Texas 2011 - 82nd Regular

Texas Senate Bill SB1612 Compare Versions

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1	1	By: Ogden S.B. No. 1612
2	2	(Truitt, Legler, Nash)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the monitoring, oversight, and funding of certain
8	8	public retirement systems.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subsection (b), Section 801.201, Government
11	11	Code, is amended to read as follows:
12	12	(b) For the purpose of performing its duties under Section
13	13	801.202(1) or (2), the board by rule may require clarification of
14	14	information provided by a public retirement system in a report that
15	15	is required by law and is required to be filed with the board. [A
16	16	rule adopted under this subsection may not be enforced against a
17	17	public retirement system if compliance with the rule would cause
18	18	the system to incur a major expense.]
19	19	SECTION 2. Section 801.203, Government Code, is amended by
20	20	adding Subsections (c), (d), and (e) to read as follows:
21	21	(c) The board shall prepare an annual report relating to the
22	22	performance of each public retirement system that administers a
23	23	defined benefit plan and has total assets the book value of which,
24	24	as of the last day of the preceding fiscal year, is at least $100
25	25	million. The report required under this section must include:
26	26	(1) each system's investment allocations and practices
27	27	during the preceding fiscal year;
28	28	(2) the rate of return on the investment of each
29	29	system's cash and securities during the preceding fiscal year;
30	30	(3) a description of the extent to which, during the
31	31	preceding fiscal year, each system complied with:
32	32	(A) the reporting requirements under this
33	33	chapter and Chapter 802; and
34	34	(B) the system's investment strategy;
35	35	(4) rate of return sensitivity analysis for a
36	36	projected ten-year period from the current fiscal year; and
37	37	(5) solvency and cash flow projections for the current
38	38	fiscal year.
39	39	(d) The board shall:
40	40	(1) prepare the report required under Subsection (c)
41	41	in two parts, with the first part posted on the board's Internet
42	42	website not later than March 1 of each year and the second part
43	43	posted on the board's Internet website not later than September 1 of
44	44	each year, and shall include the information required for a public
45	45	retirement system in one of the two parts based on the date the
46	46	system's fiscal year ends;
47	47	(2) provide a review and comment period for the public
48	48	retirement systems included in a report prior to posting the report
49	49	on the board's Internet website; and
50	50	(3) immediately notify the legislature and governor
51	51	when the report, or part of the report, is available for viewing on
52	52	the board's Internet website.
53	53	(e) The board shall include in any report to the legislature
54	54	or governor:
55	55	(1) a description of any information that was not
56	56	provided by a public retirement system pursuant to a requirement of
57	57	this chapter or Chapter 802 or pursuant to a request by the board;
58	58	(2) details regarding the circumstances of the
59	59	requirement or request described in Subdivision (1), including the
60	60	identification of the public retirement system, the requirement or
61	61	request, and any response provided by the public retirement system;
62	62	and
63	63	(3) the effect of the lack of the information on the
64	64	board's ability to meet the duties and reporting requirements in
65	65	this chapter or Chapter 802.
66	66	SECTION 3. Subchapter B, Chapter 802, Government Code, is
67	67	amended by adding Section 802.1013 to read as follows:
68	68	Sec. 802.1013. ACTUARIAL EXPERIENCE STUDIES. (a) In this
69	69	section, "plan year" means the 12-month accounting period of the
70	70	affected pension plan of a public retirement system subject to this
71	71	section.
72	72	(b) Subject to Subsection (c), the board may require a
73	73	public retirement system with total assets the book value of which,
74	74	as of the last day of the preceding plan year, is at least $100
75	75	million to conduct an actuarial experience study. A public
76	76	retirement system shall provide to the board any actuarial
77	77	experience study conducted by or for the public retirement system.
78	78	(c) The board may not require a public retirement system to
79	79	conduct more than one actuarial experience study every five years.
80	80	(d) The board may adopt rules to implement this section.
81	81	SECTION 4. Chapter 107, Local Government Code, is repealed.
82	82	SECTION 5. The repeal of Chapter 107, Local Government
83	83	Code, by this Act does not:
84	84	(1) affect the validity of an obligation issued under
85	85	that chapter before the effective date of this Act; or
86	86	(2) diminish or impair the rights of a holder of an
87	87	obligation of a municipality issued for the purpose authorized by
88	88	that chapter before the effective date of this Act.
89	89	SECTION 6. This Act takes effect September 1, 2011.