Texas Vernon's Texas Civil Statutes - Article 6243e. Texas Local Fire Fighters Retirement Act
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Art. 6243e. TEXAS LOCAL FIRE FIGHTERS RETIREMENT ACT.
Short title
Sec. 1. This Act may be cited as the Texas Local Fire Fighters
Retirement Act.
Definitions
Sec. 2. In this Act:
(1) "Contribution" means an amount of money paid by a
municipality or other political subdivision to a retirement system
or required to be paid periodically to a retirement system by or on
behalf of a member of the retirement system for the purpose of
financing benefits payable by the system.
(2) "Employee" means a person who regularly performs
services for a fire department, who is a member of the retirement
system that includes the fire department, and who regularly
receives compensation for those services of at least $200 a month.
The term includes a person described by Subsection (d) of Section 9
of this Act who regularly receives compensation by the municipality
or other political subdivision of at least $200 a month.
(3) "Fund" means a trust fund established in conjunction
with a fire fighters' retirement system for the purpose of holding
assets to be used to finance benefits payable by the system.
(4) "Participating member" means an employee who is
required to make periodic contributions to a retirement system or a
volunteer who meets the requirements of Subsection (b) of Section
10 of this Act.
(5) "Regularly organized fire department" means a unit that
is responsible primarily for fighting fires and responding to other
emergencies each day and that has specialized equipment for use in
performing those tasks.
(6) "Retiree" means a person who receives a benefit, other
than a return of contributions, from a retirement system for
services the person performed as a member.
(7) "Retirement system" means a fire fighters' retirement
system established as provided by Section 4 of this Act.
(8) "Volunteer" means a person who regularly performs
services for a fire department, who is a member of the retirement
system that includes the fire department, and who either receives
no compensation for those services or regularly receives
compensation for those services of less than $200 a month. The term
includes a person described by Subsection (d) of Section 9 of this
Act who either receives no compensation for service to a
municipality or other political subdivision or regularly receives
compensation for that service of less than $200 a month.
(9) "Compensation" includes amounts of workers'
compensation benefits received by an employee and by which the
employee's salary is reduced.
(10) "Determination date" means:
(A) the day before the effective date of an addition or
change adopted by the board of trustees of a retirement system under
Section 7 of this Act; or
(B) the date of divorce for a member or retiree whose
benefits under this Act are subject to a qualified domestic
relations order.
(11) "Vested accrued benefit" means the amount of the
monthly benefit that a person is entitled to receive based on the
person's service credit and compensation history as of the
determination date under the benefit formula and other terms
established by a retirement system, including a vested percentage
where applicable, as those terms exist on the determination date.
The vested accrued benefit of a member is calculated without regard
to any optional form of payment the member may select at retirement.
The term does not include cost-of-living increases that may be
applied to a benefit after the determination date.
Application of Act
Sec. 3. (a) This Act applies to each municipality in the state
that has a regularly organized fire department not consisting
exclusively of volunteers, except:
(1) a municipality all of whose fire department personnel
participate in the Texas Municipal Retirement System;
(2) a municipality whose fire department is governed by
another state law providing for retirement benefits for fire
department personnel; and
(3) a municipality that has in effect a program providing
retirement benefits for fire department personnel that was
established by charter or ordinance before September 1, 1989.
(b) This Act also applies to each municipality in the state
that has a fire department that:
(1) consists exclusively of volunteers;
(2) was organized before September 1, 1989, and remains a
regularly organized department; and
(3) does not participate in the statewide program provided
by Chapter 269, Acts of the 65th Legislature, Regular Session, 1977
(Article 6243e.3, Vernon's Texas Civil Statutes).
(c) If a municipality's fire department consists partly of
employees participating in the Texas Municipal Retirement System
and partly of employees or volunteers not participating in that
retirement system, this Act applies to the persons who are not
participating in the Texas Municipal Retirement System. In that
circumstance, a provision of this Act that applies to members of a
retirement system or to members of a fire department applies only to
those members who are participating in a retirement system under
this Act.
(d) If a municipality's fire department consists partly of
volunteers participating in the statewide program provided by
Chapter 269, Acts of the 65th Legislature, Regular Session, 1977
(Article 6243e.3, Vernon's Texas Civil Statutes), and partly of
employees not participating in that program, this Act applies to
the fire department personnel who are employees. In that
circumstance, a provision of this Act that applies to members of a
retirement system or to members of a fire department applies only to
those members who are employees.
(e) In addition to the other applicability of this Act, this
Act applies to a political subdivision outside the boundaries of a
municipality that has a regularly organized fire department not
consisting exclusively of volunteers, except a political
subdivision whose fire department is governed by another state law
providing for retirement benefits for fire department personnel.
If the political subdivision's fire department consists partly of
volunteers eligible to participate in the program provided by
Chapter 269, Acts of the 65th Legislature, Regular Session, 1977
(Article 6243e.3, Vernon's Texas Civil Statutes), and partly of
employees, this Act applies to fire department personnel who are
employees.
Retirement system and trust fund
Sec. 4. A fire fighters' retirement system and trust fund are
established in each municipality or other political subdivision to
which this Act applies. The board of trustees of each retirement
system established by this Act shall hold or cause to be held in
trust the assets appropriated or dedicated to the system or fund,
separate from other money or accounts administered by the board of
trustees or the municipality or other political subdivision, for
the exclusive benefit of the members and retirees of the system and
their beneficiaries.
Exemption from judicial process
Sec. 5. All amounts in a trust fund of a retirement system
subject to this Act and all rights accrued or accruing under this
Act to any person are exempt from garnishment, attachment,
execution, state and municipal taxation, sale, levy, and any other
process and are unassignable.
Social security
Sec. 6. Provisions of a retirement system may not be
integrated with social security as otherwise permitted under
Sections 401(a)(4), (a)(5), and (l) of the Internal Revenue Code of
1986 (26 U.S.C. Section 401).
Modification of benefits and eligibility
Sec. 7. (a) The board of trustees of a retirement system may
change the benefits or eligibility requirements for benefits
payable from the retirement system, may provide for reinstatement
by a member of service credit previously forfeited, and may adopt or
change other requirements for the payment of benefits, except as
otherwise prohibited by this Act.
(b) Before a board of trustees chooses to adopt or change a
benefit or requirement for payment of benefits under this section,
the proposed addition or change must be approved by:
(1) an eligible actuary selected by the board; and
(2) a majority of the participating members of the
retirement system voting on the addition or change by secret ballot
at an election held for that purpose at which at least 50 percent of
all participating members of the retirement system vote.
(c) To be eligible to approve an addition or change under
this section, an actuary must be either a fellow of the Society of
Actuaries or a member of the American Academy of Actuaries.
(d) Except as provided by Subsection (e) of this section, if
a board chooses to adopt an addition or change after it has been
approved as provided by this section, the addition or change
applies to all persons who are participating members of the
retirement system on the effective date of the addition or change
and all persons who became participating members during the time
the addition or change remains in effect. The addition or change
also may apply to:
(1) persons receiving monthly benefits; or
(2) former members of the fire department who meet an
applicable length-of-service requirement for service retirement.
(e) An addition or change adopted under this section may
not, without the written consent of the member, retiree, or
eligible survivor under Section 15 of this Act, deprive a member of
the retirement system, a retiree, or an eligible survivor of a right
to receive a vested accrued benefit.
(f) The effective date of a change or addition adopted under
this section is a date specified by the board of trustees that is
not earlier than the date of adoption by the board. A change or
addition may not be applied retroactive to its effective date
unless required to maintain a plan's tax qualification status.
Recovery of amounts wrongfully obtained
Sec. 8. The board of trustees of a retirement system subject
to this Act may initiate or cause to be initiated a suit against any
appropriate person to recover amounts paid or obtained from the
trust fund through fraud, misrepresentation, theft, or other
misapplication or by mistake. The board of trustees shall deposit
amounts recovered under this section in the trust fund for the
retirement system.
Membership
Sec. 9. (a) Except as otherwise provided by this section, a
person who is an employee of a fire department included within the
coverage of a retirement system is a member of the retirement system
if the person is younger than 36 years old on the date the person is
certified under civil service as eligible for a beginning position
with the department.
(b) Except as provided by Subsections (c), (d), (e), and (g)
of this section, a person who performs services as a volunteer of a
fire department included within the coverage of a retirement system
is a member of the retirement system.
(c) A board of trustees established under this Act may, in
accordance with Section 7 of this Act:
(1) require a waiting period before retirement system
membership begins;
(2) include within the required membership of the
retirement system categories of personnel, other than personnel
performing services for the fire department, who perform emergency
medical or fire department-related services; or
(3) exclude from membership categories of fire department
personnel not regularly directly engaged in the fighting of fires.
(d) If a board of trustees, under Subdivision (2) of
Subsection (c) of this section, includes categories of personnel
within the membership of a retirement system, for purposes of this
Act, the personnel are considered employees or volunteers, as
applicable, of the fire department and their service is considered
as if it were performed for the fire department included within the
coverage of the retirement system.
(e) As a condition of membership in a retirement system, a
board of trustees may by order require persons to pass a physical
examination given by a physician of the board's choice but may not
require the persons to pay the cost of the examination.
(f) A board of trustees of a retirement system for a fire
department may by order authorize membership in the retirement
system for employees of the department who are 36 years old or older
at the time they become employees but who first became fire fighters
at an age younger than 36. Membership under an authorization is
optional with each employee, except that an employee must, before
beginning membership, pass any physical examination requirement
established under Subsection (e) of this section.
(g) A service retiree of a retirement system may not rejoin
or receive credit in the system for any postretirement service
performed for the fire department included within the coverage of
the system.
Service credit
Sec. 10. (a) Service credit is earned in a retirement system
for each month for which an employee makes the contribution
required under this Act.
(b) Service credit is earned in a retirement system for each
calendar year in which a volunteer answers at least 25 percent of
all fire alarms determined by the board of trustees and attends at
least 40 percent of all drills held by the fire department.
(c) A retirement system shall also grant service credit to a
member who leaves the service of a fire department and later
returns, if the break in service is attributable to service for any
period as a member of the armed forces of the United States during a
war or national emergency.
(d) Absence from service by an employee does not forfeit
service credit accrued before the absence begins, unless membership
is terminated. Absence from service by a volunteer does not forfeit
service credit accrued before the absence begins.
(e) A board of trustees established under this Act may, in
accordance with Section 7 of this Act, expand the circumstances
under which service credit is earned.
Previous fire department service
Sec. 11. (a) Except as provided by Subsection (c) of this
section, a person who elects to become a member of a retirement
system under an authorization adopted under Subsection (f) of
Section 9 of this Act may establish credit in the retirement system
for previous service performed for another fire department included
within the coverage of a retirement system under this Act. To
establish credit for the previous service, the person must deposit
with the retirement system an amount determined by the board of
trustees that is equal to the sum of:
(1) the amount that the person would have contributed to the
system if the person's previous fire department service had been
performed for the department by which the person is employed,
computed on the member contribution rate in effect in the
retirement system at the time the service was performed and on the
person's compensation for the previous service; and
(2) interest on the amount described by Subdivision (1) of
this subsection at the rate of eight percent, compounded annually,
from the date the service was performed to the date of deposit.
(b) If a person makes the deposit described by Subsection
(a) of this section, the municipality or other political
subdivision served by the fire department that employs the person
shall deposit with the retirement system an amount determined by
the board that is equal to the sum of:
(1) the amount that the municipality or other political
subdivision would have contributed to the system if the person's
previous fire department service had been performed for the
department by which the person is employed, computed on the
contribution rate of the municipality or other political
subdivision in effect in the retirement system at the time the
service was performed and on the person's compensation for the
previous service; and
(2) interest on the amount described by Subdivision (1) of
this subsection at the rate of eight percent, compounded annually,
from the date the service was performed to the date of deposit.
(c) A person may not establish credit under this section for
service that is credited in another public retirement system,
including another retirement system subject to this Act.
Service retirement
Sec. 12. (a) A member of a retirement system is eligible for
retirement for service if the member is at least 55 years old and
has performed at least 20 years of service that is credited in the
retirement system.
(b) Except as provided by Subsection (c) of this section,
monthly benefits payable for service retirement are $100 to a
retiree whose service was not exclusively as a volunteer and $25 to
a retiree whose service was exclusively as a volunteer.
(c) A board of trustees established under this Act may, in
accordance with Section 7 of this Act:
(1) decrease the age or service requirements for service
retirement from a particular retirement system; or
(2) determine formulas for computing benefits, classes of
permissible beneficiaries, and other requirements for payment of
service retirement benefits, as long as the minimum benefits
payable to a retiree are not less than the amounts provided by
Subsection (b) of this section.
Certificate of service
Sec. 13. (a) A member of a retirement system who meets an
applicable length-of-service requirement for service retirement
benefits but does not meet the applicable age requirement for
service retirement benefits may terminate employment with or
otherwise discontinue service for the fire department and remain
eligible to receive service retirement benefits from the retirement
system on attaining the applicable age, as long as the member does
not withdraw contributions in the retirement system.
(b) On termination of employment or other discontinuance of
service of a person described by Subsection (a) of this section, the
board of trustees of the retirement system of which the person is a
member shall issue to the member a certificate of service, stating
the completion of the service requirement and certifying that the
member is entitled to applicable service retirement benefits on
attaining the applicable age, whether or not the member performs
service after the date of the issuance of the certificate. The
certificate also shall state that the entitlement is conditioned on
the member's leaving contributions in the retirement system.
(c) A member who terminates employment or otherwise
discontinues service after meeting an applicable length-of-service
requirement for service retirement may not be required to pay to the
retirement system contributions that become due after the date of
termination or discontinuance.
Disability retirement
Sec. 14. (a) A member of a retirement system is eligible for
retirement for disability if the member becomes physically or
mentally disabled, except as the result of a condition the member
had on the date the member became an employee or volunteer, in or in
consequence of the performance of the member's duties as an
employee or volunteer of the fire department included within the
coverage of the retirement system.
(b) An application for disability retirement must be filed
with the board of trustees of the retirement system of which the
applicant is a member. The application must contain a sworn
statement of the member's medical condition, signed by a physician
attending the member, and a sworn statement of the circumstances
under which the disability arose, signed by the member or another
person who has reason to know those circumstances. The application
also may contain other pertinent information to enable the board to
determine whether the member is eligible for disability retirement.
(c) A board of trustees may require an applicant for
disability retirement to be medically examined by one or more
physicians of the board's choice but may not require the applicant
to pay the cost of a medical examination required under this
subsection.
(d) If a board of trustees determines that an applicant for
disability retirement meets the eligibility requirements for
disability retirement from the retirement system, the board shall
retire the member.
(e) Except as provided by Subsection (f) of this section,
monthly benefits payable for disability retirement are $100 to a
retiree whose service was not exclusively as a volunteer and $25 to
a retiree whose service was exclusively as a volunteer.
(f) A board of trustees established under this Act may, in
accordance with Section 7 of this Act:
(1) expand the circumstances under which disability
retirement benefits become payable;
(2) require periodic medical examinations of, periodic
vocational rehabilitation examinations of, or periodic financial
information from disability retirees to determine whether the
retiree remains eligible to receive disability retirement
benefits; or
(3) determine formulas for computing benefits, classes of
permissible beneficiaries, and other requirements for payment of
disability retirement benefits, as long as the minimum benefits
payable to a retiree who remains eligible for disability retirement
resulting from the performance of duty are not less than the amounts
provided by Subsection (e) of this section.
(g) The vested accrued benefit of a retiree under this
section who is retired as of the determination date is subject to
the terms established by the retirement system as those terms exist
on the determination date and is payable to the retiree only if the
retiree meets the eligibility requirements established by the board
of trustees under this section.
(h) Notwithstanding any other provision of this Act, a
disability retirement benefit is not a vested accrued benefit until
a member becomes disabled under the terms of the retirement system.
Death benefits
Sec. 15. (a) A death benefit is payable as provided by this
section on the death:
(1) of a member of a retirement system that occurs in or in
consequence of the performance of the member's duties as an
employee or volunteer of the fire department included within the
coverage of the retirement system;
(2) of a member of a retirement system for any reason if the
member met the applicable length-of-service requirement for
service retirement at the time of death; or
(3) of a retiree of a retirement system.
(b) Except as otherwise provided by this section, monthly
benefits payable on the death of a member or retiree are:
(1) $100 to an eligible surviving spouse of a member or
retiree whose service was not exclusively as a volunteer and $16.67
to an eligible surviving spouse of a member or retiree whose service
was exclusively as a volunteer;
(2) if there is an eligible surviving spouse and a minor
child, $20 to the guardian of each minor child of a member or
retiree whose service was not exclusively as a volunteer and $6 to
the guardian of each minor child of a member or retiree whose
service was exclusively as a volunteer;
(3) if there is no eligible surviving spouse at the time of
death of the member or retiree or if the surviving spouse dies or
becomes ineligible to receive benefits during the minority of a
surviving child, $40 to the guardian of each minor child of a member
or retiree whose service was not exclusively as a volunteer and $12
to the guardian of each minor child whose service was exclusively as
a volunteer; and
(4) if there is no eligible surviving spouse or minor child
at the time of death of the member or retiree, a total of $100 to one
or more surviving dependent parents of a member or retiree whose
service was not exclusively as a volunteer and a total of $16.67 to
one or more dependent parents of a member or retiree whose service
was exclusively as a volunteer.
(c) To be eligible to receive benefits as a surviving spouse
under this section, a person must remain unmarried after the death
of the member or retiree. To be eligible to receive benefits as a
surviving spouse of a deceased retiree, a person also must have
married the deceased before the deceased's retirement. To be
eligible to receive benefits as a surviving spouse of a deceased
member who had terminated employment with or otherwise discontinued
service for the fire department, a person also must have married the
deceased before the termination or discontinuance.
(d) If a member or retiree for whom death benefits are
payable under this section is survived by a child who is totally
disabled as a result of physical or mental illness, injury, or
retardation, the guardian of the child is entitled to receive for
the benefit of the child and the duration of the child's disability
any benefit that would be payable to the guardian of a surviving
minor child.
(e) A board of trustees established under this Act may, in
accordance with Section 7 of this Act:
(1) expand the circumstances under which death benefits
become payable; or
(2) determine formulas for computing benefits, classes of
permissible beneficiaries, exclusions from payment of benefits for
certain causes of death, and other conditions for payment of death
benefits.
(f) The vested accrued benefit that an eligible survivor
receives under this section as the result of the death of a member
or retiree on or before the determination date is subject to the
terms established by the retirement system as those terms exist on
the determination date.
(g) Notwithstanding any other provision of this Act, a death
benefit is not a vested accrued benefit until the member or retiree
for whom death benefits are payable dies.
Reduction of benefits during deficiency
Sec. 16. If money available for benefits currently payable by
a retirement system is insufficient to pay the full amount of those
benefits, a board of trustees may proportionately reduce all
benefit payments for the time necessary to prevent payments from
exceeding money available to pay the benefits.
Person causing death of member or annuitant
Sec. 17. (a) A benefit payable on the death of a member or
annuitant may not be paid to a person convicted of causing that
death but instead is payable to a person who would be entitled to
the benefit had the convicted person predeceased the decedent. If
no person would be entitled to the benefit, the benefit is payable
to the decedent's estate.
(b) A retirement system is not required to pay a benefit
under Subsection (a) of this section unless it receives actual
notice of the conviction of the person who would have been entitled
to the benefits. However, a retirement system may delay payment of
a benefit payable on the death of a member or annuitant pending the
results of a criminal investigation and of legal proceedings
relating to the cause of death.
(c) For the purposes of this section, a person has been
convicted of causing the death of a member or annuitant if the
person:
(1) has pleaded guilty or nolo contendere to or has been
found guilty by a court of an offense at the trial of which it is
established that the person's intentional, knowing, or reckless act
or omission resulted in the death of a person who was a member or
annuitant, regardless of whether sentence is imposed or probated;
and
(2) has no appeal of the conviction pending and the time
provided for appeal has expired.
Provisions applicable to boards of trustees generally
Sec. 18. (a) A board of trustees established under this Act
may receive, handle, control, manage, and disburse the fund for the
retirement system, hear and determine all applications for
retirement and claims for disability, either partial or total, and
designate beneficiaries and participants as provided by this Act.
The chairman and vice chairman of a board may swear witnesses for
the purpose of taking testimony before the board on any matter
related to the fund. A board may issue a subpoena addressed to a
sheriff or constable to require the attendance of a witness or the
production of books, records, or other documents that may be
necessary and proper for the purposes of a proceeding before the
board.
(b) A member of a board of trustees established under this
Act takes office on the first meeting of the board that occurs after
the member is elected or designated a member or assumes the position
that makes the person a member ex officio. At the time a person
takes office as a member of a board of trustees established under
this Act, the person shall take an oath of office that the person
will diligently and honestly administer the affairs of the
retirement system and fund and will not knowingly violate or
willingly permit to be violated any provision of this Act.
(c) A board of trustees established under this Act shall
meet monthly at such times and places as the board by resolution
designates and at other times at the call of the chairman. A
majority of the trustees of a board is a quorum.
(d) A board established under this Act shall keep accurate
minutes and records of its proceedings and a record of all claims,
receipts, and disbursements relating to the fund. An order of a
board must be made by vote recorded in the minutes of its
proceedings.
(e) A board established under this Act may make a
disbursement from the fund only on a regular voucher signed by one
or more persons designated by the board. Subject to the approval of
a majority of the participating members voting by secret ballot at
an election at which at least 50 percent of the participating
members of the retirement system vote, a board established under
this Act shall determine whether the signatures of one, two, or
three persons are required for vouchers.
(f) A board of trustees established under this Act may
designate a bank or, as applicable, the chief financial officer of
the municipality or other political subdivision or the
secretary-treasurer of the board to be custodian of the assets of
the retirement system. If the chief financial officer or the
secretary-treasurer of the board is designated custodian, the
person's official bond and oath of office are conditioned
additionally on the faithful performance of the person's duties as
custodian of the assets of the retirement system.
(g) A board of trustees established under this Act shall,
not later than February 28 of each year, file with the fire
fighters' pension commissioner a detailed and itemized report of
all receipts and disbursements with respect to its fund during the
fund's preceding fiscal year, together with a list of the members of
the board. A board shall file such additional information as is
required or requested from time to time by the fire fighters'
pension commissioner.
(h) A vacancy in the office of a trustee of a board
established under this section shall be filled for the remainder of
the unexpired term in the manner that the office was previously
filled.
Enforcement of Act
Sec. 18A. (a) If a board of trustees fails or refuses to
comply with an applicable requirement of this Act, the fire
fighters' pension commissioner may issue a subpoena addressed to a
sheriff or constable to require the production of books, records,
or other documents that may be necessary to provide or determine
compliance.
(b) The attorney general shall represent the fire fighters'
pension commissioner in the enforcement of this Act and may file an
appropriate pleading or action in a district court in Travis County
to enforce a subpoena or secure a writ of mandamus to compel
compliance with this Act.
Board of trustees for paid or part-paid fire department
Sec. 19. (a) In each municipality and other political
subdivision to which this Act applies and that has a fire department
that does not consist exclusively of volunteers, the fire fighters'
retirement system is governed by a board of trustees consisting of:
(1) the mayor of the municipality or the mayor's designated
representative or the chief operating officer of the political
subdivision or the chief operating officer's designated
representative, as applicable;
(2) the chief financial officer of the municipality or other
political subdivision or, if there is no officer denominated as
chief financial officer, the person who performs the duties of
chief financial officer or a person designated by the chief
financial officer or by the person performing the duties of chief
financial officer;
(3) three members of the retirement system elected by
participating members as provided by Subsection (b) of this
section; and
(4) two persons who reside in this state in the municipality
or other political subdivision or within the extraterritorial
jurisdiction of the municipality, who are not officers or employees
of the municipality or other political subdivision, and who are
elected by a majority vote of the members of the board of trustees
determined as provided by Subdivisions (1), (2), and (3) of this
subsection.
(b) During each period that begins on December 1 of one year
and ends on January 31 of the following year, the participating
members of a fire fighters' retirement system in a municipality or
other political subdivision subject to this section shall elect by
secret ballot and certify to the governing body of the municipality
or other political subdivision a member to the board of trustees to
serve a term of three years. To be elected a member of a board of
trustees under this subsection, a person must be a member of the
retirement system and receive a majority of the votes cast in the
election, and at least 50 percent of all participating members of
the retirement system must vote in the election.
(c) Annually, at a meeting in March, the members of a board
of trustees determined as provided by Subdivisions (1), (2), and
(3) of Subsection (a) of this section shall elect a member to the
board, as provided by Subdivision (4) of Subsection (a) of this
section, to serve a term of approximately two years that expires on
the day before the date of the first board meeting that occurs after
the meeting at which a successor is elected.
(d) A board of trustees established under this section
annually shall elect a chairman, vice-chairman, and secretary.
(e) The secretary of a board of trustees established under
this section shall, not later than the seventh day after the date of
a board meeting, forward accurate copies of the minutes of the
meeting to each fire station and to each division of the fire
department.
Board of trustees for volunteer fire department
Sec. 20. (a) In each municipality to which this Act applies
and that has a fire department consisting exclusively of
volunteers, the fire fighters' retirement system is governed by a
board of trustees consisting of:
(1) the mayor of the municipality or the mayor's designated
representative;
(2) the municipal treasurer or, if there is no officer
denominated as treasurer, the person who performs the duties of
municipal treasurer; and
(3) three members of the retirement system elected by
participating members as provided by Subsection (b) of this
section.
(b) During each period that begins on December 1 of one year
and ends on January 31 of the following year, the participating
members of a fire fighters' retirement system in a municipality
subject to this section shall elect by secret ballot and certify to
the governing body of the municipality a member to the board of
trustees to serve a term of approximately three years that expires
on the day before the date of the first board meeting that occurs
after the election of a successor. To be elected a member of a board
of trustees under this subsection, a person must be a member of the
retirement system and receive a majority of the votes cast in the
election, and at least 50 percent of all participating members of
the retirement system must vote in the election.
(c) The municipal treasurer is the secretary-treasurer of a
board of trustees established under this section. A board of
trustees established under this section annually shall elect a
chairman and a vice-chairman to preside in the absence or
disability of the chairman.
Fire fighters' pension commissioner
Sec. 21. (a) The governor shall appoint, with the advice and
consent of the senate, a fire fighters' pension commissioner from
lists, each containing not fewer than three nor more than 10
nominees, that are submitted by the State Firemen's and Fire
Marshals' Association of Texas and the Texas State Association of
Fire Fighters.
(b) A person is not eligible for appointment as the fire
fighters' pension commissioner if the person or the person's
spouse:
(1) is employed by or participates in the management of a
business entity or other organization regulated by or receiving
money from the office of the commissioner;
(2) owns or controls, directly or indirectly, more than a 10
percent interest in a business entity or other organization
regulated by or receiving money from the office of the
commissioner; or
(3) uses or receives a substantial amount of tangible goods,
services, or money from the office of the commissioner other than
compensation or reimbursement authorized by law for the fire
fighters' pension commissioner.
(c) Appointment of the fire fighters' pension commissioner
shall be made without regard to the race, color, disability, sex,
religion, age, or national origin of the appointee.
(d) The fire fighters' pension commissioner serves a term of
four years.
(e) The office of the fire fighters' pension commissioner
shall be located in Austin.
(f) Repealed by Acts 2001, 77th Leg., ch. 327, Sec. 1, eff.
Sept. 1, 2001.
(g) The fire fighters' pension commissioner is entitled to
reimbursement by the state for actual and necessary expenses
incurred in performing functions of the office.
(h) The office of fire fighters' pension commissioner is
subject to Chapter 325, Government Code (Texas Sunset Act). Unless
continued in existence as provided by that chapter, the office is
abolished September 1, 2011.
(i) Any reference in law to the firemen's pension
commissioner means the fire fighters' pension commissioner
provided by this section.
(j) The fire fighters' pension commissioner may conduct
seminars or workshops for persons interested in issues pertaining
to retirement systems under this Act. The commissioner may impose
and collect a fee for attendance at a seminar or workshop in an
amount that, in the aggregate, does not exceed the estimated costs
of preparing for and conducting the seminar or workshop. Fees
collected under this subsection shall be remitted to the
comptroller of public accounts for deposit in an account in the
general revenue fund to be known as the fire fighters' pension
commissioner account. Amounts in the account may be appropriated
only to the commissioner for the payment of administrative
expenses.
(k) A person may not serve as the fire fighters' pension
commissioner or act as the general counsel to the commissioner or to
the office of the fire fighters' pension commissioner if the person
is required to register as a lobbyist under Chapter 305, Government
Code, because of the person's activities for compensation on behalf
of a profession related to the operation of the office of the fire
fighters' pension commissioner.
General duties of fire fighters' pension commissioner
Sec. 21A. (a) The fire fighters' pension commissioner shall
provide to the commissioner's employees and to the state board of
trustees of the Fire Fighters' Relief and Retirement Fund
established under the Texas Statewide Volunteer Fire Fighters
Retirement Act (Article 6243e.3, Vernon's Texas Civil Statutes), as
often as necessary, information regarding their qualifications for
office or employment and their responsibilities under applicable
laws relating to standards of conduct for state officers or
employees.
(b) The fire fighters' pension commissioner or the
commissioner's designee shall develop a system of annual
performance evaluations. All merit pay for employees of the
commissioner must be based on the system established under this
subsection.
(c) The fire fighters' pension commissioner or the
commissioner's designee shall prepare and maintain a written policy
statement that implements a program of equal employment opportunity
to ensure that all personnel decisions are made without regard to
race, color, disability, sex, religion, age, or national origin.
The policy statement must include:
(1) personnel policies, including policies relating to
recruitment, evaluation, selection, training, and promotion of
personnel, that show the intent of the office of the fire fighters'
pension commissioner to avoid the unlawful employment practices
described by Chapter 21, Labor Code; and
(2) an analysis of the extent to which the composition of
the office's personnel is in accordance with state and federal law
and a description of reasonable methods to achieve compliance with
state and federal law.
(d) A policy statement prepared under Subsection (c) of this
section must:
(1) be updated annually;
(2) be reviewed by the state Commission on Human Rights for
compliance with Subsection (c)(1) of this section; and
(3) be filed with the governor's office.
(e) The governor's office shall deliver a biennial report to
the legislature based on the information received under Subsection
(d) of this section. The report may be made separately or as a part
of other biennial reports made to the legislature.
(f) The fire fighters' pension commissioner shall hear
appeals as provided by this Act and may examine the records and
accounts of boards of trustees established under this Act and adopt
rules and prescribe forms for the administration of this Act and
shall classify and coordinate the reports of the various boards of
trustees and shall verify any and all applications of the boards of
trustees.
(g) The fire fighters' pension commissioner shall file
annually with the governor and the presiding officer of each house
of the legislature a complete and detailed written report
accounting for all funds received and disbursed by the commissioner
during the preceding fiscal year, other than funds of the Fire
Fighters' Relief and Retirement Fund established under the Texas
Statewide Volunteer Fire Fighters Retirement Act (Article 6243e.3,
Vernon's Texas Civil Statutes). The annual report must be in the
form and reported in the time provided by the General
Appropriations Act.
Text of subsec. (h) as added by Acts 2001, 77th Leg., ch. 13, Sec. 3
(h) The office of the fire fighters' pension commissioner
shall maintain a file on each written complaint filed with the
office. The file must include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the office;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to the
complaint;
(5) a summary of the results of the review or investigation
of the complaint; and
(6) an explanation of the reason the file was closed, if the
office closed the file without taking action other than to
investigate the complaint.
Text of subsec. (h) as affected by Acts 2001, 77th Leg., ch. 327,
Sec. 2
(h) The fire fighters' pension commissioner shall prepare
and maintain a written plan that describes how a person who does not
speak English or who has a physical, mental, or developmental
disability can be provided reasonable access to the programs
administered by the commissioner.
(i) The office of the fire fighters' pension commissioner
shall provide to the person filing the complaint and to each person
who is a subject of the complaint a copy of the office's policies
and procedures relating to complaint investigation and resolution.
(j) The office of the fire fighters' pension commissioner,
at least quarterly until final disposition of the complaint, shall
notify the person filing the complaint and each person who is a
subject of the complaint of the status of the investigation unless
the notice would jeopardize an undercover investigation.
(k) The fire fighters' pension commissioner or the
commissioner's designee shall provide to employees of the office of
fire fighters' pension commissioner information and training on the
benefits and methods of participation in the state employee
incentive program.
Appeals from local board decisions
Sec. 22. (a) A person aggrieved by a decision of a board of
trustees relating to eligibility for or amount of benefits payable
by a retirement system may appeal the decision to the fire fighters'
pension commissioner.
(b) An appeal under this section is begun by delivering a
notice of appeal with the chairman, secretary, or
secretary-treasurer of the board of trustees that made the
decision. The notice must be delivered not later than the 20th day
after the date of the decision and contain a brief description of
the reasons or grounds for appeal. The aggrieved person must file a
copy of the notice with the fire fighters' pension commissioner.
(c) An appeal under this section to the fire fighters'
pension commissioner is held in Austin and is a contested case under
the Administrative Procedure and Texas Register Act (Article
6252-13a, Vernon's Texas Civil Statutes) conducted as a de novo
hearing by the State Office of Administrative Hearings.
Attorney
Sec. 22A. A board of trustees may employ an attorney to
represent the board in one or all legal matters, including a hearing
on appeal to the fire fighters' pension commissioner. At the
request of a board of trustees, the city attorney of the
municipality of which the board is a part shall, without additional
compensation, represent the board in one or all legal matters.
Actuary
Sec. 23. (a) A board of trustees established under this Act
may employ an actuary to provide actuarial services.
(b) The cost of actuarial services may be paid from assets
of the fund.
Certified public accountant
Sec. 24. (a) A board of trustees established under this Act
may employ a certified public accountant or a firm of certified
public accountants to perform an audit of the fund in accordance
with Section 12.102, Title 110B, Revised Statutes.
(b) The cost of an audit may be paid by the municipality or
other political subdivision or from the assets of the fund.
Other Expenses
Sec. 25. (a) Except as provided by Subsection (b) of this
section, a board of trustees established under this Act may pay from
assets of the fund all costs reasonably and lawfully incurred by the
retirement system and the costs of actual expenses incurred by
board members in the performance of their duties on the board. A
member of the board may not receive compensation for service on the
board.
(b) The annual amount of payments from a fund under this
section, excluding legal and medical fees, may not exceed:
(1) 1 percent of the book value of the assets of the fund for
the first $1 million in book value; and
(2) 1/4 of 1 percent of the book value of the assets of the
fund that exceeds $1 million.
Gifts accepted from any source
Sec. 26. The board of trustees of a retirement system
established under this Act is authorized to accept and receive for
the use and benefit of the fund, in addition to member contributions
and contributions of the municipality or other political
subdivision, gifts of money from any source.
Investment of assets
Sec. 27. (a) A board of trustees established under this Act
shall keep a sufficient amount of cash on hand to make payments as
they become due under the retirement system. If a board determines
that the fund of its retirement system contains an amount in excess
of the amount needed to make payments as they become due, the board
may invest any portion of the excess.
(b) In making investments for a retirement system, its board
of trustees shall exercise the judgment and care, under the
circumstances prevailing at the time of the investment, that
persons of ordinary prudence, discretion, and intelligence
exercise in the management of their own affairs, not in speculation
but when making a permanent disposition of their funds, considering
the probable income from the disposition and the probable safety of
their capital.
(c) A board of trustees established under this Act may not
invest in the stock or bonds of one corporation more than five
percent of the book value of the assets of a fund. A retirement
system may not own more than five percent of the voting stock of one
corporation.
(d) A board of trustees established under this Act shall
adopt formal investment policies that emphasize safety and
diversity as well as liquidity for benefit payments. In developing
those policies, the board of trustees shall give special
consideration to the preferred investment practices of the
Government Financial Officers Association. Not later than December
31 of each year, the board of trustees shall submit to the fire
fighters' pension commissioner a copy of the investment policies
adopted by the board.
Investment manager and counseling service
Sec. 28. (a) The board of trustees of a retirement system
established under this Act may appoint investment managers for the
system by contracting for professional investment management
services with one or more organizations, which may include a bank if
it has a trust department, that are in the business of managing
investments.
(b) To be eligible for appointment under Subsection (a) of
this section, an investment manager must be:
(1) registered under the Investment Advisors Act of 1940 (15
U.S.C. Section 80b-1 et seq.);
(2) a bank as defined by that Act; or
(3) an insurance company qualified to perform investment
services under the laws of more than one state.
(c) In a contract made under this section, the board of
trustees shall specify policies, requirements, and restrictions,
including criteria for determining the quality of investments and
for the use of standard rating services, that the board of trustees
adopts for investments of the system.
(d) In choosing and contracting for professional investment
management services and in continuing the use of an investment
manager, the board of trustees must act prudently and in the
interest of the participants and beneficiaries of the retirement
system.
(e) A trustee is not liable for the acts or omissions of an
investment manager appointed under this section, nor is a trustee
obligated to invest or otherwise manage any asset of the system
subject to management by the investment manager.
(f) A board of trustees established under this Act may
employ professional investment counselors to assist and advise the
board in the investment of the assets of the fund or to evaluate the
performance of an investment manager appointed under this section.
The investment counseling service must be provided by an
organization whose business functions include performing
continuous investment advisory service to public retirement
systems.
(g) The cost of investment managing or counseling services
may be paid by the municipality or other political subdivision or
from the assets of the fund.
(h) A retirement system established under this Act is exempt
from Subchapter C, Chapter 802, Government Code, except Sections
802.205 and 802.207.
Contributions
Sec. 29. (a) Each person who is a member of a retirement
system as a current fire department employee shall make
contributions to the system. Except as provided by Subsection (d)
of this section, a contribution required under this subsection is
computed on the employee's periodic compensation at a rate
determined by majority vote of the employees of the department who
are members, at an election by secret ballot at which at least 50
percent of those employees vote. Except as provided by Section 30
of this Act, the payroll officer of the municipality or other
political subdivision shall deduct the contributions required
under this subsection each payroll period and submit them to the
retirement system.
(b) A municipality or other political subdivision that has
employees who are participating members of a retirement system
shall make contributions to the system each payroll period. Except
as provided by Subsection (d) of this section, contributions
required under this subsection are computed on the total
compensation paid to the employees who are participating members of
the system. A municipality or other political subdivision is
required to make contributions under this subsection at the same
rate paid by employees or nine percent, whichever is the smaller
rate. The governing body of a municipality or other political
subdivision by ordinance may adopt a rate of employer contributions
that is greater than the rate required by this subsection.
(c) Contributions by a municipality or other political
subdivision determined under Subsection (b) or (d) of this section
are payable each payroll period to the retirement system.
(d) Contributions required under Subsections (a) and (b) of
this section are computed on the average compensation of all
employees of the department for the preceding year, if this method
of computation is adopted by majority vote of the employees of the
department who are members, at an election by secret ballot at which
at least 50 percent of the participating members vote, and is also
adopted by ordinance of the governing body of the municipality or
other political subdivision. The average compensation of
department employees shall be computed for each 12-month period as
determined by the board of trustees.
(e) Each person who is a member of a retirement system as a
current fire department volunteer shall contribute to the system an
annual amount determined by majority vote by secret ballot of the
volunteers of the department who are participating members of the
retirement system. A municipality may at any time make the member
contributions required under this subsection on behalf of its
volunteers and any other contributions the municipality chooses to
make to the retirement system.
(f) Payment of member contributions required under this Act
are conditions of employment and participation in the retirement
system to which the contributions are due.
(g) Except as otherwise provided under Section 7 of this
Act, a member of a retirement system may withdraw all of the
member's accumulated contributions to the system if the member
terminates service for the fire department included within the
coverage of the system for a reason other than service or disability
retirement. The estate of a deceased member may withdraw all of the
deceased member's accumulated contributions if a survivor or
alternative monthly benefit is not payable as a result of the death.
A withdrawal of contributions cancels a person's membership and
credit in the retirement system.
Pick up of employee contributions
Sec. 30. (a) A municipality or other political subdivision
may pick up the employee contributions required by Subsection (a)
of Section 29 of this Act for all compensation that is earned by
participating members of the retirement system on or after the
effective date of the pick up. Employee contributions picked up as
provided by this section are in lieu of deductions of employee
contributions from paychecks or warrants and shall be paid by the
municipality or other political subdivision to the retirement
system from the same source of funds that is used in paying
compensation to the members. A pick up of employee contributions
shall be accompanied by a reduction in the compensation of members,
an offset against a future increase in member compensation, or a
combination of compensation reduction and offset against a
compensation increase. Unless otherwise determined by the
governing body of the municipality or other political subdivision
and approved by majority vote of the participating members at an
election by secret ballot, a pick up of contributions results in a
corresponding reduction in compensation.
(b) Contributions picked up as provided by this section
shall be treated as employer contributions in determining tax
treatment of the amounts under the Internal Revenue Code of 1986.
Each municipality or other political subdivision picking up
contributions shall continue, however, to compute federal income
tax withholding as if these contributions were employee wages until
the first payroll period that begins after the date the fire
fighters' pension commissioner files with the secretary of state a
notice stating that the United States Internal Revenue Service has
determined or a federal court has ruled that under Section 414(h),
Internal Revenue Code of 1986 (26 U.S.C. Section 414(h)), the
contributions are not includable in the gross income of a member
until they are distributed or made available. Employee
contributions picked up as provided by this section shall be
deposited to the credit of the individual account of each affected
member and shall be treated for all other purposes of this Act as if
the contributions had been deducted from the compensation of
members. Picked up contributions are not includable in a
computation of contribution rates of the municipality or other
political subdivision.
(c) A pick up of employee contributions takes effect in a
municipality or other political subdivision on January 1 of the
year following the year in which:
(1) the governing body of the municipality or other
political subdivision by ordinance has adopted the pick up;
(2) the pick up has been approved by majority vote of the
participating members of the retirement system at an election by
secret ballot at which at least 50 percent of the participating
members vote; and
(3) the fire fighters' pension commissioner has filed with
the secretary of state a notice stating that the United States
Internal Revenue Service has issued a determination that the plan
covering employees of the municipality or other political
subdivision is a qualified retirement plan under Section 401(a),
Internal Revenue Code of 1986 (26 U.S.C. Section 401(a)), and that
its related trust is tax exempt under Section 501(a) of that code
(26 U.S.C. Section 501(a)).
(d) A pick up of employee contributions is terminated in a
municipality or other political subdivision on January 1 of the
year following the year in which:
(1) the termination has been approved by a two-thirds vote
of the participating members of the retirement system at an
election by secret ballot at which at least 50 percent of the
participating members vote; and
(2) the governing body of the municipality or other
political subdivision has repealed the ordinance that adopted the
pick up of employee contributions.
Termination of participation in Act
Sec. 31. (a) A retirement system for a fire department not
consisting exclusively of volunteers may not be terminated or
merged into another retirement system without the approval of the
board of trustees of the retirement system and the approval of the
participating members of the system in the manner described by
Subdivision (2) of Subsection (b) of Section 7 of this Act provided
51 percent of the volunteers first petition the board for such
change.
(b) The board of trustees of a retirement system for a fire
department consisting partly of employees and partly of volunteers
may transfer assets actuarially attributable to the volunteers from
the retirement system under this Act to the statewide program
provided by the Texas Statewide Volunteer Fire Fighters Retirement
Act (Article 6243e.3, Vernon's Texas Civil Statutes), if the board
obtains approval as provided by Section 7 of this Act provided 51
percent of the volunteers first petition the board for such change.
(c) The fire fighters' pension commissioner shall determine
whether retirement systems for fire departments consisting
exclusively of volunteers are inactive, for purposes of this Act,
because of the infrequency of their submission of contributions and
reports required by this Act or other law. The commissioner shall,
not later than June 1, 1992, notify the boards of trustees of
retirement systems determined inactive under this subsection of
that determination. This Act does not apply after December 31,
1992, to a retirement system determined inactive under this
subsection unless before that date, the retirement system has
completed an actuarial study of the retirement system and agreed to
provide financing to the retirement system determined by the
actuary to be sufficient to finance an actuarially sound system.
The board of trustees of an inactive retirement system may, in lieu
of agreeing to actuarially sound financing, elect to transfer the
assets of the retirement system to the statewide program provided
by the Texas Statewide Volunteer Fire Fighters Retirement Act
(Article 6243e.3, Vernon's Texas Civil Statutes).
Confidentiality of information about members, retirees,
annuitants, or beneficiaries
Sec. 32. (a) Information contained in records that are in the
custody of a retirement system established under this Act
concerning an individual member, retiree, annuitant, or
beneficiary is confidential under Section 3(a)(1), Chapter 424,
Acts of the 63rd Legislature, Regular Session, 1973 (Article
6252-17a, Vernon's Texas Civil Statutes), and may not be disclosed
in a form identifiable with a specific individual unless:
(1) the information is disclosed to:
(A) the individual;
(B) the individual's attorney, guardian, executor,
administrator, conservator, or other person who the board of
trustees of the retirement system determines is acting in the
interest of the individual or the individual's estate;
(C) a spouse or former spouse of the individual if the board
of trustees determines that the information is relevant to the
spouse's or former spouse's interest in member accounts, benefits,
or other amounts payable by the retirement system; or
(D) a person authorized by the individual in writing to
receive the information; or
(2) the information is disclosed under an authorization of
the board of trustees that specifies the reason for the disclosure.
(b) This section does not prevent the disclosure of the
status or identity of an individual as a member, former member,
retiree, deceased member or retiree, or beneficiary of the
retirement system.
(c) A determination and disclosure under Subsection (a) of
this section may be made without notice to the individual member,
retiree, annuitant, or beneficiary.
Amended by Acts 1989, 71st Leg., ch. 98, Sec. 1, eff. Sept. 1, 1989;
Acts 1989, 71st Leg., ch. 439, Sec. 12, eff. Sept. 1, 1989; Acts
1991, 72nd Leg., ch. 104, Sec. 1 to 7, eff. Sept. 1, 1991; Acts
1991, 72nd Leg., ch. 129, Sec. 1, 2, 5, eff. Sept. 1, 1991; Acts
1991, 72nd Leg., 1st C.S., ch. 17, Sec. 5.17, eff. Nov. 12, 1991;
Acts 1993, 73rd Leg., ch. 173, Sec. 1 to 15, eff. Sept. 1, 1993;
Acts 1995, 74th Leg., ch. 265, Sec. 4, eff. Aug. 28, 1995; Acts
1995, 74th Leg., ch. 710, Sec. 1 to 13, eff. Aug. 28, 1995; Acts
1997, 75th Leg., ch. 464, Sec. 1, 2, eff. Sept. 1, 1997; Acts 1997,
75th Leg., ch. 1291, Sec. 1, eff. June 20, 1997; Acts 1999, 76th
Leg., ch. 958, Sec. 1 to 3, eff. Aug. 30, 1999; Acts 2001, 77th
Leg., ch. 13, Sec. 1, eff. Nov. 6, 2001; Acts 2001, 77th Leg., ch.
13, Sec. 2, 3, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 327,
Sec. 1, 2, eff. Sept. 1, 2001.
Sec. 2(10), (11) added by Acts 2003, 78th Leg., ch. 683, Sec. 1,
eff. June 20, 2003; Sec. 7(e) amended by Acts 2003, 78th Leg., ch.
683, Sec. 2, eff. June 20, 2003; Sec. 14(g), (h) added by Acts 2003,
78th Leg., ch. 683, Sec. 3, eff. June 20, 2003; Sec. 15(f), (g)
added by Acts 2003, 78th Leg., ch. 683, Sec. 4, eff. June 20, 2003.
Article: 6228h 6228j 6243b 6243c 6243d 6243d-1 6243e 6243e.1 6243e.2(1) 6243e-2 6243e-3 6243f-1 6243g-4 6243h
Last modified: August 11, 2007
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