Part 11.
OFFICE OF THE FIRE FIGHTERS' PENSION COMMISSIONER
Chapter 308.
BENEFITS FROM THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM
34 TAC §§308.1 - 308.3
The Texas Emergency Services Retirement System State Board
of Trustees adopts amended rules 34 Texas Administrative Code Chapter 308, §§308.1
- 308.3 governing benefits from the Texas Emergency Services Retirement System.
The Board adopted §308.1 and §308.2 without changes. The Board adopted §308.3
with a non-substantive change from the proposed version. The rules changes
were adopted by the Board on May 16, 2006. The amended rules were proposed
for public comment in the March 31, 2006, issue of
Texas Register
(31 TexReg 2835).
The amended rules reduce benefits for volunteer fire fighters and EMS personnel
in departments that participate in the System. The Board reduced benefits
to improve the long-term actuarial soundness of the System. The amendment
to §308.1 eliminates partial vesting for active members with less than
10 years of qualified service. The amendment to §308.2 reduces the benefit
formula compound interest rate from 7% to 6.2% for all years of qualified
service over 15 years. The amendment to §308.2 provides a procedure for
initiating and terminating benefits. The amendment to §308.3 clarifies
the amount of disability payments.
The amendment to §308.1(c) "grandfathers" active member's vested accrued
benefits for retirement, termination, or death as of December 31, 2006. The
System will calculate the amount of every vested member's vested accrued benefit
as of December 31, 2006 and keep a record of this amount as each person's
minimum benefit. Upon termination, death, or retirement, the System will pay
the larger of the benefits under the new reduced benefit formula and the minimum
benefit. Vested terminated members at the effective date of the changes would
not be affected by the rule amendment.
The Board adopted §308.1 and §308.2 without changes. The Board
adopted §308.3 with changes from the published version. The Board amended §308.3(a)
by substituting the words "above $12" for the words "made since participation
began". Changes in the adopted rule reflect a non-substantive variation from
the proposed rule. The changes affect no new persons, entities or subjects
other than those given notice and that compliance with the adopted sections
will not be more burdensome than under the proposed section. Accordingly,
republication of the adopted sections, as proposed amendments is not required.
The Windcrest VFD Pension Board submitted written comments in opposition
to the benefit reductions proposed in §308.1 and §308.2. The Board
received comments from the West Columbia Fire Department in opposition to
the proposed changes to §308.1, §308.2 and §308.3. Paul Richard
filed written comments in opposition to the proposed benefit reductions to
fire fighters with over 15 years of service. The membership of the Schulenburg
Fire Department voted in opposition to reductions to the compounding of benefits
for service over 15 years and voted in support of longer vesting periods.
The State Board does not disagree with the comments made in opposition to
the benefit reductions. The Board reduced benefits to improve the long-term
actuarial soundness of the system.
The amended rules are adopted under the statutory authority of
Title 8, Government Code, Subtitle H Texas Emergency Services Retirement System.
No other statutes, articles, or codes are affected by the rule amendment.
§308.3Disability Retirement Annuity.
(a)
Except as otherwise provided by §864.004 and §865.006,
Government Code, and this section, a member whose disability results from
performing emergency service duties is entitled to a monthly annuity during
the period of the disability in an amount equal to $300 plus $50 for every
$12 increase in contributions above $12 by the governing body for which the
person was performing emergency service duties at the time of the disability.
(b)
An increase in contributions by a governing body after
the payment of a monthly annuity begins does not increase the amount of the
annuity.
(c)
Disability benefits are prorated for portions of months
during which a person is disabled.
(d)
A local board shall report to the commissioner, in a manner
provided by the pension system, a determination of temporary disability not
later than the 45th day after the date the disability begins.
(e)
A person receiving temporary disability benefits who does
not apply to the Social Security Administration for certification as permanently
disabled before the second anniversary of the date of determination of temporary
disability or, if the person does not participate in the social security program,
to a medical board selected by the state board for alternative certification
is subject to termination of disability benefit payments if the person is
not certified by the Social Security Administration or the medical board within
the period provided by §864.004, Government Code.
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 July 6, 2006.
TRD-200603631
Lisa Ivie Miller
Commissioner
Office of the Fire Fighters' Pension Commissioner
Effective date: July 26, 2006
Proposal publication date: March 31, 2006
For further information, please call: (512) 936-3470
Chapter 310.
ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM