Sec. 10A. ANNUAL SUPPLEMENTAL BENEFIT FOR CERTAIN RETIRED MEMBERS AND ELIGIBLE SURVIVORS. (a) The board shall pay supplemental benefits under this section to retired members and eligible survivors who are receiving retirement or survivor benefits on June 30 of the year preceding the year in which the supplemental benefits are to be paid. Deferred retirees or survivors of deferred retirees may not receive supplemental benefits under this section.
(b) The board shall pay the supplemental benefits under this section each January.
(c) For purposes of this section, the minimum income level is the federal poverty guideline for a family of five as issued by the United States Department of Health and Human Services, rounded up to the nearest $1,000.
(d) The aggregate supplemental benefit amount is $5 million.
(e) Based on the aggregate supplemental benefit amount under Subsection (d) of this section, the board shall determine the amount of a lump-sum payment for each retired member or eligible survivor.
(f) In determining the lump-sum payment amount, the total number of years since the commencement date of each retired member's or eligible survivor's annual retirement or survivor benefit shall be divided by the total number of years since the commencement date of all retired members' and eligible survivors' annual retirement or survivor benefit to establish a payment percentage for each retired member and eligible survivor. For purposes of this section, benefits provided under Section 4(d) of this article may not be included in a retired member's or eligible survivor's annual retirement or survivor benefit.
(g) The payment percentage of each retired member and eligible survivor shall be multiplied by the aggregate supplemental benefit less the total amount of any payments made under Subsection (i) of this section.
(h) The product of the computation under Subsection (g) of this section determines the lump-sum payment to the retired member or eligible survivor unless the lump-sum payment plus the annual retirement benefit is less than the minimum income level under Subsection (c).
(i) If the lump-sum payment plus the annual retirement benefit is less than the minimum income level under Subsection (c) of this section, the retired member or eligible survivor is entitled to receive an additional payment from the amount determined under Subsection (d) of this section that will cause payments to the recipient to meet but not exceed the minimum income level.
(j) The benefits commencement date for a retired member or the eligible survivor of a retired member is the first day on which the retired member most recently began receiving pension benefits from the fund. The benefits commencement date for an eligible survivor of an active member is the first day of receipt of benefits as an eligible survivor.
(k) Notwithstanding any other provision of this section, if more than one eligible survivor is to receive a supplemental benefit as a result of one deceased person under this section:
(1) only one eligible survivor is considered in computations under this section other than computations under Subdivision (2) of this subsection and as receiving the payments received by all eligible survivors of the one deceased person; and
(2) the amount of payments under this section will be paid to the eligible survivors in the same manner as payments under Sections 7(a) and (b) of this article are made.
(l) All actuarial determinations required under this section must be made by the fund's actuary.
Structure Texas Statutes
Section 1A. Interpretation of Article
Section 1C. Alternative Retirement Plans
Section 1D. Requirements for Certain Cash Balance Retirement Plans
Section 2. Fund and Board of Trustees
Section 2A. Qualifications of Municipal Actuary
Section 2B. Report on Investments by Independent Investment Consultant
Section 3. Other Powers of the Board
Section 3A. Certain Alterations by Local Agreement
Section 4. Service Pension Benefits
Section 5. Deferred Retirement Option Plan
Section 5A. Post-Retirement Option Plan
Section 6. Disability Pension Benefits
Section 8. Deferred Pension at Age 50; Refund of Contributions
Section 9. Proof of Continued Disability
Section 10. Nonstatutory Benefit Increases
Section 10A. Annual Supplemental Benefit for Certain Retired Members and Eligible Survivors
Section 10B. Additional Lump-Sum Retirement or Death Benefit
Section 11. General Provisions for Calculation and Payment of Benefits
Section 12. Appeals of Benefit Decisions
Section 13. Membership and Member Contributions
Section 13A. Municipal Contributions
Section 13B. Risk Sharing Valuation Studies
Section 13C. Initial Risk Sharing Valuation Studies; Corridor Midpoint
Section 13D. Actuarial Experience Studies
Section 13H. State Pension Review Board; Report
Section 14. Internal Revenue Code Limitations
Section 15. Exemption of Benefits From Judicial Process
Section 16. Service Credit for Members Previously Members of Similar Funds
Section 17. Confidentiality of Information About Members or Beneficiaries