09 Firefighter PensionMUNICIPAL LEAGUE
October 30, 2003 [10V 0 '~ ~}00~
ITX A'£
MEMORANDUM PAII[8. 'I~EXA8
TO: TML Member Cities that Sponsor Non-Statewide Retirement Systems
FROM: Frank Sturzl, TML Executive Director
SUBJECT: H.J.R. 54
CITIES HAVE ONLY ONE OPPORTUNITY TO OPT OUT
OF RETIRMENT SYSTEM MANDATE
The Texas Legislature recently passed H.J.R. 54, a proposed amendment to the Texas
Constitution that protects certain benefits under certain public retirement systems. The
amendment was approved by Texas voters at the September constitutional election and
took effect shortly thereafter. The following is a summary of the impact ofH. l.R. 54, as
well as an explanation of the procedure that allows a city to exempt itself from the
amendment's application.
H.I.I~ 54 is now codified as Article XVI, Section 66, of the Texas Constitution. It
provides that once certain benefits are granted to retkees or other annuitants, those
benefits may not be subsequently reduced. It also requires political subdivisions and the
retkement systems that finance the benefits to be jointly responsible for ensuring these
benefits are not reduced. The new Article XVI, Section 66, applies only to public, non-
statewide retirement systems that .provide service and disabilky retirement benefits and
death benefits to public employees. We have reason to believe that your city has a
retirement system that is affected by this new constitutional amendment. Whether your
city is affected is an important question that you will need to consult with your city
attorney about. {Note: TMRS cities are part of a statewide retkement system, and are
therefore not affected by the amendment.) The amendment does not apply to health or
life insurance benefits or certain other disability benefits.
It is important to note that an employee need not currently be receiving benefits under a
retirement plan for those benefits to be protected. Once the individual becomes eligible
to receive benefits, even if employment continues, those benefits may not be reduced
from thek current level of eligibility by a subsequent change of policy.
An affected city may choose to exempt itself from the provisions of Article XVI, Section
66, if:
a) it holds an election on the issue on May 15, 2004;
b) a majority of the voters voting at the election favor exempting the city and the
retirement system from Article XVI, Section 66; and
c) the exemption is the only issue relating to the funding and benefits of the
retirement system that is presented to the voters at the election.
The ~May 15, 2004, election date is the only opportunity an affected city will ever
have to opt out. If an election is not held, the restrictions in the amendment are
permanent.
Finally, city officials should be aware that Article XVI, Section 66, is akeady effective.
If a city's retirement plan falls under the amendment's provisions, certain protected
benefits may not be reduced unless a May election is held to exempt the retirement plan.
If you have questions about this amendment, please contact the TML Legal Department
at (5 t2) 231-7400.
SSION PROPOSED CONSTITUTIONAL AMENDMENTS H.J.R. 54, § 1
persons; but nine members of a grand jury shall be a quorum to transact business and
present bills. In trials of civil cases[ ' " ' ' ]
mineral in the District Courts, nine members of the jury, concurring, may render a verdict, but when
the verdict shall be rendered by less than the whole number, it shall be signed by every
member of the jury concurring in it. When, pending the trial of any case, one or more jurors
not exceeding three, may die, or be disabled from sitting, the remainder of the jury shall have
~ded to the power to render the verdict; provided, that the Legislature may change or modify the
rule authorizing less than the whole number of the jury to render a verdict.
fl~rnwr SECTION 2. The proposed constitutional amendment shall be submitted to the voters at
I taxes an election to be held September 13, 2003. The ballot shall be p~qnted to permit voting for or
.ye the against the proposition: "The constitutional amendment to permit a six-person jury in a
- 'il"
district court mlsaemeanor u a.
amt of Passed by the House on May 2, 2003: Yeas 135, Nays 0, 3 present, not voting; the
taxes, House concurred in Senate amendments to H.J.R. No. 44 on May 30, 2003: Yeas
,regate 143, Nays 0, 2 present, not voting; passed by the Senate, with amendments, on May
28, 2003: Yeas 31, Nays 0.
,unt of Filed with the Secretary of State June 2, 2003.
.;regate
is sold HJ.R. No. 54
nit the A JOINT RESOLUTION
I when proposing a constitutional amendment providing that certain benefits in certain public retirement
filed, systems may not be reduced or impaired.
: BE IT RESOLVED BY THE Legislature of the State of Texas:
dional SECTION 1. Article XVI, Texas Constitution, is amended by adding Section 66 to read as
' a tax follows:
Sec. 66. PROTECTED BENEFITS UNDER CERTAIN PUBLIC RETIREMENT SYS-
,' effect TEMS. (a) This section applies only to a public retirement system that is not a storewide
ale for system and that provides service and disability retirement benefits and death benefits to
,tion of publis officers and employees.
before (bi This section does not apply to a public retirement system that provides service and
law is disability retirement benefits and death benefits to firefighters and police officers employed
by the City of San Antonio.
~ers at (c) This section does not apply to benefits that are:
for or (1) health benefits;
l'or the (2) life insurance benefits; or
(3) disability benefits that a retirement system determines are no longer payable under
~; the the terms of the retirement system as those terms existed on the date the retirement system
Yeas began paying the disability benefits.
n May (d) On or after the effective date of this sectio?h a change in service or disability
retirement benefits or death benefits of a retirement ~ystem may not reduce or otherwise
impair benefits accrued by a person if tho person:
(1) could have terminated employment or has terminated employment before the
effective dote of th.e change; and
(2) teould have been eligible for those benefits, without accumulaling additional service
under the retire~nent systev~ on any date on or after the effective date of the change had
or trial, the change wot occurred,
(e) Benefits granted to a retiree or other annuitant before the effective date of this section
and in effect on that date may not be reduced or otherwise impaired,
s: (t) The political subdivisiou or subdivisions and the retirement system that finance
rsons, benefits under the rctirement system are jointly respo~ible for ensuring that benefits under
of six this section are not reduced or otherwise impaired.
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HJ.R. 54, § 1 78th LEGISLATURE--REGUL~R SESSION PROPOSED ~
(g) This section does not create a liability or an obligation to a retirement system for a (e) The app~
member of the retirement system other than the payment by active members of a required on the date sp
contribution or a f~ture required contribution to thc retirement system, oj~cer will ent~
(h) A retirement system described by Subsection (a) and the political subdivision or (J) A tempor
subdivisions that finance benefits u~xler the retirement system are exempt from the applica- entitled to the ~
lion of this section if: as the officer w,
(1) the political subdivision or s~bdivisions hold an election on the date in May 2004 (g) A tempo~
that political subdivisions may use for the election of their officers; office for the sh
(2) the maj~ity of the voters of a political subdivision voting at the election favor (1) the ter~
exempting the political subdivision and the retirement system fi'om the application of this (2) the ter~
section; and (h) In this se
(3) the exemption is the only issue relating to the funding and benefits of the retirement United States .
system that is presented to the voters at the election. United States (
SECTION 2. This constitutional amendment shall be submitted to the voters at an the National G~
election to be held September 13, 2003. The ballot shall be printed to allow for voting for or SECTION 2.
against the proposition: "The constitutional amendment providing that certain benefits under an election to be
certain local public reth~ement systems may not be reduced or impaired." against the pro
Passed by the House on April 29, 2003: Yeas 137, Nays 0, 1 present, not voting; the temporary reph
House concurred in Senate amendments to H.J.R. No. 54 on May 30, 2003: Yeas duty in the Unit
144, Nays 0, 2 present, not voting; passed by the Senate, with amendments, on May Passed by th
28, 2003: Yeas 31, Nays 0. House c(
Filed with the Secretary of State June 3, 2003. 143, Nay
28, 2003:
Filed with the
H.J.R. No. 84
A JOINT RESOLUTION
proposing a constitutional amendment providing for the filling of a temporaw vacancy in a public office
created by the activation for military service of a public officer.
BE IT RESOLVED BY THE Legislature of the State of Texas: proposing a con~
without an electi(
SECTION 1. Article XVI, Texas Constitution, is amended by adding Section 72 to read as
follows: BE IT RESO1
Sec. 72. (a) An elected or appointed officer of the state or of any political subdieision who SECTION 1.
enters active duty in the armed forces of the United States as a resnlt of being called to duty, follows:
drafled~ or activated does ual vacate the office held, but the appropriate authority may
appoint a replacement to serve as tempora~j acting officer as provided by this section if the Sec. 13. For ~
elected or appointed officec uqll be on active duty jbr longer than 30 days. p,ovide by gene~
(b) For an officer other than a member of the legislature, the authority who has the power only eandidate t~
to appoint a person to fill a vacancy in that office may appoint a temporary acting officer. SECTION 2.
If a vacancy would ~o~vnally be filled by special election, the governor may appoint the an election to be
temporary acting officer for a state or district office, arid the governing body of a political against the prop~
subdivision may appoint the temporary acting officer for an office of that political subdiwi- a person to take
sion. election tbr that,
(c) For an officer who is a member of the legislature, the member of the legislature shall
select a person to serve as the temporary acting representative or senator, subject to approval SECTION 3.
of the selection by a majority vote of the appropriate house of the legislat~re. The temporary 2003, is amended
acting representative or senator must be: SECTION 2.
(1) a member of the same political party as the member being temporarily replaced; an election to be
and permit voting fo
(2) qualified for office under Section 6, Article III, of this constitution for a seuator, or municipalities to
Section 7, Article III, of this constitution for a representative, volunteer fire del
(d) The officer who is temporarily replaced under this section may recommend to the Passed by the
appropriate appointing authority the name of a person to temporarily fill the office. House cot
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