| 1 | 1 | | 87R3526 JCG-F |
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| 2 | 2 | | By: Gates H.B. No. 2186 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the state's contributions to the Employees Retirement |
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| 8 | 8 | | System of Texas. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 815.403(a), Government Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (a) During each fiscal year, the state shall contribute to |
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| 13 | 13 | | the retirement system: |
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| 14 | 14 | | (1) an amount equal to 10 [7.4] percent of the total |
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| 15 | 15 | | compensation of all members of the retirement system for that year; |
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| 16 | 16 | | (2) money to pay lump-sum death benefits for retirees |
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| 17 | 17 | | under Section 814.501; |
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| 18 | 18 | | (3) an amount for the law enforcement and custodial |
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| 19 | 19 | | officer supplemental retirement fund equal to 2.13 percent of the |
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| 20 | 20 | | aggregate state compensation of all custodial and law enforcement |
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| 21 | 21 | | officers for that year; |
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| 22 | 22 | | (4) money necessary for the administration of the law |
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| 23 | 23 | | enforcement and custodial officer supplemental retirement fund; |
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| 24 | 24 | | [and] |
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| 25 | 25 | | (5) money for service credit not previously |
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| 26 | 26 | | established, as provided by Section 813.202(c) or 813.302(d); and |
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| 27 | 27 | | (6) an amount adopted by the board of trustees under |
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| 28 | 28 | | Section 815.4031. |
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| 29 | 29 | | SECTION 2. Subchapter E, Chapter 815, Government Code, is |
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| 30 | 30 | | amended by adding Section 815.4031 to read as follows: |
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| 31 | 31 | | Sec. 815.4031. ACTUARIALLY DETERMINED STATE CONTRIBUTION |
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| 32 | 32 | | AMOUNT. (a) For the fiscal year beginning September 1, 2021, and |
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| 33 | 33 | | for each subsequent fiscal year: |
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| 34 | 34 | | (1) the actuary designated under Section 815.206 shall |
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| 35 | 35 | | recommend to the board of trustees an actuarially determined |
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| 36 | 36 | | contribution amount for review and adoption as the state |
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| 37 | 37 | | contribution amount under Section 815.403(a)(6); and |
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| 38 | 38 | | (2) the board shall adopt as the state contribution |
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| 39 | 39 | | amount under Section 815.403(a)(6) the actuarially determined |
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| 40 | 40 | | contribution amount recommended by the actuary under Subdivision |
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| 41 | 41 | | (1). |
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| 42 | 42 | | (b) For purposes of Subsection (a)(1), an actuarially |
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| 43 | 43 | | determined contribution amount reflects the sum of: |
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| 44 | 44 | | (1) the state's normal cost of projected benefits for |
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| 45 | 45 | | the fiscal year; and |
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| 46 | 46 | | (2) the state's portion of the total payment toward the |
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| 47 | 47 | | unfunded actuarial accrued liabilities of the retirement system |
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| 48 | 48 | | that is: |
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| 49 | 49 | | (A) attributable to the fiscal year; and |
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| 50 | 50 | | (B) sufficient to amortize the unfunded |
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| 51 | 51 | | actuarial accrued liabilities of the system in a period that does |
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| 52 | 52 | | not exceed 30 years by one or more years. |
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| 53 | 53 | | (c) The actuarially determined contribution amount |
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| 54 | 54 | | recommended by the actuary under Subsection (a)(1) must be based |
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| 55 | 55 | | on: |
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| 56 | 56 | | (1) reasonable actuarial assumptions and methods; |
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| 57 | 57 | | (2) tables adopted by the board under Section 815.105; |
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| 58 | 58 | | and |
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| 59 | 59 | | (3) the funding policy adopted by the board under |
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| 60 | 60 | | Section 802.2011. |
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| 61 | 61 | | SECTION 3. This Act takes effect immediately if it receives |
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| 62 | 62 | | a vote of two-thirds of all the members elected to each house, as |
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| 63 | 63 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 64 | 64 | | Act does not receive the vote necessary for immediate effect, this |
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| 65 | 65 | | Act takes effect September 1, 2021. |
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