HB4609 - Relating to participation in, administration of, contributions to, and benefits under the Texas Municipal Retirement System.

  89R20928 RDR-D     By: Dean H.B. No. 4609       A BILL TO BE ENTITLED   AN ACT   relating to participation in, administration of, contributions to,   and benefits under the Texas Municipal Retirement System.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 851, Government Code, is   amended by adding Section 851.0051 to read as follows:           Sec.   851.0051.     VENUE. (a)   The venue of any action brought   against the retirement system is in Travis County. A hearing held by   the State Office of Administrative Hearings in which the retirement   system is a party must be held in Travis County.           (b)     The venue of any action brought in a state court by the   retirement system is in Travis County or in the county in which the   defendant is situated, is domiciled, or does business.          SECTION 2.  Section 852.001(c), Government Code, is amended   to read as follows:          (c)  A department begins participation in the retirement   system on the first day of the first [ second ] month after the month   the retirement system [ board of trustees ] receives notice of an   election to participate.          SECTION 3.  Section 852.105(b), Government Code, is amended   to read as follows:          (b)  A governing body may not adopt an ordinance under this   section unless the actuary first determines, on the basis of   mortality and other tables adopted by the board of trustees, that   all obligations of the municipality to the benefit accumulation   fund, including obligations proposed under the ordinance, can be   funded by the municipality [ within its maximum contribution rate   and ] within its amortization period.          SECTION 4.  Sections 853.003(a), (b), and (e), Government   Code, are amended to read as follows:          (a)  An eligible member who has withdrawn contributions and   canceled credited service in the retirement system may reestablish   the canceled credit in the system if the governing body of the   municipality that [ currently ] employs the member by ordinance   authorizes reestablishment of the credit by eligible employee   members.          (b)  A member eligible to reestablish credit under this   section is one who :                 (1)   has, since resuming membership, at least 24   consecutive months of credited service as an employee of the   municipality for which the ordinance was adopted ; and                 (2)     is an employee of the municipality on the   effective date of the ordinance .          (e)  A governing body may not adopt an ordinance under   Subsection (a) unless the actuary first determines that all   obligations charged against the municipality's account in the   benefit accumulation fund, including the obligations proposed in   the ordinance, can be funded by the municipality within its   [ maximum contribution rate and within its ] amortization period. An   ordinance adopted under Subsection (a) takes effect January 1 of   the year that first occurs after the date the retirement system   receives the adopted ordinance.          SECTION 5.  Section 853.305(g), Government Code, is amended   to read as follows:          (g)  An ordinance adopted under this section applies to the   granting of restricted prior service credit to a member who is or   has been an employee of the authorizing municipality at any time on   or after the effective date of the ordinance. An ordinance adopted   under this section takes effect January 1 of the year that first   occurs after the date the retirement system receives the adopted   ordinance.          SECTION 6.  Section 853.403(a), Government Code, is amended   to read as follows:          (a)  An ordinance adopted under Section 853.401 may not take   effect unless the board of trustees approves the ordinance as   meeting the requirements of this section. The board may not approve   an ordinance unless the actuary first determines, and the board   concurs in the determination, that all obligations charged against   the municipality's account in the benefit accumulation fund,   including obligations proposed in the ordinance, can be funded by   the municipality within its [ maximum total contribution rate and   within its ] amortization period as in effect on the date the updated   service credits take effect.          SECTION 7.  Sections 853.404(d), (f), and (f-1), Government   Code, are amended to read as follows:          (d)  Except as provided by Subsection (e), an ordinance under   this section continues in effect for each year that the actuary   determines that all obligations charged against the municipality's   account in the benefit accumulation fund, including the obligations   to become effective the next January 1, can be funded by the   municipality within its [ maximum contribution rate and within its ]   amortization period as in effect on the next January 1. An   ordinance under this section will cease to be in effect for future   years if the actuary cannot make that determination, but shall   again take effect for future years beginning January 1 of the first   year after the actuary can make that determination.          (f)  Subject to Subsection (f-1) and notwithstanding   conflicting provisions of Subsection (c) or Section 854.203, the   governing body of a participating municipality that adopts an   ordinance under Section 854.203 providing for increased annuities   effective on or after January 1 , [ of 2024, 2025, or ] 2026 , may elect   to compute the annuity increase, to be effective on a one-year basis   or, in accordance with Subsection (c), on a repeating basis   [ including an annual annuity increase authorized under Subsection   (c) ], as the sum of prior and current service annuities, as   increased in subsequent years under Section 854.203 or Subsection   (c), of the person on whose service the annuities are based on the   effective date of the annuity increase, 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, during the   12-month period ending in December of the year that is 13 months   before the effective date of the ordinance providing the increase;   and                (2)  30 percent, 40 percent, 50 percent, 60 percent, or   70 percent, as specified by the governing body in the ordinance.          (f-1)  Subsection (f) applies only with respect to[ :                [ (1)     a participating municipality that as of January   1, 2023:                      [ (A)     does not provide by ordinance an annual   annuity increase under Subsection (c) because the municipality:                            [ (i)     passed an ordinance before January 1,   2023, that rescinded a previous ordinance authorizing annual   increases under Subsection (c); or                            [ (ii)     has not passed an ordinance   authorizing annual increases under Subsection (c); or                      [ (B)     does provide by ordinance an annual annuity   increase under Subsection (c) if the governing body of the   municipality elects to provide increased annuities recomputed in   accordance with Subsection (f) for purposes of maintaining or   increasing the amount of the annuity increase otherwise authorized   by the ordinance; and                [ (2) ]  the annuity of:                 (1)  [ (A) ]  a retiree who retired not later than the   last day of December of the year that is 13 months before the   effective date of the ordinance providing the annuity  increase; or                 (2)  [ (B) ]  a beneficiary of a deceased retiree whose   death occurred not later than the last day of December of the year   that is 13 months before the effective date of the ordinance   providing the annuity  increase.          SECTION 8.  Section 853.502, Government Code, is amended by   adding Subsection (c) to read as follows:           (c)     An ordinance adopted under this section takes effect   January 1 of the year that first occurs after the date the   retirement system receives the adopted ordinance.          SECTION 9.  Section 854.106(a), Government Code, is amended   to read as follows:          (a)  If a surviving spouse, or the executor or administrator   of a member's estate, would be entitled to make an election under   Section 854.105 because of the death of the member, the heirs of the   deceased member may make that election if:                (1)  no surviving spouse 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 death of the member;                (4)  the value of the entire assets of the member's   estate, excluding homestead and exempt property, does not exceed   the amount for which a small estate affidavit may be approved in   accordance with Chapter 205, Estates Code [ $50,000 ]; and                (5)  [ there are not more than three heirs; and                [ (6) ]  on file with the retirement system is a   certified copy of a small estate [ estates ] affidavit that has been   approved and filed in accordance with Chapter 205, Estates Code, or   an original affidavit as described by Subsection (b).          SECTION 10.  Section 854.201(c), Government Code, is amended   to read as follows:          (c)  A governing body may not adopt an ordinance under this   section unless the actuary first determines that all obligations   charged against the municipality's account in the benefit   accumulation fund, including the obligations proposed in the   ordinance, can be funded by the municipality within its [ maximum   contribution rate and within its ] amortization period.          SECTION 11.  Sections 854.202(d) and (e), Government Code,   are amended to read as follows:          (d)  An ordinance adopted under this section must also   include the provisions specified in Section 852.105. A governing   body may not adopt an ordinance under this section unless the   actuary first determines, on the basis of mortality and other   tables adopted by the board of trustees, that all obligations of the   municipality to the benefit accumulation fund, including   obligations proposed under the ordinance, can be funded by the   municipality within its [ maximum contribution rate and within its ]   amortization period.          (e)  The governing body shall specify the effective date of   an ordinance under this section, which may be January 1 [ the first   day ] of any year [ month ] after the date [ month in which ] the actuary   makes the determination required by Subsection (d).          SECTION 12.  Sections 854.203(b) and (g), Government Code,   are amended to read as follows:          (b)  The amount of annuity increase under this section is   computed as the sum of the prior and current service annuities on   the effective date of retirement of the [Text truncated for display. 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