HBA-MPM H.B. 1546 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1546
By: Uher
Pensions & Investments
2/20/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, when a Texas peace or corrections officer is forced to retire
due to an accident in the line of duty, the officer receives an annuity
based on not less than 50 percent of the officer's base salary.  Current
law does not provide for salary adjustments or cost of living increases,
which may lock an officer into receiving a disability retirement annuity
amount. This may cause economic hardship to retired officers, particularly
young officers who are disabled, unable to work, and locked into a salary
that does not increase.  House Bill 1546 increases retirement benefits for
officers who are disabled in the line of duty. 

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. 

ANALYSIS

House Bill 1546 amends the Government Code to provide that a disability
retirement annuity from the Employees Retirement System of Texas (ERS) may
not be less than 70 percent, rather than 50 percent, of the monthly
compensation paid to an officer in the same classification as a disabled
officer, as adjusted from time to time until the retired officer is 55
years old. 

The bill also modifies the formula for computing a disability retirement
annuity payable to an officer because of a disability and sets forth the
new formula for computing the annuity. 

The bill provides that if the disabled officer is totally disabled as
determined under federal social security law, the disability retirement
annuity is 100 percent of the monthly compensation paid to an officer in
the same classification as the disabled officer, as adjusted from time to
time until the retired officer is 55 years old. 

The bill requires ERS to compute an annuity that first became payable
before September 1, 2001, as though this Act were in effect on the date the
annuity became payable. 

EFFECTIVE DATE

September 1, 2001.