87R3526 JCG-F
By: Gates H.B. No. 2186
A BILL TO BE ENTITLED
AN ACT
relating to the state's contributions to the Employees Retirement
System of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 815.403(a), Government Code, is amended
to read as follows:
(a) During each fiscal year, the state shall contribute to
the retirement system:
(1) an amount equal to 10 [7.4] percent of the total
compensation of all members of the retirement system for that year;
(2) money to pay lump-sum death benefits for retirees
under Section 814.501;
(3) an amount for the law enforcement and custodial
officer supplemental retirement fund equal to 2.13 percent of the
aggregate state compensation of all custodial and law enforcement
officers for that year;
(4) money necessary for the administration of the law
enforcement and custodial officer supplemental retirement fund;
[and]
(5) money for service credit not previously
established, as provided by Section 813.202(c) or 813.302(d); and
(6) an amount adopted by the board of trustees under
Section 815.4031.
SECTION 2. Subchapter E, Chapter 815, Government Code, is
amended by adding Section 815.4031 to read as follows:
Sec. 815.4031. ACTUARIALLY DETERMINED STATE CONTRIBUTION
AMOUNT. (a) For the fiscal year beginning September 1, 2021, and
for each subsequent fiscal year:
(1) the actuary designated under Section 815.206 shall
recommend to the board of trustees an actuarially determined
contribution amount for review and adoption as the state
contribution amount under Section 815.403(a)(6); and
(2) the board shall adopt as the state contribution
amount under Section 815.403(a)(6) the actuarially determined
contribution amount recommended by the actuary under Subdivision
(1).
(b) For purposes of Subsection (a)(1), an actuarially
determined contribution amount reflects the sum of:
(1) the state's normal cost of projected benefits for
the fiscal year; and
(2) the state's portion of the total payment toward the
unfunded actuarial accrued liabilities of the retirement system
that is:
(A) attributable to the fiscal year; and
(B) sufficient to amortize the unfunded
actuarial accrued liabilities of the system in a period that does
not exceed 30 years by one or more years.
(c) The actuarially determined contribution amount
recommended by the actuary under Subsection (a)(1) must be based
on:
(1) reasonable actuarial assumptions and methods;
(2) tables adopted by the board under Section 815.105;
and
(3) the funding policy adopted by the board under
Section 802.2011.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.