| 1 | 1 | | By: Rodriguez S.B. No. 1133 |
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| 2 | 2 | | (Pickett) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to contributions to certain fire and police pension funds. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 14, Chapter 101 (H.B. 31), Acts of the |
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| 10 | 10 | | 43rd Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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| 11 | 11 | | Texas Civil Statutes), is amended to read as follows: |
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| 12 | 12 | | Sec. 14. USE OF PUBLIC FUNDS. Except as provided by Section |
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| 13 | 13 | | 14A of this Act, no [No] funds shall be paid out of the public |
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| 14 | 14 | | treasury of any such incorporated city or town, in carrying out any |
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| 15 | 15 | | of the provisions of this law, except on a majority vote of the |
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| 16 | 16 | | voters of such city or town, and where such funds have been voted on |
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| 17 | 17 | | as provided by law, said city or town shall contribute such amount. |
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| 18 | 18 | | SECTION 2. Subsection (a), Section 14A, Chapter 101 (H.B. |
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| 19 | 19 | | 31), Acts of the 43rd Legislature, 1st Called Session, 1933 |
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| 20 | 20 | | (Article 6243b, Vernon's Texas Civil Statutes), is amended to read |
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| 21 | 21 | | as follows: |
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| 22 | 22 | | (a) If at any time a qualified actuary that meets the |
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| 23 | 23 | | requirements of Subdivision (1), Subsection (b), Section 10A of |
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| 24 | 24 | | this Act, determines that the total contribution rate, expressed as |
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| 25 | 25 | | a percentage of wages, is insufficient to amortize the unfunded |
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| 26 | 26 | | actuarial accrued liability, as defined under the Governmental |
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| 27 | 27 | | Accounting Standards Board Statement No. 25, over a 40-year period |
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| 28 | 28 | | [not to exceed forty (40) years]: |
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| 29 | 29 | | (1) the city's or town's governing body may increase |
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| 30 | 30 | | the city or town contribution rate; and |
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| 31 | 31 | | (2) to the extent that the city or town contribution |
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| 32 | 32 | | rate increases under Subdivision (1) of this subsection, the member |
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| 33 | 33 | | contribution rate must increase by an amount equal to the member |
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| 34 | 34 | | contribution rate before the increase multiplied by a fraction: |
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| 35 | 35 | | (A) the numerator of which is the increase in the |
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| 36 | 36 | | amount of the city or town contribution rate; and |
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| 37 | 37 | | (B) the denominator of which is the amount of the |
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| 38 | 38 | | city or town contribution rate before the increase. |
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| 39 | 39 | | SECTION 3. Chapter 101 (H.B. 31), Acts of the 43rd |
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| 40 | 40 | | Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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| 41 | 41 | | Texas Civil Statutes), is amended by adding Section 14B to read as |
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| 42 | 42 | | follows: |
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| 43 | 43 | | Sec. 14B. CONTRIBUTION DECREASES. (a) If at any time a |
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| 44 | 44 | | qualified actuary that meets the requirements of Section 10A(b)(1) |
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| 45 | 45 | | of this Act determines that the total contribution rate, expressed |
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| 46 | 46 | | as a percentage of wages, is sufficient to amortize the unfunded |
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| 47 | 47 | | actuarial accrued liability, as defined under the Governmental |
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| 48 | 48 | | Accounting Standards Board Statement No. 25, over a 25-year period: |
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| 49 | 49 | | (1) the city's or town's governing body may decrease |
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| 50 | 50 | | the city or town contribution rate; and |
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| 51 | 51 | | (2) to the extent that the city or town contribution |
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| 52 | 52 | | rate decreases under Subdivision (1) of this subsection, the member |
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| 53 | 53 | | contribution rate must decrease by an amount equal to the member |
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| 54 | 54 | | contribution rate before the decrease multiplied by a fraction: |
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| 55 | 55 | | (A) the numerator of which is the decrease in the |
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| 56 | 56 | | amount of the city or town contribution rate; and |
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| 57 | 57 | | (B) the denominator of which is the amount of the |
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| 58 | 58 | | city or town contribution rate before the decrease. |
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| 59 | 59 | | (b) The sum of the city or town contribution rate and the |
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| 60 | 60 | | member contribution rate after a decrease under this section may |
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| 61 | 61 | | not be less than the total contribution rate determined by the |
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| 62 | 62 | | qualified actuary to be necessary to amortize the unfunded |
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| 63 | 63 | | actuarial accrued liability over a 25-year period. |
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| 64 | 64 | | SECTION 4. This Act takes effect immediately if it receives |
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| 65 | 65 | | a vote of two-thirds of all the members elected to each house, as |
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| 66 | 66 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 67 | 67 | | Act does not receive the vote necessary for immediate effect, this |
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| 68 | 68 | | Act takes effect September 1, 2013. |
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