Creighton Bill Lets Big-City Firefighters Retire After 20 Years

The text as introduced · 1,654 words

89R15291 KFF-D

By: Creighton
S.B. No. 2234

A BILL TO BE ENTITLED

AN ACT

relating to the firefighters' relief and retirement fund of certain

municipalities.

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

SECTION 1. The heading to Article 6243e.2(1), Revised

Statutes, is amended to read as follows:

Art. 6243e.2(1). FIREFIGHTERS' RELIEF AND RETIREMENT FUND IN

MUNICIPALITIES OF AT LEAST 2,000,000 [ 1,600,000 ] POPULATION.

SECTION 2. Section 1(13-e), Article 6243e.2(1), Revised

Statutes, is amended to read as follows:

(13-e) "Normal retirement age" means:

(A) [ for a member, including a member who was

hired before the year 2017 effective date and who involuntarily

separated from service but has been retroactively reinstated in

accordance with an arbitration, civil service, or court ruling,

hired before the year 2017 effective date, ] the age at which a [ the ]

member attains 20 years of service; or

(B) [ except as provided by Paragraph (A) of this

subdivision, for a member hired or rehired on or after the year 2017

effective date, ] the age at which the member first attains both the

age of at least 50 and at least 10 years of service [ sum of the

member's age, in years, and the member's years of participation in

the fund equals at least 70 ].

SECTION 3. Section 2(a), Article 6243e.2(1), Revised

Statutes, is amended to read as follows:

(a) A firefighters' relief and retirement fund is

established in each incorporated municipality that has a population

of at least 2,000,000 [ 1,600,000 ] and a fully paid fire department.

SECTION 4. Section 4(a), Article 6243e.2(1), Revised

Statutes, is amended to read as follows:

(a) A member who terminates active service for any reason

other than death is entitled to receive a service pension provided

by this section if the member was:

(1) hired as a firefighter before the year 2017

effective date, including a member who was hired before the year

2017 effective date and who involuntarily separated from service

but has been retroactively reinstated in accordance with an

arbitration, civil service, or court ruling, at the age at which the

member attains 20 years of service; and

(2) except as provided by Subdivision (1) of this

subsection and subject to Subsection (b-2) of this section, hired

or rehired as a firefighter on or after the year 2017 effective

date, at the age at which the member attains 20 years of service

[ when the sum of the member's age in years and the member's years of

participation in the fund equals at least 70 ].

SECTION 5. Sections 5(a), (b), (b-1), (c), (d), (l), and

(m), Article 6243e.2(1), Revised Statutes, are amended to read as

follows:

(a) A member who is eligible to receive a service pension

under Section 4 [ 4(a)(1) ] of this article and who remains in active

service may elect to participate in the deferred retirement option

plan provided by this section. [ A member who is eligible to receive

a service pension under Section 4(a)(2) of this article may not

elect to participate in the deferred retirement option plan

provided by this section. ] On subsequently terminating active

service, a member who elected the DROP may apply for a monthly

service pension under Section 4 of this article, except that the

effective date of the member's election to participate in the DROP

will be considered the member's retirement date for determining the

amount of the member's monthly service pension. The member may also

apply for any DROP benefit provided under this section on

terminating active service. An election to participate in the

DROP, once approved by the board, is irrevocable.

(b) A member may elect to participate in the DROP by

complying with the election process established by the board. The

member's election may be made at any time beginning on the date the

member has completed 20 years of participation in the fund and is

otherwise eligible for a service pension under Section 4 [ 4(a)(1) ]

of this article. Beginning on the first day of the month following

the month in which the member makes an election to participate in

the DROP, subject to board approval, and ending on the year 2017

effective date, amounts equal to the deductions made from the

member's salary under Section 13(c) of this article shall be

credited to the member's DROP account. Beginning after the year

2017 effective date, amounts equal to the deductions made from the

member's salary under Section 13(c) of this article may not be

credited to the member's DROP account.

(b-1) On or after the year 2017 effective date, an active

member may not participate in the DROP for more than 20 [ 13 ] years.

If a DROP participant remains in active service after the 20th

[ 13th ] anniversary of the effective date of the member's DROP

election:

(1) subsequent deductions from the member's salary

under Section 13(c) of this article, except for unused leave pay,

may not be credited to the member's DROP account; and

(2) the account shall continue to be credited with

earnings in accordance with Subsection (d) of this section.

(c) After a member's DROP election becomes effective, an

amount equal to the monthly service pension the member would have

received under Section 4 of this article, if applicable, had the

member terminated active service on the effective date of the

member's DROP election shall be credited to a DROP account

maintained for the member. That monthly credit to the member's DROP

account shall continue until the earlier of the date the member

terminates active service or the 20th [ 13th ] anniversary of the

date of the first credit to the member's DROP account.

(d) A member's DROP account shall be credited with earnings

at an annual rate equal to 70 [ 65 ] percent of the [ compounded ]

average annual return earned by the fund over the five years

preceding, but not including, the year during which the credit is

given. Notwithstanding the preceding, however, the credit to the

member's DROP account shall be at an annual rate of not less than

2.5 percent, irrespective of actual earnings.

(l) A member who participates in the DROP is ineligible for

disability benefits described by Section 6 of this article, except

that a member with less than 13 years of DROP participation is

eligible for the benefits described by Section 6(c). If a member

who has a disability described by Section 6(c) of this article is a

DROP participant with less than 13 years of DROP participation , the

disability benefit provided by Section 6(c)(1) shall be paid to the

member, as a monthly pension benefit, in addition to payments from

the DROP account balance. If a member who dies under the conditions

described by Section 7(c) of this article is a DROP participant at

the time of death or disability resulting in death, the benefit

provided by Section 7(c) shall be paid to the member's eligible

survivors, as a monthly pension benefit, in addition to payments

from the DROP account balance.

(m) A DROP participant with a break in service may receive

service credit within DROP for days worked after the regular

expiration of the maximum DROP participation period prescribed by

this section. The service credit shall be limited to the number of

days in which the participant experienced a break in service or the

number of days required to constitute 20 [ 13 ] years of DROP

participation, whichever is smaller. A retired member who

previously participated in the DROP and who returns to active

service is subject to the terms of this section in effect at the

time of the member's return to active service.

SECTION 6. Sections 8(a) and (c), Article 6243e.2(1),

Revised Statutes, are amended to read as follows:

(a) A [ On or after the year 2017 effective date, a ] member

who [ is hired as a firefighter before the year 2017 effective date,

including a member who was hired before the year 2017 effective date

and who involuntarily separated from service but has been

retroactively reinstated in accordance with an arbitration, civil

service, or court ruling, ] terminates active service for any reason

other than death with at least 10 years of participation, but less

than 20 years of participation, is entitled to a monthly deferred

pension benefit, beginning at age 50, in an amount equal to 1.7

percent of the member's average monthly salary multiplied by the

amount of the member's years of participation.

(c) A [ Except as provided by Subsection (a) of this section,

a member who is hired or rehired as a firefighter on or after the

year 2017 effective date or a ] member who terminates active service

[ employment ] for any reason other than death before the member has

completed 10 years of participation is entitled only to a refund of

the member's contributions without interest and is not entitled to

a deferred pension benefit under this section or to any other

benefit under this article. The member's refund shall be paid as

soon as administratively practicable after the effective date of

the member's termination of active service.

SECTION 7. Sections 1(13-e) and 4(a), Article 6243e.2(1),

Revised Statutes, as amended by this Act, apply to a member who

retires on or after the effective date of this Act.

SECTION 8. Section 5, Article 6243e.2(1), Revised Statutes,

as amended by this Act, applies to a member who participates in the

deferred retirement option plan on or after the effective date of

this Act regardless of whether the member began participation in

the plan before, on, or after the effective date of this Act.

SECTION 9. Section 8, Article 6243e.2(1), Revised Statutes,

as amended by this Act, applies to a member who terminates active

service on or after the effective date of this Act.

SECTION 10. This Act takes effect January 1, 2026.