Part 11. OFFICE OF THE FIRE FIGHTERS' PENSION COMMISSIONER
Chapter 304. MEMBERSHIP IN THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM
The State Board of Trustees for the Texas Emergency Services Retirement System (System) adopts the repeal of 34 Texas Administrative Code §304.2, relating to the probationary period for membership in the Texas Emergency Services Retirement System (System) without changes to the proposal as published in the June 29, 2007, issue of the Texas Register (32 TexReg 3967).
The rule on probationary period before membership is repealed because identical text will be in statute, Title 8 Government Code , Subtitle H. Texas Emergency Services Retirement System, §862.0021 created under House Bill 2400 which goes into effect September 1, 2007. As stated in statute, a participating department may impose a probationary period for a volunteer or auxiliary employee. If a department chooses to adopt a probationary period, the period must end not later than six months after the date the person begins service with the participating department and the department is not required to pay contributions during the probationary period. The person's membership would begin the date that the department begins payment of contributions for that person, without regard to whether the person's service is subject to a probationary period for other purposes.
There were no comments received regarding the proposed repeal.
The repeal is 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 repeal.
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 August 6, 2007.
TRD-200703394
Kevin Deiters
Policy Director
Office of the Fire Fighters' Pension Commissioner
Effective date: August 26, 2007
Proposal publication date: June 29, 2007
For further information, please call: (512) 463-9935
The State Board of Trustees for the Texas Emergency Services Retirement System (System) adopts amendments to 34 Texas Administrative Code §306.1 regarding credit for certain prior service of members of the Texas Emergency Services Retirement System (System) without changes to the proposal as published in the June 29, 2007, issue of the Texas Register (32 TexReg 3968). The amended rule will not be republished.
The amended rule will authorize participating departments to purchase pension credit for prior service of its members performed before the department joined the System. The System provides retirement, disability, and death benefits for volunteer fire fighters and EMS personnel in departments that participate in the System.
The amended rule will simplify the administration of the pension system by limiting the options and the time period in which a department may purchase prior service for participating members under this section. The amended rule establishes 10 years as the maximum amount of qualified prior service credit in the System that a department may purchase for a member under this section. The amended rule will allow a new department to purchase prior service credit within two years of joining the System.
As amended, the rule will eliminate the option for a participating department to purchase an accrued time benefit for prior service performed by a member prior to entry into the System. The amendments will eliminate the current prior service options known as "Accrued Time" or "Accrued Time with Buyback" to reduce the complexity of administration and to eliminate options that could provide inadequate benefits.
The Board was also concerned that the purchase of accrued time benefits by departments would result in fewer members vesting in the System and limit the ability of members to qualify for System pension benefits. Although the "accrued time" option allowed departments to provide equivalent benefits for prior service performed under the Texas Local Fire Fighters Retirement Act, the service purchased did not count toward System vesting or retirement benefits. All prior service purchased under the amended rule will count as qualified service in the System and will allow participating members to vest sooner and receive higher benefits from the System.
There were no comments received regarding the proposed amendments.
The amendment is 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 adoption.
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 August 6, 2007.
TRD-200703395
Kevin Deiters
Policy Director
Office of the Fire Fighters' Pension Commissioner
Effective date: August 26, 2007
Proposal publication date: June 29, 2007
For further information, please call: (512) 463-9935
The State Board of Trustees for the Texas Emergency Services Retirement System (System) adopts amendments to 34 Texas Administrative Code §308.3, relating to disability retirement benefits in the Texas Emergency Services Retirement System (System) without changes to the proposal as published in the June 29, 2007, issue of Texas Register (32 TexReg 3969).
The amendment to the rule on disability retirement annuities will provide for the amounts paid to a recipient of a disability annuity and the portions awarded based on the departmental contribution rates. System members under the statutory authority of amendments to Government Code §864.004 and §864.005 which were enacted by House Bill 2400, 80th Regular Legislative Session and which go into effect September 1, 2007 provides for a clear process for the implementation of both temporary and permanent disability for any person injured during the service of performing emergency services duties. This statutory change sets the parameters for eligibility for disability retirement benefits and the process for certification and continuance of disability benefits. The amended rule deletes reference to the previous process of applying to the Social Security Administration for certification as permanently disabled by the second anniversary of the disability, in conformity with the amended statute.
As determined by the firm of Rudd and Wisdom, Inc. the changes in §864.004 and §864.005 of the Government Code would have the potential to slightly reduce the actuarial liability for on-duty disability benefits. However, in the August 31, 2006 actuarial valuation of the System, only 0.7% (12 of 1,766) of the System's retirees and beneficiaries were on-duty disability retirees, and the present value of their future benefits was only 2.1% of the present value of future benefits for all the inactive members. For the active members, only 1% of the present value of future benefits was for future on-duty disability benefits. So a small reduction in the present value of future on-duty disability benefits would be a very small reduction in the total present value of future benefits of the System. The firm does not recommend a change in the actuarial assumption for on-duty disability incidence rates, but will monitor future experience and make a change in these rates if warranted by the experience. In the firm's opinion, the changes that §4 of House Bill 2400 makes to §864.004 and §864.005 will make would have a very small positive effect on the actuarial condition of the System in the future. However the changes are considered immaterial.
There were no comments received regarding the proposed amendments.
The amendment is 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 adoption.
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 August 6, 2007.
TRD-200703397
Kevin Deiters
Policy Director
Office of the Fire Fighters' Pension Commissioner
Effective date: August 26, 2007
Proposal publication date: June 29, 2007
For further information, please call: (512) 463-9935
The State Board of Trustees for the Texas Emergency Services Retirement System adopts amendments to 34 Texas Administrative Code §308.4 relating to death benefit payments for surviving spouses of deceased members of the Texas Emergency Services Retirement System (System). The amended rule is adopted without changes and will not be republished. The amendments were proposed for public comment in the June 29, 2007, issue of Texas Register (32 TexReg 3970).
The adopted amendments expand the rule relating to death benefits for the surviving spouse of a deceased member who dies as an active member of a participating department before retirement but after meeting the minimum age and service requirements for service retirement. As amended, the adopted rule provides for entitlement to two-thirds of the monthly annuity that the decedent would have received if the decedent had retired on the date of death. The adopted rule amendment replaces what was in prior statute with language that is consistent with changes to the statute made in 2007.
The adopted amendments provide that a surviving spouse of a deceased member, who dies after terminating service with all participating departments and after meeting a service retirement requirement under Government Code , §864.001, and related board rules, but before attaining the age of 55 is entitled to a death benefit annuity, beginning as provided by that section, equal to two-thirds of the monthly annuity to which the decedent would have been entitled to if the decedent had retired on the date of death. Amendments to Government Code , §864.007 and §864.008, which were enacted by House Bill 2400, 80th Regular Legislative Session, and which go into effect September 1, 2007, provide for clear distribution of benefits through the rulemaking process rather than through statute to allow the State Board of Trustees the ability to make additions or changes relating to distribution.
The Board received one comment regarding the proposed amendments. Paul Richard, Chairman of the West Columbia Volunteer Fire Department Pension Board, stated that he is in favor of the proposed rules, but has a concern about the process. He suggested amending the statute which relates to this rule to allow the spouse an option of receiving the death benefit as either a lump sum or allowing the spouse to wait to receive monthly benefits. He also suggested that, if the active firefighter has served 15 years but dies before the age of 55, the spouse should receive both benefits before the firefighter would have reached age 55.
The amendment is 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 adoption.
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 August 6, 2007.
TRD-200703398
Kevin Deiters
Policy Director
Office of the Fire Fighters' Pension Commissioner
Effective date: August 26, 2007
Proposal publication date: June 29, 2007
For further information, please call: (512) 463-9935
The State Board of Trustees for the Texas Emergency Services Retirement System (System) adopts new 34 Texas Administrative Code §310.10 relating to voluntary payments by member departments in the Texas Emergency Services Retirement System (System) without changes. The rule will not be republished. The new rule was proposed for public comment in the June 29, 2007, issue of Texas Register (32 TexReg 3971).
The new rule authorizes and provides the conditions necessary for participating departments to provide supplemental payments to annuitants of the department. The department may provide for a permanent increase or a one time increase in the annuity, but the increase must apply to all of the annuitants in the same classification and may be based on persons who qualified for an annuity under a previously lower contribution rate.
Government Code §864.0135 as enacted by HB 2400, 80th Regular Legislative Session, 2007 allows the board, by rule, to authorize a participating department to make either one or more supplemental payments, such as a 13th payment in a 12 month period, or to increase monthly benefits payable to retirees and beneficiaries. The statute requires the electing participating department to fund these additional benefits. The method used by the department would be described in a contractual agreement between the Office of the Fire Fighters' Pension Commissioner, the participating department, and the governing entity.
The Board received no comments regarding the proposed new rule.
The rule is 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 adoption.
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 August 6, 2007.
TRD-200703400
Kevin Deiters
Policy Director
Office of the Fire Fighters' Pension Commissioner
Effective date: August 26, 2007
Proposal publication date: June 29, 2007
For further information, please call: (512) 463-9935