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