| 1 | 1 | | 85R10376 KFF-D |
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| 2 | 2 | | By: Moody H.B. No. 4232 |
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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 the amount of the employer contribution rate for |
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| 8 | 8 | | certain public retirement systems; authorizing a penalty. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle A, Title 8, Government Code, is amended |
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| 11 | 11 | | by adding Chapter 808 to read as follows: |
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| 12 | 12 | | CHAPTER 808. ADJUSTMENTS TO EMPLOYER CONTRIBUTION RATES |
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| 13 | 13 | | SUBCHAPTER A. GENERAL PROVISIONS |
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| 14 | 14 | | Sec. 808.001. DEFINITIONS. In this chapter: |
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| 15 | 15 | | (1) "Funded ratio" means the ratio of a public |
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| 16 | 16 | | retirement system's actuarial value of assets divided by the |
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| 17 | 17 | | retirement system's actuarial accrued liability. |
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| 18 | 18 | | (2) "Governmental entity" has the meaning assigned by |
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| 19 | 19 | | Section 802.1012. |
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| 20 | 20 | | (3) "Public retirement system" has the meaning |
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| 21 | 21 | | assigned by Section 802.001. |
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| 22 | 22 | | Sec. 808.002. EXEMPTIONS. This chapter does not apply to |
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| 23 | 23 | | the Employees Retirement System of Texas, the Teacher Retirement |
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| 24 | 24 | | System of Texas, the Texas County and District Retirement System, |
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| 25 | 25 | | the Texas Municipal Retirement System, and the Judicial Retirement |
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| 26 | 26 | | System of Texas Plan Two. |
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| 27 | 27 | | Sec. 808.003. CONFLICT OF LAW. To the extent of a conflict |
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| 28 | 28 | | between this chapter and any other law, this chapter prevails. |
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| 29 | 29 | | SUBCHAPTER B. ADJUSTMENT IN EMPLOYER CONTRIBUTION RATES |
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| 30 | 30 | | Sec. 808.051. CONTRIBUTION RATE ADJUSTMENT. If a public |
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| 31 | 31 | | retirement system's most recent actuarial valuation reflects a |
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| 32 | 32 | | funded ratio that is below 85 percent, the governmental entity |
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| 33 | 33 | | shall contribute the recommended contribution rate determined |
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| 34 | 34 | | under Section 802.101(a), if applicable, or the actuarially |
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| 35 | 35 | | projected contribution rate otherwise recommended in the |
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| 36 | 36 | | valuation. |
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| 37 | 37 | | SUBCHAPTER C. ENFORCEMENT |
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| 38 | 38 | | Sec. 808.101. PENALTY OWED TO ACTIVE MEMBERS. (a) During |
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| 39 | 39 | | any period in which a governmental entity fails to comply with |
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| 40 | 40 | | Section 808.051, the governmental entity is liable to each active |
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| 41 | 41 | | member of the public retirement system for which the governmental |
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| 42 | 42 | | entity fails to comply for a penalty in an amount equal to the |
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| 43 | 43 | | member's contributions for that period. |
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| 44 | 44 | | (b) A public retirement system is not liable for the penalty |
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| 45 | 45 | | imposed on a governmental entity under this section. |
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| 46 | 46 | | SECTION 2. This Act takes effect September 1, 2017. |
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