83R9857 SCL-F
By: Burkett H.B. No. 3488
A BILL TO BE ENTITLED
AN ACT
relating to financial accounting and reporting of pension benefits
for employees of this state and political subdivisions of this
state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter C, Chapter 2266,
Government Code, is amended to read as follows:
SUBCHAPTER C. PENSION AND OTHER POSTEMPLOYMENT BENEFITS
SECTION 2. Section 2266.102, Government Code, is amended to
read as follows:
Sec. 2266.102. ACCOUNTING FOR PENSION AND OTHER
POSTEMPLOYMENT BENEFITS. To the extent that generally accepted
accounting principles require accounting or reporting of pension
and other postemployment benefits at the government-wide or fund
level on any basis other than pay-as-you-go, this state and its
political subdivisions may account for or report those pension and
other postemployment benefits in accordance with the statutory
accounting principles in this chapter.
SECTION 3. The heading to Section 2266.103, Government
Code, is amended to read as follows:
Sec. 2266.103. COMMUNICATION OF STATE SYSTEM'S OBLIGATIONS
TO PROVIDE PENSION AND OTHER POSTEMPLOYMENT BENEFITS.
SECTION 4. Sections 2266.103(a) and (c), Government Code,
are amended to read as follows:
(a) In this section, "member" means a person to whom a state
system provides, or has promised to provide, pension or other
postemployment benefits, including:
(1) a retiree, annuitant, or employee; or
(2) a spouse, surviving spouse, or other dependent.
(c) A state system shall inform its members about the extent
of the system's commitments regarding pension or other
postemployment benefits, including whether the pension or other
postemployment benefits are limited by funding obligations or
whether the funding obligations extend throughout the life of the
member.
SECTION 5. Section 2266.104, Government Code, is amended to
read as follows:
Sec. 2266.104. DISCLOSURE OF INFORMATION ON FINANCIAL
STATEMENTS; GENERALLY. This state or a political subdivision of
this state shall disclose in its notes to the financial statement in
a manner consistent with this subchapter:
(1) pension and other postemployment benefits that it
provides in its substantive plan, including:
(A) the covered employee groups;
(B) eligibility requirements; and
(C) the amount, described in an appropriate
manner, of obligations that it and the member contribute;
(2) the statutory, contractual, or other authority
under which pension and other postemployment benefits are provided
under Subdivision (1);
(3) the accounting, financing, and funding policies
that it follows;
(4) the amount of pension and other postemployment
benefits expenditures that it recognizes during the period, net of
member contributions;
(5) the number of members currently eligible to
receive pension or other postemployment benefits;
(6) any significant matters that affect the
comparability of the disclosures required by this section with
those for the previous period; and
(7) any additional information that it believes will
assist in explaining the nature and cost of its commitment to
provide pension and other postemployment benefits.
SECTION 6. Section 2266.106(b), Government Code, is amended
to read as follows:
(b) The site must include information that makes the site a
resource tool for the state and its political subdivisions to
consistently manage pension and other postemployment benefits to
conform to statutory, constitutional, and other legal
requirements.
SECTION 7. This Act takes effect September 1, 2013.