Texas Vernon’s Civil Statutes
Sec. § 5.05
Pension Service


(a)

Subject to Subsection (d) of this section and except as provided by Subsection (e) of this section, a member shall receive pension service for the time, computed in years and fractional years for months and days, completed as a member of the combined pension plan, the old plan, Plan A, or Plan B.

(b)

A member who elects to pay contributions for time spent on military leave, authorized non-uniformed leave of absence, or for an apprenticeship or probationary period, or for any other reason provided for by this article may receive pension service for the time for which the member is contributing only to the extent provided under Section 5.07(d), 5.08, or 5.09 of this article.

(c)

If a member, either voluntarily or involuntarily, leaves active service and later returns to active service, the person shall receive full pension service for the period of the persons original membership, if the person did not withdraw the persons contributions pursuant to Section 4.04 of this article. If, however, the member had withdrawn the persons contributions and did not replace the previously withdrawn contributions as required by Section 4.04 of this article, the member forfeits any pension service attributable to any period of time for which the respective contributions were not repaid.

(d)

If a member is assigned, for any period, to a job-sharing program or any similar work schedule that is considered by the members department to be less than a full-time work schedule, the members pension service is determined by multiplying the pension service that could have been earned for full-time work during the period by a fraction, the numerator of which is the number of hours the member actually worked during the period and the denominator of which is the number of hours the member would have worked during the period if the member had been working a full-time work schedule. This proration may not affect the computation of pension service for a member during any period the member is on leave:

(1)

because of an illness or injury; or

(2)

receiving periodic payments of workers compensation.

(e)

Notwithstanding any other provision in this section, a member may not receive pension service attributable to nonqualified service to the extent the pension service would result in either more than five years of permissive service attributable to nonqualified service being taken into account, or any permissive service being taken into account before the member has completed at least five years of active service. In this subsection, "permissive service" and "nonqualified service" have the meanings described by Section 415(n)(3) of the code.

(1)

has attained the age of 45 years and has at least 10 years of service credit in the fund; or

(2)

has at least 20 years of service credit, regardless of age.

(b)

The retirement annuity of a person who retires under this section after September 1, 1997, is the same as for normal service retirement, but may not be increased under Section 9.04 of this Act until the person would have met the requirements of Section 5.01 of this Act if the person had remained in active service as a firefighter.
Sec. 5.06. ELIGIBILITY AFTER 10 YEARS OF SERVICE. (a) A member may terminate employment with the fire department and later retire and receive a service retirement benefit if, at the time of the members retirement:

(1)

the member has accumulated at least 10 years of service credit in the fund and made required contributions to the fund for at least 10 years;

(2)

the member does not withdraw the members contributions from the fund at the time of or after the termination of employment; and

(3)

the member has either attained 50 years of age or would have accumulated at least 25 years of service credit if the member had not terminated employment with the fire department.

(b)

The retirement benefit payable to a member on retirement under this section is the service retirement benefit described by Section 5.04 of this Act, computed on the basis of the formula in effect at the time of the members retirement under this Act.

(b)

To be a qualified actuary, an actuary must be:

(1)

a fellow of the Society of Actuaries; or

(2)

a member of the American Academy of Actuaries.

(c)

At least 30 days before the date the board of trustees adopts actuarial assumptions to be used by the public retirement system, the board must submit to the governing body a detailed report regarding the proposed actuarial assumptions. The report must include the fiscal impact of the proposed actuarial assumptions on the public retirement system.

(b)

Prior to allowing the purchase of service credit under this section, the police retirement board shall adopt rules relating to the maximum amount of credit which may be purchased by a person under this section, the eligibility requirements that a person must satisfy before purchasing credit under this section, and such other matters as the board considers necessary for the administration of this section.

(c)

The board may not adopt a rule authorizing the purchase of credit under this section unless the board has obtained an actuarial study indicating that adoption of the rule will not cause the amortization period for the retirement systems unfunded actuarial accrued liability to exceed the maximum amortization period adopted by the Governmental Accounting Standards Board.

(d)

The board may not adopt a rule authorizing the purchase of credit under this section if that rule would be inconsistent with the requirements of the Internal Revenue Code of 1986 (26 U.S.C. Section 1 et seq.) and its successors.

(e)

The board may modify or repeal a rule adopted under this section. A modification of a rule adopted under this section must comply with the requirements of this section.

(f)

(1) At the time a member establishes creditable service for a deferred retirement date under this section, the member may file with the board the members written statement either selecting one of the optional benefits authorized by this Act and designating the beneficiary of the option if one is selected or stating that the member has been afforded an opportunity to select an option but does not desire to do so. An option selection becomes effective at the members date of deferred retirement. The member retains the right to make a final selection until the date of deferred retirement. The final selection is binding on all parties.

(2)

If the member dies before the date of deferred retirement but after filing the written statement selecting one of the optional benefits, the members survivor benefit is calculated as if the member had retired on the date of deferred retirement under the optional benefit selected and died the next day.

(3)

In the event a member who is eligible for a deferred retirement dies before the deferred retirement date without making a written selection of an option listed in Section 6.03 of this Act and the member has a spouse surviving, the surviving spouse of the member may select the optional form of a survivor benefit in the same manner as if the member had made the selection on the members scheduled date of deferred retirement or may select a lump-sum payment equal to the accumulated deposits standing to the members credit in Fund No. 1 plus an equivalent amount from Fund No. 2. If the member does not have a surviving spouse, the members beneficiary or, if no beneficiary exists, the executor or administrator of the members estate is entitled to select either an Option V survivor benefit (15-Year Certain and Life Annuity), effective on the members scheduled date of deferred retirement, or a lump-sum payment equal to the accumulated deposits standing to the members credit in Fund No. 1 plus an equivalent amount from Fund No. 2.

(4)

When monthly survivor benefits are payable as a result of the death of a member before the members deferred retirement date, an additional sum of $10,000 is payable as a death benefit to the members beneficiary or, if no beneficiary exists, to the members estate.

(a-1)

A disability retiree who is awarded a catastrophic injury disability annuity under Section 5.03(a-1) of this Act shall undergo a medical examination by any reputable physician or physicians selected by the board:

(1)

not later than 60 months after the date of the award of the annuity by the board; and

(2)

thereafter, not later than 60 months following the last required medical examination of the disability retiree under this subsection.

(a-2)

The board may require one or more medical examinations under Subsection (a) of this section in addition to those required under Subsection (a-1) of this section.

(a-3)

Subject to Subsection (c) of this section, based on an examination under Subsections (a), (a-1), or (a-2) of this section, the board shall determine whether the disability retirement annuity shall be continued, decreased, restored to the original amount if it had been decreased, or discontinued.

(b)

For those retired because of disability before August 30, 1971, the board may change the disability retirement annuity provided by this Act, in accordance with any change in the degree of disability, except that the percentage used to compute the annuity may not, except in the case of discontinuance, be reduced to less than 2.25 percent of the base pay of a private each month, for each year that the retiree has served and contributed a portion of salary as provided by this Act, based on the greater of:

(1)

the rate of pay at the time of the original granting of the disability retirement annuity; or

(2)

a minimum base pay of $200 each month.

(c)

For those retired because of disability on or after August 30, 1971, the disability retirement annuity may not be reduced to an amount that is less than the product of:

(1)

2.25 percent multiplied by the number of years that the retiree served in the department and contributed a portion of salary as a member of the fund multiplied by the retirees average total salary, if the retiree served three years or more before the date of retirement;

(2)

2.25 percent multiplied by the number of years that the retiree served in the department and contributed a portion of salary as a member of the fund multiplied by the retirees average monthly salary as of the date of retirement multiplied by 12, if the retiree served at least two months and less than three years before the date of retirement; or

(3)

2.25 percent multiplied by the number of years that the retiree served in the department and contributed a portion of salary as a member of the fund multiplied by the retirees 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.

(c-1)

In making the computation under Subsection (c) of this section, all fractional years shall be prorated based on full months served in the department as a contributing member of the fund before the date of retirement.

(d)

If a disability retiree, after notice, fails to undergo a medical examination as provided by this section, the board may reduce or entirely discontinue the retirees disability annuity payments.
Source
Last accessed
Oct. 17, 2019