Texas 2019 - 86th Regular

Texas House Bill HB4290 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R7376 TSR-D
2	2	By: Flynn H.B. No. 4290
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to requiring certain public retirement systems to
8	8	implement funding soundness plans.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 801.209(a), Government Code, is amended
11	11	to read as follows:
12	12	(a) For each public retirement system, the board shall post
13	13	on the board's Internet website, or on a publicly available website
14	14	that is linked to the board's website, the most recent data from
15	15	reports received under Sections 802.101, 802.103, 802.104,
16	16	802.105, 802.108, 802.2015, [and] 802.2016, and 802.2017.
17	17	SECTION 2. Sections 802.002(a) and (c), Government Code,
18	18	are amended to read as follows:
19	19	(a) Except as provided by Subsection (b), the Employees
20	20	Retirement System of Texas, the Teacher Retirement System of Texas,
21	21	the Texas County and District Retirement System, the Texas
22	22	Municipal Retirement System, and the Judicial Retirement System of
23	23	Texas Plan Two are exempt from Sections 802.101(a), 802.101(b),
24	24	802.101(d), 802.102, 802.103(a), 802.103(b), 802.2015, 802.2016,
25	25	802.2017, 802.202, 802.203, 802.204, 802.205, 802.206, and
26	26	802.207. The Judicial Retirement System of Texas Plan One is exempt
27	27	from all of Subchapters B and C except Sections 802.104 and 802.105.
28	28	The optional retirement program governed by Chapter 830 is exempt
29	29	from all of Subchapters B and C except Section 802.106.
30	30	(c) Notwithstanding any other law, a defined contribution
31	31	plan is exempt from Sections 802.101, 802.1012, 802.1014, 802.103,
32	32	802.104, 802.2017, and 802.202(d). This subsection may not be
33	33	construed to exempt any plan from Section 802.105 or 802.106(h).
34	34	SECTION 3. Subchapter C, Chapter 802, Government Code, is
35	35	amended by adding Section 802.2017 to read as follows:
36	36	Sec. 802.2017. FUNDING SOUNDNESS PLANS FOR CERTAIN PUBLIC
37	37	RETIREMENT SYSTEMS. (a) In this section, "governmental entity"
38	38	has the meaning assigned by Section 802.1012.
39	39	(b) If, on September 1, 2019, a public retirement system's
40	40	most recent actuarial valuation indicates that the system's
41	41	amortization period for the system's unfunded actuarial accrued
42	42	liability exceeds 30 years but does not exceed 40 years:
43	43	(1) the governing body of the system shall notify its
44	44	associated governmental entity in writing of that fact; and
45	45	(2) the governing body of the system and its
46	46	associated governmental entity jointly, or, if the system is
47	47	governed by Article 6243i, Revised Statutes, the system's
48	48	associated governmental entity solely, shall develop a written plan
49	49	that identifies specific measures that the system and its
50	50	associated governmental entity shall, in accordance with the
51	51	system's governing statute, implement to achieve an amortization
52	52	period that is within 30 years not later than the last day of the
53	53	system's fiscal year ending in 2022.
54	54	(c) If, on or after the date prescribed by Subsection
55	55	(b)(2), a public retirement system subject to this section receives
56	56	an actuarial valuation indicating that the system's actual
57	57	contributions:
58	58	(1) are sufficient to amortize the system's unfunded
59	59	actuarial accrued liability within 30 years, the system has
60	60	satisfied its obligations under this section and shall immediately
61	61	notify its associated governmental entity in writing of that fact;
62	62	or
63	63	(2) are not sufficient to amortize the system's
64	64	unfunded actuarial accrued liability within 30 years:
65	65	(A) the governing body of the system shall
66	66	notify its associated governmental entity in writing of that fact;
67	67	and
68	68	(B) the governing body of the system and its
69	69	associated governmental entity jointly, or, if the system is
70	70	governed by Article 6243i, Revised Statutes, the system's
71	71	associated governmental entity solely, shall formulate a funding
72	72	soundness restoration plan under Subsection (d).
73	73	(d) A funding soundness restoration plan formulated under
74	74	this section must:
75	75	(1) be developed by the public retirement system and
76	76	the associated governmental entity jointly, or, if the system is
77	77	governed by Article 6243i, Revised Statutes, by the system's
78	78	associated governmental entity solely, in accordance with the
79	79	system's governing statute; and
80	80	(2) be designed to achieve a contribution rate that
81	81	will be sufficient to amortize the unfunded actuarial accrued
82	82	liability within 30 years not later than the sixth anniversary of
83	83	the date on which the final version of a funding soundness
84	84	restoration plan is formulated.
85	85	(e) A public retirement system and an associated
86	86	governmental entity that formulate a funding soundness restoration
87	87	plan shall report any updates of progress made by the entities
88	88	toward improved actuarial soundness to the board each year.
89	89	(f) Each public retirement system and its associated
90	90	governmental entity or each associated governmental entity, as
91	91	applicable, that formulates a funding soundness restoration plan as
92	92	provided by this section shall submit a copy of that plan to the
93	93	board not later than the 31st day after the date on which the plan is
94	94	formulated.
95	95	(g) The board may adopt rules necessary to implement this
96	96	section, including rules that allow a public retirement system and
97	97	an associated governmental entity to amend a funding soundness
98	98	restoration plan formulated under this section.
99	99	(h) This section expires September 1, 2029.
100	100	SECTION 4. This Act takes effect September 1, 2019.