| 1 | 1 | | 87R837 KFF-F |
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| 2 | 2 | | By: Bettencourt S.B. No. 1619 |
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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 municipal control of certain local public retirement |
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| 8 | 8 | | systems. |
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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. Chapter 810, Government Code, is amended by |
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| 11 | 11 | | adding Section 810.0015 to read as follows: |
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| 12 | 12 | | Sec. 810.0015. MUNICIPAL CONTROL OF RETIREMENT SYSTEM |
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| 13 | 13 | | PROVISIONS. (a) In this section: |
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| 14 | 14 | | (1) "Hybrid retirement plan" means a retirement plan |
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| 15 | 15 | | that combines elements of a defined benefit plan, a defined |
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| 16 | 16 | | contribution plan, or an individual retirement savings account. |
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| 17 | 17 | | (2) "Public retirement system" has the meaning |
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| 18 | 18 | | assigned by Section 802.001. |
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| 19 | 19 | | (b) Except as provided by Sections 66 and 67, Article XVI, |
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| 20 | 20 | | Texas Constitution, and notwithstanding any other law, a |
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| 21 | 21 | | municipality that is the sponsoring authority of a public |
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| 22 | 22 | | retirement system that was created under and is governed by a state |
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| 23 | 23 | | statute, but is not a part of a statewide retirement system, may |
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| 24 | 24 | | adopt by ordinance or resolution, as applicable, provisions that |
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| 25 | 25 | | supplement or supersede the operative provisions of the public |
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| 26 | 26 | | retirement system's governing statute. |
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| 27 | 27 | | (c) Provisions adopted under Subsection (b): |
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| 28 | 28 | | (1) must apply only to a person who becomes eligible |
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| 29 | 29 | | for membership in the public retirement system after December 31, |
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| 30 | 30 | | 2021; and |
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| 31 | 31 | | (2) may: |
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| 32 | 32 | | (A) subject to Subsections (d), (e), and (f), |
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| 33 | 33 | | create a defined contribution plan, hybrid retirement plan, or |
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| 34 | 34 | | other alternative retirement plan instead of a defined benefit plan |
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| 35 | 35 | | or other retirement plan required or authorized under the system's |
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| 36 | 36 | | governing statute; and |
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| 37 | 37 | | (B) apply to: |
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| 38 | 38 | | (i) benefits, participation, or |
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| 39 | 39 | | eligibility requirements of the system; |
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| 40 | 40 | | (ii) the source or amount of funding for the |
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| 41 | 41 | | system; and |
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| 42 | 42 | | (iii) the administration of the system. |
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| 43 | 43 | | (d) A defined contribution plan, hybrid retirement plan, or |
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| 44 | 44 | | other alternative retirement plan created under Subsection (b) must |
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| 45 | 45 | | be funded 100 percent by the municipality not later than the 180th |
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| 46 | 46 | | day after the last day of the municipality's fiscal year. |
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| 47 | 47 | | (e) Contributions by a person described by Subsection |
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| 48 | 48 | | (c)(1) to a plan described by Subsection (d) must be deposited with: |
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| 49 | 49 | | (1) the trustees of a retirement plan for which the |
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| 50 | 50 | | person would have been eligible for participation in but for the |
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| 51 | 51 | | municipality's action under Subsection (b); or |
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| 52 | 52 | | (2) the custodian of an individual retirement account |
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| 53 | 53 | | designated by the person. |
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| 54 | 54 | | (f) A municipality may not retain custody of contributions |
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| 55 | 55 | | made under Subsection (e) or determine the manner in which the |
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| 56 | 56 | | contributions are invested. |
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| 57 | 57 | | SECTION 2. To the extent of any conflict, this Act and a |
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| 58 | 58 | | municipal ordinance or resolution adopted by the governing body of |
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| 59 | 59 | | the sponsoring municipality of a public retirement system under |
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| 60 | 60 | | Section 810.0015(b), Government Code, as added by this Act, prevail |
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| 61 | 61 | | over another Act of the 87th Legislature, Regular Session, 2021, |
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| 62 | 62 | | relating to a public retirement system subject to that section. |
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| 63 | 63 | | SECTION 3. This Act takes effect immediately if it receives |
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| 64 | 64 | | a vote of two-thirds of all the members elected to each house, as |
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| 65 | 65 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 66 | 66 | | Act does not receive the vote necessary for immediate effect, this |
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| 67 | 67 | | Act takes effect September 1, 2021. |
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