| 1 | 1 | | 2017S0005-1 10/20/16 |
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| 2 | 2 | | By: Bettencourt S.B. No. 152 |
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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 municipal control of certain public retirement systems |
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| 8 | 8 | | established for the benefit of municipal employees. |
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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. Chapter 810, Government Code, is amended by |
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| 11 | 11 | | adding Section 810.002 to read as follows: |
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| 12 | 12 | | Sec. 810.002. MUNICIPAL CONTROL OF RETIREMENT SYSTEM |
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| 13 | 13 | | PROVISIONS. (a) In this section, "public retirement system" has |
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| 14 | 14 | | the meaning assigned by Section 802.001. |
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| 15 | 15 | | (b) Except as provided by Sections 66 and 67, Article XVI, |
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| 16 | 16 | | Texas Constitution, and notwithstanding any other law, a |
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| 17 | 17 | | municipality that is the sponsoring authority of a public |
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| 18 | 18 | | retirement system that was created under a state statute, but is not |
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| 19 | 19 | | a part of a statewide public retirement system, may adopt by |
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| 20 | 20 | | ordinance or resolution, as applicable, provisions that supplement |
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| 21 | 21 | | or supersede the operative provisions of the public retirement |
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| 22 | 22 | | system. |
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| 23 | 23 | | (c) Provisions adopted under Subsection (b): |
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| 24 | 24 | | (1) apply only to a person who becomes eligible for |
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| 25 | 25 | | membership in the public retirement system after December 31, 2017; |
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| 26 | 26 | | and |
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| 27 | 27 | | (2) subject to Subsection (d), may include or apply |
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| 28 | 28 | | to: |
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| 29 | 29 | | (A) the use of a defined contribution plan |
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| 30 | 30 | | instead of a defined benefit plan; |
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| 31 | 31 | | (B) any provision relating to benefits, |
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| 32 | 32 | | participation, or eligibility requirements; |
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| 33 | 33 | | (C) the source or amount of the funding; and |
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| 34 | 34 | | (D) the administration of the system. |
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| 35 | 35 | | (d) Any plan governed by a provision adopted under |
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| 36 | 36 | | Subsection (b) must be funded 100 percent by the municipality not |
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| 37 | 37 | | later than 180 days after the ending date of the municipality's |
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| 38 | 38 | | fiscal year. |
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| 39 | 39 | | (e) Contributions by an employee described by Subsection |
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| 40 | 40 | | (c)(1) to a plan that is governed by a provision adopted under |
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| 41 | 41 | | Subsection (b) are deposited with: |
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| 42 | 42 | | (1) the trustees of any plan for which the employee |
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| 43 | 43 | | would have qualified if not for the municipality's action under |
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| 44 | 44 | | Subsection (b); or |
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| 45 | 45 | | (2) the custodian of an individual retirement account |
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| 46 | 46 | | designated by the employee. |
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| 47 | 47 | | (f) In no event shall a municipality retain custody of any |
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| 48 | 48 | | contribution made under Subsection (e) or the ability to determine |
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| 49 | 49 | | the manner in which such contribution shall be invested. |
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| 50 | 50 | | (g) In the event of a conflict between a statute adopted |
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| 51 | 51 | | before the effective date of the Act enacting this section that |
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| 52 | 52 | | applies to a public retirement system described by Subsection (b) |
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| 53 | 53 | | and a municipal ordinance or resolution adopted by the governing |
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| 54 | 54 | | body of the sponsoring municipality of that retirement system under |
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| 55 | 55 | | this section, the municipal ordinance or resolution prevails. |
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| 56 | 56 | | SECTION 2. This Act takes effect immediately if it receives |
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| 57 | 57 | | a vote of two-thirds of all the members elected to each house, as |
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| 58 | 58 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 59 | 59 | | Act does not receive the vote necessary for immediate effect, this |
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| 60 | 60 | | Act takes effect September 1, 2017. |
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