Texas 2015 - 84th Regular

Texas House Bill HB766 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		84R6551 TSR-D
2	2		By: Kuempel H.B. No. 766
3		-	Substitute the following for H.B. No. 766:
4		-	By: Paul C.S.H.B. No. 766
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to the restructuring of certain fund accounts of the Texas
10	8		County and District Retirement System.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Section 842.056, Government Code, is amended to
13	11		read as follows:
14	12		Sec. 842.056. CLASS C. If any assets remain after the
15	13		transfers are made under Sections 842.054 and 842.055, the
16	14		retirement system shall make a transfer to the closed subdivision
17	15		[current service] annuity reserve fund in an amount computed as
18	16		necessary to fund the basic and supplemental annuities of the
19	17		annuitants of the subdivision and a transfer to the individual
20	18		account of each member of the class eligible to retire in an amount
21	19		that equals the multiple matching credits and prior service credits
22	20		of the member. If necessary, the retirement system shall
23	21		proportionately reduce an individual's total credits or
24	22		supplemental annuity, as applicable, based on the ratio that the
25	23		individual's total actuarial equivalent of benefits described by
26	24		this section bears to the aggregate total actuarial equivalent of
27	25		all those benefits of the class.
28	26		SECTION 2. Section 844.002(b), Government Code, is amended
29	27		to read as follows:
30	28		(b) A basic annuity is an amount payable from the
31	29		subdivision accumulation [current service annuity reserve] fund
32	30		and is actuarially determined from the sum of a member's:
33	31		(1) accumulated contributions; and
34	32		(2) current service credit.
35	33		SECTION 3. Section 844.309(a), Government Code, is amended
36	34		to read as follows:
37	35		(a) If a disability retirement is canceled and the
38	36		retirement annuity terminated under this subchapter, the person
39	37		automatically resumes membership in the retirement system and the
40	38		retirement system shall transfer[:
41	39		[(1)] from the subdivision accumulation [current
42	40		service annuity reserve] fund and credit to the person's individual
43	41		account in the employees saving fund an amount equal to the amount
44	42		of accumulated contributions transferred to the subdivision
45	43		accumulation [current service annuity reserve] fund at the time of
46	44		retirement reduced by one percent for each year or part of a year
47	45		during which disability annuity payments were made[; and
48	46		[(2) from the current service annuity reserve fund to
49	47		the subdivision accumulation fund an amount equal to the amount
50	48		transferred from the subdivision accumulation fund to the current
51	49		service annuity reserve fund at the time of retirement reduced by
52	50		one percent for each year or part of a year during which disability
53	51		annuity payments were made].
54	52		SECTION 4. Section 844.402, Government Code, is amended by
55	53		amending Subsection (c) and adding Subsection (d) to read as
56	54		follows:
57	55		(c) The benefit provided by this section is payable from the
58	56		[current service annuity reserve fund and the] subdivision
59	57		accumulation fund [in the ratio that the parts of the retirement
60	58		annuity that were payable from the funds bear to the entire benefit
61	59		as determined on the effective date of retirement].
62	60		(d) For plans terminated under Subchapter A-1, Chapter 842,
63	61		the benefit provided by this section is payable from the closed
64	62		subdivision annuity reserve fund.
65	63		SECTION 5. Section 845.305(b), Government Code, is amended
66	64		to read as follows:
67	65		(b) All assets of the pension trust of the retirement system
68	66		shall be credited according to the purpose for which they are held
69	67		to one of the following funds:
70	68		(1) employees saving fund;
71	69		(2) subdivision accumulation fund;
72	70		(3) closed subdivision [current service] annuity
73	71		reserve fund;
74	72		(4) income fund;
75	73		(5) endowment fund; or
76	74		(6) expense fund.
77	75		SECTION 6. Section 845.307(b), Government Code, is amended
78	76		to read as follows:
79	77		(b) Subject to Subsection (c), the retirement system shall
80	78		pay from the subdivision accumulation fund all payments for
81	79		annuities and other benefit payments [under prior service annuities
82	80		granted before January 1, 1978, and currently in force and all
83	81		payments under supplemental annuities from credits] granted by a
84	82		participating subdivision. [The retirement system shall charge
85	83		payments from the fund to the participating subdivision's account.]
86	84		SECTION 7. Section 845.308, Government Code, is amended to
87	85		read as follows:
88	86		Sec. 845.308. CLOSED SUBDIVISION [CURRENT SERVICE] ANNUITY
89	87		RESERVE FUND. (a) The retirement system shall deposit and hold in
90	88		the closed subdivision [current service] annuity reserve fund all
91	89		reserves for annuities payable to annuitants who were members of
92	90		subdivisions that terminated participation with the retirement
93	91		system under Subchapter A-1, Chapter 842[:
94	92		[(1) current service annuities in force that were
95	93		granted before January 1, 1978; and
96	94		[(2) all basic annuities granted on or after January
97	95		1, 1978].
98	96		(b) The retirement system shall pay from the closed
99	97		subdivision [current service] annuity reserve fund annuities
100	98		described by Subsection (a) and all benefits in lieu of those
101	99		annuities as provided by this subtitle.
102	100		SECTION 8. Section 845.315(a), Government Code, is amended
103	101		to read as follows:
104	102		(a) As of December 31 of each year, the board of trustees
105	103		shall make the following allocations that in the aggregate equal
106	104		the net investment income or loss for the year:
107	105		(1) to the closed subdivision [current service]
108	106		annuity reserve fund, interest as allowed under this subtitle on
109	107		the mean amount in the closed subdivision [current service] annuity
110	108		reserve fund during that year;
111	109		(2) to the optional group term life fund, interest as
112	110		allowed under this subtitle on the mean amount in the optional group
113	111		term life fund during that year;
114	112		(3) to the general reserves account of the endowment
115	113		fund, a positive or negative amount determined by the board;
116	114		(4) to the employees saving fund, current interest as
117	115		allowed under this subtitle on the member account balances on
118	116		January 1 of that year of all persons who are members on December 31
119	117		of that year;
120	118		(5) to the accounts of subdivisions, other than
121	119		subdivisions otherwise described by this section, positive or
122	120		negative amounts as determined under rules adopted by the board
123	121		prescribing the allocation methodology for the accounts; and
124	122		(6) to the accounts of subdivisions to which Section
125	123		842.052 or 842.053 applies, positive or negative amounts as
126	124		determined by the board, and if a subdivision terminates
127	125		participation before December 31 of that year, the board shall
128	126		determine the allocation amount and transfer date before December
129	127		31 of that year.
130	128		SECTION 9. Section 845.316, Government Code, is amended by
131	129		amending Subsection (a) and adding Subsection (b) to read as
132	130		follows:
133	131		(a) When a member retires, the retirement system shall
134	132		transfer[:
135	133		[(1)] from the employees saving fund to the
136	134		subdivision accumulation [current service annuity reserve] fund,
137	135		the member's accumulated contributions[; and
138	136		[(2) from the subdivision accumulation fund to the
139	137		current service annuity reserve fund, an amount equal to the
140	138		member's current service credit].
141	139		(b) When a member retires from a subdivision that has
142	140		terminated participation with the retirement system under
143	141		Subchapter A-1, Chapter 842, the retirement system shall transfer
144	142		the member's individual account to the closed subdivision annuity
145	143		reserve fund.
146	144		SECTION 10. (a) Effective January 1, 2017, the current
147	145		service annuity reserve fund is renamed the closed subdivision
148	146		annuity reserve fund and consists of the assets and liabilities of
149	147		each of the respective accounts in the current service annuity
150	148		reserve fund for each formerly participating subdivision that has
151	149		terminated participation with the Texas County and District
152	150		Retirement System under Subchapter A-1, Chapter 842, Government
153	151		Code.
154	152		(b) Effective January 1, 2017, the Texas County and District
155	153		Retirement System shall transfer, if appropriate, the assets and
156	154		corresponding liabilities of each participating subdivision's
157	155		accounts in the closed subdivision annuity reserve fund, formerly
158	156		known as the current service annuity reserve fund, to the
159	157		appropriate account in the subdivision accumulation fund, as
160	158		determined by the board of trustees of the retirement system in
161	159		consultation with the retirement system's actuary.
162	160		(c) In administering Subtitle F, Title 8, Government Code,
163	161		as amended by this Act, including crediting interest and conducting
164	162		the actuarial valuation required under that subtitle, the Texas
165	163		County and District Retirement System shall make all necessary
166	164		computations to reflect the transfers of assets and liabilities
167	165		required by Subsection (b) of this section based on a valuation date
168	166		of December 31, 2016.
169	167		SECTION 11. This Act takes effect immediately if it
170	168		receives a vote of two-thirds of all the members elected to each
171	169		house, as provided by Section 39, Article III, Texas Constitution.
172	170		If this Act does not receive the vote necessary for immediate
173	171		effect, this Act takes effect January 1, 2016.