Relating to audits of certain public retirement system actuarial valuations, studies, and reports.
Impact
The implementation of HB 1070 is expected to significantly impact the way public retirement systems operate in Texas. By enforcing regular independent audits, the bill promotes greater financial transparency and accountability within these systems. This measure not only protects the interests of the members of these retirement systems but also serves to reassure taxpayers about the financial health and governance of public retirement funds. The increased scrutiny could also lead to improved actuarial practices within these entities.
Summary
House Bill 1070 seeks to enhance the standards for audits of public retirement systems in Texas, specifically targeting the actuarial valuations, studies, and reports that are produced by these systems. The bill mandates that public retirement systems with total assets of at least $100 million conduct audits of their actuarial assessments at least every five years. This change aims to ensure that the actuarial work being done is reviewed by independent actuaries, thus increasing the accountability and credibility of the financial reports provided by these systems.
Contention
Despite the apparent benefits of enhancing audit requirements, there may be concerns regarding the costs and administrative burdens associated with conducting these mandated audits. Some stakeholders may argue that while transparency is crucial, the additional financial obligations placed on public retirement systems could strain their resources, especially smaller systems that may not have adequate budgets to absorb such costs. Therefore, the trade-off between accountability and financial feasibility is a notable point of contention surrounding this bill.
Relating to requiring the inclusion of certain proposals in reports on the actuarial experience of the Employees Retirement System of Texas and the Teacher Retirement System of Texas.
Relating to the fiduciary responsibility of the governing body of the public retirement systems in this state and the investment managers and proxy advisors acting on behalf of those systems.