83R10200 SGA-D
By: Alonzo H.B. No. 2968
A BILL TO BE ENTITLED
AN ACT
relating to a moratorium on increases paid to certain employees of
and investment managers for the Employees Retirement System of
Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 815, Government Code, is
amended by adding Section 815.3012 to read as follows:
Sec. 815.3012. MORATORIUM ON CERTAIN COMPENSATION
INCREASES AND BONUSES. (a) This section applies only to a person
who is the executive director of the retirement system, the chief
investment officer of the retirement system, an investment manager
in the investments division of the retirement system, or a private
professional investment manager with whom the retirement system has
contracted under Section 815.301 for assistance in investing the
assets of the retirement system.
(b) Notwithstanding a compensation provision for retirement
system employees to the contrary, the retirement system may not
provide a salary increase or bonus of any type to an employee of the
retirement system described by Subsection (a).
(c) The retirement system may not renew or enter into a
contract with a private professional investment manager if the
contract provides for a bonus or other pay increase based on the
performance of the investments managed by that person.
(d) Before this section expires under Subsection (e), the
retirement system must produce a written report on the amount of the
cost of living adjustment and the date of the first annuity payments
that include the adjustment. The report shall be submitted to the
governor, the lieutenant governor, the speaker of the house of
representatives, and the standing legislative committees with
primary jurisdiction over public pension systems.
(e) This section expires on the 30th day after the date the
retirement system provides a cost of living adjustment for benefits
paid under Chapter 814.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.