Part 11.
FIRE FIGHTERS' PENSION COMMISSION
Chapter 301.
RULES OF THE TEXAS STATEWIDE EMERGENCY SERVICES RETIREMENT FUND
The Fire Fighters' Pension Commission (FFPC) adopts amendments to §§301.1-301.3,
301.9, the repeal of §301.10 and new §301.12, concerning Rules of
the Texas Statewide Emergency Services Retirement Fund, without changes to
the proposed text as published in the November 19, 1999, issue of the
Some of the changes made to the rules adopted arise from the rule review
process required by the Appropriations Act of 1997, House Bill 1, Article
IX, Section 167. Other rules arise from deletions in language that is merely
historical in nature or language that merely restates statutory requirements.
Other rules were adopted to implement or interpret 1999 legislation. Other
rules correct typographical errors and inconsistencies that existed in the
Commission's original rules. Some deletions and additions merely reflect the
renumbering of a rule section or transfer of language from one rule section
to another.
In §301.1, references to dates throughout the rule are deleted because
they are merely historical notes of the effective dates of statutes, and therefore,
are not the proper subject of rules.
In paragraph (1), "Drill" to "drill hour" to match the corresponding terminology
in the governing statute, Article 6243e.3.
In paragraph (3)(A), the wording was changed from "or" to "and" to match
the corresponding terminology in the governing statute, Article 6243e.3.
Paragraph (3)(C) is amended to match the corresponding terminology in the
governing statute, Article 6243e.3.
Paragraph (4)(B) was deleted, because the language consists of merely historical
notes or it merely restates statutory language and, therefore, is unnecessary.
New paragraph (4)(B) was added because effective January 1,1998, Article
6243e.3 was amended such that the number of "drills" required per year was
changed to the number of "drill hours" required per year.
In paragraph (8), the determination of on-duty death and on-duty disability
is clarified to mean a death or disability that occurs as a result of the
performance of duties, while a member of the pension system, based on an "official"
authorization to perform those duties. Such official duty is based on and
initiated by authorization by tone or other electronic signal, a paging device,
or verbal or written authorization by the member's department officer in charge
and/or the department head.
Paragraph (9) is deleted because the definition of on duty disability was
combined with the definition for on-duty death.
The changes to paragraph (10) were made to delete a purely historical note
and to reference the name of the applicable law according to its current title.
Paragraph (10) (C) is amended to clarify that it is the local board that
assigns a member to support duties and not the state board.
Paragraph (10) (E) - is being deleted because it merely restates statutory
provisions and therefore is unnecessary.
Existing paragraph (10) was renumbered as paragraph (9).
New paragraph (10)(A) clarifies what is meant by "SB 411 time" and "TLFFRA
time" "buy-back time," "accrued time" and "future service" as those terms
are used by the Board.
Several deletions are made to §301.2 because they are merely historical
notes, whereas some of the deleted language merely restates statutory language
and, therefore, is unnecessary.
Subsection (a) to §301.2 is deleted, because it is a restatement of
the statute language and is historical in nature, and, therefore is not necessary.
New subsection (a) to §301.2 refers to participation in the TSESRA
pension system, created by Article 6243e.3. It reflects a statutory change
broadening the scope of SB 411 to apply to all political subdivisions equally.
In subsection (b)(3)(4), the word "county" is added, because Article 6243e.3
permits members of county emergency services departments, and not only members
of city departments, to now be included in the pension system.
In subsection (c)(2), the reference to the act name is changed to cite
the statute name correctly.
In subsection (c)(3), this rule change clarifies that "they" means "members."
Old subsection (e) is deleted, because it is redundant, obsolete, restates
statutory language and, therefore, is unnecessary.
In subsection (d), the words, "the department" are being added to clarify
whose eligibility is being addressed.
In subsection (e), the Commissioner prescribes the manner in which verification
will be submitted so as to clarify and standardize the process of verifying
service for purposes of consistency throughout the state.
Subsection (g) is being deleted as redundant because it merely restates
the law.
New subsection (g)(1) is adopted because the TSESRA Act, Article 6243e.3, §8
requires a person to obtain a certificate of fitness or an assignment to support
duties to be eligible for membership. The certificate of fitness is required,
because this is the only way the local board can be assured that a person
meets the physical fitness criterion established by statute. The certificate
of physical fitness would also identify any pre-existing physical conditions
which may not later be claimed as a disability while participating in the
system.
Reference to the date appearing in subsection (g)(1)(B) is deleted, because
it is a historical note stating when the statute was changed.
Subsection (g) (1)(D) was deleted because it is redundant with the language
being added to (g) (1).
Subsection (g)(2)(A) - (D) is being deleted because it is historical in
nature and describes outdated law, and therefore, is not necessary.
Subsection (g)(4)(C) Benefits now will only be delayed instead of being
denied when Form 502 is not submitted timely, because the Board has determined
that once a Form 502, or its equivalent, is finally received, benefits no
longer should be entirely denied solely for the reason that the form was submitted
late.
In subsection (g)(5)(A), the change to this rule leaves to the discretion
of the local board the computation of the amount of prior service. Members
are employed locally and each members employment and service records are maintained
locally. Therefore, the local board is in the better position to determine
a members prior service. The governing statute authorizes the local board
to make the initial determination regarding eligibility for benefits.
In subsection (g)(5)(B), change to this rule is made, because the language
is merely a historical note that restates statutory requirements, and, therefore,
is unnecessary.
In subsection (g)(6)(A)(i), this language is being deleted because it merely
restates the law, and, therefore, is not necessary.
In subsection (g)(7), the section added language to clarify for local departments
and members the law regarding the rescission of an election to participate
and how the membership may withdraw from the pension system.
Section 301.3, Determination of Costs.
Subsection (a)(1) - This section is changed, because the Board deems it
appropriate to leave to the discretion of the local boards the interpretation
of the TLFFRA law, Article 6243e, for local purposes, in accordance with the
TLFFRA act, Article 6243e..
Subsection (a) (5) is deleted, because this subsection merely restates
what the law used to be, and therefore is merely a historical note, and is
unnecessary.
Subsection (a)(7) states the agency's current practice.
Subsection (a)(8) provides guidance to departments and local governments
of the time limits imposed on the deliverance of cost studies.
Subsection (d)(l) and (2) is deleted, because the language consists of
merely historical notes or it merely restates statutory language and, therefore,
is unnecessary.
Subsection (e)(l) is amended to clarify that accrued time must have been
purchased for a member to qualify under this subsection (e).
Subsection (e)(3) reference to the effective date of the rule is being
deleted as unnecessary because the effective date is determined by law.
The language of subsection (e)(5) is deleted because it merely restates
the law and therefore is unnecessary.
Subsection (e)(7) is being deleted because it restates legislative action,
and therefore is not necessary.
Subsection (e), new paragraph (6), the Board has determined that contributions
based on actual prorated service are more accurate than rounding off to the
nearest month.
Subsection (e)(12), the Commissioner no longer will mail pension checks
to payee banks, because the Comptroller said it was not a safe practice and
we now have direct deposit.
Subsection (e)(13), this provision has been moved from subsection (d)(2)
and reworded to more accurately reflect statutory provisions.
Subsection (f)(1) clarifies that benefits are paid to the named beneficiaries.
In subsection (f)(2) language is deleted because it merely restates the
statute, and, therefore, is not necessary.
In subsection (f)(3) reference to the effective date of the statute is
deleted as an unnecessary historical note.
New subsection (f)(6) is added, because, some members believe lump sum
death benefits are based on the amount of buy-back paid. This rule makes it
clear that such is not the case.
Old subsection (f)(6)(A) is deleted because the subject of that rule is
addressed in section that has been renumbered as subsection (f)(7) of this
rule.
New subsection (f) (7) clarifies the definition of 15 years to mean 180
months, so that years are not counted on the basis of fiscal or calendar years,
but rather the time period of 180 months. Use of "180 months" instead of "15
years" ensures that the opening or closing of a fiscal or calendar year will
not affect the computation of time served, or a determination of eligibility
to receive or amount of benefits. This rule clarifies the minimum off duty
death benefit.
Old subsection (f)(7)(A) is amended and subparagraph (B) is deleted to
clarify the years served must be creditable to count toward the 15 year threshold
for receiving the benefits to which this rule applies. The rule clarifies
the amount of the benefit to be paid and the computation of partial months
served. Subsection (f)(7) has been renumbered as subsection (f)(8).
Subsection (f)(8) has been renumbered as subsection (f)(9) and amended
to set the on-duty lump sum death benefit at $60,000 for a death occurring
on or after September 1, 1999. The board has determined this amount more appropriately
compensates for the loss that originally had a benefit of $5,000. The board
determined $60,000 is appropriate because it has been determined that the
fund remains actuarially sound at this benefit level, based on the actuarial
analysis which shows that the annual contribution requirement should increase
no more than $25,000, and the amortization period would increase by less than
1/4 of a year.
Subsection (f)(9) is renumbered as subsection (f)(10) and is amended to
require a death certificate be submitted to ensure that the member is dead,
the cause of death, and the date of death. This information helps the Commissioner
to determine whether and how much of a death benefit is payable.
Old subsection (f)(12) is being deleted because it merely restates the
statute and, therefore, is not necessary. Subsection (f)(10) and (11) are
renumbered as (f)(11) and (12), respectively.
Section 301.5, Billings and Annual Reports and §301.6, Local Boards
of Trustees.
Section 301.5 and §301.6 were not adopted as published, because substantive
changes to the proposed rules are required prior to adoption. Therefore, the
Board shall republish proposed amendments to those rules in a later issue
of the
Texas Register
.
Section 301.9. General.
Language in subsection (a) is deleted, because it merely restates the law.
Additional language is being deleted from the current rule and from what was
previously published, because it merely restates what the Commissioner's current
practice is and merely restates the substance of the first sentence of subsection
(a) in different words.
Subsection (c) clarifies the Commissioner's practice of not billing the
local governing entities for administrative costs incurred by paying TLFFRA
pensions. The language is deleted from subsection (c) because the provisions
for minimum benefit are addressed in §301.9(a).
The language in subsection (d) is added to clarify the Board's position
and current practice of leaving to the discretion of local boards the decision
of whether to continue paying TLFFRA pensions to spouses of deceased retirees
who remarry and regardless of when the spouse married the retiree. TLFFRA
pensions are locally administered, and the TLFFRA Act leaves initial determination
of benefit eligibility to the discretion of the local boards.
Language in subsection (e) is deleted, because it merely restates when
the law requiring the submission of death certificates was enacted.
Section 301.10. Open Records.
Section 301.10 is repealed, because it merely restates statutory history,
and therefore, is not necessary.
New §301.10 is not being adopted as published, but is being withdrawn
at this time, because TLFFRA, Article 6243e , §32 already states the
law, and this rule as published does not accurately track the statute. TSESRA,
Article 6243e.3 does not provide statutory authority for the board to declare
public information as confidential.
Section 301.12. Disability.
New §301.12 is adopted because Article 6243e.3, §4(c) was amended
in 1999 to require a disability benefit of at least $300 and to require the
Board of Trustees to adopt rules that provide for an increase in the monthly
disability benefit, based on the contributions paid by the local board.
The Commission has determined that the changes affect no new persons, entities,
or subjects other than those given notice and that compliance with the adopted
sections will be less burdensome than under the proposed sections.
The Commission held hearings at the Board's quarterly meeting in Canyon,
Texas on August 5-6, 1999. No public comment was received.
34 TAC §§301.1-301.3, 301.9
Section 301.1 is adopted under Article 6243e.3 V.T.C.S, Section
1 - Definitions, Section 4 - Disability Benefits, Section 5 - Death Benefits
and Section 8 - Certification of Physical Fitness; §301.2 is adopted
under Article 6243e.3 V.T.C.S, Section 1 - Definitions, Section 2 - Emergency
Services Retirement Fund, Section 4 - Disability Benefits, Section 10 - Entering
the Pension System, Section 11 - Merger of the Current Pension Plan with the
Pension System, and 12 - Withdrawing from the Pension System; §301.3
is adopted under Article 6243e.3 V.T.C.S, Section 2 - Emergency Services Retirement
Fund, Section 3 - Retirement Benefits, Section 4 - Disability Benefits, Section
5 Death Benefits, Section 11- Merger of the Current Pension Plan with the
Pension System, and Section 11A - Prior Service of Members without a Pension
Plan before Participation; §301.9 is adopted under Article 6243e.3 V.T.C.S,
Section 11 - Merger of the Current Pension Plan with the Pension System, which
provide the Fire Fighters' Pension Commission with the authority to promulgate
rules necessary for the administration of the pension fund.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on April 10, 2000.
TRD-200002540
Morris E. Sandefer
Commissioner
Fire Fighters' Pension Commission
Effective date: April 30, 2000
Proposal publication date: November 19, 1999
For further information, please call: (512) 936-3372