By: Ogden S.B. No. 1612
(In the Senate - Filed March 11, 2011; March 23, 2011, read
first time and referred to Committee on State Affairs;
April 6, 2011, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 6, 2011,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1612 By: Williams
A BILL TO BE ENTITLED
AN ACT
relating to the monitoring, oversight, and funding of certain
public retirement systems.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (b), Section 801.201, Government
Code, is amended to read as follows:
(b) For the purpose of performing its duties under Section
801.202(1) or (2), the board by rule may require clarification of
information provided by a public retirement system in a report that
is required by law and is required to be filed with the board. [A
rule adopted under this subsection may not be enforced against a
public retirement system if compliance with the rule would cause
the system to incur a major expense.]
SECTION 2. Section 801.203, Government Code, is amended by
adding Subsections (c), (d), and (e) to read as follows:
(c) The board shall prepare an annual report relating to the
performance of each public retirement system that administers a
defined benefit plan and has total assets the book value of which,
as of the last day of the preceding fiscal year, is at least $100
million. The report required under this section must include:
(1) each system's investment allocations and practices
during the preceding fiscal year;
(2) the rate of return on the investment of each
system's cash and securities during the preceding fiscal year;
(3) a description of the extent to which, during the
preceding fiscal year, each system complied with:
(A) the reporting requirements under this
chapter and Chapter 802; and
(B) the system's investment strategy;
(4) rate of return sensitivity analysis for a
projected ten-year period from the current fiscal year; and
(5) solvency and cash flow projections for the current
fiscal year.
(d) The board shall:
(1) prepare the report required under Subsection (c)
in two parts, with the first part posted on the board's Internet
website not later than March 1 of each year and the second part
posted on the board's Internet website not later than September 1 of
each year, and shall include the information required for a public
retirement system in one of the two parts based on the date the
system's fiscal year ends;
(2) provide a review and comment period for the public
retirement systems included in a report prior to posting the report
on the board's Internet website; and
(3) immediately notify the legislature and governor
when the report, or part of the report, is available for viewing on
the board's Internet website.
(e) The board shall include in any report to the legislature
or governor:
(1) a description of any information that was not
provided by a public retirement system pursuant to a requirement of
this chapter or Chapter 802 or pursuant to a request by the board;
(2) details regarding the circumstances of the
requirement or request described in Subdivision (1), including the
identification of the public retirement system, the requirement or
request, and any response provided by the public retirement system;
and
(3) the effect of the lack of the information on the
board's ability to meet the duties and reporting requirements in
this chapter or Chapter 802.
SECTION 3. Subchapter B, Chapter 802, Government Code, is
amended by adding Section 802.1013 to read as follows:
Sec. 802.1013. ACTUARIAL EXPERIENCE STUDIES. (a) In this
section, "plan year" means the 12-month accounting period of the
affected pension plan of a public retirement system subject to this
section.
(b) Subject to Subsection (c), the board may require a
public retirement system with total assets the book value of which,
as of the last day of the preceding plan year, is at least $100
million to conduct an actuarial experience study. A public
retirement system shall provide to the board any actuarial
experience study conducted by or for the public retirement system.
(c) The board may not require a public retirement system to
conduct more than one actuarial experience study every five years.
(d) The board may adopt rules to implement this section.
SECTION 4. Chapter 107, Local Government Code, is repealed.
SECTION 5. The repeal of Chapter 107, Local Government
Code, by this Act does not:
(1) affect the validity of an obligation issued under
that chapter before the effective date of this Act; or
(2) diminish or impair the rights of a holder of an
obligation of a municipality issued for the purpose authorized by
that chapter before the effective date of this Act.
SECTION 6. This Act takes effect September 1, 2011.
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