83R5168 TJS-F
By: Duncan S.B. No. 13
A BILL TO BE ENTITLED
AN ACT
relating to the State Pension Review Board and public retirement
systems; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 801, Government Code, is
amended by adding Sections 801.209, 801.210, and 801.211 to read as
follows:
Sec. 801.209. PUBLIC RETIREMENT SYSTEM REPORTS AND
INFORMATION. (a) For each public retirement system, the board
shall post on the board's Internet website, or on a publicly
available website that is linked to the board's website:
(1) the most recent data from each annual financial
report received by the board;
(2) the most recent data from each report on
investment returns and assumptions received by the board; and
(3) the name, business address, and business telephone
number of the administrator of the public retirement system.
(b) On the 60th day after the date a report or information
required by this chapter or Chapter 802 is due to the board, the
board shall post on the board's website a list of public retirement
systems that have not submitted the required reports or
information.
(c) For each retirement system included on the list posted
under Subsection (b), the board shall notify:
(1) the governor and the Legislative Budget Board
regarding the lack of a timely submission by the Employees
Retirement System of Texas, the Teacher Retirement System of Texas,
the Texas County and District Retirement System, the Texas
Municipal Retirement System, or the Judicial Retirement System of
Texas Plan Two; or
(2) the governing body of the political subdivision of
which members of the public retirement system are officers or
employees regarding the lack of a timely submission by a public
retirement system other than a system listed in Subdivision (1).
Sec. 801.210. MODEL ETHICAL STANDARDS AND
CONFLICT-OF-INTEREST POLICIES. (a) The board shall develop and
make reasonably accessible on the board's Internet website model
ethical standards and model conflict-of-interest policies,
including disclosure requirements, for voluntary use by a public
retirement system.
(b) A public retirement system is not required to adopt a
standard or policy based on the model developed under this section.
Sec. 801.211. PUBLIC RETIREMENT SYSTEM EDUCATIONAL
TRAINING PROGRAM. (a) The board shall develop and administer an
educational training program for trustees and administrators of
public retirement systems.
(b) The curriculum of the educational training program must
include minimum training requirements for board members and
administrators. The board shall develop a system to track
compliance with the minimum training requirements by board members
and administrators and shall report the level of compliance in the
biennial report required by Section 801.203.
(c) The curriculum of the educational training program
under this section may include optional training classes for
trustees, administrators, and employees of public retirement
systems.
(d) To the extent practicable, the board shall make training
classes reasonably accessible to trustees and administrators of
public retirement systems on an Internet website maintained for
that purpose.
(e) The board may adopt rules and appropriate fees to
administer and provide educational training programs under this
section. The net proceeds of the fees shall be deposited in the
State Pension Review Board fund.
SECTION 2. The heading to Section 802.107, Government Code,
is amended to read as follows:
Sec. 802.107. GENERAL PROVISIONS RELATING TO REPORTS AND
CONTACT INFORMATION.
SECTION 3. Section 802.107, Government Code, is amended by
adding Subsections (c), (d), and (e) to read as follows:
(c) A public retirement system shall post on a publicly
available Internet website:
(1) the name, business address, and business telephone
number of the administrator of the public retirement system; and
(2) a copy of the most recent edition of each report
and other information that is required by this chapter or Chapter
801 to be submitted to the board.
(d) A public retirement system that maintains a website or
for which a website is maintained shall prominently post a link on
that website to the information required by Subsection (c). All
other public retirement systems shall:
(1) prominently post the information required by
Subsection (c) on a website that is maintained by the governing body
of the political subdivision of which members of the public
retirement system are officers or employees; or
(2) post the information required by Subsection (c) on
a publicly available website that is maintained by a state agency.
(e) A report or other information posted under Subsection
(c) must remain posted until replaced with a more recently
submitted edition of the report or information.
SECTION 4. Subchapter B, Chapter 802, Government Code, is
amended by adding Section 802.108 to read as follows:
Sec. 802.108. REPORT OF INVESTMENT RETURNS AND ASSUMPTIONS.
A public retirement system shall, before the 211th day after the
last day of the fiscal year under which the system operates, submit
to the board an investment returns and assumptions report that
includes:
(1) net investment returns for each of the most recent
10 fiscal years;
(2) the rolling net rate of return for the most recent
1-year, 3-year, 10-year, and 30-year periods;
(3) the net rate of return since inception of the
system;
(4) the current assumed rate of return; and
(5) the assumed rates of return for the most recent 10
fiscal years.
SECTION 5. (a) In this section:
(1) "Governing body of a public retirement system" and
"public retirement system" have the meanings assigned by Section
802.001, Government Code.
(2) "Pension review board" means the State Pension
Review Board established under Chapter 801, Government Code.
(b) The pension review board shall conduct a study of the
financial health of public retirement systems in this state,
including each system's ability to meet its long-term obligations
considering the contributions, benefits, and investments made
under the system.
(c) Each public retirement system, including the governing
bodies, officers, and employees of each retirement system, shall
fully cooperate with the pension review board in conducting the
study required under Subsection (b) of this section and timely
respond to any request for information made by the board for the
purpose of performing the study.
(d) Not later than September 1, 2014, the pension review
board shall submit to the legislature a written report containing
the findings of the study conducted under this section and the
board's recommendations, including the board's recommendations
regarding how each public retirement system may mitigate any risk
of not meeting the system's long-term obligations.
SECTION 6. (a) The State Pension Review Board shall develop
and publish the model ethical standards and conflict-of-interest
policies required by Section 801.210, Government Code, as added by
this Act, as soon as practicable after the effective date of this
Act, but not later than December 31, 2013.
(b) The State Pension Review Board shall adopt rules to
implement the educational training program required by Section
801.211, Government Code, as added by this Act, as soon as
practicable after the effective date of this Act, but not later than
necessary to begin providing training classes on or before
September 1, 2014.
(c) For purposes of reporting the level of compliance with
the minimum training requirements of the educational training
program as required by Section 801.211(b), Government Code, as
added by this Act, the State Pension Review Board may only evaluate
compliance with the minimum training requirements by trustees and
administrators of public retirement systems on or after January 1,
2015.
SECTION 7. 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.