuity
	payable to a dependent child of a deceased member under Section 6.02
	of this Act while a death benefit annuity is payable to the
	surviving spouse.
	SECTION 25.  Chapter 824 (S.B. 817), Acts of the 73rd
	Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
	Civil Statutes), is amended by adding Section 6.15 to read as
	follows:
	Sec. 6.15.  DENIAL OF BENEFITS; DEATH CAUSED BY SURVIVOR.
	(a) If a person is the principal or an accomplice in wilfully
	bringing about the death of a member or beneficiary whose death
	would otherwise result in a benefit or benefit increase to the
	person, the person is not eligible for, or entitled to, that benefit
	or benefit increase. The determination of the board that a person
	wilfully brought about the death, or was an accomplice in wilfully
	bringing about the death, must be made during a meeting of the
	board. A determination by the board under this section is not
	controlled by any other finding in any other forum.
	(b)  A benefit or benefit increase payable under this Act
	because of the death of a member or beneficiary shall be paid as if
	the person who is no longer eligible for or entitled to the benefit
	under Subsection (a) of this section predeceased the member or
	beneficiary.
	SECTION 26.  Section 3.03(a), Chapter 824 (S.B. 817), Acts
	of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), is repealed.
	SECTION 27.  Section 5.03, Chapter 824 (S.B. 817), Acts of
	the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), as amended by this Act, applies
	only to a disability retirement annuity for which an application is
	made on or after the effective date of this Act. A disability
	retirement annuity for which an application was made 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 28.  Sections 5.11(b-1) and 5.12(c-1), Chapter 824
	(S.B. 817), Acts of the 73rd Legislature, Regular Session, 1993
	(Article 6243o, Vernon's Texas Civil Statutes), as added by this
	Act, and Section 6.12, Chapter 824 (S.B. 817), Acts of the 73rd
	Legislature, Regular Session, 1993 (Article 6243o, Vernon's Texas
	Civil Statutes), as amended by this Act, apply only to a 13th or
	14th check that is disbursed on or after the effective date of this
	Act. A 13th or 14th check disbursed 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 29.  Except as provided by Section 6.02(a-1),
	Chapter 824 (S.B. 817), Acts of the 73rd Legislature, Regular
	Session, 1993 (Article 6243o, Vernon's Texas Civil Statutes), as
	added by this Act, Sections 6.02 and 6.03, Chapter 824 (S.B. 817),
	Acts of the 73rd Legislature, Regular Session, 1993 (Article 6243o,
	Vernon's Texas Civil Statutes), as amended by this Act, apply only
	to a death benefit annuity for which an application is made on or
	after the effective date of this Act. A death benefit annuity for
	which an application is made 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 30.  This Act takes effect September 1, 2023.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1207 passed the Senate on
	April 5, 2023, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1207 passed the House on
	May 2, 2023, by the following vote:  Yeas 143, Nays 1,
	three present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor