2005 Texas Government Code CHAPTER 844. BENEFITS

GOVERNMENT CODE

CHAPTER 844. BENEFITS

SUBCHAPTER A. GENERAL PROVISIONS


	§ 844.001. TYPES OF BENEFITS.  The types of benefits 
payable by the retirement system are:
		(1)  service retirement annuities;                                            
		(2)  disability retirement annuities;                                         
		(3)  survivor annuity death benefits;                                         
		(4)  supplemental death benefits;  and                                        
		(5)  refunds of accumulated contributions.                                    

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.001 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 2001, 77th Leg., ch. 122, § 20, eff. Dec. 31, 2001.


	§ 844.002. COMPOSITION OF RETIREMENT ANNUITY.  (a) Each 
retirement annuity payable under this subtitle consists of a basic 
annuity and a supplemental annuity.
	(b)  A basic annuity is an amount payable from the current 
service annuity reserve fund and is actuarially determined from the 
sum of a member's:
		(1)  accumulated contributions;  and                                          
		(2)  current service credit, accumulated at interest as 
provided by Section 843.403(d).
	(c)  A supplemental annuity is an amount payable from the 
subdivision accumulation fund, subject to reduction under Section 
842.054, 842.055, 842.056, 842.057, or 845.307(c), and is 
actuarially determined from the sum of:
		(1)  a member's allocated prior service credit, 
accumulated at interest as provided by Section 843.105(d);  and
		(2)  a member's multiple matching credit, accumulated 
at interest as provided by Section 843.403(d).
	(d)  Any increase in the annuity granted by a participating 
subdivision after December 31, 1978, is payable from the 
subdivision accumulation fund as part of the supplemental annuity.
	(e)  A separate retirement annuity is payable for each 
participating subdivision from which a person retires under this 
subtitle or is considered to have retired.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1985, 69th Leg., ch. 491, § 15, eff. June 12, 
1985.  Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.002 
and amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1999, 76th Leg., ch. 427, § 22, eff. Dec. 
31, 1999;  Acts 2001, 77th Leg., ch. 122, § 21, eff. Dec. 31, 
2001;  Acts 2005, 79th Leg., ch. 506, § 16, eff. Jan. 1, 2006.


	§ 844.003. EFFECTIVE DATE OF RETIREMENT.  (a) Except as 
provided by Subsections (b) and (d), the effective date of a 
member's service retirement is the date the member designates at 
the time the member applies for retirement under Section 844.101, 
but the date must be the last day of a calendar month and may not 
precede the date the member terminates employment with the 
subdivision from which the member seeks to retire.
	(b)  If a member who is eligible under Section 844.407 to 
select an optional retirement annuity dies before retirement, the 
member is considered to have retired on the last day of the month 
before the month in which death occurred.
	(c)  Except as provided by Subsection (b), the effective date 
of a member's disability retirement is the date designated on the 
application for retirement filed by or for the member as provided by 
Section 844.301, but the date must be the last day of a calendar 
month and may not precede the date the member terminates employment 
with all participating subdivisions.
	(d)  A member who is eligible for service retirement and who 
terminates employment with a participating subdivision may apply 
for and receive a service retirement annuity based on service for 
that subdivision despite the fact that the member is or becomes an 
employee of another participating subdivision.  Credited service 
with the member's new employer may be used in determining 
eligibility for service retirement.  A member who is eligible for 
service retirement using combined credited service for two or more 
subdivisions may simultaneously apply for and receive a service 
retirement annuity for service to one subdivision and a refund of 
accumulated contributions for service to another subdivision.  A 
person who retires under this subsection is considered for all 
purposes to be a retiree who resumes service with a different 
employer under Section 842.110.
	(e)  Notwithstanding Subsections (a), (b), and (c), the 
effective retirement date of a member may not precede the first 
anniversary of the earlier of the effective date of the person's 
membership in the retirement system or the effective date of 
participation of the subdivision from which the member had most 
recently earned credited service.
	(f), (g) Repealed by Acts 1997, 75th Leg., ch. 309, § 33, 
eff. Dec. 31, 1997.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1987, 70th Leg., ch. 63, § 7, eff. May 6, 1987.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.003 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1993, 73rd Leg., ch. 175, § 8, eff. Jan. 1, 
1994;  Acts 1993, 73rd Leg., ch. 536, § 1, Jan. 1, 1994;  Acts 
1995, 74th Leg., ch. 245, § 9, eff. Sept. 1, 1995;  Acts 1997, 
75th Leg., ch. 309, § 8, 33, eff. Dec. 1, 1997;  Acts 1999, 76th 
Leg., ch. 65, § 1, eff. May 10, 1999;  Acts 1999, 76th Leg., ch. 
427, § 23, eff. Dec. 31, 1999;  Acts 2001, 77th Leg., ch. 122, 
§ 22, eff. Dec. 31, 2001;  Acts 2005, 79th Leg., ch. 506, § 17, 
eff. Jan. 1, 2006.


	§ 844.005. WHEN ANNUITY IS PAYABLE;  CHANGES BEFORE FIRST 
PAYMENT.  (a) A retiree may revoke an application for retirement, 
change the retiree's choice of retirement annuity payment plans, or 
change the designation of beneficiary after the retiree's effective 
date of retirement by filing written notice with the retirement 
system not later than the last day of the month following the month 
that includes the effective date of retirement. After that day, a 
retiree may not revoke the application for retirement, change the 
annuity payment plan selected, or change the designated beneficiary 
except under Section 844.006.
	(b)  A retiree who dies before the first day of the second 
month following the month that includes the effective date of 
retirement and who did not select an optional retirement annuity is 
considered to have selected an optional annuity under Section 
844.104(c)(7) or Section 844.305(c)(7), as applicable.  
Alternatively, the decedent's beneficiary may elect to receive a 
refund of the decedent's accumulated contributions under Section 
844.401.
	(c)  An annuity under this subtitle is payable to a retiree 
or beneficiary through the month in which the retiree or 
beneficiary dies.  A continuation of an optional annuity begins 
with payment for the month following the month in which death 
occurs.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.005 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 1995, 74th Leg., ch. 245, § 10, eff. Sept. 1, 1995;  Acts 
2001, 77th Leg., ch. 122, § 23, eff. Dec. 31, 2001.


	§ 844.006. CHANGE OF BENEFICIARY OR DIVISION OF BENEFIT 
FOR CERTAIN PERSONS RECEIVING MONTHLY BENEFITS.  (a) A retiree who 
is receiving payments of a standard service or disability 
retirement annuity or of an annuity for the retiree's life but with 
payments to continue after the retiree's death until a determined 
number of payments have been made may revoke any existing selection 
and designation of beneficiary nominated to receive any payments 
that may become due under the annuity after the retiree's death and 
may select a new beneficiary to whom payments may be made.
	(b)  A person who, as beneficiary of a deceased retiree, is 
receiving monthly payments of any fixed-term annuity described by 
Subsection (a) may select and designate a person to whom shall be 
paid any monthly payments that may become due under the annuity 
after the death of the beneficiary making the designation.
	(c)  A retiree who selected an optional annuity under Section 
844.104(c)(1), (c)(2), (c)(5), or (c)(6) or Section 844.305(c)(1), 
(c)(2), (c)(5), or (c)(6) may revoke the designation of the 
beneficiary to receive the annuity on the death of the retiree, if a 
court of competent jurisdiction in a divorce proceeding involving 
the retiree and beneficiary awards to the retiree the entire 
retirement benefit earned by the retiree.  The order awarding the 
retirement benefit may be set forth in the divorce decree or in an 
order approving the terms of a property settlement agreement 
incident to the divorce of the retiree and beneficiary but must be 
dated on or after December 31, 1999.  The revocation takes effect 
when the retirement system receives it and cancels the optional 
annuity selection made by the retiree.  Beginning with the month 
following the month in which the retirement system receives the 
notice of revocation, the retiree is entitled to receive a standard 
service or disability retirement annuity, as applicable, in the 
same amount that the retiree would receive for the same month if the 
retiree had originally retired with a standard service or 
disability retirement annuity.
	(d)  If a qualified domestic relations order, as that term is 
defined by Section 804.001, so provides, the benefit payable to a 
retiree who is receiving payments of an annuity for the retiree's 
life with payments to continue after the retiree's death until the 
death of another person may be divided by the retirement system into 
two annuities if:
		(1)  the person who was designated to receive the 
continued payment after the retiree's death is the same person as 
the alternate payee;
		(2)  the order specifies that one of the two annuities 
is payable over the remaining life of the retiree, with no payments 
to be made under that annuity after the death of the retiree;
		(3)  the order specifies that the annuity payable to 
the alternate payee is payable over the remaining life of that 
person, with no payments to be made under that annuity after the 
death of the alternate payee named in the order;  and
		(4)  the annuity that would be payable to the person as 
the alternate payee under the order would not exceed the annuity 
that would be payable to that person as the retiree's surviving 
beneficiary under the option selected if the retiree were deceased
	(e)  The division of an annuity under Subsection (d) is 
effective when the order is determined by the retirement system to 
be a qualified domestic relations order, and the amount of each of 
the two annuities shall be computed by the retirement system at that 
time, based on tables that have been adopted by the retirement 
system and in effect at that time, so that the two annuities are 
actuarially equivalent at the time of division to the annuity being 
divided.
	(f)  The retirement system by rule may establish 
requirements for forms, documentation, and procedures necessary or 
desirable for the administration of this section.

Added by Acts 1991, 72nd Leg., ch. 460, § 11, eff. Jan. 1, 1992.  
Amended by Acts 1993, 73rd Leg., ch. 175, § 9, 10, eff. Jan. 1, 
1994;  Acts 1999, 76th Leg., ch. 427, § 24, eff. Dec. 31, 1999;  
Acts 2001, 77th Leg., ch. 122, § 24, eff. Dec. 31, 2001.


	§ 844.007. ADJUSTMENTS APPLICABLE TO MIDYEAR 
RETIREMENTS.  (a) The adjustments prescribed in this section shall 
be made in computing the benefits of and to the accounts of any 
member who retires effective at the end of any month other than 
December.
	(b)  Interest will be credited on the balance in the member's 
individual account in the employees saving fund on January 1 of the 
year of retirement from that date to the effective date of 
retirement.
	(c)  An amount equal to the interest computed under 
Subsection (b) will be credited to the account in the subdivision 
accumulation fund for the subdivision that employed the member.
	(d)  to (g) Repealed by Acts 1999, 76th Leg., ch. 427, § 
64(6), eff. Dec. 31, 1999.

Added by Acts 1991, 72nd Leg., ch. 460, § 11, eff. Jan. 1, 1992.  
Amended by Acts 1995, 74th Leg., ch. 245, § 11, eff. Sept. 1, 
1995;  Acts 1999, 76th Leg., ch. 427, § 25, 64(6), eff. Dec. 31, 
1999.


	§ 844.008. LIMITATION ON PAYMENT OF BENEFITS.  (a) 
Notwithstanding any other provision of this subtitle, the benefit 
payable to a retiree of the retirement system may not exceed the 
maximum benefit permitted under Section 415(b) of the Internal 
Revenue Code of 1986 (26 U.S.C. Section 415(b)) as adjusted in 
accordance with Section 415(d) of that code.  Any adjustments are 
applicable to the postretirement benefits of retirees as well as to 
the benefits of retiring members.  For the purpose of determining 
whether the benefit of a retiring member or retiree exceeds the 
limitations provided in this section, all defined benefit plans of 
the employer and of entities required to be aggregated with the 
employer for purposes of Section 415 of the Internal Revenue Code of 
1986 are to be treated as one defined benefit plan and all defined 
contribution plans of the employer and of entities required to be 
aggregated with the employer for purposes of Section 415 of that 
code are to be treated as one defined contribution plan.  The 
limitation year for determining maximum benefits is the calendar 
year. 
	(b)  An employer may not provide employee retirement or 
deferred benefits under a plan other than the retirement system to 
the extent that the provision of the benefits, when considered 
together with the benefits provided under the retirement system, 
would result in the failure of the retirement system to meet any of 
the limitation requirements of Section 415 of the Internal Revenue 
Code of 1986 (26 U.S.C. Section 415), and the benefits of the other 
plan will automatically be reduced, eliminated, or adjusted to the 
extent necessary to prevent the failure.

Added by Acts 1993, 73rd Leg., ch. 175, § 11, eff. Jan. 1, 1994.  
Amended by Acts 1995, 74th Leg., ch. 245, § 12 to 14, eff. Sept. 
1, 1995;  Acts 1997, 75th Leg., ch. 309, § 9, eff. Dec. 1, 1997.


	§ 844.009. PARTIAL LUMP-SUM DISTRIBUTION ON SERVICE 
RETIREMENT.  (a) The governing body of a contributing subdivision 
with a member contribution rate of at least four percent that has 
not elected to discontinue enrolling employees may adopt the 
provisions of this section:
		(1)  on the terms provided by Subchapter H;  or                               
		(2)  if the board of trustees determines that, based on 
computations by the retirement system's actuary, the adoption would 
not impair the ability of the subdivision to fund all obligations 
against its account in the subdivision accumulation fund before the 
20th anniversary of the subdivision's most recent actuarial 
valuation date.
	(b)  A member who is eligible and applies for service 
retirement may simultaneously apply for a partial lump-sum 
distribution under this section.
	(c)  The amount of a lump-sum distribution under this section 
may not exceed 100 percent of the total accumulated contributions 
in the member's individual account in the employees saving fund 
attributable to the credited service on which the member has 
applied for retirement.
	(d)  The lump-sum distribution will be made as a single 
payment paid at the same time as the first monthly annuity payment.
	(e)  For all purposes, the member's basic annuity is the 
annuity actuarially determined from the sum remaining under Section 
844.002(b) after deducting the amount of the lump-sum distribution.
	(f)  The amount of a lump-sum distribution made under this 
section is considered to be an annuity payment for the purpose of 
determining whether the amount in the retiree's individual account 
in the employees saving fund available for distribution at the time 
of retirement exceeds the total amount of annuity payments made.
	(g)  A member's guardian, attorney in fact, conservator, or 
trustee may make an application for the member under Subsection 
(b).
	(h)  No portion of a benefit awarded to an alternate payee 
under a qualified domestic relations order may be distributed in 
the form of a lump sum under this section, except that if the member 
and the alternate payee agree in writing that the alternate payee 
will receive all or a portion of the lump-sum distribution payable 
under this section instead of benefits awarded under the qualified 
domestic relations order, the amount of the lump-sum distribution 
described in the agreement may be paid directly to the alternate 
payee in complete satisfaction of the alternate payee's marital 
property rights and interest in the member's benefit.
	(i)  Repealed by Acts 2001, 77th Leg., ch. 122, § 56(2), 
eff, Dec. 31, 2001.

Added by Acts 1999, 76th Leg., ch. 901, § 1, eff. Dec. 31, 1999;  
Amended by Acts 2001, 77th Leg., ch. 122, § 25, 56(2), eff. Dec. 
31, 2001;  Acts 2003, 78th Leg., ch. 621, § 19, eff. Jan. 1, 2004.


	§ 844.010. CERTAIN BENEFICIARY DESIGNATIONS.  (a) A 
beneficiary designation that names a former spouse as beneficiary 
is invalid for purposes of this subtitle unless the designation:
		(1)  is made or confirmed in writing after the date of 
divorce;  or         
		(2)  was made by a retiree who, at the time of divorce, 
is receiving payments under an optional service or disability 
retirement with payments to continue to the beneficiary for the 
beneficiary's life.
	(b)  In addition to the authority provided by Section 
804.051, the board of trustees may adopt rules to require consent of 
a member's spouse to:
		(1)  the member's designation of a beneficiary who is 
not the member's spouse;
		(2)  the member's selection of an optional form of 
retirement benefit;  or  
		(3)  the member's election of a withdrawal of 
contributions.                
	(c)  A benefit payable under this subtitle is not subject to 
a will, other testamentary document, or the law of intestacy to the 
extent that the member, retiree, or other former member has a 
different beneficiary under the retirement system than under the 
testamentary document or law of intestacy.

Added by Acts 2003, 78th Leg., ch. 621, § 20, eff. Jan. 1, 2004.           

SUBCHAPTER B. SERVICE RETIREMENT BENEFITS


	§ 844.101. APPLICATION FOR SERVICE RETIREMENT ANNUITY.  A 
member may apply for a service retirement annuity by filing an 
application for retirement with the retirement system on or before 
the member's effective retirement date designated on the 
application.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.102 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 1995, 74th Leg., ch. 245, § 15, eff. Sept. 1, 1995;  Acts 
1999, 76th Leg., ch. 427, § 26, eff. Dec. 31, 1999;  Acts 2001, 
77th Leg., ch. 122, § 26, eff. Dec. 31, 2001.


	§ 844.102. ELIGIBILITY FOR SERVICE RETIREMENT 
ANNUITY.  (a) A member is eligible to apply for and receive a 
service retirement annuity if the member:
		(1)  is at least 60 years old and has at least 12 years 
of credited service in the retirement system;
		(2)  has at least 30 years of credited service in the 
retirement system;  or
		(3)  has met the eligibility requirements for service 
retirement under Section 844.207, 844.210, 844.211, or 844.212.
	(b)  A person who has retired with a service retirement 
annuity is eligible, without regard to any age or credited service 
requirement, to apply for and receive a service retirement annuity 
based on service for another participating subdivision from which 
the person has terminated employment.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.102 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1999, 76th Leg., ch. 427, § 27, eff. Dec. 
31, 1999;  Acts 2001, 77th Leg., ch. 122, § 26, eff. Dec. 31, 
2001.


	§ 844.103. STANDARD SERVICE RETIREMENT ANNUITY.  (a) The 
standard service retirement annuity payable under this subtitle is 
discounted for the possibility of payment of a benefit under 
Section 844.402 and is the actuarial equivalent of the sum of a 
member's:
		(1)  accumulated contributions;                                               
		(2)  current service credit, accumulated at interest as 
provided by Section 843.403(d);
		(3)  allocated prior service credit, accumulated at 
interest as provided by Section 843.105(d);  and
		(4)  multiple matching credit, accumulated at interest 
as provided by Section 843.403(d).
	(b)  A standard service retirement annuity is payable 
throughout the life of a retiree.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1981, 67th Leg., 1st C.S., p. 210, ch. 18, § 48, 
eff. Nov. 10, 1981.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 54.103 and amended by Acts 1989, 71st Leg., ch. 179, § 
1, eff. Sept. 1, 1989.


	§ 844.104. OPTIONAL SERVICE RETIREMENT ANNUITY.  (a) 
Instead of the standard service retirement annuity payable under 
Section 844.103, a retiring member may elect to receive an optional 
service retirement annuity under this section.
	(b)  An optional service retirement annuity is payable 
throughout the life of the retiree and is actuarially reduced from 
the standard service retirement annuity to its actuarial equivalent 
under the option selected under Subsection (c).
	(c)  An eligible person may select any of the following 
optional annuities that are the actuarial equivalent of the annuity 
to which the person is entitled and that provide that:
		(1)  after the retiree's death, the reduced annuity is 
payable throughout the life of a person designated by the retiree;
		(2)  after the retiree's death, one-half of the reduced 
annuity is payable throughout the life of a person designated by the 
retiree;
		(3)  if the retiree dies before 60 monthly annuity 
payments have been made, the remainder of the 60 payments are 
payable to the retiree's beneficiary or, if one does not exist, to 
the retiree's spouse or, if no surviving spouse exists, to the 
retiree's estate;
		(4)  if the retiree dies before 120 monthly annuity 
payments have been made, the remainder of the 120 payments are 
payable to the retiree's beneficiary or, if one does not exist, to 
the retiree's spouse or, if no surviving spouse exists, to the 
retiree's estate;
		(5)  after the retiree's death, the reduced annuity is 
payable throughout the life of a person designated by the retiree, 
except that if the beneficiary predeceases the retiree, the annuity 
payable throughout the remaining life of the retiree is the annuity 
that would be payable if the retiree had chosen a standard service 
retirement annuity;
		(6)  after the retiree's death, three-fourths of the 
reduced annuity is payable throughout the life of a person 
designated by the retiree;  or
		(7)  if the retiree dies before 180 monthly annuity 
payments have been made, the remainder of the 180 payments are 
payable to the retiree's beneficiary or, if one does not exist, to 
the retiree's spouse or, if no surviving spouse exists, to the 
retiree's estate.
	(d)  to (n) Repealed by Acts 2001, 77th Leg., ch. 122, § 
56(3), eff. Dec. 31, 2001.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1989, 71st Leg., ch. 769, § 4, eff. Aug. 28, 
1989.  Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.104 
and amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1991, 72nd Leg., ch. 16, § 11.04(d), eff. 
Aug. 26, 1991;  Acts 1993, 73rd Leg., ch. 175, § 12, eff. Jan. 1, 
1994;  Acts 1995, 74th Leg., ch. 245, § 16, eff. Sept. 1, 1995;  
Acts 1999, 76th Leg., ch. 427, § 28, eff. Dec. 31, 1999;  Acts 
2001, 77th Leg., ch. 122, § 27, 56(3), eff. Dec. 31, 2001;  Acts 
2003, 78th Leg., ch. 621, § 21, eff. Jan. 1, 2004.

SUBCHAPTER C. OPTIONAL RETIREMENT BENEFITS


	§ 844.202. VESTED ELIGIBILITY TO FUTURE RETIREMENT.  A 
member of the retirement system is a vested member and may terminate 
employment with all participating subdivisions and remain eligible 
to retire and receive a service retirement annuity at any time after 
the member attains the age of 60, if the member leaves the member's 
accumulated contributions on deposit with the retirement system 
and:
		(1)  has at least 12 years of credited service;                               
		(2)  has at least 10 years of Section 844.207 credited 
service;  or         
		(3)  has at least 8 years of Section 844.210 credited 
service.              

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.202 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1999, 76th Leg., ch. 427, § 29, eff. Dec. 
31, 1999.


	§ 844.207. OPTIONAL BENEFIT ELIGIBILITY PLAN.  (a) This 
section applies to all subdivisions that begin participation in the 
retirement system after September 1, 1985, and to all other 
subdivisions that have adopted the plan provisions of this section.  
The governing body of a participating subdivision may adopt the 
plan provisions of this section only on the terms provided by 
Subchapter H.
	(b)  In this section "eligible credited service" means 
credited service performed for one or more participating 
subdivisions that have adopted the plan provisions of this section 
or Section 844.210.
	(c)  A member is eligible to apply for and receive a service 
retirement annuity if the member:
		(1)  is at least 60 years old and has at least 10 years 
of eligible credited service in the retirement system;
		(2)  is less than 60 years old, except as provided by 
Subsection (e), and has a sufficient amount of eligible credited 
service in the retirement system that, when added to the member's 
attained age, equals or exceeds the number 80;  or
		(3)  is eligible for service retirement under any other 
provision of this subtitle.
	(d)  A member who has 10 years or more of eligible credited 
service is a vested member for purposes of Sections 844.202, 
844.302, and 844.303.
	(e)  A member who on December 31, 1999, had any eligible 
credited service, whose membership in the retirement system 
continues after that date without interruption, and who accumulates 
four years or more of eligible credited service is eligible to 
receive a service retirement annuity regardless of age when the 
amount of eligible credited service added to the member's attained 
age equals or exceeds the number 80.

Added by Acts 1985, 69th Leg., ch. 491, § 21, eff. June 12, 1985.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.207 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1991, 72nd Leg., ch. 460, § 13, eff. Jan. 
1, 1992;  Acts 1993, 73rd Leg., ch. 536, § 3, eff. Jan. 1, 1994;  
Acts 1999, 76th Leg., ch. 427, § 30, eff. Dec. 31, 1999;  Acts 
2001, 77th Leg., ch. 122, § 28, eff. Dec. 31, 2001.


	§ 844.208. OPTIONAL INCREASE IN RETIREMENT 
ANNUITIES.  (a) The governing body of a participating subdivision, 
from time to time but not more frequently than once in each 12-month 
period, may provide for increased annuities to be paid to retirees 
and beneficiaries of deceased retirees of the subdivision.  An 
annuity increased under this section replaces any annuity or 
increased annuity previously granted to the same person.
	(b)  The amount of annuity increase under this section is 
computed as the sum of the basic and supplemental annuities on the 
effective date of retirement of the person on whose service the 
annuities are based or, if the person's current annuity has been 
increased under Section 844.006(c) or (d), 844.104(c)(5), or 
844.305(c)(5), the sum of the basic and supplemental annuities is 
computed as if the person had selected a standard service or 
disability retirement annuity on the person's effective date of 
retirement, multiplied by:
		(1)  the percentage change in the Consumer Price Index 
for All Urban Consumers, published by the Bureau of Labor 
Statistics of the United States Department of Labor, from December 
of the year immediately preceding the effective date of the 
person's retirement to the December that is 13 months before the 
month in which the effective date of the order or resolution 
providing the increase occurs;  and
		(2)  a fraction, specified by the governing body in the 
order or resolution, that is not less than 30 percent nor more than 
100 percent and is a multiple of 10 percent.
	(c)  Except as provided by Subsection (g), the effective date 
of an order or resolution under this section is January 1 of the 
year that begins after the year in which the governing body adopts 
and notifies the retirement system of the order or resolution.
	(d)  An increase in an annuity that was reduced because of an 
option selection is reducible in the same proportion and in the same 
manner that the original annuity was reduced.
	(e)  If a computation under Subsection (b) does not result in 
an increase in the amount of annuity, the amount of the annuity may 
not be changed under this section.
	(f)  The amount by which an increase under this section 
exceeds all previously granted increases to an annuitant is payable 
as a supplemental annuity, is an obligation of the subdivision's 
account in the subdivision accumulation fund, and is subject to 
reduction under Section 845.307(c).
	(g)  The governing body of a subdivision may not adopt an 
order or resolution under this section except on the terms provided 
by Subchapter H of this chapter.

Added by Acts 1991, 72nd Leg., ch. 460, § 14, eff. Jan. 1, 1992.  
Amended by Acts 2003, 78th Leg., ch. 621, § 22, eff. Jan. 1, 
2004;  Acts 2005, 79th Leg., ch. 506, § 18, eff. Jan. 1, 2006.


	§ 844.209. ALTERNATIVE OPTIONAL INCREASE IN RETIREMENT 
ANNUITIES.  (a) The governing body of a participating subdivision, 
from time to time but not more frequently than once in each 12-month 
period, may provide for increased annuities to be paid to retirees 
and beneficiaries of deceased retirees of the subdivision.  The 
governing body of the subdivision may not elect an increase in 
retirement annuities under Section 844.208 and under this section 
in the same 12-month period.
	(b)  An increase under this section applies to all annuities 
for which the effective retirement date is at least twelve months 
before the effective date of the increase.
	(c)  The amount of annuity increase under this section is 
computed as the sum of the person's basic and supplemental 
annuities on the effective date of the increase multiplied by the 
integer percentage increase specified by the governing body for all 
annuitants in the order or resolution adopting the increase.  The 
specified percentage increase may not exceed the percentage 
established by the board of trustees as the maximum allowable 
percentage increase.
	(d)  Except as provided by Subsection (g), the effective date 
of an order or resolution under this section is January 1 of the 
year that begins after the year in which the governing body adopts 
and notifies the retirement system of the order or resolution.
	(e)  An increase in an annuity that was reduced because of an 
option selection is reducible in the same proportion and in the same 
manner that the original annuity was reduced.
	(f)  The amount of an increase under this section is payable 
as a supplemental annuity, is an obligation of the subdivision's 
account in the subdivision accumulation fund, and is subject to 
reduction under Section 845.307(c).
	(g)  The governing body of a subdivision may not adopt an 
order or resolution under this section except on the terms provided 
by Subchapter H.

Added by Acts 1991, 72nd Leg., ch. 460, § 14, eff. Jan. 1, 1992.  
Amended by Acts 1993, 73rd Leg., ch. 175, § 13, eff. Jan. 1, 
1994;  Acts 1995, 74th Leg., ch. 245, § 18, eff. Sept. 1, 1995;  
Acts 1997, 75th Leg., ch. 309, § 10, eff. Dec. 1, 1997;  Acts 
1999, 76th Leg., ch. 427, § 31, eff. Dec. 31, 1999;  Acts 2005, 
79th Leg., ch. 506, § 19, eff. Jan. 1, 2006.


	§ 844.210. OPTIONAL BENEFIT ELIGIBILITY PLAN TWO.  (a) 
The governing body of a participating subdivision may adopt the 
plan provisions of this section only on the terms provided by 
Subchapter H.
	(b)  In this section "eligible credited service" means 
credited service performed for one or more participating 
subdivisions that have adopted the plan provisions of this section.
	(c)  A member is eligible to apply for and receive a service 
retirement annuity if the member:
		(1)  is at least 60 years old and has at least eight 
years of eligible credited service in the retirement system;
		(2)  is less than 60 years old, except as provided by 
Subsection (e), and has a sufficient amount of eligible credited 
service in the retirement system that, when added to the member's 
attained age, equals or exceeds the number 80;  or
		(3)  is eligible for service retirement under any other 
provision of this subtitle.
	(d)  A member who has eight years or more of eligible 
credited service in the retirement system is a vested member for 
purposes of Sections 844.202, 844.302, and 844.303.
	(e)  A member who on December 31, 1999, had any eligible 
credited service, whose membership in the retirement system 
continues after that date without interruption, and who accumulates 
four years or more of eligible credited service is eligible to 
receive a service retirement annuity regardless of age when the 
amount of eligible credited service added to the member's attained 
age equals or exceeds the number 80.  For purposes of this 
subsection, eligible credited service also includes credited 
service performed for one or more subdivisions that have adopted 
the plan provisions of Section 844.207.

Added by Acts 1993, 73rd Leg., ch. 536, § 4, eff. Jan. 1, 1994.  
Amended by Acts 1999, 76th Leg., ch. 427, § 32, eff. Dec. 31, 
1999;  Acts 2001, 77th Leg., ch. 122, § 28, eff. Dec. 31, 2001.


	§ 844.211. OPTIONAL BENEFIT ELIGIBILITY PLAN THREE.  (a) 
The governing body of a participating subdivision may adopt the 
plan provisions of this section only on the terms provided by 
Subchapter H.
	(b)  In this section "eligible credited service" means 
credited service performed for one or more participating 
subdivisions that have adopted the plan provisions of this section.
	(c)  A member is eligible to apply for and receive a service 
retirement annuity if the member:
		(1)  is less than 60 years old, except as provided by 
Subsection (d), and has a sufficient amount of eligible credited 
service in the retirement system that, when added to the member's 
attained age, equals or exceeds the number 75;  or
		(2)  is eligible for service retirement under any other 
provision of this subtitle.
	(d)  A member who on December 31, 1999, had any eligible 
credited service, whose membership in the retirement system 
continues after that date without interruption, and who accumulates 
four years or more of eligible credited service is eligible to 
receive a service retirement annuity regardless of age when the 
amount of eligible credited service added to the years of the 
member's attained age equals or exceeds the number 75.

Added by Acts 1993, 73rd Leg., ch. 536, § 5, eff. Jan. 1, 1994.  
Amended by Acts 1999, 76th Leg., ch. 427, § 33, eff. Dec. 31, 
1999;  Acts 2001, 77th Leg., ch. 122, § 28, eff. Dec. 31, 2001.


	§ 844.212. OPTIONAL BENEFIT ELIGIBILITY PLAN FOUR.  (a) 
In this section, "eligible credited service" means credited service 
performed for one or more participating subdivisions that have 
adopted the plan provisions of this section.
	(b)  Subject to Subsection (d), the governing body of a 
participating subdivision may adopt the plan provisions under 
Subsection (c).
	(c)  A member is eligible to apply for and receive a service 
retirement annuity if the member has at least 20 years of eligible 
credited service in the retirement system.
	(d)  The governing body of a subdivision may not adopt the 
plan provisions of Subsection (c) except on the terms provided by 
Subchapter H.

Added by Acts 2001, 77th Leg., ch. 122, § 29, eff. Dec. 31, 2001.          

SUBCHAPTER D. DISABILITY RETIREMENT BENEFITS


	§ 844.301. APPLICATION FOR DISABILITY RETIREMENT 
ANNUITY.  (a) A member may apply for a disability retirement 
annuity by:
		(1)  filing an application for retirement with the 
retirement system;  or   
		(2)  having an application filed with the system by the 
member's employer or legal representative.
	(b)  An application for a disability retirement annuity must 
be filed on or before the member's effective retirement date 
designated on the application.
	(c)  An applicant must submit to medical examination as 
required by the medical board.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.301 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 1995, 74th Leg., ch. 245, § 19, eff. Sept. 1, 1995;  Acts 
1999, 76th Leg., ch. 427, § 34, eff. Dec. 31, 1999;  Acts 2001, 
77th Leg., ch. 122, § 30, eff. Dec. 31, 2001.


	§ 844.302. ELIGIBILITY FOR DISABILITY RETIREMENT 
ANNUITY.  (a) Except as provided by Subsection (c), a member who is 
not a vested member under Section 844.202 is eligible to apply for 
and receive a disability retirement annuity if the member is the 
subject of a certification issued as provided by Section 
844.303(b)(1).
	(b)  Except as provided by Subsection (c), a member who is a 
vested member under Section 844.202 is eligible to apply for and 
receive a disability retirement annuity if the member is the 
subject of a certification issued as provided by Section 
844.303(b)(2).  A member eligible to receive a disability 
retirement annuity under this subsection may, if the member is 
eligible for service retirement, elect to receive a service 
retirement annuity but may not receive both annuities.
	(c)  A member is not eligible to retire for disability before 
the first anniversary of the earlier of the effective date of the 
person's membership or the effective date of participation of the 
subdivision from which the member had most recently earned credited 
service.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.302 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1991, 72nd Leg., ch. 460, § 15, eff. Jan. 
1, 1992;  Acts 1999, 76th Leg., ch. 427, § 35, eff. Dec. 31, 1999.


	§ 844.303. CERTIFICATION OF DISABILITY.  (a) As soon as 
practicable after an application for disability retirement is 
filed, the medical board shall evaluate the medical and other 
pertinent information concerning the member's application.
	(b)  The medical board shall issue a certification of 
disability and submit it to the board of trustees, if the medical 
board finds:
		(1)  in the case of a member who is not a vested member 
under Section 844.202, that:
			(A)  the member is mentally or physically 
incapacitated for any gainful occupation;
			(B)  the incapacity is the direct result of 
injuries sustained during membership by external and violent means 
as a direct and proximate result of the performance of duty;
			(C)  the incapacity is likely to be permanent;  
and                        
			(D)  the member should be retired;  or                                       
		(2)  in the case of a member who is a vested member 
under Section 844.202, that:
			(A)  the member is mentally or physically 
incapacitated for any gainful occupation;
			(B)  the incapacity is likely to be permanent;  
and                        
			(C)  the member should be retired.                                           

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1985, 69th Leg., ch. 491, § 22, eff. June 12, 
1985.  Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.303 
by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  
Amended by Acts 1991, 72nd Leg., ch. 460, § 16, eff. Jan. 1, 
1992;  Acts 1999, 76th Leg., ch. 427, § 36, eff. Dec. 31, 1999.


	§ 844.304. STANDARD DISABILITY RETIREMENT ANNUITY.  (a) 
The standard disability retirement annuity is discounted for the 
possibility of payment of a benefit under Section 844.402 and is the 
actuarial equivalent of the sum of a member's:
		(1)  accumulated contributions;                                               
		(2)  current service credit, accumulated at interest as 
provided by Section 843.403(d);
		(3)  allocated prior service credit, accumulated at 
interest as provided by Section 843.105(d);  and
		(4)  multiple matching credit, accumulated at interest 
as provided by Section 843.403(d).
	(b)  A standard disability retirement annuity is payable 
throughout the life of a retiree.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1981, 67th Leg., 1st C.S., p. 211, ch. 18, § 50, 
eff. Nov. 10, 1981.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 54.304 and amended by Acts 1989, 71st Leg., ch. 179, § 
1, eff. Sept. 1, 1989.  Amended by Acts 2001, 77th Leg., ch. 122, 
§ 31, eff. Dec. 31, 2001.


	§ 844.305. OPTIONAL DISABILITY RETIREMENT ANNUITY.  (a) 
Instead of the standard disability retirement annuity payable under 
Section 844.304, a retiring member may elect to receive an optional 
disability retirement annuity under this section.
	(b)  An optional disability retirement annuity is payable 
throughout the life of the retiree and is actuarially reduced from 
the standard disability retirement annuity to its actuarial 
equivalent under the option selected under Subsection (c).
	(c)  An eligible person may select any of the following 
optional annuities that are the actuarial equivalent of the annuity 
to which the person is entitled and that provide that:
		(1)  after the retiree's death, the reduced annuity is 
payable throughout the life of a person designated by the retiree;
		(2)  after the retiree's death, one-half of the reduced 
annuity is payable throughout the life of a person designated by the 
retiree;
		(3)  if the retiree dies before 60 monthly annuity 
payments have been made, the remainder of the 60 payments are 
payable to the retiree's beneficiary or, if one does not exist, to 
the retiree's spouse or, if no surviving spouse exists, to the 
retiree's estate;
		(4)  if the retiree dies before 120 monthly annuity 
payments have been made, the remainder of the 120 payments are 
payable to the retiree's beneficiary or, if one does not exist, to 
the retiree's spouse or, if no surviving spouse exists, to the 
retiree's estate;
		(5)  after the retiree's death, the reduced annuity is 
payable throughout the life of a person designated by the retiree, 
except that if the beneficiary predeceases the retiree, the annuity 
payable throughout the remaining life of the retiree is the annuity 
that would be payable if the retiree had chosen a standard service 
retirement annuity;
		(6)  after the retiree's death, three-fourths of the 
reduced annuity is payable throughout the life of a person 
designated by the retiree;  or
		(7)  if the retiree dies before 180 monthly annuity 
payments have been made, the remainder of the 180 payments are 
payable to the retiree's beneficiary or, if one does not exist, to 
the retiree's spouse or, if no surviving spouse exists, to the 
retiree's estate.
	(d)  to (m) Repealed by Acts 2001, 77th Leg., ch. 122, § 
56(4), eff. Dec. 31, 2001.

Added by Acts 1981, 67th Leg., 1st C.S., p. 211, ch. 18, § 51, 
eff. Nov. 10, 1981.  Amended by Acts 1989, 71st Leg., ch. 769, § 
5, eff. Aug. 28, 1989.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 54.3041 and amended by Acts 1989, 71st Leg., ch. 179, 
§ 1, eff. Sept. 1, 1989.  Amended by Acts 1991, 72nd Leg., ch. 16, 
§ 11.04(e), eff. Aug. 26, 1991;  Acts 1993, 73rd Leg., ch. 175, 
§ 14, eff. Jan. 1, 1994;  Acts 1995, 74th Leg., ch. 245, § 20, 
eff. Sept. 1, 1995;  Acts 1999, 76th Leg., ch. 427, § 37, eff. 
Dec. 31, 1999;  Acts 2001, 77th Leg., ch. 122, § 32, 56(4), eff. 
Dec. 31, 2001;  Acts 2003, 78th Leg., ch. 621, § 23, eff. Jan. 1, 
2004.


	§ 844.3051. ANNUITIES NOT SUBJECT TO DISCONTINUANCE.  (a) 
After the earlier of the date a disability retiree attains age 60 or 
the date the disability retiree would otherwise have become 
eligible for service retirement under this subtitle, the retiree's 
disability retirement annuity may not be revoked or discontinued 
under this subtitle, and the retiree is not subject to further 
medical examinations or required to submit annual earnings reports.
	(b)  A disability retirement annuity that is not subject to 
revocation or discontinuance is considered a service retirement 
annuity if the retiree returns to employment with a participating 
subdivision.

Added by Acts 2001, 77th Leg., ch. 122, § 33, eff. Dec. 31, 2001.          


	§ 844.306. MEDICAL EXAMINATION OF DISABILITY 
RETIREE.  (a) Once each year during the first five years after a 
person retires for disability, and once in each three-year period 
after that, the board of trustees may require a disability retiree 
to undergo a medical examination.
	(b)  An examination under this section may be held at the 
retiree's residence or at any place mutually agreed to by the board 
and the retiree.  The board shall designate a physician to perform 
the examination.
	(c)  If a disability retiree refuses to submit to a medical 
examination as provided by this section, the board of trustees 
shall suspend the retiree's annuity payments until the retiree 
submits to an examination.  If a retiree has not submitted to an 
examination as provided by this section before the first 
anniversary of the date of first refusal, the board shall revoke all 
rights of the retiree to an annuity.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.305 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 2001, 77th Leg., ch. 122, § 34, eff. Dec. 31, 2001.


	§ 844.307. CERTIFICATION OF END OF DISABILITY.  (a) If 
the medical board finds that a disability retiree is no longer 
mentally or physically incapacitated for the performance of duty or 
is engaged in or able to engage in gainful occupation, it shall 
certify its findings and submit them to the board of trustees.
	(b)  If the board of trustees concurs in a certification 
under this section, it shall discontinue annuity payments to the 
retiree.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.306 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 1991, 72nd Leg., ch. 460, § 17, eff. Jan. 1, 1992;  Acts 
2001, 77th Leg., ch. 122, § 35, eff. Dec. 31, 2001.


	§ 844.308. RETURN OF DISABILITY RETIREE TO 
MEMBERSHIP.  If the disability annuity of a person is discontinued 
under Section 844.306(c) or 844.307, the person automatically 
resumes membership in the retirement system, and the board of 
trustees shall terminate the person's annuity payments.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Amended by Acts 1987, 70th Leg., ch. 63, § 9, eff. May 6, 1987.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.307 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 1991, 72nd Leg., ch. 460, § 18, eff. Jan. 1, 1992;  Acts 
2001, 77th Leg., ch. 122, § 36, eff. Dec. 31, 2001.


	§ 844.309. ADJUSTMENTS AT ANNUITY DISCONTINUANCE.  (a) If 
a person's membership resumes under Section 844.308, the retirement 
system shall transfer:
		(1)  from the current service annuity reserve fund and 
credit to the person's individual account in the employees saving 
fund an amount equal to the amount of accumulated contributions 
transferred to the current service annuity reserve fund at the time 
of retirement reduced by one percent for each year or part of a year 
during which disability annuity payments were made;  and
		(2)  from the current service annuity reserve fund to 
the subdivision accumulation fund an amount equal to the amount 
transferred from the subdivision accumulation fund to the current 
service annuity reserve fund at the time of retirement reduced by 
one percent for each year or part of a year during which disability 
annuity payments were made.
	(b)  If a person whose membership resumes under Section 
844.308 was receiving a supplemental annuity based in whole or in 
part on prior service credit, the retirement system shall restore 
to effect as the person's maximum prior service credit an amount 
equal to the person's maximum prior service credit at the time of 
disability retirement reduced by one percent for each year or part 
of a year during which disability annuity payments were made.
	(c)  A person who resumes membership under Section 844.308 is 
entitled to restoration of credited service in the number of months 
accumulated and allowed before disability retirement.
	(d)  The board of trustees may adopt rules for the 
computation and transfer of amounts and credits for a membership 
resumed under this subchapter.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.308 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1991, 72nd Leg., ch. 460, § 18, eff. Jan. 
1, 1992;  Acts 2001, 77th Leg., ch. 122, § 36, eff. Dec. 31, 2001.


	§ 844.310. REPORT OF EARNINGS OF DISABILITY RETIREE.  (a) 
The retirement system may require a disability retiree to submit 
annually to the retirement system a report of earnings.  The 
retirement system shall examine each report and may require at any 
time that a disability retiree undergo a medical examination by one 
or more physicians the retirement system designates, if the retiree 
has reported earnings that the board of trustees considers to show 
an ability to engage in gainful employment.
	(b)  The board of trustees may adopt rules establishing 
limits on the annual earnings of disability retirees and such other 
rules as are necessary to administer this section.
	(c)  If a disability retiree refuses to submit an annual 
report of earnings, the retirement system shall discontinue the 
retiree's annuity payments until the retirement system receives 
that annual report and, if so requested, the retiree submits to a 
medical examination by one or more physicians designated by the 
retirement system.

Added by Acts 1995, 74th Leg., ch. 245, § 21, eff. Sept. 1, 1995.  
Amended by Acts 2001, 77th Leg., ch. 122, § 37, eff. Dec. 31, 
2001.

SUBCHAPTER E. DEATH BENEFITS


	§ 844.401. RETURN OF ACCUMULATED CONTRIBUTIONS.  (a) 
Except as provided by Subsection (c), if a member dies before 
retirement, a lump-sum death benefit is payable from the employees 
saving fund in the amount of:
		(1)  the decedent's accumulated contributions;  plus                          
		(2)  interest computed on the decedent's accumulated 
contributions on January 1 of the year of death from the beginning 
of that year through the end of the month before the month in which 
death occurs.
	(b)  The benefit provided by this section is payable to the 
decedent's beneficiary or, if no surviving beneficiary exists, to 
the decedent's spouse or, if no surviving spouse exists, to the 
decedent's estate.
	(c)  A benefit is not payable under this section if an 
annuity based on the same service with the subdivision is payable 
under this subtitle.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.401 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1997, 75th Leg., ch. 309, § 11, eff. Dec. 
1, 1997;  Acts 2001, 77th Leg., ch. 122, § 38, eff. Dec. 31, 2001.


	§ 844.402. RETURN OF EXCESS CONTRIBUTIONS.  (a) After the 
death of a member or former member and after the final payment has 
been made under any service, disability, or survivor annuity, a 
lump-sum death benefit is payable in an amount, if any, by which the 
amount in the person's individual account in the employees saving 
fund on which the annuity was computed exceeds the amount of annuity 
payments made.
	(b)  The benefit provided by this section is payable to the 
person entitled to receive the final monthly payment of the 
annuity. If that person is deceased, the benefit provided by this 
section is payable to the person's beneficiary or, if no surviving 
beneficiary exists, to the person's spouse or, if no surviving 
spouse exists, to the person's estate.
	(c)  The benefit provided by this section is payable from the 
current service annuity reserve fund and the subdivision 
accumulation fund in the ratio that the parts of the retirement 
annuity that were payable from the funds bear to the entire benefit 
as determined on the effective date of retirement.

Acts 1981, 67th Leg., p. 1876, ch. 453, § 1, eff. Sept. 1, 1981.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.402 by 
Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 1989.  Amended 
by Acts 2001, 77th Leg., ch. 122, § 38, eff. Dec. 31, 2001.


	§ 844.404. PERSON CAUSING DEATH OF MEMBER OR 
ANNUITANT.  (a) A benefit payable on the death of a member or 
annuitant may not be paid to a person convicted of causing that 
death but instead is payable to a person who would be entitled to 
the benefit had the convicted person predeceased the decedent.  If 
no person would be entitled to the benefit, the benefit is payable 
to the decedent's estate.
	(b)  The retirement system is not required to pay a benefit 
under Subsection (a) unless it receives actual notice of the 
conviction of the person who would have been entitled to the 
benefits.  However, the retirement system may delay payment of a 
benefit payable on the death of a member or annuitant pending the 
results of a criminal investigation and of legal proceedings 
relating to the cause of death.
	(c)  The retirement system shall convert the remainder of any 
annuity that would otherwise have been payable throughout the life 
of the convicted person to an actuarially equivalent annuity 
payable to the decedent's estate in 60 monthly annuity payments.  
The time of the actuarial equivalence is the earlier of the time the 
retirement system receives the notice of the conviction under 
Subsection (b) or the time the retirement system begins the delay in 
payment of a benefit under Subsection (b).
	(d)  For the purposes of this section, a person has been 
convicted of causing the death of a member or annuitant if the 
person:
		(1)  has pleaded guilty or nolo contendere to or has 
been found guilty by a court of an offense at the trial of which it 
is established that the person's intentional, knowing, or reckless 
act or omission resulted in the death of a person who was a member or 
annuitant, regardless of whether sentence is imposed or probated;  
and
		(2)  has no appeal of the conviction pending and the 
time provided for appeal has expired.

Added by Acts 1995, 74th Leg., ch. 245, § 22, eff. Sept. 1, 1995.          


	§ 844.405. TRUST AS BENEFICIARY.  (a) Except as provided 
by Subsection (b), a member or retiree may designate a trust as 
beneficiary for the payment of benefits from the retirement system.  
If a trust is designated beneficiary, the beneficiary of the trust 
is considered the designated beneficiary for the purpose of 
determining eligibility for and the amount and duration of 
benefits.  The trustee is entitled to exercise any rights granted a 
designated beneficiary to elect benefit options and name subsequent 
beneficiaries.
	(b)  A trust having more than one beneficiary may not receive 
benefits to which multiple designated beneficiaries are not 
eligible under this chapter.

Added by Acts 1995, 74th Leg., ch. 245, § 23, eff. Sept. 1, 1995.          


	§ 844.406. SIMULTANEOUS DEATH OF MEMBER AND 
BENEFICIARY.  When a member or retiree and the spouse or 
beneficiary of the member or retiree have died within a period of 
less than 120 hours of each other, the member or retiree is 
considered to have survived the spouse or beneficiary for the 
purpose of determining the rights to amounts payable under this 
subtitle on the death of the member or retiree.

Added by Acts 1995, 74th Leg., ch. 245, § 24, eff. Sept. 1, 1995.          


	§ 844.407. SURVIVOR ANNUITY DEATH BENEFIT.  (a) In this 
section "eligible member" means:
		(1)  a member who has four or more years of credited 
service with one or more subdivisions that are participating in the 
retirement system and that are not exempted from the application of 
this subdivision;
		(2)  a vested member described by Section 844.202 who 
is at least 60 years of age or has 20 or more years of credited 
service in the retirement system;  or
		(3)  a member who is receiving a service retirement 
annuity.                
	(b)  An annuity described by this section may be selected and 
paid on the death of an eligible member before the effective date of 
the member's retirement instead of any other benefit allowed under 
this subtitle, except that a supplemental death benefit under 
Subchapter F may also be paid.
	(c)  An eligible member may, before the effective date of the 
member's retirement, file with the board of trustees on a form 
prescribed by the board a selection of an optional service 
retirement annuity available under Section 844.104 and a 
designation of beneficiary.
	(d)  A member who is entitled under this section to select 
one of the optional service retirement annuities authorized by 
Section 844.104 may elect instead to name a beneficiary who, on the 
death of the member before retirement, will be allowed to choose any 
benefit that the member could have chosen to be paid to the 
beneficiary, with like effect as if the selection had been made by 
the member.
	(e)  If no application for deferred service retirement was on 
file with the retirement system on December 31, 1999, an unrevoked 
form executed by the member and filed with the system naming a 
beneficiary to whom the member's accumulated contributions are to 
be paid in the event of death before retirement is considered a 
selection of a beneficiary under Subsection (d).
	(f)  A member may change a selection of an optional annuity 
or a designation of beneficiary at any time before the member's 
retirement or death in the same manner that the original selection 
or designation was made.
	(g)  If an eligible member dies before retirement without 
having made a selection under Subsection (c), (d), or (e), the 
member's surviving spouse is considered to be the beneficiary and 
may select an optional annuity in the same manner as if the member 
had made the selection.
	(h)  If no surviving spouse exists, the executor or 
administrator of the member's estate may elect for an estate 
beneficiary to receive the optional annuity under Section 
844.104(c)(7).
	(i)  Any annuity payable under this section shall be computed 
on the assumption that the member had actually retired under the 
annuity selected and with the same beneficiary determined under the 
applicable provision of this section, effective on the last day of 
the calendar month before the month in which death of the member 
occurred.
	(j)  A survivor annuity under this section shall be paid from 
the same accounts and is subject to the same conditions as are 
applicable to a service retirement benefit for the same member.

Added by Acts 1999, 76th Leg., ch. 427, § 38, eff. Dec. 31, 1999.  
Amended by Acts 2001, 77th Leg., ch. 122, § 39, eff. Dec. 31, 
2001.


	§ 844.408. NO SURVIVING SPOUSE, EXECUTOR, OR 
ADMINISTRATOR.  (a) In this section "heirs" has the meaning 
assigned by Section 3, Texas Probate Code, except that the term 
excludes any person who has filed a proper disclaimer or 
renunciation with the retirement system.
	(b)  If a surviving spouse or the executor or administrator 
of a deceased member's estate would be entitled to make an election 
under Section 842.110, or if a beneficiary or the executor or 
administrator of a deceased member's estate would be entitled to 
make an election under Section 844.407 because of the death of the 
member, the heirs of the deceased member may make that election if:
		(1)  no surviving spouse exists, or, if Section 844.407 
is applicable, no surviving beneficiary exists;
		(2)  no petition for the appointment of a personal 
representative of the member is pending or has been granted;
		(3)  30 days have elapsed since the date of death of the 
member;            
		(4)  the value of the entire assets of the member's 
estate, excluding homestead and exempt property, does not exceed 
$50,000;  and
		(5)  on file with the retirement system is a certified 
copy of a small estates affidavit that has been approved and filed 
in accordance with Section 137, Texas Probate Code, or an original 
affidavit described by Subsection (c).
	(c)  If no affidavit has been filed with the clerk of the 
court having jurisdiction and venue as provided by Section 137, 
Texas Probate Code, the retirement system may accept instead an 
affidavit sworn to by two disinterested witnesses and by those 
heirs who have legal capacity and, if the facts warrant, by the 
natural guardian or next of kin of any minor or incompetent who is 
also an heir.  The affidavit must include the names and addresses of 
the heirs and witnesses, establish the facts listed in Subsection 
(b), include a list of the assets and liabilities of the estate, 
show the facts that constitute the basis for the right of the heirs 
to receive the estate, and show the fractional interests of the 
heirs in the estate as a result of those facts.
	(d)  If the retirement system, acting through the director or 
a person designated by the director, approves the affidavit, the 
heirs may make the election if each heir agrees to it.

Added by Acts 1999, 76th Leg., ch. 427, § 39, eff. Dec. 31, 1999.  
Amended by Acts 2001, 77th Leg., ch. 122, § 40, eff. Dec. 31, 
2001;  Acts 2005, 79th Leg., ch. 506, § 20, eff. Jan. 1, 2006.

SUBCHAPTER F. OPTIONAL DEATH BENEFITS


	§ 844.501. COVERAGE IN SUPPLEMENTAL DEATH BENEFIT 
PROGRAM.  (a) An employee of a participating subdivision is 
included within the coverage of the supplemental death benefit 
program on that day in the first month in which:
		(1)  the employing subdivision is participating in the 
supplemental death benefits fund for coverage of all members it 
employs;
		(2)  the employee is a member of the retirement system;  
and                
		(3)  the employee is required to make a contribution to 
the retirement system.
	(b)  Once established, coverage of a person in the 
supplemental death benefit program continues until the last day of 
a month in which a requirement of Subsection (a) is not met.
	(c)  The supplemental death benefit program constitutes 
"group term life insurance purchased for employees" as described by 
Section 79, Internal Revenue Code of 1986.

Added by Acts 1981, 67th Leg., 1st C.S., p. 212, ch. 18, § 53, 
eff. Nov. 10, 1981.  Amended by Acts 1987, 70th Leg., ch. 63, § 
10, eff. May 6, 1987.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 54.501 and amended by Acts 1989, 71st Leg., ch. 179, § 
1, eff. Sept. 1, 1989.  Amended by Acts 2001, 77th Leg., ch. 122, 
§ 41, eff. Dec. 31, 2001.


	§ 844.502. EXTENDED SUPPLEMENTAL DEATH BENEFIT 
COVERAGE.  (a) A member included in the coverage of the 
supplemental death benefit program who fails to earn compensation 
in a month for service to a subdivision participating in the 
supplemental death benefits fund may be eligible to receive 
extended coverage in the program under this section.
	(b)  A member who dies within 24 months after the date the 
member last made a required contribution to the retirement system 
is considered to have received extended program coverage if the 
retirement system receives at its office after the member's death:
		(1)  evidence that the retirement system considers 
satisfactory to establish that, as a result of illness or injury, 
the member was unable to engage in gainful employment throughout 
the period beginning with the date of the last required 
contribution and ending on the date of death;
		(2)  a statement from the subdivision, on a form 
approved by the board of trustees, that the member was on leave of 
absence under the Family and Medical Leave Act of 1993 (Pub. L. 
103-3) throughout the period beginning with the date of the last 
required contribution and ending on the date of death;  or
		(3)  a statement from the subdivision, on a form 
approved by the board of trustees, that the member was on leave of 
absence under the Family and Medical Leave Act of 1993 (Pub. L. 
103-3) during part of the period beginning with the date of the last 
required contribution and ending on the date of death, with 
evidence that the retirement system considers satisfactory to 
establish that, throughout the rest of the period, the member was 
unable to engage in gainful employment as a result of illness or 
injury.
	(c)  Repealed by Acts 2001, 77th Leg., ch. 122, § 56(6), 
eff. Dec. 31, 2001.
	(e), (f) Repealed by Acts 1999, 76th Leg., ch. 427, § 
64(16), eff. Dec. 31, 1999.

Added by Acts 1981, 67th Leg., 1st C.S., p. 212, ch. 18, § 53, 
eff. Nov. 10, 1981.  Amended by Acts 1985, 69th Leg., ch. 491, § 
23, eff. June 12, 1985.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 54.502 and amended by Acts 1989, 71st Leg., ch. 179, § 
1, eff. Sept. 1, 1989.  Amended by Acts 1995, 74th Leg., ch. 245, 
§ 25, eff. Sept. 1, 1995;  Acts 1999, 76th Leg., ch. 427, § 40, 
64(16), eff. Dec. 31, 1999;  Acts 2001, 77th Leg., ch. 122, § 
56(6), eff. Dec. 31, 2001.


	§ 844.503. MEMBER SUPPLEMENTAL DEATH BENEFIT.  (a) In 
this section, the terms "regular rate of pay," "hours worked," 
"salary basis," and "regular salary" have meanings that are 
consistent with the Fair Labor Standards Act of 1938 (29 U.S.C. 
Section 201 et seq.).
	(b)  If a person included in the coverage or extended 
coverage of the supplemental death benefit program dies, a lump-sum 
supplemental death benefit is payable from the supplemental death 
benefits fund in an amount equal to the current annual compensation 
of the member at the time of death.
	(c)  The current annual compensation of a member who is not 
exempt from the minimum wage and maximum hour requirements of the 
Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.) is 
computed by converting to an annual basis the regular rate of pay of 
the member for the most recent hour worked and proportionately 
reducing that annual basis if the member is not employed in a 
full-time position.  The current annual compensation of a member 
who is exempt from those minimum wage and maximum hour requirements 
and who is paid on a salary basis is computed by converting to an 
annual basis the regular salary paid to the member for the most 
recent pay period of active employment.
	(d)  If a member, because of a change in employment, makes 
contributions to the retirement system during the same month as an 
employee of more than one subdivision participating in the 
supplemental death benefits fund, a death benefit is payable only 
on the basis of the member's most recent employment.  If a member, 
because of simultaneous employment by more than one subdivision, 
makes contributions to the retirement system during the same month 
as an employee of more than one subdivision participating in the 
supplemental death benefits fund, a death benefit is payable on the 
basis of the member's employment by each subdivision participating 
in the fund.
	(e)  The board of trustees by rule may require such proof of 
compensation and periods of employment as it finds necessary.

Added by Acts 1981, 67th Leg., 1st C.S., p. 212, ch. 18, § 53, 
eff. Nov. 10, 1981.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 54.503 and amended by Acts 1989, 71st Leg., ch. 179, § 
1, eff. Sept. 1, 1989.  Amended by Acts 2001, 77th Leg., ch. 122, 
§ 42, eff. Dec. 31, 2001.


	§ 844.504. RETIREE SUPPLEMENTAL DEATH BENEFIT.  If a 
retiree dies who was receiving a retirement annuity based on 
service for a subdivision that has elected to provide, and 
continues to provide, postretirement supplemental death benefits, 
a lump-sum supplemental death benefit is payable from the fund in 
the amount of $5,000.

Added by Acts 1981, 67th Leg., 1st C.S., p. 212, ch. 18, § 53, 
eff. Nov. 10, 1981.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 54.504 by Acts 1989, 71st Leg., ch. 179, § 1, eff. 
Sept. 1, 1989.  Amended by Acts 1995, 74th Leg., ch. 245, § 26, 
eff. Sept. 1, 1995;  Acts 2001, 77th Leg., ch. 122, § 43, eff. 
Dec. 31, 2001;  Acts 2003, 78th Leg., ch. 621, § 24, eff. Jan. 1, 
2004.


	§ 844.505. BENEFICIARY OF SUPPLEMENTAL DEATH 
BENEFIT.  (a) Unless a member has directed otherwise on a form 
prescribed by the board of trustees and filed with the retirement 
system:
		(1)  a supplemental death benefit under Section 844.503 
is payable to the person entitled to receive the decedent's 
accumulated contributions, unless the decedent was eligible under 
Section 844.407 to select an optional service retirement annuity, 
in which case the benefit is payable to the beneficiary designated 
by the decedent or, if no designation was made, to the person 
entitled under that section to receive an optional annuity;  and
		(2)  a supplemental death benefit under Section 844.504 
is payable to a person entitled to receive any remaining payments of 
the decedent's annuity.
	(b)  If a person entitled under this section to receive a 
supplemental death benefit does not survive the member or retiree 
covered by the supplemental death benefit program, the benefit is 
payable to the person to whom a benefit under Subchapter B  or D  is 
payable, or if no benefit is payable under those subchapters, to the 
person to whom a benefit under Subchapter E  is or would be payable.

Added by Acts 1981, 67th Leg., 1st C.S., p. 212, ch. 18, § 53, 
eff. Nov. 10, 1981.  Renumbered from Vernon's Ann.Civ.St. Title 
110B, § 54.505 and amended by Acts 1989, 71st Leg., ch. 179, § 
1, eff. Sept. 1, 1989.  Amended by Acts 1999, 76th Leg., ch. 427, 
§ 41, eff. Dec. 31, 1999.

SUBCHAPTER G. OPTIONAL ADDITIONAL SUBDIVISION CONTRIBUTIONS OR 
DECREASE IN CREDITS


	§ 844.605. SUPPLEMENTAL CONTRIBUTION RATE FOR CERTAIN 
SUBDIVISIONS.  (a) If the actuary determines that the obligations 
of a participating subdivision to the subdivision accumulation fund 
cannot be amortized within a period of 30 years or determines that 
subdivision contributions at the rate in accordance with Section 
845.404(a)(2) and any supplemental contribution rate adopted by the 
subdivision under this section are inadequate to fund all 
obligations charged against the subdivision's account in the 
subdivision accumulation fund, the governing body of the 
subdivision may by order or resolution provide additional 
contributions by adopting a supplemental contribution rate under 
this section to reduce the funding period.
	(b)  A supplemental contribution rate is the rate of 
contribution by a subdivision to its account in the subdivision 
accumulation fund, in addition to the contributions provided under 
Section 845.404(a)(2), that the actuary determines and certifies is 
required, together with the contributions provided under Section 
845.404(a)(2), to amortize the obligations of the subdivision to 
the subdivision accumulation fund within a period of 20 years.  A 
supplemental contribution rate may exceed the rate determined by 
the actuary.
	(c)  A supplemental contribution rate adopted by a 
participating subdivision may not be increased unless the actuary 
subsequently makes the determination described by Subsection (a).  
If the actuary subsequently makes the determination specified by 
this subsection, the governing body of the subdivision may adopt 
another supplemental contribution rate under this section.
	(d)  A supplemental contribution rate adopted by the 
governing body of a subdivision expires at the end of the 20th 
calendar year after its effective date, or at the end of any earlier 
calendar year in which the actuary determines and certifies, after 
the annual actuarial valuation under Section 845.206, that all 
obligations of the subdivision to the subdivision accumulation fund 
can be amortized within a period of 20 years on the basis of 
contributions provided by the subdivision under Section 
845.404(a)(2).

Added by Acts 1987, 70th Leg., ch. 63, § 11, eff. May 6, 1987.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.605 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1991, 72nd Leg., ch. 460, § 18, eff. Jan. 
1, 1992;  Acts 1995, 74th Leg., ch. 245, § 27, eff. Sept. 1, 1995;  
Acts 1997, 75th Leg., ch. 309, § 12, eff. Dec. 1, 1997;  Acts 
1999, 76th Leg., ch. 427, § 42, eff. Dec. 31, 1999;  Acts 2003, 
78th Leg., ch. 621, § 25, eff. Jan. 1, 2004.


	§ 844.606. OPTIONAL DECREASE IN CREDITS.  (a) If the 
actuary has made the determination described by Section 844.605(a), 
the governing body of the subdivision may by order or resolution 
reduce multiple matching credits for contributions made after the 
effective date of the reduction.
	(b)  The actuary shall determine what lower percentage to be 
used in determining multiple matching credits under Section 
843.403(c) for contributions made after the effective date of the 
reduction is required to amortize the obligations of the 
subdivision to the subdivision accumulation fund within a period of 
20 years.
	(c)  The effective date of a reduction in the percentage used 
in determining multiple matching credits is January 1 of the year 
following the year in which the order or resolution is adopted.
	(d)  The governing body of a participating subdivision may 
reduce the percentage used in determining multiple matching credits 
under Section 843.403(c) to zero percent for contributions made 
after the effective date of the reduction, even if the resulting 
amortization period exceeds 20 years.
	(e)  The governing body of a participating subdivision may 
reduce the percentage used in determining multiple matching credits 
in conjunction with the adoption of a supplemental contribution 
rate under Section 844.605 in order to amortize the obligations of 
the subdivision to the subdivision accumulation fund within a 
period of 20 years.
	(f)  The lower percentage to be used in determining multiple 
matching credits provided for by Subsection (b) must be a multiple 
of 10 percent of the amount of member contributions.

Added by Acts 1987, 70th Leg., ch. 63, § 11, eff. May 6, 1987.  
Renumbered from Vernon's Ann.Civ.St. Title 110B, § 54.606 and 
amended by Acts 1989, 71st Leg., ch. 179, § 1, eff. Sept. 1, 
1989.  Amended by Acts 1991, 72nd Leg., ch. 460, § 19, eff. Jan. 
1, 1992;  Acts 1997, 75th Leg., ch. 309, § 13, 14, eff. Dec. 1, 
1997;  Acts 1999, 76th Leg., ch. 427, § 43, eff. Dec. 31, 1999;  
Acts 2003, 78th Leg., ch. 621, § 26, eff. Jan. 1, 2004.


	§ 844.607. REQUIRED DECREASE IN CREDITS.  (a) If the 
actuary has made the determination described by Section 844.605(a) 
and has made the determination, provided for by Section 844.606(b), 
of the lower percentage to be used for multiple matching credits of 
future member contributions that is necessary to make the financing 
arrangement adequate, the actuary shall give written notice of the 
determinations to the director, who shall give written notice to 
the governing body of the subdivision.
	(b)  If the governing body of the subdivision does not adopt 
an order or resolution that is approved by the board of trustees, 
authorizing additional subdivision contributions under Section 
844.605, authorizing a reduction in multiple matching credits under 
Section 844.606, or authorizing both additional contributions and a 
reduction in multiple matching credits, and that takes effect on 
the first day of the first calendar year that begins at least 90 
days after the date of the notice under Subsection (a), the lower 
percentage to be used for multiple matching credits on future 
member contributions as contained in the notice to the governing 
body becomes effective as to all members who perform current 
service for the affected subdivision on or after the first day of 
that calendar year.
	(c)  Repealed by Acts 1997, 75th Leg., ch. 309, § 33, eff. 
Dec. 31, 1997. 

Added by Acts 1991, 72nd Leg., ch. 460, § 20, eff. Jan. 1, 1992.  
Amended by Acts 1993, 73rd Leg., ch. 175, § 15, eff. Jan. 1, 
1994;  Acts 1997, 75th Leg., ch. 309, § 15, 33, eff. Dec. 1, 1997.


	§ 844.608. REQUIRED DECREASE IN CONTRIBUTION RATE.  (a) 
Notwithstanding Section 845.402(c), a subdivision's member 
contribution rate may be reduced to one, two, three, four, five, or 
six percent of the current service compensation of its employees, 
except that the rate of member contributions may be reduced to less 
than four percent only if the reduction is necessary under this 
section.
	(b)  If the actuary determines that, despite all required 
decreases described by Section 844.607, the obligations of a 
participating subdivision to the subdivision accumulation fund 
cannot be amortized within a period of 20 years, the retirement 
system shall reduce the rate of member contributions to such lower 
rate authorized by this section as, in the opinion of the actuary, 
is required for the obligations of the subdivision to the 
subdivision accumulation fund to be able to be amortized within a 
period of 20 years.  At the time the actuary determines that the 
rate of employee contributions no longer must be reduced for the 
obligations to be able to be amortized within 20 years, the 
retirement system shall reinstate the employee contribution rate to 
the rate that was in effect at the time of the reduction, unless the 
governing body of the subdivision has elected to change to some 
other rate authorized by Section 845.402.  Any change under this 
section shall be made on January 1 of the year following the 
applicable determination by the actuary.
	(c)  Notwithstanding Section 845.404(a), the contributions 
made by the subdivision shall be based on the rate of member 
contributions that was in effect before a required reduction in 
that rate under Subsection (b) and, if applicable, any supplemental 
contribution rate adopted by the subdivision under Section 844.605.

Added by Acts 1995, 74th Leg., ch. 245, § 28, eff. Sept. 1, 1995.  
Amended by Acts 1997, 75th Leg., ch. 309, § 16, eff. Dec. 1, 
1997;  Acts 1999, 76th Leg., ch. 427, § 44, eff. Dec. 31, 1999;  
Acts 2003, 78th Leg., ch. 621, § 27, eff. Jan. 1, 2004.

SUBCHAPTER H. ANNUALLY DETERMINED CONTRIBUTION RATE PLAN


	§ 844.701. APPLICABILITY.  (a) This subchapter applies to 
each subdivision that begins participation in the retirement system 
after December 31, 1991.
	(b)  The governing body of any subdivision participating 
before January 1, 1992, by order or resolution may adopt the plan 
provisions of this subchapter to be effective on January 1 of the 
year following the year in which the order or resolution is received 
by the system.
	(c)  Other provisions of this subtitle apply to the plan 
provisions of this subchapter except as modified by this 
subchapter.

Added by Acts 1991, 72nd Leg., ch. 460, § 21, eff. Jan. 1, 1992.           


	§ 844.702. MEMBER CONTRIBUTIONS.  (a) The governing body 
of the subdivision may designate the rate of member contributions 
for employees of the subdivision to take effect beginning on the 
effective date of adoption of the plan provisions of this 
subchapter.  The subdivision may elect a rate of four, five, six, or 
seven percent of the current service compensation of its employees.  
The governing body of the subdivision may thereafter increase or 
decrease the contribution rate to take effect on the next January 1 
after the date of adoption of the increase or decrease, in 
accordance with the provisions of Sections 845.402(b) and (c).
	(b)  If necessary under Section 844.703(h), a subdivision's 
member contribution rate may be reduced to one, two, three, four, 
five, or six percent of the current service compensation of its 
employees.

Added by Acts 1991, 72nd Leg., ch. 460, § 21, eff. Jan. 1, 1992.  
Amended by Acts 1993, 73rd Leg., ch. 175, § 16, eff. Jan. 1, 
1994;  Acts 1995, 74th Leg., ch. 245, § 29, eff. Sept. 1, 1995;  
Acts 1999, 76th Leg., ch. 427, § 45, eff. Dec. 31, 1999.


	§ 844.703. SUBDIVISION CONTRIBUTIONS.  (a) Each 
participating subdivision adopting the plan provisions of this 
subchapter shall pay to the subdivision accumulation fund as its 
normal contribution an amount equal to a percentage of the 
compensation of members employed by the subdivision for that month.  
The rate of contribution is the normal contribution rate determined 
annually by the actuary and approved by the board of trustees.
	(b)  Each subdivision adopting the plan provisions of this 
subchapter shall pay to the subdivision accumulation fund, as its 
prior service contribution, an amount equal to a percentage of the 
compensation of members employed by the subdivision for that month.  
The rate of contribution is the rate determined annually by the 
actuary and approved by the board of trustees as being the rate 
required to fund all unfunded obligations charged against the 
subdivision's account in the subdivision accumulation fund within 
the subdivision's amortization period without probable future 
depletion of that account or, if there are no unfunded obligations, 
the rate required to amortize any overfunded obligations within a 
period of 30 years.
	(c)  The combined rates of a subdivision's normal 
contributions and prior service contributions under this 
subchapter may not exceed 11 percent unless the governing body of 
the subdivision elects to waive this limitation.  A waiver under 
this subsection becomes effective on January 1 of the year after the 
year in which it is adopted and remains effective until January 1 of 
the year following a repeal of the waiver by the subdivision's 
governing body.
	(d)  The actuary annually shall determine the subdivision 
normal contribution rate and the prior service contribution rate 
for subdivisions adopting the plan provisions of this subchapter 
from the most recent data available at the time of determination.  
Before January 1 of each year, the board of trustees shall certify 
the rates of each subdivision that has adopted the plan provisions 
of this subchapter.  If the combined rates of the subdivision's 
normal contributions and prior service contributions under this 
subchapter exceed the rate prescribed by Subsection (c), and if the 
governing body of the subdivision has not waived that maximum rate, 
the rate for prior service contributions must be reduced to the rate 
that equals the difference between the maximum rate prescribed by 
Subsection (c) and the normal contribution rate.  The governing 
body may elect to contribute at a rate that is greater than the sum 
of the subdivision's normal contribution rate and prior service 
contribution rate as determined under Subsections (a) and (b).  An 
elected rate may not exceed the maximum rate prescribed by 
Subsection (c), unless the governing body has elected to waive that 
maximum rate.  An elected rate remains in effect for each subsequent 
calendar year until it is rescinded by the governing body.  For 
years in which the sum of the rates determined under Subsections (a) 
and (b) exceeds the elected rate, the governing body must 
contribute the sum of the rates determined under Subsections (a) 
and (b).  For years in which the elected rate exceeds the sum of the 
rates determined under Subsections (a) and (b), the prior service 
contribution rate is increased to the rate that equals the 
difference between the elected rate and the normal contribution 
rate prescribed by Subsection (a).
	(e)  In addition to the normal contributions and prior 
service contributions under this subchapter, the subdivision shall 
make the picked-up employee contributions provided by Section 
845.403(i), and those contributions, along with supplemental death 
benefit fund contributions, are not subject to the maximum 
subdivision contribution rates prescribed by Subsection (c).
	(f)  The prior service contribution rate prescribed by 
Subsection (b) must be based on an open or closed amortization 
period as recommended by the actuary and adopted by the board of 
trustees but may not exceed 30 years.  The board of trustees may 
establish criteria for the circumstances under which a 
subdivision's amortization period, if closed, will be renewed, 
extended, or shortened. 
	(g)  If the combined rates of the subdivision's normal 
contributions and prior service contributions under this 
subchapter exceed the maximum rate prescribed by Subsection (c) 
before the adjustment prescribed by Subsection (d), and if the 
governing body of the subdivision has not waived that maximum rate, 
the actuary shall determine what lower percentage for determining 
multiple matching credits of future member contributions is 
necessary to make the combined rates of the subdivision not exceed 
the maximum rate prescribed by Subsection (c).  The actuary shall 
give written notice of the determination to the director, who shall 
give written notice to the governing body of the subdivision.  The 
lower percentage determined by the actuary and specified in the 
notice to the governing body becomes effective as to all members who 
perform current service for the affected subdivision on or after 
the first day of the first calendar year that begins after the date 
of the notice, unless before the effective date, the governing body 
of the subdivision adopts an order or resolution, approved by the 
board of trustees, authorizing a reduction in the percentage used 
in determining multiple matching credits in accordance with Section 
844.704(a) or authorizing a reduction in the rate of member 
contributions in accordance with Section 844.702, or authorizing 
both a reduction in the percentage used in determining multiple 
matching credits and a reduction in the rate of member 
contributions.
	(h)  If the combined rates of the subdivision's normal 
contributions and prior service contributions under this 
subchapter exceed the maximum rate prescribed by Subsection (c), 
and if the governing body of the subdivision has not waived that 
maximum rate, and if all reductions under Subsection (g), in the 
opinion of the actuary, result in the combined rates of the 
subdivision remaining in excess of the maximum rate prescribed by 
Subsection (c), the retirement system shall reduce the rate of 
member contributions to a lower rate authorized by Section 844.702 
that, in the opinion of the actuary, is required to produce a 
combined rate that does not exceed the rate prescribed by 
Subsection (c).  At the time the actuary determines that the rate of 
employee contributions that was in existence before a reduction 
under this subsection no longer would result in a combined rate in 
excess of the maximum rate prescribed by Subsection (c), the 
retirement system shall reinstate the employee contribution to the 
rate that was in effect at the time of the reduction, unless the 
governing body of the subdivision has elected to change to some 
other rate authorized by Section 844.702(a).  Any change under this 
section shall be made on January 1 of the year following the 
applicable determination by the actuary.  During the time that the 
member contribution rate is reduced, the combined rates of the 
subdivision's normal contributions and prior service contributions 
shall be equal to the maximum rate prescribed by Subsection 
844.703(c).
	(i)  Notwithstanding any provision in this section to the 
contrary and if approved by the board of trustees, a participating 
subdivision that has experienced or is anticipating circumstances 
that cause employer contributions based on covered payroll to be an 
unreasonable method of funding shall contribute in an actuarially 
approved method that is reasonable to regularly and consistently 
fund all of its pension liabilities in the retirement system.

Added by Acts 1991, 72nd Leg., ch. 460, § 21, eff. Jan. 1, 1992.  
Amended by Acts 1993, 73rd Leg., ch. 175, § 17, eff. Jan. 1, 
1994;  Acts 1995, 74th Leg., ch. 245, § 30, eff. Sept. 1, 1995;  
Acts 1997, 75th Leg., ch. 309, § 17, eff. Dec. 1, 1997;  Acts 
1999, 76th Leg., ch. 427, § 46, eff. Dec. 31, 1999;  Acts 2001, 
77th Leg., ch. 122, § 44, eff. Dec. 31, 2001;  Acts 2005, 79th 
Leg., ch. 506, § 21, eff. Jan. 1, 2006.


	§ 844.704. BENEFITS.                                                        

Text of subsec. (a) effective until December 31, 2006
	(a)  On the adoption of the plan provisions of this 
subchapter, the governing body of the subdivision shall select a 
percentage for determining multiple matching credits under Section 
843.403.  The governing body shall select a percentage of 0, 25, 50, 
75, 100, 125, or 150 percent, or it may select the multiple matching 
percentage that the subdivision has in effect on the date of its 
adoption of the plan provisions of this subchapter.  If a 
subdivision has a current service credit percentage in excess of 
100 percent, the governing body of the subdivision may elect a 
percentage under this section that, when added to the current 
service credit percentage, is a multiple of 25 percent, except that 
the combined percentages may not exceed 250 percent.  The governing 
body may thereafter increase the percentage used in determining 
multiple matching credits under Section 843.403 to one of the 
percentages specified in this subsection, to take effect on the 
next January 1 after the date of the increase.  However, the sum of 
the percentage for current service credits under Section 843.403 
and the percentage for multiple matching credits may not exceed 250 
percent.  The governing body also may thereafter reduce the 
percentage used in determining multiple matching credits for 
contributions made after the effective date of the reduction to one 
of the percentages specified in this subsection, to take effect on 
the next January 1 after the date of the reduction.

Text of subsec. (a) effective December 31, 2006
	(a)  On the adoption of the plan provisions of this 
subchapter, the governing body of the subdivision shall select a 
percentage for determining multiple matching credits under Section 
843.403.  The governing body shall select a percentage of zero or 
any percentage that is a multiple of five percent and that does not 
exceed 150 percent, or it may select the multiple matching 
percentage that the subdivision has in effect on the date of its 
adoption of the plan provisions of this subchapter.  The governing 
body may later increase the percentage used in determining multiple 
matching credits under Section 843.403 to any percentage that is a 
multiple of five percent to take effect on the next January 1 after 
the date the increase is adopted, except that the sum of the 
percentage for current service credits under Section 843.403 and 
the percentage for multiple matching credits may not exceed 250 
percent.  In its order or resolution, the governing body may provide 
that the increased percentage will be used in determining multiple 
matching credits under Section 843.403 only for employee 
contributions made after the effective date of the increase or that 
the increased percentage will be used both prospectively and 
retroactively in determining the multiple matching credits for all 
employee contributions not otherwise matched at a higher 
percentage.  The governing body may thereafter reduce the 
percentage used in determining multiple matching credits under 
Section 843.403 for contributions made after the effective date of 
the reduction to zero or any percentage that is a multiple of five 
percent, to take effect on the next January 1 after the date of the 
reduction.
	(b)  On the adoption of the plan provisions of this 
subchapter, the governing body shall select a percentage for 
determining allocated prior service credits under Section 843.105.  
The governing body shall select a percentage that is a multiple of 
five percent.  For a subdivision that began participation before 
January 1, 1992, the percentage cannot be less than the percentage 
in effect immediately before the adoption of the plan.  The 
governing body may increase the percentage used in determining 
allocated prior service credits under Section 843.105, to take 
effect on the next January 1 after the date of the increase.  The 
percentage may not exceed one-half of the percentage that results 
from adding 200 percent to the lowest percentage for determining 
multiple matching credit currently applicable to any employee 
contribution with respect to the subdivision. 
	(c)  By adopting the plan provisions of this subchapter, the 
governing body also adopts the optional benefit eligibility plan 
described by Section 844.207 unless by its order it adopts the 
optional benefit eligibility plan described by Section 844.210 and 
the survivor annuity death benefit described by Section 844.407.
	(d)  The governing body of a subdivision that has adopted or 
is adopting the plan provisions of this subchapter may adopt or 
authorize:
		(1)  an increase in retirement annuities under Section 
844.209;             
		(2)  an increase in retirement annuities under Section 
844.208;             
		(3)  the reestablishment of service credit previously 
forfeited under Section 843.003;
		(4)  the establishment of credited service for military 
service under Section 843.601(c);
		(5)  the benefit eligibility plan described by Section 
844.210, 844.211, or 844.212;  or
		(6)  the partial lump-sum distribution on service 
retirement under Section 844.009.
	(e)  The governing body may not adopt the benefits of this 
section if the adoption would result in the combined rates of the 
subdivision's normal contributions and prior service contributions 
for the first calendar year following the adoption exceeding the 
maximum rate prescribed by Section 844.703(c) unless a waiver under 
that section is in effect.
	(f)  An order or resolution under this section must be filed 
with the retirement system not later than December 15 of the year 
preceding the year in which it will take effect and may not take 
effect until the order or resolution is approved by the board of 
trustees as meeting the requirements of this section.  After 
approval by the board, an order or resolution may take effect only 
on January 1 of a year, except that an order or resolution for a 
subdivision that begins participation after January 1, 1992, may 
take effect on the date the subdivision begins participation.

Added by Acts 1991, 72nd Leg., ch. 460, § 21, eff. Jan. 1, 1992.  
Amended by Acts 1993, 73rd Leg., ch. 175, § 18, eff. Jan. 1, 
1994;  Acts 1993, 73rd Leg., ch. 536, § 6, eff. Jan. 1, 1994;  
Acts 1999, 76th Leg., ch. 427, § 47, eff. Dec. 31, 1999;  Acts 
2001, 77th Leg., ch. 122, § 45, eff. Dec. 31, 2001;  Acts 2003, 
78th Leg., ch. 621, § 28, eff. Jan. 1, 2004;  Acts 2005, 79th 
Leg., ch. 506, § 22, eff. Dec. 31, 2006.