police and fire DROP credits stretch to 20 years

The text as introduced · 394 words

89R6260 KFF-D

By: West
S.B. No. 1529

A BILL TO BE ENTITLED

AN ACT

relating to participation in a deferred retirement option plan by

members of the retirement systems for police and fire fighters in

certain municipalities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 6.14(c), Article 6243a-1, Revised

Statutes, is amended to read as follows:

(c) Each month after a member has made an election to

participate in the DROP and indicated a desire to receive a

retirement pension under Sections 6.01(b) and (c), Section 6.01(e),

or Section 6.02(b), (c), (d), or (e) of this article, whichever is

applicable, and through the month before the month in which the

member leaves active service, an amount equal to the retirement

pension the member would have received under the applicable

subsection for that month if the member had left active service and

been granted a retirement pension by the board on the effective date

of DROP participation shall be credited to a separate DROP account

maintained within the fund for the benefit of the member. Amounts

held in the DROP account of a member shall be credited at the end of

each calendar month. Notwithstanding this section, effective

January 1, 2018, a member on active service who has 20 [ 10 ] years or

more of participation in DROP shall no longer have the amount of the

member's retirement pension credited to the member's DROP account

while the member is on active service.

SECTION 2. (a) Subject to Subsection (b) of this section,

Section 6.14(c), Article 6243a-1, Revised Statutes, as amended by

this Act, applies to a member who participates in the deferred

retirement option plan established under that section regardless of

whether the member began participation in the plan before, on, or

after the effective date of this Act.

(b) A member described by Subsection (a) of this section

whose retirement pension ceased being credited to the member's

deferred retirement option plan account on or after January 1,

2018, under Section 6.14(c), Article 6243a-1, Revised Statutes, as

that section existed immediately before the effective date of this

Act, is not entitled to have amounts credited to the member's

account for the period beginning on the date the member's

retirement pension ceased being credited and ending on August 31,

2025.

SECTION 3. This Act takes effect September 1, 2025.