| 1 | 1 | | 85R7125 LED-D |
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| 2 | 2 | | By: Stephenson H.B. No. 1416 |
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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 authorizing public retirement systems to study the |
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| 8 | 8 | | cost-effectiveness and feasibility of implementing certain pension |
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| 9 | 9 | | revenue enhancement strategies. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. (a) In this section: |
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| 12 | 12 | | (1) "Governing body of a public retirement system" and |
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| 13 | 13 | | "public retirement system" have the meanings assigned by Section |
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| 14 | 14 | | 802.001, Government Code. |
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| 15 | 15 | | (2) "Pension revenue enhancement strategy" means a |
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| 16 | 16 | | strategy by which a public retirement system obtains a life |
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| 17 | 17 | | insurance policy for each employee participating in the retirement |
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| 18 | 18 | | system, with the employee's consent, held in a separate trust for |
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| 19 | 19 | | the benefit of the retirement system. On the death of the employee, |
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| 20 | 20 | | the proceeds of the life insurance policy would be payable to the |
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| 21 | 21 | | public retirement system and added to the retirement system's |
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| 22 | 22 | | assets. |
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| 23 | 23 | | (b) The governing body of a public retirement system may |
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| 24 | 24 | | conduct a study to evaluate the cost-effectiveness and feasibility |
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| 25 | 25 | | of implementing a pension revenue enhancement strategy to create an |
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| 26 | 26 | | additional source of funding to address potential deficiencies in |
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| 27 | 27 | | funding the retirement system's liabilities. |
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| 28 | 28 | | (c) Not later than September 1, 2018, the governing body of |
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| 29 | 29 | | a public retirement system that completes a study described by |
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| 30 | 30 | | Subsection (b) of this section shall submit a written report to the |
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| 31 | 31 | | legislature and the standing committees of the house of |
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| 32 | 32 | | representatives and senate that have primary jurisdiction over |
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| 33 | 33 | | state pension systems containing the findings of the study together |
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| 34 | 34 | | with the governing body's recommendations regarding the |
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| 35 | 35 | | cost-effectiveness and feasibility of implementing a pension |
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| 36 | 36 | | revenue enhancement strategy. |
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| 37 | 37 | | (d) This Act expires December 31, 2018. |
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| 38 | 38 | | SECTION 2. This Act takes effect September 1, 2017. |
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