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