By: Stephenson H.B. No. 101
A BILL TO BE ENTITLED
AN ACT
relating to authorizing public retirement systems to study the
cost-effectiveness and feasibility of implementing certain pension
revenue enhancement strategies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) In this section:
(1) "Governing body of a public retirement system" and
"public retirement system" have the meanings assigned by Section
802.001, Government Code.
(2) "Pension revenue enhancement strategy" means a
strategy by which a public retirement system obtains a life
insurance policy for each employee participating in the retirement
system, with the employee's consent, held in a separate trust for
the benefit of the retirement system. On the death of the employee,
the proceeds of the life insurance policy would be payable to the
public retirement system and added to the retirement system's
assets.
(b) The governing body of a public retirement system may
conduct a study to evaluate the cost-effectiveness and feasibility
of implementing a pension revenue enhancement strategy to create an
additional source of funding to address potential deficiencies in
funding the retirement system's liabilities.
(c) Not later than September 1, 2018, the governing body of
a public retirement system that completes a study described by
Subsection (b) of this section shall submit a written report to the
legislature and the standing committees of the house of
representatives and senate that have primary jurisdiction over
state pension systems containing the findings of the study together
with the governing body's recommendations regarding the
cost-effectiveness and feasibility of implementing a pension
revenue enhancement strategy.
(d) This Act expires December 31, 2018.
SECTION 2. This Act takes effect September 1, 2017.