Texas Vernon’s Civil Statutes
Sec. § 6.07
Group a Death Benefits


(a)

(1) If a Group A member dies before leaving active service and before the Group A member had 20 years of pension service, the Group A members spouse and children who are qualified survivors shall, in the aggregate, receive a Group A death benefit equal to a Group A retirement pension computed under the terms of Section 6.01 of this article as if the Group A member had completed 20 years of pension service.

(2)

If a Group A member dies before service retirement and after the Group A member has 20 years of pension service, the Group A members spouse and children who are qualified survivors shall, in the aggregate, receive a Group A death benefit calculated under Section 6.01 of this article as if the Group A member had left active service on the date of the Group A members death.

(3)

If a Group A pensioner dies during service retirement, the Group A pensioners spouse and children who are qualified survivors shall, in the aggregate, receive a Group A death benefit in an amount equal to the Group A retirement pension being received by the Group A pensioner on the date of the pensioners death.

(4)

If a Group A pensioner dies after November 25, 1996, while receiving periodic disability compensation under Section 6.05 of this article or a disability pension under Section 6.04 of this article, and before the Group A pensioner has 20 years of pension service, the Group A pensioners spouse and children who are qualified survivors shall, in the aggregate, receive a Group A death benefit calculated under Section 6.04 or 6.05 of this article, as applicable, in the same manner as the Group A pensioners periodic disability compensation or disability pension, but as if the Group A pensioner had completed 20 years of pension service.

(5)

If a Group A pensioner who has 20 or more years of pension service dies during disability retirement, the Group A pensioners spouse and children who are qualified survivors shall, in the aggregate, receive a Group A death benefit in an amount equal to the Group A disability pension being received by the Group A pensioner on the date of the pensioners death.

(b)

Group A death benefits under Subsection (a) of this section shall:

(1)

be divided one-half to the spouse and one-half to the children who are qualified survivors; and

(2)

subject to the terms of Sections 6.06(n), (o), (o-1), and (o-2) of this article, be distributed in an equal and uniform manner to the children described by Subdivision (1) of this subsection.

(c)

If a Group A member or pensioner dies leaving no spouse or children who are qualified survivors, the dependent parents who are qualified survivors shall receive a Group A death benefit equal to the death benefit otherwise payable under Subsection (a) of this section. The death benefit payable to the dependent parents under this subsection shall be divided equally between the parents regardless of whether the parents are married or living at the same residence. If there is only one dependent parent, that parent is entitled to one-half of the death benefit described in this subsection.

(1)

is approved by the boards actuary;

(2)

is approved by the board as a board rule;

(3)

applies to all persons who are members on the effective date of the change and all persons who become members after the effective date of the change; and

(4)

does not increase the requirements for a person who already is eligible to participate in RETRO DROP on the effective date of the change.

(b)

The member shall select the RETRO DROP benefit computation date. The date:

(1)

must be the last day of the month used for the purpose of determining the monthly retirement benefit;

(2)

may not precede the date the member first became eligible for service retirement based on the years of creditable service required under Subsection (a); and

(3)

may not precede the date of retirement by more than 36 months.

(c)

On the election of RETRO DROP and the selection of the RETRO DROP benefit computation date, the members monthly life annuity (modified cash refund) is computed according to Section 6.01 of this Act as if the member had retired on the RETRO DROP benefit computation date but including any creditable service established after that date under Section 5.02, Section 5.03, or Section 5.04 of this Act. In lieu of the life annuity (modified cash refund) defined by Section 6.01 of this Act, the member may file a duly acknowledged written designation to elect one of the annuity options described by Section 6.03 of this Act in effect at retirement that are actuarially equivalent at the RETRO DROP benefit computation date.

(d)

The RETRO DROP benefit accumulation period includes each month from the month following the RETRO DROP benefit computation date through the month of retirement. The RETRO DROP benefit accumulates month by month during the accumulation period as the sum of:

(1)

the monthly annuity amounts that would have been paid during the RETRO DROP benefit accumulation period;

(2)

deposits made by the member to the police retirement system as a percent of the basic hourly earnings of the member during the RETRO DROP benefit accumulation period; and

(3)

interest credited on the RETRO DROP benefit during the RETRO DROP benefit accumulation period.

(e)

The first monthly annuity amount that would have been paid during the RETRO DROP benefit accumulation period is the amount defined by Subsection (c) of this section. Subsequent monthly annuity amounts that would have been paid during the RETRO DROP benefit accumulation period must include any cost-of-living increases or special ad hoc increases in annuity amounts granted in accordance with Sections 6.01(c) and (d) of this Act.

(f)

The interest credited to the RETRO DROP benefit during the accumulation period shall be credited on each December 31 in the RETRO DROP benefit accumulation period in an amount equal to five percent of the amount of the RETRO DROP benefit as of January 1 of the same calendar year. If the month of retirement is other than December, the interest shall be credited for the partial year at the end of the month of retirement in an amount equal to five-twelfths of one percent of the amount of the accumulated RETRO DROP benefit as of January 1 of that year multiplied by the number of complete months of service in that year. A complete month does not include a month in which service amounted to fewer than 15 days.

(g)

A member who elects RETRO DROP receives both a monthly annuity and a RETRO DROP benefit. The first monthly annuity payment shall be on the last day of the month immediately following the month of retirement. Unless the member elects to receive partial payments of the RETRO DROP benefit as provided by Subsection (h), the member shall receive a lump-sum payment equal to the accumulated RETRO DROP benefit, which amount shall be paid to the member on the date selected by the member. The date must be a business day and must be not earlier than the last day of the month immediately following the month of retirement. If the member dies before the member receives the lump sum, the lump sum is payable to the members beneficiary or, if no beneficiary exists, to the members estate, unless the member has directed otherwise in a duly acknowledged writing filed with the board.

(h)

Instead of a single lump-sum payment, a member may elect to receive partial payments from the members RETRO DROP account for each calendar year in an amount elected by the member. The board may establish procedures concerning partial payments, including limitations on timing and frequency of those payments. A member who elects partial payments may, at any time, elect to receive the members entire remaining RETRO DROP account balance in a single lump-sum payment, with the payment to be made under rules adopted by the board.

(i)

If a member elects partial payments, the members RETRO DROP account shall be credited with earnings and losses of the system under this subsection for periods after the members retirement date and before the members RETRO DROP account is completely distributed. The members RETRO DROP account shall be credited with earnings or losses at an annual rate established under a rule adopted by the board. The board may change the annual rate from time to time by amending that rule.

(j)

The board may modify or eliminate the RETRO DROP provisions of this section by the adoption of board rules if the modification or elimination is approved by the boards actuary and would not cause the amortization period for the retirement systems unfunded actuarial liability to exceed the maximum amortization period adopted by the Governmental Accounting Standards Board.

(b)

The bonds must be issued in the manner provided by Chapter 784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernons Texas Civil Statutes).

(c)

The refunding bonds may be sold and the proceeds applied to the payment of outstanding indebtedness or may be exchanged in whole or in part for not less than a similar principal amount of outstanding indebtedness. If the refunding bonds are to be sold and the proceeds applied to the payment of outstanding indebtedness, the refunding bonds must be issued and payments made in the manner provided by Chapter 503, Acts of the 54th Legislature, Regular Session, 1955 (Article 717k, Vernons Texas Civil Statutes).
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Last accessed
Oct. 23, 2019