Sec. 6.15.  DENIAL OF BENEFITS; DEATH CAUSED BY SURVIVOR.  (a)  If a person is the principal or an accomplice in wilfully bringing about the death of a member or beneficiary whose death would otherwise result in a benefit or benefit increase to the person, the person is not eligible for, or entitled to, that benefit or benefit increase.  The determination of the board that a person wilfully brought about the death, or was an accomplice in wilfully bringing about the death, must be made during a meeting of the board.  A determination by the board under this section is not controlled by any other finding in any other forum.
(b)  A benefit or benefit increase payable under this Act because of the death of a member or beneficiary shall be paid as if the person who is no longer eligible for or entitled to the benefit under Subsection (a) of this section predeceased the member or beneficiary.
ARTICLE 7. INVESTMENTS AND FINANCIAL PROVISIONS

Sec. 7.01.  Repealed by Acts 2005, 79th Leg., Ch. 623, Sec. 13, eff. October 1, 2005.
Sec. 7.02. ACCOUNTS.  The accounts of the fund and of the members shall be kept separately.
Sec. 7.03. RESERVE RETIREMENT FUND.    (a)  The board shall determine a reasonably safe amount of surplus necessary to defray reasonable expenses of administering the fund.
(b) All other assets shall be designated as reserve retirement funds.
(c) Only the board may invest and manage the reserve retirement funds for the sole benefit of the plan participants and their beneficiaries.
Sec. 7.04. INVESTMENT POWERS OF THE BOARD.    (a)  The board shall cause the reserve retirement funds to be invested in a manner that a prudent investor would invest, considering the purposes, terms, distribution requirements, and other circumstances of an enterprise with a like character and like aims.
(b) The board shall diversify the investment of the fund to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so.  In determining whether the board has exercised prudence concerning an investment decision, the investment of all assets of the fund, rather than the prudence of a single investment of the fund, shall be considered.
(c) The board may directly manage the investments of the fund or may choose and contract for professional management services.  If the fund owns real estate, it may, at its discretion, establish organizations described by Section 501(c)(2) or (25) of the code to hold title to the real estate.
(d) The board shall have the ultimate responsibility for the investment of the reserve retirement funds.  The board may purchase securities or engage in limited partnerships or make other investments not specifically provided by this Act and shall have the authority of exercising discretion in determining the nature, type, quality, and size of any investment consistent with the investment policies it establishes.
Sec. 7.05. PROFESSIONAL CONSULTANTS.    (a)  The board may contract for professional investment management services, financial consultants, independent auditors, attorneys, and actuaries.  Only the board may enter into those contracts and may establish a reasonable fee for compensation.
(b) The board may designate its own custodian or master custodian to perform the customary duties involving the safekeeping of the assets and the execution of transactions of either domestic or foreign securities.  The board may engage in a securities lending program consistent with the benefits to plan participants and their beneficiaries.
Sec. 7.06.  INVESTMENT CONSULTANT QUALIFICATIONS.  In appointing investment consultants, the board shall require that the investment consultant be:
(1)  registered under the Investment Advisors Act of 1940 (15 U.S.C. Section 80b-1 et seq.) and its subsequent amendments;
(2)  a bank as defined by that Act; or
(3)  an insurance company qualified to perform investment services under the laws of more than one state.
ARTICLE 7A. STANDARDS OF CONDUCT AND FINANCIAL DISCLOSURE REQUIREMENTS

Sec. 7.51. POLICY.    (a)  A member of the board, the executive director, or another employee of the fund may not buy, sell, or exchange any property to or from the fund, deal with the assets of the fund in the person's own interest or for the person's own account, or receive any consideration for the person's personal account from any person dealing with the fund in connection with the income or assets of the fund.
(b) To implement Subsection (a) of this section and to strengthen the faith and confidence of the members and beneficiaries of the fund, the board shall develop standards of conduct and financial disclosure requirements to be observed by each member of the board and by the executive director in the performance of official duties.
(c) Repealed by Acts 1997, 75th Leg., ch. 35, Sec. 37, eff. Oct. 1, 1997.
ARTICLE 8. EXCESS BENEFIT PLAN FOR FIRE FIGHTERS AND POLICE OFFICERS

Sec. 8.01. CREATION OF PLAN.  A separate, nonqualified, unfunded excess benefit plan containing the provisions of this subchapter is created outside the fund.  The plan is intended to be a "qualified governmental excess benefit arrangement" within the meaning of Section 415(m) of the code.
Sec. 8.02. DEFINITIONS.  In this article:
(1) "Excess benefit participant" means any member whose retirement benefits as determined on the basis of all qualified plans, without regard to the limitations of Section 5.10(a) of this Act and comparable provisions of other qualified plans, would exceed the maximum benefit under Section 415 of the code.
(2) "Excess benefit plan" means the excess benefit plan created by this article for the benefit of eligible members.
(3) "Maximum benefit" means the retirement benefit a member or the member's spouse, dependent child, or dependent parent is entitled to receive from all qualified plans in any month after applying Section 5.10(a) of this Act and any similar provisions of any other qualified plans designed to conform to Section 415 of the code.
(4) "Qualified plan" means the fund and any other plan that is maintained by the municipality for the exclusive benefit of some or all of the members of the fund and that has been found by the Internal Revenue Service to be qualified or has been treated by the municipality as a qualified plan under Section 401 of the code.
(5) "Unrestricted benefit" means the monthly retirement benefit a member or the member's spouse, dependent child, or dependent parent would have received under the terms of all qualified plans except for the restrictions of Section 5.10(a) of this Act and any similar provisions of any other qualified plans designed to conform to Section 415 of the code.
Sec. 8.03. EXCESS BENEFIT ENTITLEMENT.    (a)  An excess benefit participant who is receiving benefits from the fund is entitled to a monthly benefit under the excess benefit plan in an amount equal to the lesser of:
(1) the member's unrestricted benefit less the maximum benefit;  or
(2) the amount by which the member's monthly benefit from the fund has been reduced because of the limitations under Section 415 of the code.
(b) In the case of the death of an excess benefit participant whose spouse, dependent child, or dependent parent is entitled to preretirement or postretirement death benefits under a qualified plan, the spouse, dependent child, or dependent parent is entitled to a monthly benefit under the excess benefit plan equal to the benefit determined in accordance with Article 6 of this Act without regard to the limitations under Section 5.10(a) of this Act or Section 415 of the code, less the maximum benefit.
(c) Any benefit to which any person is entitled under this section shall be paid at the same time and in the same manner as the benefit would have been paid from the fund if payment of the benefit from the fund had not been precluded by Section 5.10(a) of this Act.  An excess benefit participant or any beneficiary may not elect to defer the receipt of all or any part of a payment due under this article.
Sec. 8.04. MANNER OF ADMINISTRATION.    (a)  The board shall administer the excess benefit plan.  Except as otherwise provided by this section, the board has the same rights, duties, and responsibilities regarding the excess benefit plan as the board has for the fund.
(b) A consultant, independent auditor, attorney, or actuary selected to perform services for the fund under Section 7.05 of this Act shall also perform services for the excess benefit plan, but the person's fees for services for the excess benefit plan may not be paid by the fund.  The actuary employed under Section 7.05 of this Act shall advise the board of the amount of benefits that may not be provided from the fund solely by reason of the limitations of Section 415 of the code and the amount of municipal contributions that will be made to the excess benefit plan rather than to the fund.
Sec. 8.05. FUNDING OF BENEFITS.    (a)  Contributions may not be accumulated under the excess benefit plan to pay future retirement benefits.  Instead, each payment of municipal contributions that would otherwise be made to the fund under Section 4.05 of this Act shall be reduced by the amount determined by the board as necessary to meet the requirements for retirement benefits under the excess benefit plan, including reasonable administrative expenses, until the next payment of municipal contributions is expected to be made to the fund.  The municipality shall then pay to the excess benefit plan out of the withheld contributions, not earlier than the 14th day before the date of each distribution of monthly retirement benefits is required to be made from the excess benefit plan, the amount necessary to satisfy the obligation to pay monthly retirement benefits from the excess benefit plan.  The board shall satisfy the obligation of the excess benefit plan to pay retirement benefits out of the municipal contributions transferred for that month.
(b) Municipal contributions otherwise required to be made to the fund under Section 4.05 of this Act and any other qualified plan shall be divided into contributions required to pay retirement benefits under this article and contributions paid into and accumulated to pay the maximum benefits required under the qualified plan.  Municipal contributions made to provide retirement benefits under this article may not be commingled with the money of the fund or any other qualified plan.
Sec. 8.06. EXEMPTIONS.  Benefits under this article are exempt from garnishment, assignment, attachment, judgment, and other legal process to the same extent as retirement annuities under Section 1.05 of this Act.