Texas Vernon’s Civil Statutes
Sec. § 5.04
Group B Membership May Be Declared Inactive


(a)

Except as provided by Subsection (d)(1) of this section, if a Group B member with less than five years of pension service either voluntarily or involuntarily leaves active service, the persons Group B membership remains active as long as the person has not withdrawn the persons contributions pursuant to Section 4.04 of this article.

(b)

Except as provided by Subsection (d)(2) of this section, if a Group B member with five or more years of pension service either voluntarily or involuntarily leaves active service, the persons Group B membership remains active as long as the person has not withdrawn the persons entire contributions pursuant to Section 4.04 of this article.

(c)

Except as provided by Subsection (d)(3) of this section, if the board receives valid information that a Group B primary party has died, the board shall, by registered or certified mail, return receipt requested, attempt to notify:

(1)

the qualified survivors of the primary party of the procedures for applying and qualifying for death benefits under Section 6.06, 6.061, 6.062, or 6.063 of this article; or

(2)

if the primary party does not have any qualified survivors, the primary partys designee of the procedures for applying for a refund of the primary partys contributions, if applicable, in accordance with Section 4.04 of this article.

(d)

(1) Subject to the provisions of Subdivision (5)(A) of this subsection, the membership of a Group B member described by Subsection (a) of this section shall be declared inactive and all of the persons accrued pension service voided if the person does not return to active service within three years after the date of the notice described by Subdivision (4) of this subsection.

(2)

Subject to the provisions of Subdivision (5)(B) of this subsection, the membership of a Group B member described by Subsection (b) of this section shall be declared inactive and all of the persons accrued pension service voided if the person does not file an application for a Group B retirement pension with the board within three years after the date of the notice described by Subdivision (4) of this subsection.

(3)

Subject to the provisions of Subdivision (5)(C) of this subsection, if a primary party described by Subsection (c) of this section:

(A)

does not have any qualified survivors, the designee has no right, title, interest, or claim for a refund of the primary partys contributions to the fund if the designee does not file an application for the primary partys contributions within three years after the date of the notice described in Subsection (c) of this section; or

(B)

has qualified survivors, the qualified survivors have no right, title, interest, or claim to the primary partys death benefits if the qualified survivor does not file an application for the benefits within three years after the date of the notice described in Subsection (c) of this section.

(4)

On the 58th anniversary of the birth of a Group B member described by Subsection (a) or (b) of this section, the board shall, by registered or certified mail, return receipt requested, attempt to notify:

(A)

the member of the status of the members entitlement to benefits or contributions from the fund; or

(B)

if the board receives valid information that the member has died, the qualified survivors of the deceased person or, if none exists, the designee of the deceased person.

(5)

(A) A Group B member described by Subdivision (1) of this subsection shall have the persons Group B membership and pension service reinstated on the persons return to active service.

(B)

A Group B member described by Subdivision (2) of this subsection shall have the persons Group B membership and pension service reinstated on the persons return to active service or on the grant of the persons written request to the board of the persons desire to apply for a Group B retirement pension under Section 6.02 of this article.

(C)

A primary partys qualified survivors or designee, as appropriate, described by Subdivision (3) of this subsection shall have their right, title, interest, or claim to the primary partys refund of the partys contributions reinstated on the boards grant of their written request.

(b)

The three percent factor used in this section may be changed to some other percent if the change:

(1)

is first approved by the boards actuary;

(2)

is approved by the board of trustees;

(3)

applies to one or any combination of the following groups:

(A)

firefighters who are employed on an active, full-time basis in the fire department at the time of the change;

(B)

firefighters who begin service with the fire department after the change becomes effective; and

(C)

members who retire under Section 5.06 of this Act after the change becomes effective; and

(4)

does not reduce a members benefit for service credit accumulated before the date of the change.

(b-1)

In determining whether to approve an increase in the factor under Subsection (b) of this section, the boards actuary shall take into consideration whether the fund has reserves sufficient to enable the payment of a cost-of-living adjustment under Section 9.04(a) of this Act to all current members and survivors at a level that is equal to the average percentage increase in the Consumer Price Index for All Urban Consumers as determined by the United States Department of Labor for the 10 annual periods preceding the proposed effective date of the change.

(c)

The service retirement annuity of a person who retired before January 1, 1995, is a monthly payment based on the benefit formula in effect at the time of the persons retirement, together with any increases for retirees approved by the board of trustees after the persons retirement.

(b)

Except as provided by Subsection (c) of this section, seven members of the board of trustees constitute a quorum to transact the business of the board.

(c)

In the event of a vacancy on the board of trustees, the number of members required to constitute a quorum is reduced by the number of vacancies on the board of trustees.

(b)

Subsections (c), (d), (e), and (f) of this section take effect on the date on which the changes made by those subsections are approved by the boards actuary. The effective date of those subsections may not be before the date the city council makes the irrevocable authorization described by Subsection (a) of this section.

(c)

An eligible member or eligible surviving spouse may establish creditable service for cadet service performed as provided under this section according to the following conditions, limitations, and restrictions:

(1)

Cadet service creditable in the system is any service while a member of a cadet class for which the member does not have creditable service.

(2)

An eligible member or eligible surviving spouse may establish creditable service under this section by contributing to the system a single payment equal to the contribution the member would have made to the system for that service at the time the service was performed and an interest charge based on the contribution amount to be repaid times an interest factor. The interest factor is eight percent per year for the period that begins with the beginning of the month and year at the end of the cadet class for which creditable service is being established and ends with the beginning of the month and year payment is made to the system for the purpose of establishing said service.

(3)

After the eligible member or eligible surviving spouse makes the deposit required by Subsection (c)(2) of this section, the system shall grant the member one month of creditable service for each month of cadet service established under this section.

(d)

For purposes of Subsection (c) of this section, an eligible member is a police officer employed by the city who is not separated from active service.

(e)

For purposes of Subsection (c) of this section, an eligible surviving spouse is the surviving spouse of a member who was an eligible member immediately before the time of death if the member dies before making payment to the system of the amount required by this section. An eligible surviving spouse may establish creditable service for cadet service not later than the date that is six months after the date of the members death and only if the lump-sum death benefit described by Section 6.05(a) or 6.06(a)(3) of this Act is not paid.

(f)

The method of determining the amount of the required payment described by Subsection (c)(2) of this section may be changed if:

(1)

the effect of the change is disclosed by the boards actuary;

(2)

the change is adopted by the board as a board rule; and

(3)

the change applies to all payments for establishing creditable service under this section made to the system after the effective date of the change.

(1)

50 percent of the members average total salary, if the member has served three years or more before the date of retirement;

(2)

50 percent of the members average monthly salary as of the date of retirement multiplied by 12, if the member has served at least two months and less than three years before the date of retirement; or

(3)

50 percent of the members average daily salary as of the date of retirement multiplied by 360, if the member has served less than two months before the date of retirement.

(a-1)

Subject to Subsection (a-2) of this section a member who is eligible to retire and receive a catastrophic injury disability retirement annuity under Section 5.03(a-1) of this Act is entitled to receive an annuity from the fund equal to:

(1)

87.5 percent of the members average total salary, if the member has served three years or more before the date of retirement;

(2)

87.5 percent of the members average monthly salary as of the date of retirement multiplied by 12, if the member has served at least two months and less than three years before the date of retirement; or

(3)

87.5 percent of the members average daily salary as of the date of retirement multiplied by 360, if the member has served less than two months before the date of retirement.

(a-2)

An annuity awarded by the board under Subsection (a-1) of this section to a member who was previously awarded an annuity under Subsection (a) of this section shall be increased to equal the amount the annuity awarded under Subsection (a) of this section would have been if the annuity had been awarded under Subsection (a-1) of this section, taking into account the cost of living adjustment increases provided for in Section 5.09 of this Act. This subsection does not entitle the member to any additional payment for the period before the effective date of the award under Subsection (a-1) of this section.

(b)

In making computations under this section, all fractional years must be prorated based on full months served in the department as a contributing member of the fund.

(c)

Repealed by Acts 2007, 80th Leg., R.S., Ch. 1416, Sec. 17, eff. October 1, 2007.
Source
Last accessed
Oct. 22, 2019