Texas Vernon's Texas Civil Statutes - Article 6243b. Firemen And Policemen Pension Fund In Cities Of 500,000 To 600,000
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Art. 6243b. FIREMEN AND POLICEMEN PENSION FUND IN CITIES OF
500,000 TO 600,000.
Board of trustees
Sec. 1. (a) In all incorporated cities and towns containing
more than 550,000 inhabitants and less than 600,000 inhabitants,
having a fully or partially paid fire department, the mayor or the
mayor's authorized representative, two (2) citizens of said city or
town to be designated by the mayor, the chief of police or the
chief's authorized representative, the chief of the fire department
or the chief's authorized representative, and the successors of the
mayor, chief of police, and chief of the fire department, three (3)
policemen other than the chief or assistant chief, to be elected by
members of the policemen's pension fund, three (3) firemen other
than the chief or assistant chief, to be elected by members of the
firemen's pension fund, composing eleven (11) members, seven (7) of
which shall be a quorum, shall constitute a board of trustees of the
Firemen and Policemen Pension Fund, to provide for the disbursement
of the same and to designate the beneficiaries thereof. The three
policemen and the three firemen named above shall be elected to a
term of four (4) years. The term for a citizen designated by the
mayor is four (4) years. The board shall be known as the Board of
Firemen and Policemen Pension Fund, __________, Texas. Said board
shall organize by choosing one member as Chairman and by appointing
a secretary. Such board shall have charge of and administer said
fund and shall order payments therefrom in pursuance of the
provisions of this law. It shall report annually to the governing
body of such city or town the condition of the said fund and the
receipts and disbursements on account of the same with a complete
list of beneficiaries of said fund and the amounts paid them.
(b) Of the first two (2) citizens designated by the mayor to
serve on the board of trustees after the effective date of this
subsection, one shall serve a four-year term and the other a
two-year term. Thereafter all terms shall be for four (4) years.
Of the first six (6) firemen and policemen elected after the
effective date of this subsection, three (3) of the firemen and
policemen shall serve four-year terms and three (3) of the firemen
and policemen shall serve two-year terms. The first four-year
terms shall not be served by all three members elected from the
firemen's fund nor by all three members elected from the policemen's
fund. This determination shall be made by lot under the supervision
of the board. Thereafter all elected terms shall be for four (4)
years.
(c) The board of trustees shall provide by rule for election
of its elected members by secret ballot.
(d) The board of trustees may purchase from an insurer
licensed to do business in this state one (1) or more insurance
policies that provide for the reimbursement of a member, officer,
or employee of the board for liability imposed as damages caused by,
and for costs and expenses incurred by the individual in defense of,
an alleged act, error, or omission committed in the individual's
capacity as fiduciary or co-fiduciary of assets of the pension
fund. The board of trustees may not purchase an insurance policy
that provides for the reimbursement of a member, officer, or
employee of the board for liability imposed or costs and expenses
incurred because of the member's, officer's, or employee's personal
dishonesty, fraudulent breach of trust, lack of good faith,
intentional fraud or deception, or intentional failure to act
prudently. The board of trustees shall use money in the pension
fund to purchase an insurance policy under this subsection.
(e)(1) If an insurance policy described by Subsection (d) of
this section is unavailable, insufficient, inadequate, or
otherwise not in effect, the board of trustees may indemnify a
member, officer, or employee of the board for liability imposed as
damages caused by, and for reasonable costs and expenses incurred
by the individual in defense of, an alleged act, error, or omission
committed in the individual's fiduciary or co-fiduciary capacity.
The board of trustees may not indemnify a member, officer, or
employee of the board for liability imposed or costs and expenses
incurred because of the member's, officer's, or employee's personal
dishonesty, fraudulent breach of trust, lack of good faith,
intentional fraud or deception, or intentional failure to act
prudently.
(2) A determination of indemnification under this
subsection must be made by a majority of the board of trustees. If a
proposed indemnification is of a board member, the member may not
vote on the matter.
(3) The board of trustees may adopt a policy establishing a
method for presentation, approval, and payment of claims for
indemnification under this subsection.
Definitions
Sec. 1A. In this Act:
(1) "Board of Trustees" or "Board" means the Board of
Trustees of the Firemen and Policemen Pension Fund.
(2) "Member" means a duly appointed and enrolled policeman
or fireman of a city covered by this Act who is a contributing
member of the pension fund.
(3) "Pension Fund" or "Fund" means the Firemen and Policemen
Pension Fund.
(4) "Salary" means base pay plus longevity pay received by a
member from the city for personal services rendered as a policeman
or fireman excluding all other forms of compensation.
(5) "Wages" means salary, longevity, and overtime pay
received by a member from the city for personal services rendered as
a policeman or fireman excluding all other compensation.
Participation in fund; wage deductions
Sec. 2. Each member fireman and policeman in the employment
of such city or town must participate in said fund, except in times
of national emergency those persons as are employed during that
time shall not be required to participate in the fund, and said city
or town shall be authorized to deduct a sum of not less than one per
cent (1%) nor in excess of six per cent (6%) of his wages from each
month to form a part of the fund known as the Firemen and Policemen
Pension Fund, except that the city or town shall deduct a sum less
than one per cent (1%) or more than six per cent (6%) of the member's
wages each month to form a part of the fund if the board of trustees
of that fund increases or decreases the percentage of wages to be
contributed to the fund under the provisions of Section 10A of this
Act. The amount to be deducted from the wages of those named above
who must participate in the fund is to be determined by the board of
trustees as provided for in Section 1 of this Act within the minimum
and maximum deductions herein provided or as otherwise provided
under the provisions of Section 10A of this Act.
Payments to fund
Sec. 3. There shall be deducted for such fund from the wages
of each fireman and policeman a sum to be determined by the board of
trustees under the provisions of Section 2 or 10A of this Act. Any
donations made to such fund and rewards received by any member of
either of said funds, and all funds received from any source for
such fund shall be deposited in like manner to the credit of such
fund.
Conduct of meetings
Sec. 4. The board shall hold regular monthly meetings and
other meetings upon call of its chairman. It shall issue orders
signed by the president or chairman and secretary to the persons
entitled thereto, of the amount of money ordered paid to such
persons from such fund by said board which order shall state for
what purpose such payment is to be made; it shall keep a record of
its proceedings, which record shall be a public record; it shall at
each monthly meeting send to the city treasurer a written list of
persons entitled to payment from the fund, stating the amount of
such payment, and for what granted, which list shall be certified to
and signed by the president or chairman and secretary of such board,
attested under oath. The treasurer shall enter a copy of said list
upon the book to be kept for that purpose, which book shall be known
as the "Record of the Firemen and Policemen Pension Fund Board," of
__________, Texas, and the said board shall direct payments of the
amounts named therein to the persons entitled thereto out of said
fund. No money of said fund shall be disbursed for any purpose
without a vote of a majority of the board, which shall be a no and
yes vote entered upon the proceedings of the board.
Custody of Fund
Sec. 5. The treasurer of said city or town shall be ex-officio
treasurer of said fund. All money for said fund shall be paid over
to and received by the treasurer for the use of said fund, and the
duties thus imposed upon such treasurer shall be additional duties
for which he shall be liable under his oath and bond as such city or
town treasurer, but he shall receive no compensation therefor.
Membership in pension fund; eligibility
Sec. 6. (a) Any person who has been duly appointed and
enrolled as a policeman or fireman of any city covered by this Act
shall automatically become a member of the pension fund of such city
upon expiration of ninety (90) days from date such city comes within
the provisions of this Act, provided such person at the time of such
appointment was not less than eighteen (18) years of age and not
more than twenty-nine (29) years of age and except as provided under
Section 10A of this Act. In all instances where a person is already
a member of and contributor to such pension fund, he shall retain
and be entitled to all rights and privileges due him by virtue of
having been such a member and contributor.
(b) Any person not a member of the pension fund when this Act
becomes effective, who thereafter is duly appointed and enrolled as
a fireman or policeman of such city shall automatically become a
member of the pension system as a condition of his employment
provided such person at the time of such appointment was not less
than eighteen (18) years of age and not more than twenty-nine (29)
years of age and except as provided under Section 10A of this Act.
Retirement pensions
Sec. 7. Whenever any member of said departments who shall
have contributed a portion of his wages, as provided herein, shall
have served twenty-five (25) years or more in either of said
departments and shall have attained the age of fifty (50) years, he
shall be entitled to be retired from said service upon application,
and shall be entitled to be paid from said fund a monthly pension of
one-half (1/2) of the salary received by him at the time of his
retirement subject to change under the provisions of Section 10A of
this Act.
Disability pensions
Sec. 8. Whenever any member of the fire department or police
department of any such city or town, and who is a contributor to
said fund as provided, shall become so permanently disabled through
injury received, or disease contracted, in the line of duty, as to
incapacitate him for the performance of duty, or shall for any
cause, through no fault of his own, become so permanently disabled
as to incapacitate him for the performance of duty, and shall make
written application therefor approved by a majority of the board,
he shall be retired from service and be entitled to receive from
said fund one-half of the monthly salary received by him as a member
of either of said departments, at the time he became so disabled, to
be paid in regular monthly installments subject to change under the
provisions of Section 10A of this Act.
Death benefits, widows, etc.
Sec. 9. In the case of the death before or after retirement of
any member of the fire department or police department of any city
or town resulting from disease contracted or injury received while
in the line of duty or from any other cause through no fault of his
own and who at the time of his death or retirement was a contributor
to said Fund, leaving a widow and no children, the widow shall be
entitled to receive monthly from said Fund an amount not exceeding
one-third of such monthly salary received by such member
immediately preceding his retirement, and, if not retired before
death, one-third of such monthly salary received by such member
immediately preceding his death; and, if at the time of the death
of such contributor, under the circumstances and conditions
hereinabove set forth, such contributor leaves a child or children
under sixteen (16) years of age and the wife of such contributor is
dead or divorced from such contributor, the child or children under
sixteen (16) years of age shall be entitled to receive monthly from
said Fund an amount not exceeding one-third of such monthly salary
received by such member immediately preceding his retirement, and,
if not retired before death, one-third of such monthly salary
received by such member immediately preceding his death, said sum
so paid to be equally divided among said children under sixteen (16)
years of age, if more than one; and if at the time of death of such
contributor, under the conditions hereinabove set forth, such
contributor leaves a widow and a child or children under sixteen
(16) years of age, the widow shall be entitled to receive monthly
from said Fund (for the joint benefit of herself and such child or
children) an amount not exceeding one-half of the monthly salary
received by such member immediately preceding his retirement, and
if not retired before death, one-half of such monthly salary
received by such member immediately preceding his death, said
payments to be made until such child or all of said children, if
more than one, as the case may be, shall reach sixteen (16) years of
age, and after said child or all of said children, as the case may
be, have reached the age of sixteen (16) years, then the widow shall
be entitled to receive monthly from said Fund (for her benefit) an
amount not exceeding one-third of the monthly salary received by
such member immediately preceding his retirement, and if not
retired before death, one-third of such monthly salary received by
such member immediately preceding his death. In no case shall the
amount paid to any one family exceed monthly the amount of one-half
of the monthly salary earned by the deceased immediately prior to
the time of his retirement, or, if not retired, prior to the time of
his death. On the remarriage of any widow, such pension paid to her
for her benefit shall cease and in the event that there are child or
children under sixteen (16) years of age at the time of said
remarriage, one-third of the monthly salary received by such member
immediately preceding his retirement, and if not retired before
death, immediately preceding his death, shall be paid monthly to
the widow for the sole benefit of the child or children under the
age of sixteen (16) years; provided, however, that the Pension
Board, if it finds that said payments to the widow are not being
used for the benefit of said child or children, may order said
monthly benefits paid to said child or children instead of to said
widow who has remarried. Where there is more than one child of such
contributor, the benefits herein provided for shall be equally
divided among the children, and upon the marriage or death of any
child receiving such pension, or upon any child receiving such
pension reaching sixteen (16) years of age, such pension payment
for the benefit of said child shall cease, and if there remains a
child or children under sixteen (16) years of age, the share of the
said child so married or dead or reaching sixteen (16) years of age,
shall be paid for the benefit of the remaining child or children
under sixteen (16) years of age. In the event that a contributor
leaves a widow and child or children under sixteen (16) years of age
who are not the children of said widow, the Pension Board may, in
its discretion, either pay monthly to the widow for the benefit of
herself and said child or children, an amount not exceeding
one-half of the monthly salary received by such member immediately
preceding his retirement, or immediately preceding his death, if
not retired before death, as hereinabove provided, or said Board
may order one-fourth of said monthly salary received by such member
paid to the widow and one-fourth of said monthly salary paid to said
child or children. No widow or child of any such member resulting
from any marriage contracted subsequent to the date of retirement
of said member shall be entitled to a pension under this law;
provided, however, that the provisions of this Section shall not be
construed so as to change any pension now being paid any pensioner
under the provisions of this Act. The provisions of this section
are subject to change under the provisions of Section 10A of this
Act.
Death benefits, father, etc.
Sec. 10. If any member of the fire department or police
department dies from injuries received or disease contracted while
in the line of duty, or from any cause through no fault of his own,
who was a contributor to said fund and entitled to participate in
said fund himself, leaves no wife or child, but who shall leave
surviving him a dependent father, mother, brother, or sister,
wholly dependent upon said person for support, such dependent
father, mother, sister and brother shall be entitled to receive in
the aggregate one-half of the salary earned by said deceased
immediately prior to his death, to be equally divided between those
who are wholly dependent on said deceased, so long as they are
wholly dependent. The board shall have authority to determine the
facts as to the dependency of said parties and each of them, as to
how long the same exists, and may at any time upon the request of any
contributor to such fund, reopen any award made to any of said
parties and discontinue such pension as to all or any of them as it
may deem proper, and the findings of said board in regard to such
matter and as to all pensions granted under this law shall be final
upon all parties seeking a pension as a dependent of said deceased,
or otherwise, until such award of the trustees shall have been set
aside or revoked. The provisions of this section are subject to
change under the provisions of Section 10A of this Act.
Modification of benefits, membership qualifications, eligibility
requirements and contributions; conditions
Sec. 10A. (a) Notwithstanding anything to the contrary in
other parts of this Act, the Board of Trustees may, by majority vote
of the whole board, make from time to time one or more of the
following changes, or modifications:
(1) modify or change prospectively or retroactively in any
manner whatsoever any of the benefits provided by this Act, except
that any retroactive change or modification shall only increase
pensions or benefits;
(2) modify or change prospectively in any manner whatsoever
any of the membership qualifications;
(3) modify or change prospectively or retroactively in any
manner whatsoever any of the eligibility requirements for pensions
or benefits;
(4) increase or decrease prospectively the percentage of
wages less than the one per cent (1%) minimum or above the six per
cent (6%) maximum provided in Section 2 of this Act to be
contributed to the fund; or
(5) provide prospectively for refunds, in whole or in part,
and with or without interest, of contributions made to the fund by
employees who leave the city service before qualifying for a
pension.
(b) None of the changes made under Subsection (a) of this
section may be made unless all of the following conditions are
sequentially complied with:
(1) the change must be approved by a qualified actuary
selected by a four-fifths vote of the Board; the actuary, if an
individual, must be a Fellow of the Society of Actuaries or a Fellow
of the Conference of Actuaries in Public Practice or a Member of the
American Academy of Actuaries; the findings upon which the
properly selected and qualified actuary's approval are based are
not subject to judicial review;
(2) the change must be approved by a majority of all persons
then making contributions to the fund as employees of a department
to which the change would directly apply, voting by secret ballot at
an election held after ten (10) days' notice given by posting at a
prominent place in every station or substation of a department to
which the change would directly apply and in the city hall;
(3) the changes, except changes made under the provisions of
Subdivision (1), Subsection (a), of this section, shall apply only
to active member employees who are members of the affected
departments at the time the change becomes effective and those who
enter the departments thereafter; and
(4) the changes shall not deprive any person, without his
written consent, of any right to receive a pension or benefits which
have already become vested and matured.
Investigations
Sec. 11. The board shall consider all cases for the
retirement and pension of the members of the fire and police
departments rendered necessary or expedient under the provisions of
this law, and all applications for pensions by widows and the
children and of dependent relatives, and the said trustees shall
give written notice to persons asking a pension to appear before
said board and offer such sworn evidence as he or they may desire.
Any person who is a member of either of said departments and who is a
contributor to said fund may appear either in person or by attorney
and contest the application for participation in said fund by any
person claiming to be entitled to participate therein, and may
offer testimony in support of such contest. The president or
chairman of said board shall have authority to issue process for
witnesses and administer oaths to said witnesses and to examine any
witness as to any matter affecting retirement or a pension under the
provisions of this law. Such process for witness shall be served by
any member of the police or fire department and upon the failure of
any witness to attend and testify, he or she may be compelled to
attend and testify, as in any judicial proceeding.
Medical Examination
Sec. 12. Said board may cause any person receiving any
pension under the provisions of this law, who has served less than
twenty (20) years, to appear and undergo a medical examination, as a
result of which the board shall determine whether the relief in said
case shall be continued, increased, decreased or discontinued. If
any person receiving relief under the provisions of this law, after
due notice, fails to appear and undergo such examination, the board
may reduce or entirely discontinue such relief.
Sec. 13. Repealed by Acts 1973, 63rd Leg., p. 817, ch. 368,
Sec. 5, eff. June 12, 1973.
Use of Public Funds
Sec. 14. No funds shall be paid out of the public treasury of
any such incorporated city or town, in carrying out any of the
provisions of this law, except on a majority vote of the voters of
such city or town, and where such funds have been voted on as
provided by law, said city or town shall contribute such amount.
Awards Exempt
Sec. 15. No amount awarded to any person under the provisions
of this law shall be liable for the debts of any such person; shall
not be assignable and shall be exempt from garnishment or other
legal process.
Separation of Firemen's and Policemen's Pension Funds in certain
cities
Sec. 16. In any city or town subject to and operating under
the Pension Law, the governing Body and Board of Trustees may, if it
is deemed advisable and a majority of the members of said Fire
Department or Police Department vote therefor, authorize and
provide for the maintenance and administration of Pension Funds for
each Department, said Funds to be the Policemen's Division of the
Firemen and Policemen Pension Fund and the Firemen's Division of
the Firemen and Policemen Pension Fund, to be kept independent of
and apart from each other, and said Funds of each Department to
consist of contributions by members of said Department, donations
thereto and funds received from any source by said Department the
purpose and effect of said division being to maintain the
membership of and the payments into each Department separate, and
to limit the rights of the members of each Department and their
beneficiaries to the Pension Fund of their Department, and after
the creation and establishment of a Firemen's Division of said
Pension Fund and a Policemen's Division of said Pension Fund, the
rights of Firemen shall be limited to the Firemen's Division of said
Pension Fund, and the rights of Policemen and their beneficiaries
shall be limited to the Policemen's Division of said Pension Fund.
After a separation has been voted and approved, as above provided,
the Board of Trustees shall apportion the existing Firemen and
Policemen Pension Fund between the two (2) Funds on the basis of
contributions made by the members of the respective Departments and
donations or payments to said Departments, and thereafter all
payments to members or their beneficiaries of benefits, now accrued
or hereafter accruing, shall be made from the Fund of their
Department. Where a separation of funds is had, as hereinabove
provided, the governing body of any city or town whose voters have
authorized the payment of funds from the public treasury into the
Firemen and Policemen Pension Fund is hereby authorized to pay to
the Board of Trustees, for the use of the Pension Fund of each
division above provided for, sums not to exceed in total the amount
voted by the people to be paid into the single fund.
Validation of proceedings for separation of pension funds
Sec. 17. All Acts and proceedings had and done by the
governing body and Board of Trustees of the Pension Fund of any such
city or town, subject to the above provisions, in creating,
establishing, maintaining, and administering separate Pension
Funds for Firemen and Policemen are hereby legalized, approved, and
validated, as well as the division by said governing body and Board
of Trustees of any public funds voted by the voters of said city or
town for the Firemen and Policemen Pension Fund between said two (2)
Funds, and said governing body and Board of Trustees shall continue
the separate maintenance and administration of said Funds in the
manner hereinabove provided. This section and Section 16 of this
Act provide only for the separation of pension funds into policeman
and fireman divisions and grant the governing body no power or
authority granted to the Board of Trustees under any provision of
this Act, and the Board of Trustees shall have exclusive charge of
administration and maintenance of the fund.
Operation of Fund Notwithstanding Census Change
Sec. 18. Any city which has heretofore established a firemen
and policemen fund in accordance with Article 6243B of Vernon's
Texas Civil Statutes or as amended, shall continue to operate such
fund under the provisions of this Act. It is further provided that
the fact that any future Federal Census may result in said city
being above or below the population bracket herein specified shall
not affect the validity of such fund and such fund shall continue to
be operated pursuant hereto.
Acts 1933, 43rd Leg., 1st C.S., p. 279, ch. 101. Amended by Acts
1935, 44th Leg., p. 811, ch. 346, Sec. 1 to 4; Acts 1937, 45th Leg.,
p. 616, ch. 308, Sec. 1; Acts 1937, 45th Leg., p. 1335, ch. 495,
Sec. 1, 2; Acts 1959, 56th Leg., p. 26, ch. 16, Sec. 1; Acts 1961,
57th Leg., p. 983, ch. 427, Sec. 1; Acts 1963, 58th Leg., p. 367,
ch. 136, Sec. 1, eff. May 10, 1963; Acts 1969, 61st Leg., p. 2456,
ch. 823, Sec. 1, eff. Sept. 1, 1969; Acts 1971, 62nd Leg., p. 1418,
ch. 395, Sec. 1, 2, eff. May 26, 1971; Acts 1973, 63rd Leg., p. 815,
ch. 368, Sec. 1 to 5, eff. June 12, 1973; Acts 1975, 64th Leg., p.
1372, ch. 526, Sec. 1, 2, eff. Sept. 1, 1975; Acts 1981, 67th Leg.,
p. 590, ch. 237, Sec. 122, eff. Sept. 1, 1981; Acts 1985, 69th Leg.,
ch. 663, Sec. 1, eff. June 14, 1985; Acts 1991, 72nd Leg., ch. 597,
Sec. 46, eff. Sept. 1, 1991; Acts 1991, 72nd Leg., ch. 708, Sec. 1,
2, eff. Aug. 26, 1991; Acts 2001, 77th Leg., ch. 669, Sec. 165, eff.
Sept. 1, 2001.
Article: 6228a-5 6228a-6 6228d 6228e 6228h 6228j 6243b 6243c 6243d 6243d-1 6243e 6243e.1 6243e.2(1) 6243e-2
Last modified: August 11, 2007
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