Texas Vernon’s Civil Statutes
Sec. § 6.12
Adjustments to Retirement and Disability Pension Benefits


(a)

This section applies to the following benefits provided under this article:

(1)

a retirement pension calculated under Section 6.01(e) or 6.02 of this article;

(2)

a disability pension calculated under Section 6.04 of this article, other than under Section 6.04(a) of this article;

(3)

periodic disability compensation benefit underSection 6.05 of this article, other than Section 6.05(b-1) of this article; or

(4)

a death benefit calculated under:

(A)

Section 6.07 of this article, if calculated in the manner of a retirement pension under Section 6.01(e) of this article or in the manner of a disability compensation benefit under Section 6.05(b) of this article; or

(B)

Section 6.08 of this article currently in pay status, or pending board approval on the last day of September.

(b)

Except as provided by Subsection (d) of this section, annually on the first day of October, the pension system may increase the base pension of a benefit described by Subsection (a) of this section by a percentage equal to the average annual rate of actual investment return of the pension system for the five-year period ending on the December 31 preceding the effective date of the adjustment less five percent.

(c)

An adjustment under this section may not be less than zero percent or exceed four percent of the applicable base pension benefit.

(d)

The pension system may only make an adjustment to benefits under this section if the ratio of the amount of the pension systems market value of assets divided by the amount of the pension systems actuarial accrued liabilities, after giving effect to the adjustment, is not less than .70.

(e)

For purposes of Subsection (d) of this section, the amount of the pension systems market value of assets and the amount of the pension systems actuarial accrued liabilities shall be based on and determined as of the date of the most recently completed actuarial valuation.

(f)

The following persons may not receive an adjustment under this section:

(1)

a member on active service, including a DROP participant;

(2)

a pensioner until the first October 1 occurring after both the pensioners retirement and the earlier of:

(A)

the date the pensioner reaches 62 years of age; or

(B)

the third anniversary of the date the pensioner retired; or

(3)

a qualified survivor until the first October 1 occurring after the earlier of:

(A)

the date the qualified survivor reaches 62 years of age;

(B)

the third anniversary of the date the primary party retired; or

(C)

the third anniversary of the date of the members or pensioners death.

(g)

A retirement or disability pension or periodic disability compensation paid to any Group B pensioner may not be less than the Group B pensioners base pension.

(h)

The death benefit of the qualified survivors who are the spouse, dependent parent, or child of a Group B pensioner, as a group, may not be less than 50 percent of the pensioners base pension.
Sec. 6.13. SUPPLEMENT TO CERTAIN RECIPIENTS 55 YEARS OF AGE OR OLDER. (a) Except as provided by Subsection (b) of this section, if a pensioner had at least 20 years of pension service under any plan adopted pursuant to Article 6243a or this article, or if a pensioner is receiving the periodic disability compensation benefit under Section 6.05 of this article, the pensioner, the pensioners spouse who is a qualified survivor eligible to receive benefits under this article, or the pensioners children who are qualified survivors, as a group, under Section 6.06 of this article are entitled to receive, when the pensioner or spouse who is a qualified survivor attains 55 years of age, provided the pensioner or spouse attains 55 years of age before September 1, 2017, a monthly supplement equal to the greater of $50 or three percent of their total monthly benefit and for months beginning on and after January 1, 1991, a monthly supplement equal to the greater of $75 or three percent of their total monthly benefit. For purposes only of calculating this supplement, the phrase "their total monthly benefit" means the amount payable to a pensioner or qualified survivors under the terms of the plans described by this section under which the pensioner or qualified survivor elected to receive benefits but does not include the supplement authorized by this section or any adjustments under Section 6.12 of this article made after September 1, 2017.

(b)

A person described by Subsection (a) of this section who, on September 1, 2017, is not receiving or has not received a supplemental benefit under this section is not entitled to receive a supplemental benefit under this section.
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Last accessed
Oct. 23, 2019