8 | 15 | | SECTION 1. Section 1.04, Chapter 325 (H.B. 2259), Acts of |
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9 | 16 | | the 75th Legislature, Regular Session, 1997 (Article 6243p, |
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10 | 17 | | Vernon's Texas Civil Statutes), is amended by adding Subdivisions |
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11 | 18 | | (1-a), (1-b), (6-a), (8), (9), and (10) to read as follows: |
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12 | 19 | | (1-a) "Actuarial experience study" has the meaning |
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13 | 20 | | assigned by Section 802.1014, Government Code. |
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14 | 21 | | (1-b) "Actuarially determined contribution rate" |
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15 | 22 | | means the contribution rate, expressed as a percentage of payroll |
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16 | 23 | | or compensation, actuarially determined necessary to: |
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17 | 24 | | (A) fund the normal cost of the pension fund, the |
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18 | 25 | | costs of administering the fund, and the unfunded actuarial |
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19 | 26 | | amortization amount of the fund for the current plan year; and |
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20 | 27 | | (B) maintain a closed amortization period that |
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21 | 28 | | does not exceed 30 years. |
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22 | 29 | | (6-a) "Normal cost" means the actuarially determined |
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23 | 30 | | amount necessary to fully fund accrued pension benefits under the |
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24 | 31 | | pension fund allocated to the current plan year. |
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25 | 32 | | (8) "Plan year" means the 12-month period beginning |
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26 | 33 | | January 1 and ending on the following December 31. |
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27 | 34 | | (9) "Trustee" means a member of the board of trustees. |
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28 | 35 | | (10) "Unfunded actuarial amortization amount" means |
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29 | 36 | | the actuarially determined amount required to pay off the fund's |
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30 | 37 | | unfunded actuarial accrued liability layers over a closed 30-year |
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31 | 38 | | amortization period. The initial layer is equal to the unfunded |
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32 | 39 | | actuarial accrued liability of the fund in the plan year beginning |
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33 | 40 | | January 1, 2019. For each subsequent plan year, the unfunded |
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34 | 41 | | actuarial accrued liability layer is equal to the unanticipated |
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35 | 42 | | change in the unfunded actuarial accrued liability of the fund in |
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36 | 43 | | that plan year over the expected unfunded actuarial accrued |
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37 | 44 | | liability included in the preceding plan year's actuarial |
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38 | 45 | | valuation. |
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39 | 46 | | SECTION 2. Sections 2.01 and 2.02, Chapter 325 (H.B. 2259), |
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40 | 47 | | Acts of the 75th Legislature, Regular Session, 1997 (Article 6243p, |
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41 | 48 | | Vernon's Texas Civil Statutes), are amended to read as follows: |
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42 | 49 | | Sec. 2.01. BOARD OF TRUSTEES. A board of trustees of the |
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43 | 50 | | police pension fund is created, in which is vested the general |
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44 | 51 | | administration, management, and responsibility for the proper and |
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45 | 52 | | effective operation of the fund. [The board shall be organized |
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46 | 53 | | immediately after the members have qualified and taken the oath of |
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47 | 54 | | office.] The board has all necessary powers to discharge the |
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48 | 55 | | board's duties, including the authority to adopt necessary rules |
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49 | 56 | | for the administration of the fund and to correct any defect, supply |
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50 | 57 | | any omission, and reconcile any inconsistency that may appear in |
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51 | 58 | | this Act in a manner and to the extent that the board considers |
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52 | 59 | | expedient for the administration of this Act for the greatest |
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53 | 60 | | benefit of all members of the fund. |
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54 | 61 | | Sec. 2.02. COMPOSITION OF BOARD. (a) The board of trustees |
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55 | 62 | | of the fund is composed of eight trustees [seven members] as |
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56 | 63 | | follows: |
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57 | 64 | | (1) the president of the municipality's police |
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58 | 65 | | association or the president's designee, to serve during the |
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59 | 66 | | president's term of office[, except as provided by Subsection (b) |
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60 | 67 | | of this section]; |
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61 | 68 | | (2) two trustees [one municipal financial staff |
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62 | 69 | | employee] designated by the city manager, to serve at the pleasure |
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63 | 70 | | of the city manager; |
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64 | 71 | | (3) two trustees [one legally qualified voter] |
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65 | 72 | | designated by the [mayor, to serve a two-year term; |
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66 | 73 | | [(4) one legally qualified voter designated by the] |
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67 | 74 | | city council, each to serve a staggered three-year [two-year] term; |
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68 | 75 | | and |
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69 | 76 | | (4) three trustees [(5) three members of the fund] |
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70 | 77 | | elected by the members of the fund, each to serve a staggered |
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71 | 78 | | three-year term. |
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72 | 79 | | (b) [If the president of the municipality's police |
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73 | 80 | | association is prevented by the constitution or bylaws of the |
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74 | 81 | | association from serving as a member of the board of trustees or if |
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75 | 82 | | the president is not a member of the fund, the member of the fund who |
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76 | 83 | | holds the next highest ranking office in the association serves on |
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77 | 84 | | the board in place of the president of the association for the term |
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78 | 85 | | of the officer's office in the association. |
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79 | 86 | | [(c)] A trustee [member of the board of trustees] serves |
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80 | 87 | | until a successor is selected and qualified. A vacancy occurring by |
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81 | 88 | | death, resignation, or removal is filled in the same manner used to |
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82 | 89 | | fill the position being vacated. A person appointed or elected to |
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83 | 90 | | fill a position vacated by death, resignation, or removal serves |
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84 | 91 | | the remainder of the term, if any, for the position being vacated, |
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85 | 92 | | at which time the person may be reappointed or stand for election |
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86 | 93 | | for a full term. |
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87 | 94 | | SECTION 3. Article 2, Chapter 325 (H.B. 2259), Acts of the |
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88 | 95 | | 75th Legislature, Regular Session, 1997 (Article 6243p, Vernon's |
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89 | 96 | | Texas Civil Statutes), is amended by adding Section 2.021 to read as |
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90 | 97 | | follows: |
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91 | 98 | | Sec. 2.021. QUALIFICATIONS OF TRUSTEES. (a) To be |
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92 | 99 | | designated or elected a trustee under Section 2.02 of this Act, a |
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93 | 100 | | person must have: |
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94 | 101 | | (1) demonstrated financial, accounting, business, |
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95 | 102 | | investment, budgeting, or actuarial experience; |
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96 | 103 | | (2) a bachelor's degree from an accredited institution |
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97 | 104 | | of higher education; or |
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98 | 105 | | (3) been vetted to verify that the person is capable of |
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99 | 106 | | performing the duties and responsibilities of a trustee under this |
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100 | 107 | | Act and determined qualified for designation or election, as |
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101 | 108 | | appropriate, to the board by: |
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102 | 109 | | (A) the trustee serving on the board under |
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103 | 110 | | Section 2.02(a)(1) of this Act; and |
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104 | 111 | | (B) a trustee designated by the city manager |
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105 | 112 | | under Section 2.02(a)(2) of this Act. |
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106 | 113 | | (b) A person is presumed to have demonstrated the expertise |
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107 | 114 | | described by Subsection (a)(1) of this section if the person has at |
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108 | 115 | | least five years of full-time employment experience working in a |
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109 | 116 | | field described by that subdivision. |
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110 | 117 | | (c) A person is not required to reside in the municipality |
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111 | 118 | | to be designated or elected a trustee under Section 2.02 of this |
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112 | 119 | | Act. |
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113 | 120 | | SECTION 4. Section 2.03, Chapter 325 (H.B. 2259), Acts of |
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114 | 121 | | the 75th Legislature, Regular Session, 1997 (Article 6243p, |
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115 | 122 | | Vernon's Texas Civil Statutes), is amended to read as follows: |
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116 | 123 | | Sec. 2.03. ELECTED TRUSTEES. The board shall provide by |
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117 | 124 | | rule for the procedure for electing trustees described by Section |
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118 | 125 | | 2.02(a)(4) [2.02(a)(5)] of this Act. |
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119 | 126 | | SECTION 5. Article 2, Chapter 325 (H.B. 2259), Acts of the |
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120 | 127 | | 75th Legislature, Regular Session, 1997 (Article 6243p, Vernon's |
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121 | 128 | | Texas Civil Statutes), is amended by adding Section 2.035 to read as |
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122 | 129 | | follows: |
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123 | 130 | | Sec. 2.035. TRUSTEE TRAINING. (a) A person who is |
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124 | 131 | | appointed or elected to the board of trustees and qualifies for |
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125 | 132 | | office as a trustee shall complete a training program that complies |
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126 | 133 | | with this section. |
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127 | 134 | | (b) The training program must provide the trustee with |
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128 | 135 | | information regarding: |
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129 | 136 | | (1) the law governing the pension fund's operations; |
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130 | 137 | | (2) the programs, functions, rules, and budget of the |
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131 | 138 | | fund; |
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132 | 139 | | (3) the scope of and limitations on the rulemaking |
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133 | 140 | | authority of the board; |
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134 | 141 | | (4) the results of the most recent actuarial valuation |
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135 | 142 | | of the fund; and |
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136 | 143 | | (5) the requirements of: |
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137 | 144 | | (A) laws relating to open meetings, public |
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138 | 145 | | information, administrative procedure, and disclosing conflicts of |
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139 | 146 | | interest; and |
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140 | 147 | | (B) other laws applicable to a trustee in |
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141 | 148 | | performing the trustee's duties, including the board's fiduciary |
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142 | 149 | | duty to hold and administer the assets of the fund for the exclusive |
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143 | 150 | | benefit of members and their beneficiaries under Section 802.203, |
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144 | 151 | | Government Code, Section 67(f), Article XVI, Texas Constitution, |
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145 | 152 | | and any other applicable law. |
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146 | 153 | | SECTION 6. Sections 2.09(a), (b), and (c), Chapter 325 |
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147 | 154 | | (H.B. 2259), Acts of the 75th Legislature, Regular Session, 1997 |
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148 | 155 | | (Article 6243p, Vernon's Texas Civil Statutes), are amended to read |
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149 | 156 | | as follows: |
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150 | 157 | | (a) The board may purchase from an insurer authorized to do |
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151 | 158 | | business in this state one or more insurance policies that provide |
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152 | 159 | | for the reimbursement of a trustee [member], officer, or employee |
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153 | 160 | | of the board for liability imposed as damages caused by, and for |
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154 | 161 | | costs and expenses incurred by the person in defense of, an alleged |
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155 | 162 | | act, error, or omission committed in the person's capacity as |
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156 | 163 | | fiduciary of assets of the fund. The board may not purchase an |
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157 | 164 | | insurance policy that provides for the reimbursement of a trustee |
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158 | 165 | | [member], officer, or employee of the board for liability imposed |
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159 | 166 | | or costs and expenses incurred because of the trustee's [member's], |
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160 | 167 | | officer's, or employee's personal dishonesty, fraudulent breach of |
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161 | 168 | | trust, lack of good faith, intentional fraud or deception, or |
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162 | 169 | | intentional failure to act prudently. The board of trustees shall |
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163 | 170 | | use money in the fund to purchase an insurance policy under this |
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164 | 171 | | subsection. |
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165 | 172 | | (b) If an insurance policy described by Subsection (a) of |
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166 | 173 | | this section is not available, sufficient, adequate, or otherwise |
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167 | 174 | | in effect, the board may indemnify a trustee [member], officer, or |
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168 | 175 | | employee of the board for liability imposed as damages caused by, |
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169 | 176 | | and for reasonable costs and expenses incurred by the person in |
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170 | 177 | | defense of, an alleged act, error, or omission committed in the |
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171 | 178 | | person's fiduciary capacity. The board may not indemnify a trustee |
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172 | 179 | | [member], officer, or employee of the board for liability imposed |
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173 | 180 | | or costs and expenses incurred because of the trustee's [member's], |
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174 | 181 | | officer's, or employee's personal dishonesty, fraudulent breach of |
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175 | 182 | | trust, lack of good faith, intentional fraud or deception, or |
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176 | 183 | | intentional failure to act prudently. |
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177 | 184 | | (c) A decision to indemnify under this section must be made |
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178 | 185 | | by five trustees [a majority of the board]. If a proposed |
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179 | 186 | | indemnification is of a trustee [board member], the trustee |
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180 | 187 | | [member] may not vote on the matter. |
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181 | 188 | | SECTION 7. Article 2, Chapter 325 (H.B. 2259), Acts of the |
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182 | 189 | | 75th Legislature, Regular Session, 1997 (Article 6243p, Vernon's |
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183 | 190 | | Texas Civil Statutes), is amended by adding Sections 2.10, 2.11, |
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184 | 191 | | and 2.12 to read as follows: |
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185 | 192 | | Sec. 2.10. ACTION INCREASING AMORTIZATION PERIOD. |
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186 | 193 | | Notwithstanding any other provision of this Act, the rate of |
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187 | 194 | | contributions to the pension fund may not be reduced or eliminated, |
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188 | 195 | | a new monetary benefit payable by the pension fund may not be |
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189 | 196 | | established, and the amount of a monetary benefit from the fund may |
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190 | 197 | | not be increased, if, as a result of the particular action, the |
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191 | 198 | | time, as determined by an actuarial valuation, required to amortize |
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192 | 199 | | the unfunded actuarial liabilities of the pension fund would be |
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193 | 200 | | increased to a period that exceeds 25 years. |
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194 | 201 | | Sec. 2.11. ACTUARIAL VALUATIONS. (a) The assumptions and |
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195 | 202 | | methods adopted by the board and used to prepare an actuarial |
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196 | 203 | | valuation of the pension fund's assets and liabilities must be |
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197 | 204 | | consistent with generally accepted actuarial standards. |
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198 | 205 | | (b) Any assumed rate of return adopted by the board under |
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199 | 206 | | this Act must be reviewed as part of each actuarial valuation |
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200 | 207 | | conducted on or after January 1, 2020. |
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201 | 208 | | Sec. 2.12. INVESTMENT RETURN ASSUMPTIONS; ACTUARIAL |
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202 | 209 | | EXPERIENCE STUDY REQUIRED. (a) Except as provided by Section |
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203 | 210 | | 67(f)(3), Article XVI, Texas Constitution, and notwithstanding |
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204 | 211 | | Section 11.01 of this Act, the board shall adopt an assumed rate of |
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205 | 212 | | return of seven percent to be used in the preparation of any |
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206 | 213 | | actuarial valuation conducted on or after September 1, 2019, and |
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207 | 214 | | before January 1, 2020. |
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208 | 215 | | (b) This section expires January 2, 2020. |
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209 | 216 | | SECTION 8. Sections 6.01, 6.03, and 6.04, Chapter 325 (H.B. |
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210 | 217 | | 2259), Acts of the 75th Legislature, Regular Session, 1997 (Article |
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211 | 218 | | 6243p, Vernon's Texas Civil Statutes), are amended to read as |
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212 | 219 | | follows: |
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213 | 220 | | Sec. 6.01. CONTRIBUTION OF MEMBERS AND PARTICIPATION IN |
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214 | 221 | | FUND; WAGE DEDUCTIONS. Subject to modification under Section 11.01 |
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215 | 222 | | of this Act, each [Each] member shall make contributions to the |
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216 | 223 | | fund, [except in a time of national emergency,] and the |
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217 | 224 | | municipality is authorized to deduct 12 [a sum of not less than one |
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218 | 225 | | percent and not more than 10] percent of the member's monthly wages |
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219 | 226 | | as contributions to the fund for service rendered after August 31, |
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220 | 227 | | 2019. [The board shall determine the percentage deducted from |
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221 | 228 | | monthly wages, as provided by Section 2.01 of this Act, within the |
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222 | 229 | | minimum and maximum deductions provided by this section or as |
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223 | 230 | | otherwise provided by Section 11.01 of this Act.] |
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224 | 231 | | Sec. 6.03. CONTRIBUTIONS BY MUNICIPALITY. (a) Subject to |
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225 | 232 | | modification under Section 11.01 of this Act and not later than the |
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226 | 233 | | 15th business day after the first day of the municipality's fiscal |
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227 | 234 | | year, the [The] municipality[, acting under the advice of the |
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228 | 235 | | actuary for the fund,] shall contribute to the fund 18 percent |
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229 | 236 | | [contributions expressed as a percentage] of payroll based on |
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230 | 237 | | authorized positions, as determined by the municipality [or |
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231 | 238 | | compensation for each member, in such amounts and at such times as |
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232 | 239 | | are required to pay the municipality's normal cost and interest on |
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233 | 240 | | any unfunded actuarial requirement at the rate of interest assumed |
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234 | 241 | | in the actuarial valuation. The municipality shall also include in |
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235 | 242 | | the contribution to the fund sufficient money to pay the costs of |
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236 | 243 | | administration of the fund, including the costs of periodic |
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237 | 244 | | actuarial evaluations and annual statements to the members of the |
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238 | 245 | | fund]. |
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239 | 246 | | (b) Not later than December 31 of the year following the |
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240 | 247 | | year in which the municipality makes a contribution under |
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241 | 248 | | Subsection (a) of this section, the municipality shall: |
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242 | 249 | | (1) calculate the difference, if any, between the |
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243 | 250 | | amount of the municipality's actual payroll for the applicable |
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244 | 251 | | fiscal year and the amount of payroll on which its contribution |
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245 | 252 | | under Subsection (a) of this section was based; and |
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246 | 253 | | (2) contribute to the fund an amount equal to the |
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247 | 254 | | municipality's applicable contribution rate multiplied by the |
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248 | 255 | | amount of the difference calculated under Subdivision (1) of this |
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249 | 256 | | subsection. |
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250 | 257 | | Sec. 6.04. MUNICIPALITY'S LIABILITY. (a) Except as |
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251 | 258 | | provided by this section [Notwithstanding any other provision of |
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252 | 259 | | this Act], the municipality may not be held liable or responsible |
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253 | 260 | | for any claim or asserted claim for benefits under the fund, but all |
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254 | 261 | | claims shall be paid from the money for which provisions have been |
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255 | 262 | | made under the terms of the plan and fund. |
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256 | 263 | | (b) The municipality shall pay the pension fund, in the |
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257 | 264 | | manner provided by Subsection (d) of this section, money in an |
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258 | 265 | | amount sufficient to offset any negative financial impact to the |
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259 | 266 | | fund, as determined by the actuary for the fund, caused by a |
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260 | 267 | | unilateral action taken by the municipality, including a reduction |
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261 | 268 | | by the municipality in the number of the municipality's police |
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262 | 269 | | officers. |
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263 | 270 | | (c) The actuary for the fund, as part of the actuary's |
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264 | 271 | | actuarial valuation of the fund, shall annually determine whether a |
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265 | 272 | | reduction in the number of municipal police officers by a |
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266 | 273 | | municipality had a negative financial impact to the fund. |
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267 | 274 | | (d) If the actuary determines a negative financial impact to |
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268 | 275 | | the fund has occurred under this section, the municipality shall: |
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269 | 276 | | (1) provide additional funding to the fund in the time |
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270 | 277 | | frame prescribed for making contribution increases under Section |
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271 | 278 | | 11.01(b-1) of this Act; and |
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272 | 279 | | (2) continue to provide the funding described by |
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273 | 280 | | Subdivision (1) of this subsection until the negative impact of the |
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274 | 281 | | action is eliminated as determined by the actuary for the fund. |
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275 | 282 | | SECTION 9. Section 11.01, Chapter 325 (H.B. 2259), Acts of |
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276 | 283 | | the 75th Legislature, Regular Session, 1997 (Article 6243p, |
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277 | 284 | | Vernon's Texas Civil Statutes), is amended to read as follows: |
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278 | 285 | | Sec. 11.01. MODIFICATION OF BENEFITS, MEMBERSHIP |
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279 | 286 | | QUALIFICATIONS, ELIGIBILITY REQUIREMENTS, AND CONTRIBUTIONS. (a) |
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280 | 287 | | Subject to Section 2.10 [Notwithstanding any other provision] of |
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281 | 288 | | this Act and except as otherwise provided by this section, the |
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282 | 289 | | board, with the approval of at least six [four] board members, may |
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283 | 290 | | modify: |
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284 | 291 | | (1) benefits provided by this Act, including the |
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285 | 292 | | multiplier by which a pension benefit amount provided under Article |
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286 | 293 | | 7 of this Act is calculated, except that any increase in benefits is |
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287 | 294 | | subject to Subsection (b) of this section; |
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288 | 295 | | (2) future membership qualifications; |
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289 | 296 | | (3) eligibility requirements for pensions or |
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290 | 297 | | benefits, including the age at which a member is eligible to retire; |
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291 | 298 | | or |
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292 | 299 | | (4) subject to Subsection (b) of this section, the |
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293 | 300 | | contribution rates [percentage of wage deductions] provided by |
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294 | 301 | | Sections [Section] 6.01 and 6.03 of this Act[, except that any |
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295 | 302 | | increase in wage deductions is subject to Subsection (b)(2) of this |
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296 | 303 | | section]. |
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297 | 304 | | (b) Notwithstanding any other provision of this Act, the |
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298 | 305 | | board of trustees may not modify the contribution rates expressly |
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299 | 306 | | provided by Sections 6.01 and 6.03 of this Act before January 1, |
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300 | 307 | | 2025. If, on or after January 1, 2025, the fund's most recent |
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301 | 308 | | actuarial valuation recommends an actuarially determined |
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302 | 309 | | contribution rate that exceeds the aggregate contribution rates |
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303 | 310 | | provided by Sections 6.01 and 6.03 of this Act, as modified under |
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304 | 311 | | this section, if applicable, the board shall: |
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305 | 312 | | (1) calculate the difference between the actuarially |
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306 | 313 | | determined contribution rate and the aggregate contribution rates; |
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307 | 314 | | and |
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308 | 315 | | (2) by rule, increase the contribution rates |
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309 | 316 | | applicable under Sections 6.01 and 6.03 of this Act by 50 percent of |
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310 | 317 | | the difference calculated under Subdivision (1) of this subsection. |
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311 | 318 | | (b-1) An increase in contribution rates under Subsection |
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312 | 319 | | (b) of this section may not take effect before: |
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313 | 320 | | (1) the January 1 following the date on which the board |
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314 | 321 | | of trustees approved the applicable actuarial valuation, if the |
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315 | 322 | | approval occurred at least three months before the first day of the |
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316 | 323 | | municipality's fiscal year; or |
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317 | 324 | | (2) the first day of the municipality's fiscal year |
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318 | 325 | | that begins more than three months after the date the board approved |
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319 | 326 | | the applicable actuarial valuation, if the approval occurred less |
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320 | 327 | | than three months before the first day of the municipality's next |
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321 | 328 | | fiscal year. [Notwithstanding any other provision of this Act, the |
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322 | 329 | | board, with the approval of a majority of the members of the fund, |
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323 | 330 | | may increase either of the following: |
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324 | 331 | | [(1) benefits provided by this Act; or |
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325 | 332 | | [(2) the percentage of wage deductions provided by |
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326 | 333 | | Section 6.01 of this Act, except that, if the actuary for the fund |
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327 | 334 | | certifies that an increase is necessary to maintain an actuarially |
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328 | 335 | | sound plan, the board may, with the approval of at least four board |
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329 | 336 | | members, increase the percentage of wage deductions.] |
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330 | 337 | | (c) Notwithstanding any other provision of this Act, the |
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331 | 338 | | board, with the approval of at least five [four] board members, may |
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332 | 339 | | provide for refunds, in whole or in part, with or without interest, |
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333 | 340 | | of accumulated contributions made to the fund by members who leave |
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334 | 341 | | the municipality's service before qualifying for a pension. |
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335 | 342 | | (d) Actions authorized under [Subsection (a) or (b) of] this |
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336 | 343 | | section may not be made unless first reviewed by a qualified actuary |
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337 | 344 | | selected by the [at least four] board [members]. To qualify, an |
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338 | 345 | | actuary who is an individual must be a Fellow of the Society of |
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339 | 346 | | Actuaries[, a Fellow of the Conference of Actuaries in Public |
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340 | 347 | | Practice,] or a member of the American Academy of Actuaries. The |
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341 | 348 | | basis for the actuary's approval or disapproval of a board action is |
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342 | 349 | | not subject to judicial review. |
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343 | 350 | | SECTION 10. (a) In this section, "board of trustees" and |
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344 | 351 | | "pension fund" have the meanings assigned by Section 1.04, Chapter |
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345 | 352 | | 325 (H.B. 2259), Acts of the 75th Legislature, Regular Session, |
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346 | 353 | | 1997 (Article 6243p, Vernon's Texas Civil Statutes). |
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347 | 354 | | (b) As soon as practicable after the effective date of this |
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348 | 355 | | Act: |
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349 | 356 | | (1) the city manager and city council shall designate |
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350 | 357 | | trustees for the board of trustees in accordance with Sections |
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351 | 358 | | 2.02(a)(2) and (3), Chapter 325 (H.B. 2259), Acts of the 75th |
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352 | 359 | | Legislature, Regular Session, 1997 (Article 6243p, Vernon's Texas |
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353 | 360 | | Civil Statutes), as amended by this Act, whose terms are to begin |
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354 | 361 | | November 1, 2019; and |
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355 | 362 | | (2) the members of the pension fund shall elect, in |
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356 | 363 | | accordance with a procedure adopted by the existing board of |
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357 | 364 | | trustees for that purpose, three trustees to the board of trustees |
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358 | 365 | | in accordance with Section 2.02(a)(4), Chapter 325 (H.B. 2259), |
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359 | 366 | | Acts of the 75th Legislature, Regular Session, 1997 (Article 6243p, |
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360 | 367 | | Vernon's Texas Civil Statutes), as amended by this Act, whose terms |
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361 | 368 | | are to begin November 1, 2019. |
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362 | 369 | | (c) Notwithstanding the terms stipulated by Sections |
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363 | 370 | | 2.02(a)(2), (3), and (4), Chapter 325 (H.B. 2259), Acts of the 75th |
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364 | 371 | | Legislature, Regular Session, 1997 (Article 6243p, Vernon's Texas |
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365 | 372 | | Civil Statutes), as amended by this Act, as applicable: |
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366 | 373 | | (1) the city manager and the city council shall |
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367 | 374 | | designate one of the initial trustees appointed under Section |
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368 | 375 | | 2.02(a)(2) or (3), Chapter 325 (H.B. 2259), Acts of the 75th |
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369 | 376 | | Legislature, Regular Session, 1997 (Article 6243p, Vernon's Texas |
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370 | 377 | | Civil Statutes), as amended by this Act, as applicable, to serve a |
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371 | 378 | | term of two years; and |
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372 | 379 | | (2) the existing board of trustees shall designate one |
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373 | 380 | | of the initial trustee positions elected under Section 2.02(a)(4), |
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374 | 381 | | Chapter 325 (H.B. 2259), Acts of the 75th Legislature, Regular |
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375 | 382 | | Session, 1997 (Article 6243p, Vernon's Texas Civil Statutes), as |
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376 | 383 | | amended by this Act, to serve a one-year term and another of the |
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377 | 384 | | initial trustee positions to serve a two-year term. |
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378 | 385 | | (d) Notwithstanding the term of a trustee serving on the |
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379 | 386 | | board of trustees immediately before the effective date of this |
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380 | 387 | | Act, effective October 31, 2019, the term of a trustee serving on |
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381 | 388 | | the board under Sections 2.02(a)(2), (3), (4), and (5), Chapter 325 |
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382 | 389 | | (H.B. 2259), Acts of the 75th Legislature, Regular Session, 1997 |
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383 | 390 | | (Article 6243p, Vernon's Texas Civil Statutes), as those |
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384 | 391 | | subdivisions existed immediately before the effective date of this |
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385 | 392 | | Act, expires. |
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386 | 393 | | SECTION 11. Sections 6.01 and 6.03, Chapter 325 (H.B. |
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387 | 394 | | 2259), Acts of the 75th Legislature, Regular Session, 1997 (Article |
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388 | 395 | | 6243p, Vernon's Texas Civil Statutes), as amended by this Act, |
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389 | 396 | | apply only to a contribution made on or after the effective date of |
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390 | 397 | | this Act. |
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391 | 398 | | SECTION 12. Notwithstanding Section 6.03, Chapter 325 (H.B. |
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392 | 399 | | 2259), Acts of the 75th Legislature, Regular Session, 1997 (Article |
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393 | 400 | | 6243p, Vernon's Texas Civil Statutes), as it existed immediately |
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394 | 401 | | before the effective date of this Act, a municipality subject to |
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395 | 402 | | that section is not required to pay interest on any unfunded |
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396 | 403 | | actuarial requirement that is outstanding under that section on the |
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397 | 404 | | effective date of this Act. |
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398 | 405 | | SECTION 13. This Act takes effect immediately if it |
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399 | 406 | | receives a vote of two-thirds of all the members elected to each |
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400 | 407 | | house, as provided by Section 39, Article III, Texas Constitution. |
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401 | 408 | | If this Act does not receive the vote necessary for immediate |
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402 | 409 | | effect, this Act takes effect September 1, 2019. |
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