| 4 | 6 | | AN ACT |
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| 5 | 7 | | relating to requiring a public retirement system to adopt a written |
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| 6 | 8 | | funding policy. |
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| 7 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 10 | | SECTION 1. Subchapter C, Chapter 802, Government Code, is |
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| 9 | 11 | | amended by adding Section 802.2011 to read as follows: |
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| 10 | 12 | | Sec. 802.2011. FUNDING POLICY. (a) In this section: |
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| 11 | 13 | | (1) "Funded ratio" means the ratio of a public |
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| 12 | 14 | | retirement system's actuarial value of assets divided by the |
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| 13 | 15 | | system's actuarial accrued liability. |
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| 14 | 16 | | (2) "Governmental entity" has the meaning assigned by |
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| 15 | 17 | | Section 802.1012. |
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| 16 | 18 | | (b) The governing body of a public retirement system shall: |
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| 17 | 19 | | (1) adopt a written funding policy that details the |
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| 18 | 20 | | governing body's plan for achieving a funded ratio of the system |
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| 19 | 21 | | that is equal to or greater than 100 percent; |
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| 20 | 22 | | (2) maintain for public review at its main office a |
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| 21 | 23 | | copy of the policy; |
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| 22 | 24 | | (3) file a copy of the policy and each change to the |
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| 23 | 25 | | policy with the board not later than the 31st day after the date the |
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| 24 | 26 | | policy or change, as applicable, is adopted; and |
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| 25 | 27 | | (4) submit a copy of the policy and each change to the |
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| 26 | 28 | | policy to the system's associated governmental entity not later |
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| 27 | 29 | | than the 31st day after the date the policy or change is adopted. |
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| 28 | 30 | | SECTION 2. Not later than January 1, 2020, each public |
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| 29 | 31 | | retirement system shall adopt a funding policy as required by |
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| 30 | 32 | | Section 802.2011, Government Code, as added by this Act. |
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| 31 | 33 | | SECTION 3. This Act takes effect September 1, 2019. |
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| 32 | | - | ______________________________ ______________________________ |
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| 33 | | - | President of the Senate Speaker of the House |
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| 34 | | - | I hereby certify that S.B. No. 2224 passed the Senate on |
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| 35 | | - | April 11, 2019, by the following vote: Yeas 31, Nays 0. |
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| 36 | | - | ______________________________ |
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| 37 | | - | Secretary of the Senate |
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| 38 | | - | I hereby certify that S.B. No. 2224 passed the House on |
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| 39 | | - | May 17, 2019, by the following vote: Yeas 147, Nays 0, |
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| 40 | | - | two present not voting. |
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| 41 | | - | ______________________________ |
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| 42 | | - | Chief Clerk of the House |
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| 43 | | - | Approved: |
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| 44 | | - | ______________________________ |
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| 45 | | - | Date |
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| 46 | | - | ______________________________ |
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| 47 | | - | Governor |
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