The text as introduced · 886 words
89R15299 RDR-F
By: Metcalf
H.B. No. 4534
A BILL TO BE ENTITLED
AN ACT
relating to death benefits provided under certain police officer
retirement systems.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading of Section 6.05, Chapter 452 (S.B.
738), Acts of the 72nd Legislature, Regular Session, 1991 (Article
6243n-1, Vernon's Texas Civil Statutes), is amended to read as
follows:
Sec. 6.05. DEATH OF A MEMBER; TREATMENT OF ACCUMULATED
DEPOSITS ; LUMP SUM DEATH BENEFITS .
SECTION 2. Section 6.05, Chapter 452 (S.B. 738), Acts of the
72nd Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's
Texas Civil Statutes), is amended by amending Subsection (c) and
adding Subsection (d) to read as follows:
(c) In the event of death of a retired member [ receiving a
retirement benefit ], the sum of $10,000 shall be payable in a lump
sum to the retired member's beneficiary or, if no beneficiary, to
the retired member's estate, unless the retired member shall have
directed otherwise in writing, duly acknowledged and filed with the
board. The payment under this subsection shall be made from the
[ retiree ] death benefit [ benefits ] fund described in Section 6.08
of this Act.
(d) In the event of the death of a member who dies as the
direct and proximate result of a personal injury associated with a
single event and sustained in the performance of a member's
employment duties with the police department of the city, the sum of
$1,000,000 shall be payable in a lump sum to the member's surviving
spouse, or if the member has no surviving spouse, to the member's
surviving children. If the member has no surviving spouse or
surviving children at the time of the member's death, the benefit
provided under this subsection shall be payable to the member's
estate. If a member has more than one surviving child that is
entitled to the benefit provided under this subsection, the benefit
shall be split equally between each of the member's surviving
children. The payment under this subsection shall be made from the
death benefit fund described in Section 6.08 of this Act.
SECTION 3. Section 6.08, Chapter 452 (S.B. 738), Acts of the
72nd Legislature, Regular Session, 1991 (Article 6243n-1, Vernon's
Texas Civil Statutes), is amended to read as follows:
Sec. 6.08. [ RETIREE ] DEATH BENEFIT FUND. (a) The police
retirement board shall establish a [ retiree ] death benefit fund and
shall deposit in such fund contributions paid by the city to provide
[ retiree ] death benefits in accordance with this section. The
board may, but is not required to, credit interest to the [ retiree ]
death benefit fund annually at such rate as the board may determine.
(b) The police retirement system shall pay death benefits
under Sections [ Section ] 6.05(c) and (d) of this Act only from money
in the [ retiree ] death benefit fund, and the benefits are not an
obligation of other funds of the retirement system.
(c) Based upon the recommendation of the system's actuary,
the board shall adopt such rates and tables as are considered
necessary to determine the [ retiree ] death benefit fund
contribution rate of the city. At the same time as the actuary
makes a valuation of the assets and liabilities of the system
pursuant to Section 3.09 of this Act, the actuary shall also make an
actuarial valuation of the assets and liabilities of the [ retiree ]
death benefit fund, and upon recommendation by the actuary, the
board shall adjust the rates and tables for the [ retiree ] death
benefit fund.
(d) If at any time the amount of payments due from the
[ retiree ] death benefit fund exceeds the balance of such fund, the
board may direct that funds be transferred from the general
retirement fund to the [ retiree ] death benefit fund in such amounts
as are necessary to cover the deficiency. Any sums transferred to
the [ retiree ] death benefit fund under this subsection shall be
repaid to the general retirement fund of the retirement system from
the death benefit fund with [ at such time as ] subsequent
contributions by the city on a schedule and in a manner determined
by the system [ have resulted in the accumulation of a sufficient
amount in the retiree death benefit fund for such a repayment ] to be
[ appear ] prudent. The actuary of the system shall adjust the rates
and tables described in Subsection (c) to reflect this repayment.
(e) Contributions by the city to the [ retiree ] death benefit
fund shall be made at the same time as the city makes its
contribution to the retirement system under Section 8.01 of this
Act, and the amount of the city's contribution under Section 8.01 of
this Act each pay period shall be reduced by the amount of the
city's contribution to the [ retiree ] death benefit fund for that
same pay period.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.
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