Texas 2019 - 86th Regular

Texas House Bill HB2821 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	~~86R24648~~ LED-F
	1	+	86R5929 LED-F
2	2		By: Flynn H.B. No. 2821
3		-	Substitute the following for H.B. No. 2821:
4		-	By: Gutierrez C.S.H.B. No. 2821
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to credit in, benefits from, and administration of the
10	8		Texas Municipal Retirement System.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Section 851.001, Government Code, is amended by
13		-	adding Subdivision (8-a) and amending Subdivision (15) to read as
14		-	follows:
	11	+	amending Subdivisions (8) and (15) and adding Subdivision (8-a) to
	12	+	read as follows:
	13	+	(8) "Employee," unless the context requires
	14	+	otherwise, means a person, including a person serving a period of
	15	+	probationary employment, who receives compensation from and is
	16	+	certified by a municipality as being regularly engaged in the
	17	+	performance of duties of:
	18	+	(A) an appointive office or position that
	19	+	normally requires services from the person for not less than 1,000
	20	+	hours a year; or
	21	+	(B) an elective office that normally requires
	22	+	services from the person for not less than 1,000 hours a year, in a
	23	+	municipality that began participating in the retirement system
	24	+	after December 31, 1981, or that has adopted a membership
	25	+	requirement under Section 852.107.
15	26		(8-a) "Excluded prior service credit" means prior
16		-	service credit described by Section 853.0015 and:
17		-	(A) adopted under Section 853.105(d-1); or
18		-	(B) required by Section 853.303(a-1), (a-2), or
19		-	(a-3).
	27	+	service credit described by Section 853.0015.
20	28		(15) "Amortization period" means, as to a particular
21	29		municipality, the expiration of the maximum number of years, not to
22	30		exceed 30 years, [time ending with the later of:
23	31		[(A) the expiration of 25 years after the
24	32		effective date of the municipality's participation in the
25	33		retirement system;
26	34		[(B) the expiration of 25 years] after the most
27	35		recent actuarial valuation date for the municipality[; or
28	36		[(C) the period determined under Section
29	37		855.407(h)].
30	38		SECTION 2. Section 851.004, Government Code, is amended to
31	39		read as follows:
32	40		Sec. 851.004. POWERS, [AND] PRIVILEGES, AND IMMUNITIES.
33	41		(a) The retirement system has the powers, privileges, and
34	42		immunities of a corporation, as well as the powers, privileges, and
35	43		immunities conferred by this subtitle.
36	44		(b) The board of trustees, director, members of an advisory
37	45		committee or medical board appointed by the board of trustees, and
38		-	~~staff~~ of the retirement system are not liable for any action ~~taken~~
39		-	or omission made or suffered by them in good faith in the
	46	+	employees of the retirement system are not liable for any action
	47	+	taken or omission made or suffered by them in good faith in the
40	48		performance of any duty in connection with any program, system, or
41	49		benefit administered by the retirement system.
42	50		SECTION 3. The heading to Section 853.003, Government Code,
43	51		is amended to read as follows:
44	52		Sec. 853.003. BUY BACK OF CREDITED SERVICE PREVIOUSLY
45	53		CANCELED.
46	54		SECTION 4. Subchapter A, Chapter 853, Government Code, is
47	55		amended by adding Sections 853.0015 and 853.004 to read as follows:
48	56		Sec. 853.0015. EXCLUDED PRIOR SERVICE CREDIT. If a member
49		-	is entitled to receive excluded prior service credit under ~~this~~
50		-	chapter, the ~~excluded~~ prior service credit certified to the member:
	57	+	is only entitled to receive excluded prior service credit under
	58	+	this chapter, the prior service credit certified to the member:
51	59		(1) may only be used to satisfy length of service
52	60		requirements for vesting and retirement eligibility; and
53	61		(2) may not be used to determine eligibility for or
54	62		computation of updated service credits.
55	63		Sec. 853.004. RULES FOR CREDITABLE SERVICE. The board of
56		-	trustees may adopt rules necessary or desirable to implement this
57		-	chapter.
	64	+	trustees shall adopt rules necessary to implement this chapter.
58	65		SECTION 5. Section 853.105, Government Code, is amended by
59	66		amending Subsections (a), (c), and (d) and adding Subsection (d-1)
60	67		to read as follows:
61	68		(a) After receiving a certification of prior service and
62	69		average prior service compensation under Section 853.104, the
63	70		retirement system [board of trustees] shall determine the member's
64	71		prior service credit.
65	72		(c) The [For an employee of a municipality having an
66	73		effective date of participation in the retirement system after
67	74		December 31, 1975, the] prior service credit is an amount computed
68	75		as a percentage determined as provided by Subsection (d) or, if
69	76		applicable, Subsection (d-1), times a base credit equal to the
70	77		accumulation at three percent interest of a series of monthly
71	78		amounts for the number of months of approved prior service, times
72	79		the sum of:
73	80		(1) the rate of contributions required of employees of
74	81		the municipality for current service; plus
75	82		(2) the rate described in Subdivision (1) times the
76	83		municipal current service matching ratio.
77	84		(d) The governing body of a municipality [having an
78	85		effective date of retirement system participation after December
79	86		31, 1975,] shall determine in the ordinance providing for
80	87		participation the percentage to be applied against the base credit
81	88		in computing a prior service credit under Subsection (c). Except as
82	89		provided by Subsection (d-1), the [The] percentage adopted may be
83	90		any multiple of 10 percent that does not exceed 100 percent of the
84	91		base credit, with 10 percent being the minimum percentage a
85	92		municipality may adopt. A governing body may not adopt a percentage
86	93		under this subsection until the actuary first determines, and the
87	94		retirement system [board of trustees] concurs in the determination,
88	95		that the municipality is able to fund, before the 30th [25th]
89	96		anniversary of the effective date of its participation in the
90	97		retirement system, all prior service obligations that the
91	98		municipality proposes to assume under this section.
92	99		(d-1) The governing body of a municipality shall adopt, by
93		-	ordinance, a zero percent prior service credit ~~if, before joining~~
94		-	the ~~retirement system~~, ~~the municipality provided retirement~~
95		-	~~benefits to its employees that were funded partly or wholly by~~ the
96		-	~~municipality. Prior service credit adopted under this subsection~~
97		-	~~is excluded prior service credit~~.
	100	+	ordinance, a zero percent prior service credit under Subsection (c)
	101	+	entitling the member to excluded prior service credit if, before
	102	+	joining the retirement system, the municipality provided
	103	+	retirement benefits to its employees that were funded partly or
	104	+	wholly by the municipality.
98	105		SECTION 6. Section 853.106, Government Code, is amended to
99	106		read as follows:
100	107		Sec. 853.106. PRIOR SERVICE CERTIFICATE. (a) After
101	108		determining a member's prior service credit under Section 853.105,
102	109		the retirement system [board of trustees] shall issue to the member
103	110		a prior service certificate stating:
104	111		(1) the number of months of prior service credited;
105	112		(2) the average prior service compensation; and
106	113		(3) the prior service credit.
107	114		(b) As long as a person remains a member, the person's prior
108	115		service certificate is, for purposes of retirement, conclusive
109	116		evidence of the information it contains, except that a member or
110	117		participating municipality[, before the first anniversary of its
111	118		issuance or modification,] may request that the retirement system
112	119		correct an error in the prior service [board of trustees to modify
113	120		the] certificate in accordance with Section 852.110.
114	121		SECTION 7. Section 853.303, Government Code, is amended by
115	122		adding Subsections (a-1), (a-2), and (a-3) and amending Subsections
116	123		(c) and (d) to read as follows:
117		-	(a-1) This subsection applies to a participating
118		-	municipality that is required to adopt a zero percent prior service
119		-	credit under Section 853.105(d-1). If the governing body of a
120		-	participating municipality subject to this subsection authorizes
121		-	the granting of prior service credit to an employee under
122		-	Subsection (a), the employee is only entitled to receive excluded
123		-	prior service credit.
124		-	(a-2) This subsection applies to a participating
125		-	municipality that, before having a department of the municipality
126		-	begin participating in the retirement system, provided other
127		-	retirement benefits to its employees in that department funded
128		-	partly or wholly by the municipality. If, on or after January 1,
129		-	2020, the governing body of a participating municipality subject to
	124	+	(a-1) This subsection applies to a municipality that is
	125	+	required to adopt a zero percent prior service credit under Section
	126	+	853.105(d-1). If the governing body of a municipality subject to
130	127		this subsection authorizes the granting of prior service credit to
131	128		an employee under Subsection (a), the employee is only entitled to
132	129		receive excluded prior service credit.
133		-	(a-3) This subsection applies to a participating
134		-	municipality that elected to discontinue the participation in the
135		-	retirement system of persons employed or reemployed after the date
136		-	of an election to discontinue under Section 852.006(a), provided
137		-	other retirement benefits to those persons funded partly or wholly
138		-	by the municipality, and subsequently elects, by ordinance, to have
139		-	those persons resume participating in the retirement system as
140		-	employees. If, on or after January 1, 2020, the governing body of a
141		-	participating municipality subject to this subsection authorizes
142		-	prior service credit under Subsection (a) to an employee described
143		-	by this subsection, the employee is only entitled to excluded prior
	130	+	(a-2) This subsection applies to a municipality that,
	131	+	before having a department of the municipality begin participating
	132	+	in the retirement system, provided other retirement benefits to its
	133	+	employees in that department funded partly or wholly by the
	134	+	municipality. If, on or after January 1, 2020, the governing body
	135	+	of a municipality subject to this subsection authorizes the
	136	+	granting of prior service credit to an employee under Subsection
	137	+	(a), the employee is only entitled to receive excluded prior
144	138		service credit.
	139	+	(a-3) This subsection applies to a municipality that
	140	+	elected to discontinue the participation in the retirement system
	141	+	of persons employed or reemployed after the date of an election to
	142	+	discontinue under Section 852.006(a), provided other retirement
	143	+	benefits to those employees funded partly or wholly by the
	144	+	municipality, and subsequently elects, by ordinance, to have those
	145	+	employees resume participating in the retirement system. If, on or
	146	+	after January 1, 2020, the governing body of a municipality subject
	147	+	to this subsection authorizes prior service credit under Subsection
	148	+	(a) to an employee described by this subsection, the employee is
	149	+	only entitled to excluded prior service credit.
145	150		(c) As soon as practicable after a member has filed a
146	151		statement of prior service under this section, the municipality
147	152		shall verify the prior service claimed and certify to the
148	153		retirement system [board of trustees] the creditable prior service
149	154		approved and the average monthly compensation paid to the member
150	155		during the period of the service.
151	156		(d) After receiving a certification of prior service and
152	157		average monthly compensation under this section, the retirement
153	158		system [board of trustees] shall:
154	159		(1) determine the prior service credit allowable to
155	160		the member in the manner provided by Section 853.105; and
156	161		(2) issue to the member a prior service certificate as
157	162		provided by Section 853.106.
158	163		SECTION 8. Section 853.401(a), Government Code, is amended
159	164		to read as follows:
160		-	(a) Except as provided by Subsection (b) and Section
161		-	853.0015, the governing body of a participating municipality by
162		-	ordinance may authorize the crediting in the retirement system of
163		-	updated service credits for service performed for the municipality
164		-	by members. Beginning January 1, 2022, a member must be a
165		-	contributing employee of the municipality on the date prescribed by
166		-	Section 853.402(e) to be eligible to receive an updated service
167		-	credit authorized under this section. An updated service credit
168		-	authorized under this section replaces any updated service credit
169		-	or prior service credit previously authorized for part of the same
170		-	service.
	165	+	(a) Except as provided by Subsection (b) and Sections
	166	+	853.105 and 853.303, the governing body of a participating
	167	+	municipality by ordinance may authorize the crediting in the
	168	+	retirement system of updated service credits for service performed
	169	+	for the municipality by members who are contributing employees of
	170	+	the municipality on the date prescribed by Section 853.402(e). An
	171	+	updated service credit authorized under this section replaces any
	172	+	updated service credit or prior service credit previously
	173	+	authorized for part of the same service.
171	174		SECTION 9. Section 853.402, Government Code, is amended by
172	175		adding Subsection (g) to read as follows:
173	176		(g) The retirement system may recalculate updated service
174	177		credit for purposes of determining a member's retirement annuity
175	178		if:
176	179		(1) the member reestablishes credited service in
177	180		accordance with Section 853.003 and retires in the same calendar
178	181		year; and
179	182		(2) any municipality for which the member performed
180	183		creditable service adopts an ordinance authorizing updated service
181		-	credits under Section 853.401~~, 853.404,~~ or 853.~~601~~ with an
182		-	~~effective date of~~ January 1 of the same calendar year.
	184	+	credits under Section 853.401 or 853.404 with an effective date of
	185	+	January 1 of the same calendar year.
183	186		SECTION 10. Section 853.601(a), Government Code, is amended
184	187		to read as follows:
185	188		(a) The governing body of a participating municipality in
186	189		ordinances authorizing updated service credits under Section
187	190		853.401 [on or after January 1, 1984,] may provide that those
188	191		members who are eligible for such credits on the basis of service
189	192		with the granting municipality, who have unforfeited credit for
190	193		prior service or current service with another participating
191	194		municipality or municipalities by reason of previous employment,
192	195		and who are contributing members on the date prescribed by Section
193	196		853.402(e), shall be credited in the retirement system with updated
194	197		service credit calculated in the manner prescribed by Sections
195	198		853.401 and 853.402, except that in determining the base updated
196	199		service credit of the member under Section 853.402(c)(1), all
197	200		unforfeited credited service performed by the member by reason of
198	201		previous employment in other participating municipalities prior to
199	202		the date prescribed by Section 853.402(e) shall be treated as if
200	203		performed in the service of the municipality adopting the
201	204		ordinance, and that amount shall be reduced by an amount equal to
202	205		the sum of:
203	206		(1) 2 times the amount credited to the member's
204	207		individual account on the date prescribed in Section 853.402(e),
205	208		which any participating municipality has undertaken to match on a 1
206	209		to 1 ratio; plus
207	210		(2) 2.5 times the amount credited to the member's
208	211		individual account, subject to a 1.5 to 1 matching ratio by any
209	212		participating municipality; plus
210	213		(3) 3 times the amount credited to the member's
211	214		individual account, subject to a 2 to 1 matching ratio by any
212	215		participating municipality; and plus
213	216		(4) the sum of all updated service credits, prior
214	217		service credits, special prior service credits, and antecedent
215	218		service credits allowed to the member by any other participating
216	219		municipality by which the member was previously employed and to
217	220		which the member is entitled.
218	221		SECTION 11. Section 854.006(f), Government Code, is amended
219	222		to read as follows:
220	223		(f) If a divorce decree or a qualified domestic relations
221	224		order, as that term is defined by Section 804.001, so provides, the
222	225		benefit payable to a retiree who is receiving payments of an annuity
223	226		for the retiree's life with payments to continue after the retiree's
224	227		death until the death of another person under Section
225	228		854.104(c)(1), (2), or (5), 854.305(c)[(1), (2), or (5)], or
226	229		854.410(c)[(1), (2), or (5)] may be increased to the amount that
227	230		would have been payable if the retiree had selected an annuity
228	231		payable only during the retiree's lifetime if:
229	232		(1) the proceeding in which the decree or order is
230	233		entered terminates the marriage between the retiree and the person
231	234		who was designated to receive the continued payment after the
232	235		retiree's death;
233	236		(2) the decree or order awards the retiree all
234	237		benefits resulting from the retiree's participation in the
235	238		retirement system; and
236	239		(3) the decree or order is signed after December 31,
237	240		1999.
238	241		SECTION 12. Section 854.301, Government Code, is amended by
239	242		adding Subsection (d) to read as follows:
240	243		(d) A member may not apply for a disability retirement
241	244		annuity under this subchapter after the date the member's
242	245		participating municipality begins participation in the
243	246		occupational disability benefits program under Subchapter E.
244	247		SECTION 13. Sections 854.408(a) and (b), Government Code,
245	248		are amended to read as follows:
246	249		(a) The standard occupational disability retirement annuity
247	250		payable under this subchapter is the sum of the member's prior
248	251		service annuity and current service annuity. A prior service
249	252		annuity is subject to reduction under Section 855.308(f). A
250	253		standard occupational disability retirement annuity[:
251	254		[(1)] is payable throughout the life of the retiree
252	255		except as otherwise provided by this subchapter[; and
253	256		[(2) is reducible as to any month or series of months
254	257		as provided by this section].
255		-	(b) The occupational disability retirement annuity ~~of a~~
256		-	disability retiree may not be suspended under this subchapter ~~after~~
257		-	the date the disability retiree attains 60 years of age ~~[During any~~
258		-	month in which a retiree who is less than 60 years old ~~receives~~
259		-	earned income subject to taxation under the Federal ~~Insurance~~
260		-	Contributions Act or that would be subject to those taxes ~~if the~~
261		-	employer were not an exempt organization, the standard ~~occupational~~
262		-	disability retirement annuity may not exceed the ~~greater of the~~
263		-	following amounts:
	258	+	(b) The standard occupational disability retirement annuity
	259	+	of a disability retiree may not be suspended under this subchapter
	260	+	after the date the disability retiree attains 60 years of age
	261	+	[During any month in which a retiree who is less than 60 years old
	262	+	receives earned income subject to taxation under the Federal
	263	+	Insurance Contributions Act or that would be subject to those taxes
	264	+	if the employer were not an exempt organization, the standard
	265	+	occupational disability retirement annuity may not exceed the
	266	+	greater of the following amounts:
264	267		[(1) the amount that is required to be added to the
265	268		retiree's earned income for the month to equal the highest average
266	269		compensation on which the retiree made membership contributions to
267	270		the retirement system during any 12 consecutive months during the
268	271		three calendar years immediately preceding the year in which the
269	272		retiree retired for disability, when the highest average
270	273		compensation is multiplied by the percentage increase, if any, in
271	274		the Consumer Price Index for All Urban Consumers published by the
272	275		Bureau of Labor Statistics of the United States Department of Labor
273	276		from December of the year immediately preceding the effective date
274	277		of the person's retirement to the December that is 13 months before
275	278		a computation is made under this subsection; or
276	279		[(2) the monthly annuity attributable to the retiree's
277	280		accumulated contributions at the time of the person's retirement].
278	281		SECTION 14. Section 854.409, Government Code, is amended to
279	282		read as follows:
280	283		Sec. 854.409. MEDICAL EXAMINATION [REPORTS REQUIRED] OF
281	284		RETIREES. (a) The retirement system may require, by written
282	285		request, a disability retiree under this subchapter who is younger
283	286		than 60 years of age to undergo a medical examination and provide
284	287		current medical and other relevant information reaffirming the
285	288		status of the retiree as meeting the requirements for certification
286	289		of occupational disability under Section 854.407(b). The
287	290		retirement system or medical board may designate a physician to
288	291		perform the examination. The retiree shall pay the cost of the
289	292		examination, unless the director, at the director's discretion,
290	293		waives that requirement and has the retirement system pay the cost
291	294		of the examination [A disability retiree who is less than 60 years
292	295		old and who accepts employment or during any month receives income
293	296		that is subject to taxation under the Federal Insurance
294	297		Contributions Act shall promptly notify the board of trustees in
295	298		writing if the amount of the earnings, when added to the amount of
296	299		the standard occupational disability retirement benefit, produces
297	300		a sum in excess of the average monthly compensation on which the
298	301		retiree made member contributions during the 12-month period
299	302		preceding the date of the person's retirement].
300	303		(b) [Each retiree who is receiving an occupational
301	304		disability retirement annuity and is less than 60 years old shall
302	305		make annual reports to the board of trustees on such form as the
303	306		board may prescribe, concerning receipt by the retiree of income
304	307		that is subject to taxation under the Federal Insurance
305	308		Contributions Act or that would be subject to those taxes if the
306	309		employer were not an exempt organization, along with any supporting
307	310		information as may be required by the board of trustees.] If a
308		-	disability retiree refuses to submit to a medical examination or
309		-	fails to provide current medical or other [the] information
310		-	requested under Subsection (a) [required under this section], the
311		-	retirement system [director] may suspend payments of the disability
312		-	annuity as provided by this section [until the retiree provides the
313		-	required information].
314		-	(c) If a disability retiree refuses to submit to a medical
315		-	examination or fails to provide current medical or other
316		-	information requested under Subsection (a) by the first anniversary
317		-	of the date the retirement system requested the medical examination
318		-	or information, the retirement system may suspend payments of the
319		-	disability annuity until the earlier of the date the retiree:
	311	+	retiree refuses to submit to a medical examination or fails to
	312	+	provide current medical or other [the] information requested under
	313	+	Subsection (a) [required under this section], the retirement system
	314	+	[director] may suspend payments of the annuity as provided by this
	315	+	section [until the retiree provides the required information].
	316	+	(c) If a retiree refuses to submit to a medical examination
	317	+	or fails to provide current medical or other information requested
	318	+	under Subsection (a) by the first anniversary of the date the
	319	+	retirement system requested the medical examination or
	320	+	information, the retirement system may suspend payments of the
	321	+	annuity until the earlier of the date the retiree:
320	322		(1) attains 60 years of age; or
321	323		(2) submits to a medical examination and provides the
322	324		requested information.
323		-	(d) If a ~~disability~~ retiree submits to a medical examination
324		-	~~and~~ provides the requested information before the fourth
325		-	~~anniversary of~~ the date the retirement system requested the medical
326		-	~~examination or~~ information, the retirement system may pay the
327		-	~~suspended payments~~ of the ~~disability~~ annuity in a lump sum.
328		-	(e) If the medical board finds that a ~~disability retiree~~
329		-	~~under this~~ subchapter has experienced medical improvement to the
330		-	~~extent that~~ the ~~disability~~ retiree no longer meets the requirements
331		-	~~for certification of~~ occupational disability under Section
332		-	~~854.407(b), the medical~~ board shall certify the medical board's
333		-	~~findings and submit the~~ findings to the director. If the director
334		-	~~concurs in the medical~~ board's findings under this section, the
335		-	~~director may adopt the~~ findings, and the retirement system may
336		-	~~suspend payments of the disability~~ annuity and take other action as
337		-	~~the retirement system, in the~~ retirement system's discretion,
338		-	~~considers equitable and~~ appropriate to address the situation, until
339		-	~~the disability retiree~~ attains 60 years of age.
340		-	(f) The ~~suspension of~~ a benefit under ~~this section does not~~
341		-	~~suspend payment of a benefit~~ to an alternate payee under a qualified
	325	+	(d) If a retiree submits to a medical examination and
	326	+	provides the requested information before the fourth anniversary of
	327	+	the date the retirement system requested the medical examination or
	328	+	information, the retirement system may pay the suspended payments
	329	+	of the annuity in a lump sum.
	330	+	(e) If the medical board finds that a retiree under this
	331	+	subchapter has experienced medical improvement to the extent that
	332	+	the retiree no longer meets the requirements for certification of
	333	+	occupational disability under Section 854.407(b), the medical
	334	+	board shall certify the medical board's findings and submit the
	335	+	findings to the director. If the director concurs in the medical
	336	+	board's findings under this section, the director may adopt the
	337	+	findings, and the retirement system may suspend payments of the
	338	+	annuity and take other action as the retirement system, in the
	339	+	retirement system's discretion, considers equitable and
	340	+	appropriate to address the situation, until the disability retiree
	341	+	attains 60 years of age.
	342	+	(f) The retirement system may not suspend a benefit under
	343	+	this section payable to an alternate payee under a qualified
342	344		domestic relations order.
343	345		SECTION 15. Section 854.410(e), Government Code, is amended
344	346		to read as follows:
345	347		(e) To select an optional occupational disability
346	348		retirement annuity, a member or retiree must make the selection and
347	349		designate a beneficiary on a form prescribed by and filed with the
348	350		retirement system [board of trustees] before the 31st day after the
349	351		effective date of retirement.
350	352		SECTION 16. Subchapter E, Chapter 854, Government Code, is
351	353		amended by adding Section 854.411 to read as follows:
352	354		Sec. 854.411. RULES FOR OPTIONAL DISABILITY RETIREMENT
353		-	ANNUITIES. The board of trustees may adopt rules necessary or
354		-	~~desirable to~~ implement this subchapter.
	355	+	ANNUITIES. The board of trustees may adopt rules necessary to
	356	+	implement this subchapter.
355	357		SECTION 17. Section 855.007, Government Code, is amended by
356	358		amending Subsections (a), (b), and (c) and adding Subsections (e),
357	359		(f), (g), (h), (i), (j), and (k) to read as follows:
358	360		(a) The board of trustees shall hold at least four [regular]
359	361		meetings [in March, June, September, and December of] each year and
360	362		additional [special] meetings when called by the director.
361	363		(b) Before the fifth day preceding the day of a meeting, the
362	364		director shall give written notice of the [a special] meeting to
363	365		each trustee unless notice is waived.
364	366		(c) Except as otherwise provided by this subtitle, Chapter
365	367		551, or other law, all [All] meetings of the board must be open to
366	368		the public.
367	369		(e) Notwithstanding Chapter 551 or any other law, the board
368	370		of trustees may hold an open or closed meeting by telephone
369	371		conference call, videoconference, or other similar
370	372		telecommunication method. The board may use a telephone conference
371	373		call, videoconference, or other similar telecommunication method
372	374		for purposes of establishing a quorum or voting or for any other
373	375		meeting purpose in accordance with Subsection (f) and this
374	376		subsection. This subsection applies without regard to the subject
375	377		matter discussed or considered by the board at a meeting.
376	378		(f) A meeting of the board of trustees held by telephone
377	379		conference call, videoconference, or other similar
378	380		telecommunication method:
379	381		(1) is subject to the notice requirements applicable
380	382		to other board meetings;
381	383		(2) may not be held unless notice of the meeting
382	384		specifies the location of the meeting at which at least one trustee
383	385		of the board will be physically present; and
384	386		(3) must be open and audible to the public at the
385	387		location specified in the notice under Subdivision (2) during the
386	388		open portions of the meeting.
387	389		(g) Chapter 551 does not require the board of trustees to
388	390		confer with one or more employees, consultants, or legal counsel of
389	391		the retirement system or with a third party, including
390	392		representatives of an issuer of restricted securities or a private
391	393		investment fund, in an open meeting if the only purpose of the
392	394		conference is to receive information from or question the
393	395		employees, consultants, or legal counsel of the retirement system
394	396		or the third party relating to an investment or a potential
395	397		investment.
396	398		(h) The board of trustees or a committee of the board may
397	399		conduct a closed meeting in accordance with Subchapter E, Chapter
398	400		551, with the retirement system's internal or external auditors to
399	401		discuss:
400	402		(1) governance, risk management or internal control
401	403		weaknesses, known or suspected compliance violations or fraud,
402	404		status of regulatory reviews or investigations, or identification
403	405		of potential fraud risk areas and audits for the annual internal
404	406		audit plan; or
405	407		(2) the auditors' ability to perform duties in
406	408		accordance with the Internal Audit Charter and relevant auditing
407	409		standards.
408	410		(i) Notwithstanding Chapter 551 or any other law, the board
409	411		of trustees may conduct a closed meeting to consider and discuss:
410	412		(1) evaluations or duties of trustees or board
411	413		consultants; and
412	414		(2) self-evaluations of the board as a whole.
413	415		(j) Notwithstanding any other law, Chapter 551 does not
414	416		apply to an assembly of the board of trustees or one of the board's
415	417		committees while attending a summit, conference, convention,
416	418		workshop, or other event held for educational purposes if the
417	419		assembly or committee does not deliberate, vote, or take action on a
418	420		specific matter of public business or public policy over which the
419	421		board of trustees or a committee of the board has supervision or
420	422		control. This subsection does not apply to a meeting of the board of
421	423		trustees scheduled or called under the board's bylaws.
422		-	(k) The board of trustees may adopt rules necessary or
423		-	~~desirable to~~ implement this section.
	424	+	(k) The board of trustees may adopt rules necessary to
	425	+	implement this section.
424	426		SECTION 18. Section 855.107, Government Code, is amended to
425	427		read as follows:
426	428		Sec. 855.107. AUDIT. (a) In this section:
427	429		(1) "Audit" means an internal or independent external
428	430		audit authorized or required by this section or initiated or
429	431		commissioned by the board of trustees or a committee of the board of
430	432		trustees. The term includes a financial audit, compliance audit,
431	433		economy and efficiency audit, effectiveness audit, performance
432	434		audit, security or risk audit, attestation, management-directed
433	435		engagement, or investigation.
434	436		(2) "Audit working paper" includes all information,
435	437		documentary or otherwise, prepared or maintained in conducting an
436	438		audit or preparing an audit report, including:
437	439		(A) internal or external communications relating
438	440		to the audit that are made or received in the course of the audit;
439	441		(B) drafts of an audit report or portions of
440	442		those drafts;
441	443		(C) drafts of audit plans; and
442	444		(D) records of risk assessments.
443	445		(b) Annually, or more often, the board of trustees shall
444	446		have the accounts of the retirement system audited by a certified
445	447		public accountant.
446	448		(c) In addition to the financial audit required by
447	449		Subsection (b), the board of trustees may initiate or commission an
448	450		audit or investigation of activities, functions, or operations of
449	451		the retirement system as the board determines appropriate.
450	452		(d) Audit working papers prepared, maintained, or assembled
451	453		by the retirement system or an agent of the retirement system are
452	454		not a record of the board of trustees for purposes of Section
453	455		855.112, and are confidential and excepted from the disclosure
454	456		requirements of Chapter 552.
455	457		(e) Unless made confidential under other law, an audit
456	458		report, when received by the board of trustees in its final form, is
457	459		public information not excepted from the requirements of Section
458	460		552.021.
459	461		SECTION 19. Section 855.110(c), Government Code, is amended
460	462		to read as follows:
461	463		(c) The board of trustees, after consultation with the
462	464		actuary, by rule or by funding policy adopted by the board of
463	465		trustees, may:
464	466		(1) set open or closed amortization periods not to
465	467		exceed 30 [25] years;
466	468		(2) change the period for amortizing a municipality's
467	469		unfunded actuarial accrued liabilities from an open period to a
468	470		closed period or from a closed period to an open period;
469	471		(3) decrease or increase the amortization period,
470	472		provided the amortization period may not exceed 30 years; and
471	473		(4) set different amortization periods for unfunded
472	474		actuarial accrued liabilities arising from different types of
473	475		events giving rise to liabilities and ladder the amortization of
474	476		the liabilities.
475	477		SECTION 20. Section 855.112, Government Code, is amended to
476	478		read as follows:
477	479		Sec. 855.112. RECORDS [OF BOARD OF TRUSTEES]. (a) The
478	480		retirement system [board of trustees] shall keep, in convenient
479	481		form, data necessary for required computations and valuations by
480	482		the actuary.
481	483		(b) The board of trustees shall keep a permanent record of
482	484		all of its proceedings.
483	485		(c) Records of the board of trustees are open to the public.
484	486		SECTION 21. Section 855.114, Government Code, is amended to
485	487		read as follows:
486	488		Sec. 855.114. OBTAINING INFORMATION. (a) In this section,
487	489		"participant" means a member, former member, retiree, annuitant,
488	490		beneficiary, or alternate payee of the retirement system.
489	491		(b) The board of trustees shall obtain from participants
490	492		[members] or participating municipalities information necessary
491	493		for the proper operation of the retirement system.
492	494		(c) Each participant and participating municipality shall
493	495		timely provide, in the form and manner specified by the retirement
494	496		system, information necessary for the proper operation and
495	497		administration of the retirement system.
496	498		SECTION 22. Section 855.115, Government Code, is amended by
497	499		amending Subsections (a), (c), and (d) and adding Subsections
498	500		(a-1), (b-1), (e), (f), (g), and (h) to read as follows:
499	501		(a) In this section, "participant" has the meaning assigned
500	502		by Section 855.114.
501	503		(a-1) Information contained in records that are in the
502	504		custody of the retirement system or maintained in the custody of
503	505		another governmental entity or an administrator or carrier acting
504	506		in cooperation with or on behalf of the retirement system
505	507		concerning a participant [an individual member, retiree,
506	508		annuitant, or beneficiary] is confidential and not subject to
507	509		public disclosure. Except as otherwise provided by this section,
508	510		the retirement system is not required to accept or comply with a
509	511		request for a record or information about a record of a participant,
510	512		or to seek an opinion from the attorney general because the records
511	513		of a participant are not public records and are exempt from
512	514		disclosure and the public information provisions of Chapter 552.
513	515		Participant information [under Section 552.101, and] may not be
514	516		disclosed [in a form identifiable with a specific individual]
515	517		unless:
516	518		(1) the information is disclosed to:
517	519		(A) the participant [individual] or the
518	520		participant's [individual's] attorney, guardian, executor,
519	521		administrator, conservator, or other person who the director
520	522		determines is acting in the interest of the participant
521	523		[individual] or the participant's [individual's] estate;
522	524		(B) a spouse or former spouse of a participant
523	525		[the individual] after the director determines that the information
524		-	is relevant to the spouse's or former spouse's interest in ~~member~~
525		-	accounts, benefits, or other amounts payable ~~by the retirement~~
526		-	system;
	526	+	is relevant to the spouse's or former spouse's interest in
	527	+	participant [member] accounts, benefits, or other amounts payable
	528	+	by the retirement system;
527	529		(C) a governmental official or employee after the
528	530		director determines that disclosure of the information requested is
529	531		reasonably necessary to:
530	532		(i) the performance of the duties of the
531	533		official or employee; or
532	534		(ii) perform the purposes of the retirement
533	535		system; or
534	536		(D) a person authorized by the participant
535	537		[individual] in writing to receive the information; or
536	538		(2) the information is disclosed pursuant to a
537	539		subpoena and the director determines that the participant
538	540		[individual] will have a reasonable opportunity to contest the
539	541		subpoena.
540	542		(b-1) This section does not require the retirement system to
541	543		compile or disclose a list of participants' names, addresses,
542	544		social security numbers, or other descriptive or demographic
543	545		information.
544	546		(c) The director may designate other employees of the
545	547		retirement system to make the necessary determinations under
546	548		Subsection (a-1) [(a)].
547	549		(d) A determination and disclosure under Subsection (a-1)
548	550		[(a)] may be made without notice to the participant [individual
549	551		member, retiree, annuitant, or beneficiary].
550	552		(e) A record released or received by the retirement system
551	553		under this section may be transmitted electronically, including
552	554		through the use of an electronic signature or certification in a
553	555		form acceptable to the retirement system. An unintentional
554	556		disclosure to, or unauthorized access by, a third party related to
555	557		the transmission or receipt of information under this section is
556	558		not a violation by the retirement system of any law, including any
557	559		law or rule relating to the protection of confidential information.
558	560		(f) The records of a participant remain confidential after
559	561		release to a person, including a governmental official or employee,
560	562		as authorized by this section. The records of the participant may
561	563		become part of a public record of an administrative or judicial
562	564		proceeding, and the participant waives the confidentiality of the
563	565		records, including medical records, unless the records are closed
564	566		to public access by a protective order issued under applicable law.
565	567		(g) The retirement system may require a participant to
566	568		provide the participant's social security number as the retirement
567	569		system considers necessary to ensure the proper administration of
568	570		all services, benefits, plans, and programs under the retirement
569	571		system's administration or as otherwise required by state or
570	572		federal law.
571	573		(h) The retirement system has sole discretion in
572	574		determining if a record is subject to this section. For purposes of
573	575		this section, a record includes any record of the retirement system
574	576		containing information about a participant, living or deceased.
575	577		SECTION 23. Section 855.116, Government Code, is amended to
576	578		read as follows:
577	579		Sec. 855.116. ELECTRONIC INFORMATION [FILING OF CERTAIN
578	580		DOCUMENTS]. (a) In this section:
579	581		(1) "Electronic [, "electronic] filing" means the
580	582		filing of data by the communication of information by facsimile or
581	583		in the form of digital electronic signals transformed by computer
582	584		and stored on microfilm, magnetic tape, magnetic or solid state
583	585		[optical] disk, or any other electronic storage or other medium.
584	586		(2) "Electronic record" means any information that is
585	587		recorded in a form for computer processing.
586	588		(b) The board of trustees may adopt rules and procedures
587	589		relating to the electronic filing of documents with the retirement
588	590		system and the delivery of information electronically by the
589	591		retirement system. A document that is electronically filed in
590	592		accordance with those rules and procedures is considered to have
591	593		been properly filed with the retirement system.
592	594		(c) The retirement system may provide confidential
593	595		information electronically to participating municipalities,
594	596		members, retirees, beneficiaries, annuitants, alternate payees,
595	597		and other persons authorized to receive the information and may
596	598		receive information electronically from the individuals or
597	599		entities, as applicable, including by use of an electronic
598	600		signature or certification in a form acceptable to the retirement
599	601		system. An unintentional disclosure to, or unauthorized access by,
600	602		a third party related to the transmission or receipt of information
601	603		under this section is not a violation by the retirement system of
602	604		any law, including a rule relating to the protection of
603	605		confidential information.
604	606		(d) Subject to Subsection (f), the retirement system may
605	607		provide to a member, retiree, or annuitant any information that is
606	608		required to be provided, distributed, or furnished under Section
607	609		802.106(a), (b), (d), or (e) by:
608	610		(1) sending the information to an e-mail address or
609	611		other electronic address furnished to the retirement system by the
610	612		member, retiree, or annuitant; or
611	613		(2) directing the member, retiree, or annuitant
612	614		through a written notice, e-mail, or other electronic notice to an
613	615		Internet website address to access the information.
614	616		(e) Subject to Subsection (f), the retirement system may
615	617		provide to a member, retiree, or annuitant the information that is
616	618		required to be provided under Section 802.106(c) by directing the
617	619		member, retiree, or annuitant through a written notice, e-mail, or
618	620		other electronic notice to an Internet website address to access
619	621		the information.
620	622		(f) Electronic notice sent under this section by e-mail or
621		-	other ~~electronic~~ means may only be sent to an e-mail address or
622		-	~~other~~ electronic address furnished to the retirement system by the
	623	+	other means may only be sent to an e-mail address or other
	624	+	electronic address furnished to the retirement system by the
623	625		member, retiree, or annuitant.
624	626		(g) The retirement system may:
625	627		(1) photograph, microphotograph, film, or make an
626	628		electronic record of any record in the retirement system's
627	629		possession; or
628	630		(2) preserve the record through electronic document
629	631		imaging.
630	632		(h) If a record is reproduced under Subsection (g), the
631	633		retirement system may destroy or dispose of the original record if
632	634		the system first:
633	635		(1) places the reproduction or electronic record in a
634	636		file that is conveniently accessible to retirement system
635	637		personnel; and
636	638		(2) provides for the preservation, examination, and
637	639		use of the reproduction or stored electronic record.
638	640		(i) A photograph, microphotograph, film, electronic record,
639	641		or electronic document image of a record received by the retirement
640	642		system or reproduced under Subsection (g) is equivalent to the
641	643		original record for all purposes, including introduction as
642	644		evidence in all courts and administrative agency proceedings. A
643	645		certified or authenticated copy of the photograph,
644	646		microphotograph, film, electronic record, or electronic document
645	647		image is admissible as evidence to the same extent as the original
646	648		record.
647	649		(j) The director or an authorized representative may
648	650		certify the authenticity of a record reproduced under this section
649	651		and may charge a fee for the certified copy as provided by law.
650	652		(k) Certified records shall be furnished to any person who
651	653		is authorized by law to receive them.
652	654		SECTION 24. The heading to Section 855.202, Government
653	655		Code, is amended to read as follows:
654	656		Sec. 855.202. LEGAL REPRESENTATION [ADVISER].
655	657		SECTION 25. Section 855.202, Government Code, is amended by
656	658		amending Subsection (b) and adding Subsection (c) to read as
657	659		follows:
658	660		(b) The attorney shall act as the legal adviser to the board
659	661		of trustees [and shall represent the system in all litigation].
660		-	(c) The board of trustees, the ~~director, or the director's~~
661		-	designee may employ or obtain the ~~services of other attorneys or~~
662		-	outside legal counsel to represent ~~the retirement system in~~
663		-	litigation or advise the retirement system ~~on fiduciary or legal~~
664		-	matters.
	662	+	(c) Subject to Section 402.0212, the board of trustees, the
	663	+	director, or the director's designee may employ or obtain the
	664	+	services of other attorneys or outside legal counsel to represent
	665	+	the retirement system in litigation or advise the retirement system
	666	+	on fiduciary or legal matters.
665	667		SECTION 26. Section 855.301, Government Code, is amended by
666	668		amending Subsection (a) and adding Subsection (d) to read as
667	669		follows:
668	670		(a) The board of trustees shall invest and reinvest the
669	671		assets of the retirement system without distinction as to their
670	672		source in accordance with Section 67, Article XVI, Texas
671	673		Constitution. For purposes of the investment authority of the
672	674		board of trustees under Section 67, Article XVI, Texas
673	675		Constitution, "security" or "securities" means any investment
674	676		instrument within the meaning of the term as defined by Section 4,
675	677		The Securities Act (Article 581-4, Vernon's Texas Civil Statutes),
676	678		15 U.S.C. Section 77b(a)(1), or 15 U.S.C. Section 78c(a)(10). An
677	679		interest in a limited partnership or investment contract is
678	680		considered a security without regard to the number of investors or
679	681		the control, access to information, or rights granted to or
680	682		retained by the retirement system. Any instrument or contract
681	683		intended to manage transaction, currency exchange, or interest rate
682	684		risk in purchasing, selling, or holding securities, or that derives
683	685		all or substantially all of its value from the value or performance
684	686		of one or more securities, including an index or group of
685	687		securities, is considered to be a security.
686	688		(d) The board of trustees may:
687	689		(1) delegate discretionary investment authority to
688	690		and contract with external investment managers to invest and manage
689	691		the assets held in trust by the retirement system; and
690	692		(2) contract with external investment advisors and
691	693		consultants to assist and advise the board and the staff of the
692	694		retirement system.
693	695		SECTION 27. Section 855.407, Government Code, is amended by
694	696		amending Subsections (f) and (h) and adding Subsection (i) to read
695	697		as follows:
696	698		(f) The governing body of a municipality that is determined
697	699		by the actuary to be unable to finance all obligations charged
698	700		against its account in the benefit accumulation fund within the
699	701		municipality's current amortization period [25 years after its most
700	702		recent actuarial valuation date] may elect to have the municipality
701	703		contribute to its account in the benefit accumulation fund at a rate
702	704		that does not exceed in any year the sum of two percent and the
703	705		maximum contribution rate specified by Subsection (a) and by
704	706		Section 855.501, if applicable, and that the actuary annually may
705	707		determine as necessary to finance the existing levels of benefits
706	708		before the expiration of the municipality's current amortization
707	709		period [25 years after the most recent actuarial valuation date].
708	710		(h) Subject to Subsection (i), if [If] the board of trustees
709	711		adopts any actuarial changes, including changes [change] in
710	712		actuarial assumptions or in actuarial method, that would result in
711	713		any municipality having an increase in its combined contribution
712	714		rate of more than one-half of one percent of the total compensation
713	715		paid to its employees based on its current amortization period, the
714	716		board may, after consultation with the actuary, take any or all of
715	717		the following actions [and if its governing body adopts a
716	718		resolution requesting a new amortization period, the municipality
717	719		will be assigned a new amortization period equal to the lesser of]:
718	720		(1) phase in the increase in the contribution rate for
719	721		the municipality over a reasonable period of time;
720	722		(2) increase the period for amortizing the
721	723		municipality's unfunded actuarial accrued liabilities for a period
722	724		that does not exceed 30 years; or
723	725		(3) allow the municipality to request in writing an
724	726		increase in the municipality's amortization period, provided that
725	727		the new amortization period the municipality may be assigned equals
726	728		the lesser of:
727	729		(A) the number of years required to limit the
728	730		increase in the combined rate to one-half of one percent of the
729	731		total compensation paid to its employees; or
730	732		(B) [(2)] the maximum number of years, not to
731	733		exceed 30 [40] years, specified by the board of trustees.
732	734		(i) A municipality may decline to phase in the increase in
733	735		the municipality's contribution rate or increase the municipality's
734	736		amortization period under Subsection (h).
735		-	SECTION 28. Sections ~~852.005(b),~~ 853.105(b), 854.408(c)
736		-	~~and (d), and~~ 854.410(f), Government Code, are repealed.
	737	+	SECTION 28. Sections 853.105(b), 854.408(c) and (d), and
	738	+	854.410(f), Government Code, are repealed.
737	739		SECTION 29. The changes in law made to Chapter 854,
738	740		Government Code, as amended by this Act, apply to a retiree
739	741		regardless of whether the person retired before, on, or after the
740	742		effective date of this Act.
741	743		SECTION 30. This Act takes effect January 1, 2020.