34 TAC §301.3
The Office of the Fire Fighters' Pension Commissioner proposes
an amendment to §301.3, concerning Determination of Costs. The amendment
to §301.3(e)(9) is proposed in order to reduce on-duty lump sum death
benefits for fire fighters and EMS personnel from $60,000 to $5,000.
The actuarial effect of the amended rule was determined by the actuarial
firm of Rudd and Wisdom, Inc. On October 29, 2003, Rudd and Wisdom, Inc. reported
that the Fund is not adequately financed on an actuarially sound basis and
that the Fund had an annual contribution deficiency of $946,388 for the year
beginning September 1, 2002. On May 5, 2004, Rudd and Wisdom, Inc. estimated
that the proposed amendment will reduce the annual contribution deficiency
by $65,256 per year.
Kevin Deiters, Program Director of the Office of the Fire Fighter Pension
Commissioner, has determined that during the first five-year period that the
amendment is in effect, state and local government contribution costs to amortize
the unfunded actuarial accrued liabilities of the pension fund will be reduced
by $326,280. The amendment will reduce the amount paid to the beneficiary
(or beneficiaries) of a fire fighter or emergency medical services worker
killed in the line of duty from $60,000 to $5,000.
Mr. Deiters has also determined that during the first five-year period
the proposed amendment is in effect the public will benefit by improving the
funding status of the public retirement system and by reducing demands on
local tax revenues. There will be no effect to small, large or micro businesses.
Comments on the proposal may be to submitted to Lisa Ivie Miller, Commissioner,
Office of the Fire Fighter Pension Commissioner, P.O. Box 12577, Austin Texas
78711-2577 no later than August 1, 2004.
The amendment is proposed under Texas Civil Statutes, Article
6243e.3, which provides the State Board of Trustees with the authority to
promulgate rules necessary for the administration of the pension fund.
No other statutes, articles, or codes are affected by the proposed amendment.
§301.3.Determination of Costs.
(a) - (d)
(No change.)
(e)
Death.
(1) - (8)
(No change.)
(9)
Lump-Sum Death Benefits for On-Duty Deaths. TSESRA Section
5(b) states that the beneficiary is guaranteed a lump-sum benefit of at least
$5,000 for an on-duty death. If the sum contributed by the public agency to
the fund on the decedent's behalf is more than $5,000, then the beneficiary
receives this greater amount. [
For an on duty death occurring on or after
September 1, 1999, the lump sum death benefit is $60,000.00.
]
(10) - (13)
(No change.)
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on June 7, 2004.
TRD-200403717
Melissa Juarez
Assistant Attorney General
Office of the Fire Fighters' Pension Commissioner
Proposed date of adoption: August 5, 2004
For further information, please call: (512) 936-3472