Texas Vernon’s Civil Statutes
Sec. § 6.08
Group B Death Benefits


(a)

If a Group B member dies while on active service, a Group B member who left active service and is vested under Section 5.06 of this article dies, or a Group B pensioner dies while receiving service or disability retirement or while receiving periodic disability compensation under Section 6.05 of this article, the persons qualified survivors, or the person described in Section 6.06(g) or (j) of this article as the recipient of the childrens benefits, may make application for Group B death benefits. If the deceased Group B member was previously eligible to elect whether to receive either a Group A or Group B retirement pension, the option to elect whether Group A or Group B death benefits are received shall be exercised by one of the following:

(1)

a qualified survivor who is the spouse of the deceased Group B member described by this subsection;

(2)

the person described in Section 6.06(g) or (j) of this article as the recipient of benefits on behalf of the deceased members children who are qualified survivors, if no spouse is a qualified survivor; or

(3)

the qualified survivors who are dependent parents of the deceased member, if there is neither a spouse nor children who are qualified survivors.

(a-1)

A qualified survivor who receives Group A death benefits under Subsection (a) of this section is entitled to a ratable portion of a reimbursement from the fund in the same amount and manner determined under Section 5.03(d) of this article. A qualified survivor or guardian desiring a refund of excess contributions must make application for the refund with the executive director within three years after the date the qualified survivor or guardian makes application for Group A death benefits. The option contained in this subsection is not available to qualified survivors of a Group B member who had, at the time of death, already applied for a retirement pension and selected a Group A retirement pension as provided by Section 5.03(c) or (c-1) of this article, but the qualified survivors are entitled to receive a Group A death benefit.

(b)

Subject to Subsection (b-2) of this section, death benefits shall be computed as follows for the qualified survivors of Group B members who die while on active service:

(1)

the death benefit of a qualified survivor who is the spouse of a member who began active service:

(A)

before March 1, 2011, shall be the sum of:

(i)

the number of years of pension service earned before September 1, 2017, prorated for fractional years, times 1.5 percent of the average computation pay determined over the 36 consecutive months of pension service in which the Group B member received the highest computation pay; plus

(ii)

the number of years of pension service, including pension service credit imputed under Section 6.05(c) of this article, after September 1, 2017, prorated for fractional years, times the applicable percentage rate set forth below of the average computation pay determined over the 60 consecutive months of pension service in which the Group B member received the highest computation pay:

(B)

on or after March 1, 2011, shall be the number of years of pension service, including pension service imputed under Section 6.05(c) of this article, prorated for fractional years, times 1.25 percent of the average computation pay determined over the 60 consecutive months of pension service in which the Group B member received the highest computation pay;

(2)

the death benefit of qualified survivors who are a members children shall be computed in the same manner as a spouses benefit is computed under Subdivision (1)(A) or (B) of this subsection, as applicable, and shall be divided equally among all of the children who are qualified survivors; and

(3)

the death benefit of each qualified survivor who is a members dependent parent shall be computed in the same manner as a spouses Group B benefit is computed under Subdivision (1)(A) or (B) of this subsection, as applicable.

(b-1)

Pension service for purposes of the calculation under Subsection (b) of this section may not be less than 20 years. Any partial year of pension service for the first 20 years of pension service is counted as a full year of pension service, if the member was considered by the members department to have worked a normal full-time schedule at the time of the members death.

(b-2)

The death benefit calculated under Subsection (b) of this section may not exceed the greater of:

(1)

45 percent of the members average computation pay determined over the 36 or 60 consecutive months, as applicable, in which the Group B member received the highest computation pay; or

(2)

the vested and accrued death benefit as determined on August 31, 2017.

(b-3)

For purposes of Subsections (b) through (b-2) of this section:

(1)

if the Group B member had less than 36 or 60 consecutive months, as applicable, of pension service, the average computation pay will be computed based on the persons entire pension service; and

(2)

days during which the member earned no pension service due to a termination of active service or otherwise must be disregarded in determining the 36 or 60 consecutive months of highest computation pay.

(c)

Group B death benefits shall be computed as follows for the qualified survivors of any Group B member who died after leaving active service and who had vested rights under Section 5.06 of this article but who had not received retirement benefits at the time of death:

(1)

the death benefit of a qualified survivor who is the members spouse is equal to 50 percent of any retirement pension the member would have been entitled to as of the date the member left active service;

(2)

the death benefits of qualified survivors who are the members children are calculated in the same manner as the spouses benefit is computed under Subdivision (1) of this subsection, to be divided equally between the children; and

(3)

the death benefit of each qualified survivor who is the members dependent parent is equal to 50 percent of any retirement pension the member would have been entitled to as of the date the member left active service.

(d)

Group B death benefits shall be computed as follows for the qualified survivors of any Group B pensioner who dies while receiving service retirement:

(1)

the death benefit of a qualified survivor who is the pensioners spouse is equal to 50 percent of any retirement pension the Group B pensioner was receiving at the time of death;

(2)

the death benefits of qualified survivors who are the pensioners children are calculated in the same manner as the spouses benefit is computed under Subdivision (1) of this subsection, to be divided equally between the children; and

(3)

the death benefit of each qualified survivor who is the pensioners dependent parent is equal to 50 percent of any retirement pension the Group B pensioner was receiving at the time of death.

(e)

Group B death benefits shall be computed as follows for the qualified survivors of any Group B pensioner who dies while receiving disability retirement or while receiving periodic disability compensation under Section 6.05 of this article:

(1)

the death benefit of a qualified survivor who is the pensioners spouse is equal to 50 percent of any Group B periodic disability compensation or disability pension the Group B pensioner would have been entitled to as of the date the Group B pensioner left active service because of disability, or a Group B death benefit equal to 50 percent of any periodic disability compensation or disability pension the Group B pensioner was receiving at the time of death;

(2)

the death benefits of qualified survivors who are the pensioners children are calculated in the same manner as the spouses benefit is computed under Subdivision (1) of this subsection, to be divided equally between the children; and

(3)

the death benefit of each qualified survivor who is the pensioners dependent parent is equal to 50 percent of any periodic disability compensation or disability pension the Group B pensioner would have been entitled to as of the date the Group B pensioner left active service because of disability, or a Group B death benefit equal to 50 percent of any periodic disability compensation or disability pension the Group B pensioner was receiving at the time of death.

(b)

If a persons disability retirement benefit is reduced or discontinued and the person is or subsequently becomes eligible for service retirement under other provisions of this Act, the person is entitled to the service retirement benefit on meeting all requirements for that benefit, reduced by the amount of any disability retirement benefit that the person continues to receive from the fund.

(b)

The police retirement system shall pay death benefits under Section 6.05(c) of this Act only from money in the retiree death benefit fund, and the benefits are not an obligation of other funds of the retirement system.

(c)

Based upon the recommendation of the systems actuary, the board shall adopt such rates and tables as are considered necessary to determine the retiree death benefit fund contribution rate of the city. At the same time as the actuary makes a valuation of the assets and liabilities of the system pursuant to Section 3.09 of this Act, the actuary shall also make an actuarial valuation of the assets and liabilities of the retiree death benefit fund, and upon recommendation by the actuary, the board shall adjust the rates and tables for the retiree death benefit fund.

(d)

If at any time the amount of payments due from the retiree death benefit fund exceeds the balance of such fund, the board may direct that funds be transferred from the general retirement fund to the retiree death benefit fund in such amounts as are necessary to cover the deficiency. Any sums transferred to the retiree death benefit fund under this subsection shall be repaid to the general retirement fund of the retirement system at such time as subsequent contributions by the city have resulted in the accumulation of a sufficient amount in the retiree death benefit fund for such a repayment to appear prudent.

(e)

Contributions by the city to the retiree death benefit fund shall be made at the same time as the city makes its contribution to the retirement system under Section 8.01 of this Act, and the amount of the citys contribution under Section 8.01 of this Act each pay period shall be reduced by the amount of the citys contribution to the retiree death benefit fund for that same pay period.

(1)

a bank;

(2)

a savings bank;

(3)

a trust company;

(4)

a savings and loan association;

(5)

an insurance company;

(6)

a fiduciary;

(7)

a trustee;

(8)

a guardian; and

(9)

the sinking fund of a municipality, county, school district, or other political subdivision of the state and other public funds of the state and its agencies, including the permanent school fund.

(b)

District bonds may secure deposits of public funds of the state or a municipality, county, school district, or other political subdivision of the state. The bonds are lawful and sufficient security for deposits to the extent of their value, if accompanied by all unmatured coupons.
Source
Last accessed
Oct. 14, 2019