HBA-SEB C.S.H.B. 2437 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2437
By: Uher
Pensions and Investments
4/26/1999
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

Currently, when a peace officer who is a member of the Employees Retirement
System of Texas (ERS) retires because of a disability incurred in the line
of duty, the officer retires with an annuity of 50 percent to 100 percent
of the officer's monthly compensation, depending on the officer's tenure
with the state.  Under current law, the annuity is not adjusted for cost of
living or salary increases. C.S.H.B. 2437 makes peace officers who are
disabled in the line of duty eligible to receive an annuity of at least 70
percent of the monthly compensation being paid to an officer in the same
classification as the disabled officer, as adjusted from time to time until
the officer reaches age 55, regardless of the amount of service credited to
the disabled officer.  This bill also allows a disabled officer to receive
100 percent of that amount if the officer is incapable of gainful
employment and has  a total disability.      

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 814.207 (b), (c), and (e), Government Code, as
follows: 

(b)  Provides that except as provided by Subsection (c) or (e), an
occupational disabiity under this section (Disability Retirement Benefits
for Certain Peace Officers) is an amount, but not more than 100 percent,
computed on the basis of the officer's monthly compensation at the time of
the disabling injury or disease, times a percentage derived by application
of Section 814.107(b) (regarding service retirement benefits for certain
peace officers).   

(c) Prohibits a disability retirement annuity under this section from being
less than 70, rather than 50, percent of the monthly compensation being
paid to an officer in the same classification as the officer, as adjusted
from time to time until the retired officer reaches age 55, regardless of
the amount of service credited to the officer in the employee class of the
Employees Retirement System of Texas (ERS).  

(e)  Requires ERS to increase an officer's occupational disability
retirement annuity to 100 percent of the monthly compensation being paid to
an officer in the same classification as the retired officer, as adjusted
from time to time until the retired officer reaches age 55, rather than 100
percent of the compensation at the time of the disabling injury or disease.
Provides that this subsection applies if a retiring member or retiree
presents evidence satisfactory to ERS that the officer is incapable of
gainful employment and has a total disability under federal social security
law.   

SECTION 2.  Requires ERS to recompute an annuity that first became payable
before September 1, 1999, as through Section 814.207(c), as amended by this
Act, was in effect on the date the first annuity became available.
Provides that the first recomputed annuity is payable on the first payment
date occurring on or after the effective date of this Act.   

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.
 
COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in SECTION 1 by modifying and amending
Section 814.207(b), (c), and (e), Government Code, as follows: 

(b)  The substitute reinstates the text of this subsection, which would
have been deleted in the original.  The substitute adds a provision making
Subsection (e) and exception to this subsection.   

(c)  The substitute prohibits a disability retirement annuity under this
section from being less than 70 percent of the monthly compensation being
paid to an officer in the same classification as the officer, as adjusted
from time to time until the retired officer reaches age 55, regardless of
the amount of service credited to the officer in the employee class of ERS.
The original would have provided that a disability retirement annuity under
this section is 100 percent of that amount.  The substitute reinstates a
phrase that would have been deleted in the original, which provides that a
disability retirement annuity under this section is not reducible because
of age. 

(e)  The substitute reinstates the text of this subsection, which would
have been deleted in the original, and amends it.  The substitute requires
ERS to increase an officer's occupational disability retirement annuity to
100 percent of the monthly compensation being paid to an officer in the
same classification as the retired officer, as adjusted from time to time
until the retired officer reaches age 55, rather than 100 percent of the
compensation at the time of the disabling injury or disease.  

The substitute adds new text for SECTION 2, which requires ERS to recompute
an annuity that first became payable before September 1, 1999, as through
Section 814.207(c), as amended by this Act, was in effect on the date the
first annuity became available.  SECTION 2 of the substitute also provides
that the first recomputed annuity is payable on the first payment date
occurring on or after the effective date of this Act. 

The substitute redesignates the text of SECTIONS 2 (effective date) and 3
(emergency clause) of the original to SECTIONS 3 and 4 of the substitute.