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AN ACT
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relating to membership in, contributions to, benefits from, and |
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administration of the Texas Emergency Services Retirement System. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 861, Government Code, is amended by |
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adding Sections 861.008 and 861.009 to read as follows: |
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Sec. 861.008. IMMUNITY FROM LIABILITY. The state board, |
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commissioner, and employees of the pension system are not liable |
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for any action taken or omission made or suffered by them in good |
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faith in the performance of any duty or prerogative in connection |
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with the administration of the pension system. |
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Sec. 861.009. VENUE. An action in state court by or against |
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the pension system shall be brought in Travis County. |
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SECTION 2. Section 862.002(a), Government Code, is amended |
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to read as follows: |
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(a) Except as otherwise provided by this section and Section |
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862.0021, each person who performs service as a volunteer or |
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auxiliary employee of a participating department is a member of the |
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pension system. |
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SECTION 3. Chapter 862, Government Code, is amended by |
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adding Section 862.0021 to read as follows: |
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Sec. 862.0021. PROBATIONARY PERIOD BEFORE MEMBERSHIP. (a) |
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A participating department may impose a probationary period for a |
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volunteer or auxiliary employee. |
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(b) A probationary period imposed under this section must |
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end not later than six months after the date the person begins |
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service with the participating department. |
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(c) The participating department is not required to pay |
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contributions for the person during the probationary period. |
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(d) A person's membership in the pension system begins on |
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the date that the department begins payment of contributions for |
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that person, without regard to whether the person's service is |
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subject to a probationary period for other purposes. |
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SECTION 4. Sections 864.004 and 864.005, Government Code, |
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are amended to read as follows: |
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Sec. 864.004. DISABILITY RETIREMENT BENEFITS [ANNUITY]. |
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(a) A member is entitled to disability retirement benefits from the |
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pension system only if a local board determines that the member |
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became disabled during the performance of emergency service duties |
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and is unable to return to work at the member's regular occupation |
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or, if the member is a student, is unable to return to the member's |
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scholastic studies. A disabled member must, at the time of |
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disability, elect between a service [or disability] retirement |
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annuity or disability retirement benefits, if eligible for both. |
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(b) A disabled member described by Subsection (a) who does |
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not elect to receive a service retirement annuity is entitled to |
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[who is disabled during the performance of emergency service duties
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is automatically vested 100 percent as of the date of disability if
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the disability occurs before the member has completed the period
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provided under Section 864.001 for full service retirement
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benefits.
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[(c) A member whose disability results from performing
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emergency service duties is guaranteed a] disability retirement |
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benefits [annuity] of $300 a month or a greater amount that the |
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state board by rule adopts based on monthly contributions of a |
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participating department for its members. |
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(c) To continue to receive disability retirement benefits |
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in the form of a continuing annuity, computed in the manner |
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described by Subsection (b), a [(d)A] person who is determined by |
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a local board to be temporarily disabled must: |
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(1) apply to the medical board appointed by the state |
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board; [Social Security Administration] and |
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(2) [be certified,] not later than the first [second] |
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anniversary of the date the person was determined to be temporarily |
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disabled, be certified by the medical board as permanently disabled |
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for the performance of the duties of the person's regular |
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occupation [by that agency or by any alternative procedure the
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state board provides by rule]. |
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Sec. 864.005. CERTIFICATION AND CONTINUANCE OF |
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DISABILITY. (a) A local board shall require a member who is |
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receiving temporary disability benefits to file a disability rating |
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report every three months from a physician chosen by the local |
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board. If a report indicates a significant improvement in [change
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of] condition, the local board, after notice and a hearing, may |
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adopt an order to terminate payments [or place the member on
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permanent disability]. The local board shall send a copy of each |
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order adopted under this subsection to the commissioner. |
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(b) Temporary disability [Disability] benefits cease if the |
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recipient returns to work at the person's regular occupation, |
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resumes scholastic studies, or performs emergency service duties |
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for any agency, or if the local board adopts an order under |
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Subsection (d). |
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(c) Subject to Subsection (d), temporary disability |
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benefits cease on a date at the expiration of a period, not to |
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exceed one year, determined to be the likely duration of the |
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disability by a physician in a written statement to the pension |
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system. |
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(d) If the local board has reason to believe that a ground |
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for termination of temporary disability benefits exists, the local |
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board may set a date for a hearing on the matter. The local board, |
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after notice and a hearing, may adopt an order terminating |
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temporary disability benefits if the local board determines that a |
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ground for termination exists. The local board may not adopt an |
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order under this subsection on the basis of a physician's |
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previously submitted statement as to the likely duration of the |
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disability if the local board determines, after a hearing, that the |
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disability continues. The local board shall send a copy of each |
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order adopted under this subsection to the commissioner. |
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(e) Payments of a continuing disability retirement annuity |
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to a retiree certified by the medical board as permanently disabled |
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under Section 864.004(c) cease if the retiree returns to work at the |
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retiree's regular employment or performs emergency service duties. |
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(f) If the commissioner has reason to believe that a ground |
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for termination of a continuing disability retirement annuity |
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exists, the commissioner shall set a date for a hearing on |
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continuation or termination of the annuity. The commissioner, |
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after notice and a hearing, shall adopt an order terminating the |
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continuing disability retirement annuity if the commissioner |
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determines that a ground for termination exists. |
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(g) Except as provided by this subsection, a continuing |
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disability retirement annuity terminates on the fifth anniversary |
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of the date payment of the annuity begins. To continue receiving |
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payments of a continuing disability retirement annuity after the |
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fifth anniversary, the retiree must be recertified by the medical |
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board as being permanently disabled for the performance of [becomes
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capable of performing the duties of the person's most recent
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position with a participating department or] the duties of any |
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[another] occupation for which the person is reasonably suited by |
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education, training, and experience and that could reasonably be |
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expected to provide the person with at least 75 percent of the |
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salary the person was earning at the time the disability occurred. |
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Rejection of a suitable offer of employment as described in this |
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subsection is conclusive evidence for purposes of this subtitle |
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that the person is no longer eligible to receive disability |
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retirement benefits[, if the employment would provide the person
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with a salary equal to or greater than the salary the person was
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earning at the time the disability occurred]. |
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(h) [(c)] The state board or a local board may require |
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financial information from a person as a condition to the continued |
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receipt of disability retirement benefits, including federal |
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income tax returns and wage earning forms. Failure to timely |
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provide requested information is a ground for terminating benefits. |
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SECTION 5. Section 864.006(a), Government Code, is amended |
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to read as follows: |
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(a) The surviving spouse and dependents of a member who dies |
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as a result of performing emergency service duties are entitled to |
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receive in equal shares a death benefit annuity equal to |
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[two-thirds of] the service retirement annuity that the decedent |
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would have been entitled to receive if the decedent had been able to |
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retire, vested at 100 percent, on the date of the decedent's death. |
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[As long as both the spouse and one or more dependents survive, an
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additional one-third of that annuity is payable to the dependents
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in equal shares.] |
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SECTION 6. Sections 864.007, 864.008, and 864.011, |
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Government Code, are amended to read as follows: |
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Sec. 864.007. MEMBER NONSERVICE DEATH BENEFIT. The state |
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board by rule may provide the beneficiary of a deceased member whose |
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death did not result from the performance of emergency service |
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duties a [lump-sum] benefit, which may be a lump-sum amount or an |
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annuity [that is the greater of:
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[(1) the amount contributed to the fund on the
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decedent's behalf; or
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[(2) the sum that would have been contributed on the
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decedent's behalf from whatever source at the end of the period
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provided under Section 864.001 for full service retirement
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benefits]. |
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Sec. 864.008. VESTED MEMBER DEATH BENEFIT ANNUITY. (a) |
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The state board by rule may provide that the surviving spouse of a |
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deceased member who dies as an active member of a participating |
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department before retirement but after meeting the minimum age and |
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service requirements for service retirement is entitled to a |
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portion [two-thirds] of the monthly annuity that the decedent would |
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have received if the decedent had retired on the date of death. |
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(b) The state board by rule may provide that the surviving |
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spouse of a deceased member who dies after terminating service with |
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all participating departments and meeting a service [vesting] |
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requirement under Section 864.001 but before attaining the age of |
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55 is entitled to a death benefit annuity, in an amount to be |
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determined by rule, beginning on the date that is the later of: |
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(1) the date that the decedent would have attained |
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that age; or |
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(2) the date of application for the annuity [, equal to
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two-thirds of the monthly annuity to which the decedent would have
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been entitled on that date]. |
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(c) A rule adopted under Subsection (b) may not authorize |
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payment for a period before the date specified by that subsection. |
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Sec. 864.011. FIRST PAYMENT OF RETIREMENT OR DEATH BENEFIT |
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ANNUITY. The cashing or depositing of the first payment of a |
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service retirement annuity, disability retirement annuity, or |
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death benefit annuity by a person entitled to it, or the receipt by |
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a financial institution for credit to that person's account of a |
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transfer of funds by the pension system through electronic means, |
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is considered acceptance of the amount of the annuity and of the |
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amount of service of the person on whose service the annuity is |
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based [, if the annuity is based on the payee's service, is
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conclusive evidence for purposes of this subtitle that the payee is
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retired]. |
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SECTION 7. Chapter 864, Government Code, is amended by |
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adding Section 864.0135 to read as follows: |
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Sec. 864.0135. OPTIONAL ANNUITY INCREASE OR SUPPLEMENTAL |
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PAYMENTS. (a) The state board by rule may authorize a |
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participating department to: |
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(1) make one or more supplemental payments to retirees |
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and other beneficiaries of the pension system; or |
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(2) provide an increase in the amount of annuities |
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paid to retirees and other beneficiaries of the pension system. |
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(b) A participating department that elects an option under a |
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rule adopted under this section shall fund all increased benefits |
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that are provided to retirees and other beneficiaries of the |
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department under the option. |
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SECTION 8. Sections 864.016(a), (c), and (d), Government |
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Code, are amended to read as follows: |
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(a) A claim for disability retirement benefits or a lump-sum |
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death benefit must be filed with the local board. A claim for |
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service retirement benefits must be filed with the commissioner, |
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who shall forward the claim to the appropriate local board for a |
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hearing. A claim for a death benefit annuity must be filed with the |
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commissioner, who shall make a determination of the merits of the |
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claim and issue a decision to the claimant. On receiving a claim |
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under this section, the local board shall hold a hearing to decide |
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the claim. The local board shall send a written copy of its |
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decision to the claimant and the commissioner. If a local board |
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does not determine a claim for service retirement benefits and file |
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its determination with the commissioner before the 16th day after |
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the date the local board receives the claim, the commissioner may |
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determine the merits of the claim. |
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(c) An appeal of a local board decision under this section |
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is begun by delivering a notice of appeal to the presiding officer |
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or secretary of the local board that made the decision. The notice |
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must be delivered not later than the 20th day after the date of the |
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decision and contain a brief description of the reasons for the |
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appeal. The aggrieved person must file a copy of the notice with |
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the commissioner. |
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(d) An appeal of a local board decision under this section |
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is held in Austin and is a contested case under Chapter 2001, |
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conducted as a de novo hearing by the State Office of Administrative |
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Hearings. |
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SECTION 9. Section 865.010(c), Government Code, is amended |
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to read as follows: |
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(c) The commissioner may request and administer [, in an
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emergency,] state funds appropriated by the legislature in addition |
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to those required by this subtitle [and appropriated by the
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legislature]. |
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SECTION 10. Section 864.015, Government Code, is repealed. |
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SECTION 11. (a) The change in law made by this Act to |
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Sections 864.004 and 864.005, Government Code, does not apply to a |
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person who, on the effective date of this Act, is receiving |
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permanent disability retirement benefits under those sections as |
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they existed immediately before amendment by this Act, and the |
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prior law is continued in effect for this purpose. |
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(b) A person who, on the effective date of this Act, is |
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receiving temporary disability benefits under Section 864.004, |
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Government Code, as that section existed immediately before |
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amendment by this Act, is entitled to receive temporary disability |
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benefits in accordance with a certification made before the |
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effective date of this Act. To continue to receive disability |
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retirement benefits after September 1, 2008, the person must be |
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certified, before September 1, 2008, as permanently disabled as |
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provided by Section 864.005, Government Code, as amended by this |
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Act, and is subject to the recertification requirement of that |
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section. |
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SECTION 12. This Act takes effect September 1, 2007. |
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____________________________________________________________ |
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President of the SenateSpeaker of the House |
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I certify that H.B. No. 2400 was passed by the House on April |
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23, 2007, by the following vote: Yeas 140, Nays 0, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2400 was passed by the Senate on May |
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15, 2007, by the following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |