Texas 2015 - 84th Regular

Texas Senate Bill SB463 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Huffman S.B. No. 463
2		-	(Kuempel)
	1	+	S.B. No. 463
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to the restructuring of certain fund accounts of the Texas
8	6		County and District Retirement System.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 842.056, Government Code, is amended to
11	9		read as follows:
12	10		Sec. 842.056. CLASS C. If any assets remain after the
13	11		transfers are made under Sections 842.054 and 842.055, the
14	12		retirement system shall make a transfer to the closed subdivision
15	13		[current service] annuity reserve fund in an amount computed as
16	14		necessary to fund the basic and supplemental annuities of the
17	15		annuitants of the subdivision and a transfer to the individual
18	16		account of each member of the class eligible to retire in an amount
19	17		that equals the multiple matching credits and prior service credits
20	18		of the member. If necessary, the retirement system shall
21	19		proportionately reduce an individual's total credits or
22	20		supplemental annuity, as applicable, based on the ratio that the
23	21		individual's total actuarial equivalent of benefits described by
24	22		this section bears to the aggregate total actuarial equivalent of
25	23		all those benefits of the class.
26	24		SECTION 2. Section 844.002(b), Government Code, is amended
27	25		to read as follows:
28	26		(b) A basic annuity is an amount payable from the
29	27		subdivision accumulation [current service annuity reserve] fund
30	28		and is actuarially determined from the sum of a member's:
31	29		(1) accumulated contributions; and
32	30		(2) current service credit.
33	31		SECTION 3. Section 844.309(a), Government Code, is amended
34	32		to read as follows:
35	33		(a) If a disability retirement is canceled and the
36	34		retirement annuity terminated under this subchapter, the person
37	35		automatically resumes membership in the retirement system and the
38	36		retirement system shall transfer[:
39	37		[(1)] from the subdivision accumulation [current
40	38		service annuity reserve] fund and credit to the person's individual
41	39		account in the employees saving fund an amount equal to the amount
42	40		of accumulated contributions transferred to the subdivision
43	41		accumulation [current service annuity reserve] fund at the time of
44	42		retirement reduced by one percent for each year or part of a year
45	43		during which disability annuity payments were made[; and
46	44		[(2) from the current service annuity reserve fund to
47	45		the subdivision accumulation fund an amount equal to the amount
48	46		transferred from the subdivision accumulation fund to the current
49	47		service annuity reserve fund at the time of retirement reduced by
50	48		one percent for each year or part of a year during which disability
51	49		annuity payments were made].
52	50		SECTION 4. Section 844.402, Government Code, is amended by
53	51		amending Subsection (c) and adding Subsection (d) to read as
54	52		follows:
55	53		(c) The benefit provided by this section is payable from the
56	54		[current service annuity reserve fund and the] subdivision
57	55		accumulation fund [in the ratio that the parts of the retirement
58	56		annuity that were payable from the funds bear to the entire benefit
59	57		as determined on the effective date of retirement].
60	58		(d) For plans terminated under Subchapter A-1, Chapter 842,
61	59		the benefit provided by this section is payable from the closed
62	60		subdivision annuity reserve fund.
63	61		SECTION 5. Section 845.305(b), Government Code, is amended
64	62		to read as follows:
65	63		(b) All assets of the pension trust of the retirement system
66	64		shall be credited according to the purpose for which they are held
67	65		to one of the following funds:
68	66		(1) employees saving fund;
69	67		(2) subdivision accumulation fund;
70	68		(3) closed subdivision [current service] annuity
71	69		reserve fund;
72	70		(4) income fund;
73	71		(5) endowment fund; or
74	72		(6) expense fund.
75	73		SECTION 6. Section 845.307(b), Government Code, is amended
76	74		to read as follows:
77	75		(b) Subject to Subsection (c), the retirement system shall
78	76		pay from the subdivision accumulation fund all payments for
79	77		annuities and other benefit payments [under prior service annuities
80	78		granted before January 1, 1978, and currently in force and all
81	79		payments under supplemental annuities from credits] granted by a
82	80		participating subdivision. [The retirement system shall charge
83	81		payments from the fund to the participating subdivision's account.]
84	82		SECTION 7. Section 845.308, Government Code, is amended to
85	83		read as follows:
86	84		Sec. 845.308. CLOSED SUBDIVISION [CURRENT SERVICE] ANNUITY
87	85		RESERVE FUND. (a) The retirement system shall deposit and hold in
88	86		the closed subdivision [current service] annuity reserve fund all
89	87		reserves for annuities payable to annuitants who were members of
90	88		subdivisions that terminated participation with the retirement
91	89		system under Subchapter A-1, Chapter 842[:
92	90		[(1) current service annuities in force that were
93	91		granted before January 1, 1978; and
94	92		[(2) all basic annuities granted on or after January
95	93		1, 1978].
96	94		(b) The retirement system shall pay from the closed
97	95		subdivision [current service] annuity reserve fund annuities
98	96		described by Subsection (a) and all benefits in lieu of those
99	97		annuities as provided by this subtitle.
100	98		SECTION 8. Section 845.315(a), Government Code, is amended
101	99		to read as follows:
102	100		(a) As of December 31 of each year, the board of trustees
103	101		shall make the following allocations that in the aggregate equal
104	102		the net investment income or loss for the year:
105	103		(1) to the closed subdivision [current service]
106	104		annuity reserve fund, interest as allowed under this subtitle on
107	105		the mean amount in the closed subdivision [current service] annuity
108	106		reserve fund during that year;
109	107		(2) to the optional group term life fund, interest as
110	108		allowed under this subtitle on the mean amount in the optional group
111	109		term life fund during that year;
112	110		(3) to the general reserves account of the endowment
113	111		fund, a positive or negative amount determined by the board;
114	112		(4) to the employees saving fund, current interest as
115	113		allowed under this subtitle on the member account balances on
116	114		January 1 of that year of all persons who are members on December 31
117	115		of that year;
118	116		(5) to the accounts of subdivisions, other than
119	117		subdivisions otherwise described by this section, positive or
120	118		negative amounts as determined under rules adopted by the board
121	119		prescribing the allocation methodology for the accounts; and
122	120		(6) to the accounts of subdivisions to which Section
123	121		842.052 or 842.053 applies, positive or negative amounts as
124	122		determined by the board, and if a subdivision terminates
125	123		participation before December 31 of that year, the board shall
126	124		determine the allocation amount and transfer date before December
127	125		31 of that year.
128	126		SECTION 9. Section 845.316, Government Code, is amended by
129	127		amending Subsection (a) and adding Subsection (b) to read as
130	128		follows:
131	129		(a) When a member retires, the retirement system shall
132	130		transfer[:
133	131		[(1)] from the employees saving fund to the
134	132		subdivision accumulation [current service annuity reserve] fund,
135	133		the member's accumulated contributions[; and
136	134		[(2) from the subdivision accumulation fund to the
137	135		current service annuity reserve fund, an amount equal to the
138	136		member's current service credit].
139	137		(b) When a member retires from a subdivision that has
140	138		terminated participation with the retirement system under
141	139		Subchapter A-1, Chapter 842, the retirement system shall transfer
142	140		the member's individual account to the closed subdivision annuity
143	141		reserve fund.
144	142		SECTION 10. (a) Effective January 1, 2017, the current
145	143		service annuity reserve fund is renamed the closed subdivision
146	144		annuity reserve fund and consists of the assets and liabilities of
147	145		each of the respective accounts in the current service annuity
148	146		reserve fund for each formerly participating subdivision that has
149	147		terminated participation with the Texas County and District
150	148		Retirement System under Subchapter A-1, Chapter 842, Government
151	149		Code.
152	150		(b) Effective January 1, 2017, the Texas County and District
153	151		Retirement System shall transfer, if appropriate, the assets and
154	152		corresponding liabilities of each participating subdivision's
155	153		accounts in the closed subdivision annuity reserve fund, formerly
156	154		known as the current service annuity reserve fund, to the
157	155		appropriate account in the subdivision accumulation fund, as
158	156		determined by the board of trustees of the retirement system in
159	157		consultation with the retirement system's actuary.
160	158		(c) In administering Subtitle F, Title 8, Government Code,
161	159		as amended by this Act, including crediting interest and conducting
162	160		the actuarial valuation required under that subtitle, the Texas
163	161		County and District Retirement System shall make all necessary
164	162		computations to reflect the transfers of assets and liabilities
165	163		required by Subsection (b) of this section based on a valuation date
166	164		of December 31, 2016.
167	165		SECTION 11. This Act takes effect immediately if it
168	166		receives a vote of two-thirds of all the members elected to each
169	167		house, as provided by Section 39, Article III, Texas Constitution.
170	168		If this Act does not receive the vote necessary for immediate
171	169		effect, this Act takes effect January 1, 2016.
	170	+	______________________________ ______________________________
	171	+	President of the Senate Speaker of the House
	172	+	I hereby certify that S.B. No. 463 passed the Senate on
	173	+	April 9, 2015, by the following vote: Yeas 31, Nays 0.
	174	+	______________________________
	175	+	Secretary of the Senate
	176	+	I hereby certify that S.B. No. 463 passed the House on
	177	+	May 19, 2015, by the following vote: Yeas 146, Nays 0,
	178	+	two present not voting.
	179	+	______________________________
	180	+	Chief Clerk of the House
	181	+	Approved:
	182	+	______________________________
	183	+	Date
	184	+	______________________________
	185	+	Governor