By: Huffman S.B. No. 2224
(Murphy)
A BILL TO BE ENTITLED
AN ACT
relating to requiring a public retirement system to adopt a written
funding policy.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 802, Government Code, is
amended by adding Section 802.2011 to read as follows:
Sec. 802.2011. FUNDING POLICY. (a) In this section:
(1) "Funded ratio" means the ratio of a public
retirement system's actuarial value of assets divided by the
system's actuarial accrued liability.
(2) "Governmental entity" has the meaning assigned by
Section 802.1012.
(b) The governing body of a public retirement system shall:
(1) adopt a written funding policy that details the
governing body's plan for achieving a funded ratio of the system
that is equal to or greater than 100 percent;
(2) maintain for public review at its main office a
copy of the policy;
(3) file a copy of the policy and each change to the
policy with the board not later than the 31st day after the date the
policy or change, as applicable, is adopted; and
(4) submit a copy of the policy and each change to the
policy to the system's associated governmental entity not later
than the 31st day after the date the policy or change is adopted.
SECTION 2. Not later than January 1, 2020, each public
retirement system shall adopt a funding policy as required by
Section 802.2011, Government Code, as added by this Act.
SECTION 3. This Act takes effect September 1, 2019.