Texas Vernon’s Civil Statutes
Sec. § 4.02
Use of Public Funds


(a)

The financial share of the cost of the pension system to be paid out of the public treasury shall be as provided by this section.

(b)

Funds contributed by the city as its share of the amount required to finance the payment of benefits under the pension system may be used for no other purpose. The city is not responsible for the payment of any administrative or professional service fees of the pension system. Any change to the contributions required to be made to the pension system by the city may only be made:

(1)

by the legislature;

(2)

by a majority vote of the voters of the city; or

(3)

in accordance with a written agreement entered into between the pension system, by at least a two-thirds vote of all trustees of the board, and the city, provided that a change made in accordance with this subdivision may not increase the period required to amortize the unfunded actuarial accrued liability of the fund.

(c)

Funds shall be appropriated by the city to carry out various other provisions contained in this article that authorize expenditures in connection with the administration of the pension system.

(d)

Subject to Section 4.025 of this article, the city shall make contributions to the pension system biweekly in an amount equal to the sum of:

(1)

the greater of:

(A)

34.5 percent of the aggregate computation pay paid to members during the period for which the contribution is made; or

(B)

the applicable amount set forth below:

(i)

$5,173,000 for the biweekly pay periods beginning with the first biweekly pay period that begins after September 1, 2017, and ends on the last day of the first biweekly pay period that ends after December 31, 2017;

(ii)

$5,344,000 for the 26 biweekly pay periods immediately following the last biweekly pay period described by Subparagraph (i) of this paragraph;

(iii)

$5,571,000 for the 26 biweekly pay periods immediately following the last biweekly pay period described by Subparagraph (ii) of this paragraph;

(iv)

$5,724,000 for the 26 biweekly pay periods immediately following the last biweekly pay period described by Subparagraph (iii) of this paragraph;

(v)

$5,882,000 for the 26 biweekly pay periods immediately following the last biweekly pay period described by Subparagraph (iv) of this paragraph;

(vi)

$6,043,000 for the 26 biweekly pay periods immediately following the last biweekly pay period described by Subparagraph (v) of this paragraph;

(vii)

$5,812,000 for the 26 biweekly pay periods immediately following the last biweekly pay period described by Subparagraph (vi) of this paragraph;

(viii)

$6,024,000 for the 26 biweekly pay periods immediately following the last biweekly pay period described by Subparagraph (vii) of this paragraph through the biweekly pay period that ends after December 31, 2024; and

(ix)

$0 for each subsequent biweekly pay period beginning with the first biweekly pay period following the last biweekly pay period described by Subparagraph (viii) of this paragraph; and

(2)

except as provided by Subsection (e) of this section, an amount equal to 1/26th of $13 million.

(e)

The city is required to pay the contribution amount described by Subsection (d)(2) of this section only through the last biweekly pay period that ends after December 31, 2024.

(f)

Repealed by Acts 2017, 85th Leg., R.S., Ch. 318 (H.B. 3158), Sec. 1.52(3), eff. September 1, 2017.

(1)

the military service credit may not be for more than five years and the person must return to service with the fire department not later than the 180th day after the date of discharge or release from military service or from hospitalization continuing after discharge for a period of not more than one year;

(2)

the member must leave the members contributions in the fund during the period of absence; and

(3)

the member must file a written application with the fund for the military service credit, accompanied by satisfactory proof of the members military service.

(b)

If the member does not comply with Subsection (a) of this section, the member loses all credit toward the members retirement annuity for the period the member was on leave.

(1)

multiplying the average member salary for the preceding fiscal year by the percentage equal to 100 percent plus the estimated percentage increase in the annual member payroll from the preceding fiscal year to the fiscal year as determined by the actuary;

(2)

multiplying the product computed under Subdivision (1) of this subsection by the percentage applicable to the fiscal year as provided in Subsection (b) of this section; and

(3)

dividing the product computed under Subdivision (2) of this subsection by the total number of payroll dates that occur during the fiscal year.

(b)

For purposes of Subsections (a)(2) and (d)(2) of this section, the percentage applicable to each fiscal year is:

(1)

2.0 percent for the fiscal year beginning October 1, 2007, and ending September 30, 2008;

(2)

2.7 percent for the fiscal year beginning October 1, 2008, and ending September 30, 2009;

(3)

3.4 percent for the fiscal year beginning October 1, 2009, and ending September 30, 2010;

(4)

4.1 percent for the fiscal year beginning October 1, 2010, and ending September 30, 2011; and

(5)

4.7 percent for the fiscal year beginning October 1, 2011, and all subsequent fiscal years.

(c)

Subject to Subsection (e) of this section, to be eligible for health benefits under Section 5.01 of this Act, a service retiree or disability retiree who retired or retires with less than 30 years of service, or the retirees surviving spouse in the case of a deceased retiree, shall continue to make monthly contributions in accordance with Subsection (d) of this section to the fund after the date of the retirees retirement for the lesser of:

(1)

the period preceding the date the retiree becomes or would have become eligible for federal Medicare coverage; or

(2)

the period equal to 30 years less the retirees years of service achieved on the date of the retirees retirement.

(d)

The pension fund shall deduct the contribution required under Subsection (c) of this section from the monthly retirement benefit payment or death benefit payment paid to each retiree or retirees spouse required to make the contributions, excluding payments made by the pension fund under Section 6.12 of the pension act. The pension fund shall deduct an amount equal to the retiree contribution amount applicable to the fiscal year in which the benefit payment occurs. The retiree contribution amount applicable to a fiscal year equals the amount obtained by:

(1)

multiplying the average member salary for the preceding fiscal year by a percentage equal to 100 percent plus the estimated percentage increase in the annual member payroll from the preceding fiscal year to the fiscal year as determined by the actuary;

(2)

multiplying the product computed under Subdivision (1) of this subsection by the percentage applicable to the fiscal year as provided by Subsection (b) of this section; and

(3)

dividing the product computed under Subdivision (2) of this subsection by 12.

(e)

A retiree who retired under the pension act as a result of a disability, or the disability retirees surviving spouse in the case of a deceased disability retiree, is not required to make contributions under Subsection (c) of this section for more than 10 years following the date of the disability retirees retirement.

(f)

This section applies only to members who retire as a service or disability retiree after October 1, 2007, and their surviving spouses.

(g)

The municipal contributions to and health benefits paid from the fund are a part of the compensation for services rendered to a municipality to which this Act applies. This Act is considered part of the contract of employment and appointment of the firefighters and police officers of that municipality.
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Last accessed
Oct. 23, 2019