Texas Vernon’s Civil Statutes
Sec. § 4.04
Refund of Group B Member Contributions


(a)

Except as provided by Subsection (d) or (e) of this section, a Group B member who, either voluntarily or involuntarily, leaves active service is entitled to a refund from the fund of the total amount of the members Plan B and Group B contributions, without interest, that were paid beginning with the effective date of the members Group B membership or membership in Plan B. A refund under this subsection results in a total cancellation of pension service credit and the member and any person who would otherwise take by, through, or under the member is not entitled to any benefits from the pension system.

(b)

Old plan or Plan A contributions paid to the fund by a Group B member may not be refunded from the fund.

(c)

A Group B member who desires a refund of the Plan B or Group B contributions under Subsection (a) of this section must make written application for the refund with the executive director. In no case may any refund be made to a Group B member before the expiration of 30 days after the date the person leaves active service.

(d)

Subject to Subsection (k) of this section, if a Group B member with less than five years of pension service either voluntarily or involuntarily leaves active service and fails to make written application for a refund of contributions within three years after the date of the notice described by Subsection (j) of this section made by the board, the person forfeits the right to withdraw any portion of the contribution, and the total amount of Plan B and Group B contributions the person made will remain in the fund. If the Group B member described by this subsection dies after leaving active service, the deceased members designee may apply for the refund of the persons contributions, resulting in an appropriate loss of pension service if the application is filed with the executive director within three years after the date of the notice described by Subsection (j) of this section made by the board. Subject to Subsection (k) of this section, if a Group B members designee fails to apply for a refund of the Group B members contributions within the three-year period described by this subsection, the designee forfeits any right to the contributions, and the total amount of the Plan B and Group B contributions made by the Group B member will remain in the fund.

(e)

Subject to Subsection (k) of this section, if a Group B member with five or more years of pension service either voluntarily or involuntarily leaves active service and fails to make written application for a refund of the persons Plan B and Group B contributions within three years after the date of the notice described by Subsection (j) of this section made by the board, the person forfeits the right to withdraw any portion of the contributions, and the total amount of the contributions will remain in the fund. A Group B member described by this subsection may, however, apply for a Group B retirement pension under Section 6.02 of this article or, if the Group B member dies before the member is eligible to apply for a Group B retirement pension, the members qualified survivors may apply for Group B death benefits under Sections 6.06, 6.061, 6.062, and 6.063 of this article. If the Group B member dies before the member is eligible to apply for a Group B retirement pension and the member has no qualified survivors, the Group B members designee may apply for a refund of the Group B members Plan B and Group B contributions, resulting in a total cancellation of pension service. Subject to Subsection (k) of this section, if a Group B members designee fails to apply for a refund of the Group B and Plan B members contributions within the three-year period described by this subsection, the designee forfeits any right to the contributions, and the total amount of the Plan B and Group B contributions made by the Group B member will remain in the fund.

(f)

Subject to Subsections (g) and (h) of this section, a Group B member, other than a Group B member who elects or has elected to receive a Group A benefit or a benefit determined under the old plan or Plan A, who either voluntarily or involuntarily leaves active service with five or more years of pension service is entitled to:

(1)

subject to Subsection (f-1) of this section, have the total amount of the persons Plan B and Group B contributions to the fund refunded in accordance with Subsection (a) of this section, which results in a loss of all of the persons accrued pension service; or

(2)

if the Group B member first entered active service before January 1, 1999, elect to take a refund of less than the total amount of the persons Plan B and Group B contributions while leaving a sufficient amount to retain pension service amounting to five or more years.

(f-1)

A Group B member who elects to receive a refund under Subsection (f)(1) of this section and any person who would otherwise take by, through, or under the member is not entitled to any benefits from the pension system.

(g)

If a Group B member elects a refund of a portion of the persons contributions under Subsection (f)(2) of this section, the amount of the refund shall equal the total amount of the persons Plan B and Group B annual contributions, without interest, for each full year of pension service canceled, computed based on the earliest contributions made.

(h)

A Group B member who first entered active service on or after January 1, 1999, is entitled to have the total amount of the persons Group B contributions refunded under Subsection (a) of this section in accordance with Subsection (f)(1) of this section, but may not receive a refund of less than the total amount in accordance with Subsection (f)(2) of this section.

(h-1)

A Group B member who leaves active service and later returns to active service is permitted to repay to the fund any previously withdrawn employee contributions and receive pension service in accordance with Section 5.07(d) of this article as a Group B member to the extent that before again leaving active service, the Group B member repays to the fund the previously withdrawn contributions with interest, calculated at the interest rate from time to time used in the pension systems actuarial rate of return assumptions, compounded annually, on the previously withdrawn contributions.

(i)

If a person becomes a Group B member under Section 5.01(b) of this article and again, either voluntarily or involuntarily, leaves active service and makes application for a refund of contributions under this section, the person is entitled to a refund from the fund of the following:

(1)

the amount of Group B contributions to the fund, without interest, that were paid from the date the person returned to active service following service or disability retirement; plus

(2)

the excess, if any, of:

(A)

the persons Plan B and Group B contributions to the fund, without interest, that were paid from the effective date of the persons original Group B or Plan B membership in Plan B until the time the person originally left active service because of the service or disability retirement; less

(B)

the total amount of benefits the person received during service or disability retirement.

(j)

On the 58th anniversary of the birth of a Group B member described by Subsection (d) or (e) of this section, or on the boards receipt of notice of the death of the Group B member, the board shall, by registered or certified mail, return receipt requested, attempt to notify the Group B member or designee, as applicable, of the status of the persons entitlement to a refund of contributions from the fund.

(k)

A Group B member or designee described by Subsection (d) or (e) of this section shall have the persons right, title, interest, or claim to a refund of the Group B members contributions reinstated only on the boards grant of their written request for a reinstatement and refund. The boards decision shall be based on a uniform and nondiscriminatory basis.

(1)

11.16 percent for full pay periods after September 30, 1993, but before October 1, 1994;

(2)

11.32 percent for full pay periods after September 30, 1994, but before October 1, 1995;

(3)

11.50 percent for full pay periods after September 30, 1995, but before October 1, 1996;

(4)

11.66 percent for full pay periods after September 30, 1996, but before October 1, 1997;

(5)

11.82 percent for full pay periods after September 30, 1997, but before October 1, 1998;

(6)

12 percent for full pay periods after September 30, 1998, but before October 1, 1999;

(7)

12.16 percent for full pay periods after September 30, 1999, but before October 1, 2000; and

(8)

12.32 percent for full pay periods after September 30, 2000.

(b)

The municipality has always picked up and shall continue to pick up the member contributions that are required by Subsection (a) of this section.

(c)

Contributions picked up by the municipality shall be treated as employer contributions for the purpose of determining tax treatment of the amounts under the code. Those contributions are not included in the gross income of the employee until the time they are distributed or made available to the employee.
Source
Last accessed
Oct. 17, 2019