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AN ACT
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relating to the board of trustees of and distribution of certain |
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benefits by a retirement system for firefighters in certain |
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municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2.03(b), Chapter 183 (S.B. 598), Acts of |
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the 64th Legislature, Regular Session, 1975 (Article 6243e.1, |
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Vernon's Texas Civil Statutes), is amended to read as follows: |
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(b) Between November 1 of each year and the first Monday in |
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January of the following year, the board of trustees shall hold an |
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election to elect one member of the board of trustees. If only one |
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firefighter or retiree is nominated for a position under Subsection |
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(c) of this section, instead of holding an election, the board of |
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trustees may appoint the sole nominated candidate at the first |
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board meeting in January. The board shall adopt procedures for the |
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appointment of a sole nominated candidate under this subsection. A |
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board member appointed under this subsection is considered elected |
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for purposes of this Act. |
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SECTION 2. Section 7.09, Chapter 183 (S.B. 598), Acts of the |
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64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's |
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Texas Civil Statutes), is amended by adding Subsection (d) to read |
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as follows: |
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(d) The board of trustees may adopt rules to establish |
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procedures for and requirements governing a member's designation of |
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a beneficiary under this section. |
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SECTION 3. Section 8.05, Chapter 183 (S.B. 598), Acts of the |
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64th Legislature, Regular Session, 1975 (Article 6243e.1, Vernon's |
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Texas Civil Statutes), is amended by adding Subsection (d) to read |
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as follows: |
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(d) The board of trustees may adopt rules that modify the |
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availability of distributions under Subsection (a) of this section, |
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provided that the modifications do not: |
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(1) impair the distribution rights under that |
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subsection; or |
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(2) cause distributions to occur later than required |
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under Section 401(a)(9), Internal Revenue Code of 1986. |
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SECTION 4. Sections 8.07(b), (c), and (d), Chapter 183 |
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(S.B. 598), Acts of the 64th Legislature, Regular Session, 1975 |
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(Article 6243e.1, Vernon's Texas Civil Statutes), are amended to |
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read as follows: |
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(b) If a member who participates in the DROP dies before |
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distribution of the member's entire DROP account [while in active
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service or if the member has not filed an election with the board of
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trustees as described by Subsection (c) of this section], |
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distributions to the designated beneficiary will begin not more |
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than one year after the date of the member's death and shall be made |
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either as a single-payment distribution of the member's DROP |
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account balance or in not more than four equal annual installments |
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over a period of not more than 37 months. |
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(c) [If a member who participates in the DROP dies after
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terminating active service and has filed an election with the board
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of trustees to be paid in not more than four equal annual
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installments over a period of not more than 37 months, the balance
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of the member's DROP account shall be distributed to the designated
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beneficiary in the manner that the member selected.
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[(d)] If the member has not designated a beneficiary to |
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receive distributions from the member's DROP account or if the |
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person so designated does not survive the member by at least 72 |
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hours, the member's DROP account shall be distributed in a |
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single-sum payment as soon as administratively possible after the |
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member's death to any surviving spouse who survives the member by at |
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least 72 hours, if any, or to the member's estate if there is no |
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surviving spouse. |
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SECTION 5. Section 9.04(a-2), Chapter 183 (S.B. 598), Acts |
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of the 64th Legislature, Regular Session, 1975 (Article 6243e.1, |
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Vernon's Texas Civil Statutes), is amended to read as follows: |
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(a-2) The collective adjustment amount described by |
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Subsection (a-1) of this section: |
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(1) is an amount equal to the actuarial value, as |
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determined by the board's actuary based on the interest and |
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mortality assumptions adopted by the board of trustees for the most |
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recent actuarial valuation of the fund, of the percentage increase |
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in the Consumer Price Index for All Urban Consumers as determined by |
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the United States Department of Labor for the applicable |
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determination period ending in a calendar month that precedes by |
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not more than four months the month in which [immediately preceding
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the date] the cost-of-living adjustment is to take effect, |
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multiplied by the total amount of benefits payable in the month |
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immediately preceding the date an adjustment is to take effect to |
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persons who are eligible to receive an adjustment under this |
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section; and |
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(2) if applicable: |
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(A) is reduced by an amount that the board's |
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actuary determines is necessary to maintain the financial stability |
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of the fund; or |
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(B) is increased in accordance with Subsection |
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(b) of this section. |
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SECTION 6. The board of trustees of a retirement system |
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subject to this Act shall adopt procedures required under Section |
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2.03(b), Chapter 183 (S.B. 598), Acts of the 64th Legislature, |
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Regular Session, 1975 (Article 6243e.1, Vernon's Texas Civil |
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Statutes), as amended by this Act, before a sole nominated |
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candidate may be appointed to the board of trustees. |
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SECTION 7. This Act takes effect September 1, 2015. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 1756 was passed by the House on April |
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16, 2015, by the following vote: Yeas 146, Nays 0, 2 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. 1756 was passed by the Senate on May |
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15, 2015, 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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Date |
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_____________________ |
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Governor |