2005 Texas Government Code CHAPTER 864. BENEFITS

GOVERNMENT CODE

CHAPTER 864. BENEFITS


	§ 864.001. ELIGIBILITY FOR SERVICE RETIREMENT 
ANNUITY.  (a) The state board by rule shall determine the period of 
qualified service and, if appropriate, the age required for a 
member to receive a service retirement annuity with full benefits 
after the member terminates service with a participating 
department.  The state board by rule may provide for partial vesting 
of benefits after a particular period.
	(b)  The state board may change the benefit formula for any 
person who is not an annuitant of the pension system.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.002. SERVICE RETIREMENT ANNUITY.  (a) A service 
retirement annuity is payable in monthly installments based on:
		(1)  the governing body's average monthly contribution 
during the member's term of qualified service under this subtitle, 
not including a contribution to reduce the unfunded accrued 
actuarial liability of the pension system;  and
		(2)  a formula adopted by the state board by rule that 
allows the pension system, assuming maximum state contributions are 
provided under Section 865.015, to be maintained as actuarially 
sound.
	(b)  The state board by rule may provide, for each year of 
qualified service in excess of the period provided under Section 
864.001 for full benefits, an additional amount that is a 
percentage of the person's monthly pension, compounded annually.  A 
person may receive a proportional credit for months of qualified 
service that make up less than a year.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.003. SERVICE RETIREMENT BENEFITS FROM MORE THAN ONE 
DEPARTMENT.  A member who performs qualified service for more than 
one participating department may become eligible to receive a 
service retirement annuity for service from each department but, if 
the person dies while a member, the member's beneficiary must 
choose between an on-duty and off-duty death benefit, if 
applicable.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.004. DISABILITY RETIREMENT ANNUITY.  (a) A member 
must, at the time of disability, elect between a service or 
disability retirement annuity, if eligible for both.
	(b)  A member who is disabled during the performance of 
emergency service duties is automatically vested 100 percent as of 
the date of disability if the disability occurs before the member 
has completed the period provided under Section 864.001 for full 
service retirement benefits.
	(c)  A member whose disability results from performing 
emergency service duties is guaranteed a disability retirement 
annuity of $300 a month or a greater amount that the state board by 
rule adopts based on monthly contributions of a participating 
department for its members.
	(d)  A person who is determined to be temporarily disabled 
must apply to the Social Security Administration and be certified, 
not later than the second anniversary of the date the person was 
determined to be temporarily disabled, as permanently disabled by 
that agency or by any alternative procedure the state board 
provides by rule.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.005. CERTIFICATION AND CONTINUANCE OF 
DISABILITY.  (a) A local board shall require a member who is 
receiving temporary disability benefits to file a disability rating 
report every three months from a physician chosen by the local 
board.  If a report indicates a significant change of condition, the 
local board, after notice and a hearing, may adopt an order to 
terminate payments or place the member on permanent disability.  
The local board shall send a copy of each order adopted under this 
subsection to the commissioner.
	(b)  Disability benefits cease if the recipient becomes 
capable of performing the duties of the person's most recent 
position with a participating department or the duties of another 
occupation for which the person is reasonably suited by education, 
training, and experience.  Rejection of a suitable offer of 
employment is conclusive evidence for purposes of this subtitle 
that the person is no longer eligible to receive disability 
retirement benefits, if the employment would provide the person 
with a salary equal to or greater than the salary the person was 
earning at the time the disability occurred.
	(c)  The state board or a local board may require financial 
information from a person as a condition to the continued receipt of 
disability retirement benefits, including federal income tax 
returns and wage earning forms.  Failure to provide requested 
information is a ground for terminating benefits.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.006. MEMBER SERVICE DEATH BENEFITS.  (a) The 
surviving spouse and dependents of a member who dies as a result of 
performing emergency service duties are entitled to receive in 
equal shares a death benefit annuity equal to two-thirds of the 
service retirement annuity that the decedent would have been 
entitled to receive if the decedent had been able to retire, vested 
at 100 percent, on the date of the decedent's death.  As long as both 
the spouse and one or more dependents survive, an additional 
one-third of that annuity is payable to the dependents in equal 
shares.
	(b)  The beneficiary of a member who dies as a result of 
performing emergency service duties is entitled to a lump-sum 
benefit of $5,000 or a greater amount that the state board provides 
by rule.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.007. MEMBER NONSERVICE DEATH BENEFIT.  The state 
board by rule may provide the beneficiary of a deceased member whose 
death did not result from the performance of emergency service 
duties a lump-sum benefit that is the greater of:
		(1)  the amount contributed to the fund on the 
decedent's behalf;  or       
		(2)  the sum that would have been contributed on the 
decedent's behalf from whatever source at the end of the period 
provided under Section 864.001 for full service retirement 
benefits.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.008. VESTED MEMBER DEATH BENEFIT ANNUITY.  (a) The 
surviving spouse of a deceased member who dies before retirement 
but after meeting the minimum age and service requirements for 
service retirement is entitled to two-thirds of the monthly annuity 
that the decedent would have received if the decedent had retired on 
the date of death.
	(b)  The surviving spouse of a deceased member who dies after 
terminating service with all participating departments and meeting 
a vesting requirement under Section 864.001 but before attaining 
the age of 55 is entitled to a death benefit annuity, beginning on 
the date that the decedent would have attained that age, equal to 
two-thirds of the monthly annuity to which the decedent would have 
been entitled on that date.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.009. RETIREE DEATH BENEFIT ANNUITY.  The surviving 
spouse of a person who dies after retirement is entitled to 
two-thirds of the monthly annuity the decedent was receiving at the 
time of death.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.010. BENEFITS FOR MEMBERS AND RETIREES OF 
DEPARTMENT THAT WITHDRAWS FROM PARTICIPATION OR CEASES TO 
EXIST.  (a) The commissioner shall continue to administer benefits 
of the pension system for members and retirees who perform service 
for a formerly participating department that has withdrawn from 
participation in the pension system or has ceased to exist.
	(b)  The governing body of a political subdivision in which a 
department described by Subsection (a) is or was located shall 
perform the duties required of a local board for the members and 
retirees who served for the formerly participating department.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.011. FIRST PAYMENT OF RETIREMENT OR DEATH BENEFIT 
ANNUITY.  The cashing or depositing of the first payment of a 
service, disability, or death benefit annuity by a person entitled 
to it is considered acceptance of the amount of the annuity and, if 
the annuity is based on the payee's service, is conclusive evidence 
for purposes of this subtitle that the payee is retired.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.012. CERTAIN BENEFICIARIES.  (a) If a member names 
more than one beneficiary for a lump-sum death benefit, the pension 
system shall divide the benefit equally among the named 
beneficiaries or, if the member has designated a proportional 
division, each beneficiary is entitled to the proportion 
designated.
	(b)  Except as provided by Subsection (a), lump-sum death 
benefits are subject to the laws of descent and distribution if the 
decedent has not provided for testamentary disposition.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.013. COST-OF-LIVING INCREASE.  The state board by 
rule may provide a cost-of-living increase for any benefit provided 
by the pension system.  If benefits are increased, the state board 
shall require an increase in governing body contributions if 
necessary to maintain an actuarially sound pension system.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.014. STATE BOARD AUTHORITY FOR LUMP-SUM 
PAYMENTS.  In lieu of any annuity otherwise payable under this 
subtitle, the state board by rule may provide for a lump-sum payment 
if the board determines that a lump-sum payment is cost-efficient 
or is necessary for the pension system to remain actuarially sound.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.015. CURRENT PLAN DESIGN.  Notwithstanding any 
other provision of this chapter, the state board by rule may 
maintain the benefit structure in effect on August 31, 2005, 
regardless of whether the pension system is actuarially sound.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.           


	§ 864.016. CLAIM AND APPEAL PROCEDURE.  (a) A claim for 
benefits must be filed with the local board.  On receiving a claim, 
the local board shall hold a hearing to decide the claim.  The local 
board shall send a written copy of its decision to the claimant and 
the commissioner.
	(b)  A person aggrieved by a decision of a local board 
relating to eligibility for or the amount of benefits under this 
subtitle may appeal the decision to the commissioner.
	(c)  An appeal under this section is begun by delivering a 
notice of appeal to the presiding officer or secretary of the local 
board that made the decision.  The notice must be delivered not 
later than the 20th day after the date of the decision and contain a 
brief description of the reasons for the appeal.  The aggrieved 
person must file a copy of the notice with the commissioner.
	(d)  An appeal under this section is held in Austin and is a 
contested case under Chapter 2001, conducted as a de novo hearing by 
the State Office of Administrative Hearings.
	(e)  After a hearing under Subsection (d), the commissioner 
shall decide each appeal from a local board decision, issue a 
written opinion, and notify the local board and the claimant if the 
commissioner overrules the local board's decision.
	(f)  A person aggrieved by a decision of the commissioner 
under this section may appeal the decision to the state board.  The 
state board shall decide each appeal based on the hearing record.
	(g)  A decision of the state board may not be appealed to a 
court or be subject to any other legal process.

Added by Acts 2005, 79th Leg., ch. 803, § 1, eff. Sept. 1, 2005.