87R837 KFF-F
By: Bettencourt S.B. No. 1619
A BILL TO BE ENTITLED
AN ACT
relating to municipal control of certain local public retirement
systems.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 810, Government Code, is amended by
adding Section 810.0015 to read as follows:
Sec. 810.0015. MUNICIPAL CONTROL OF RETIREMENT SYSTEM
PROVISIONS. (a) In this section:
(1) "Hybrid retirement plan" means a retirement plan
that combines elements of a defined benefit plan, a defined
contribution plan, or an individual retirement savings account.
(2) "Public retirement system" has the meaning
assigned by Section 802.001.
(b) Except as provided by Sections 66 and 67, Article XVI,
Texas Constitution, and notwithstanding any other law, a
municipality that is the sponsoring authority of a public
retirement system that was created under and is governed by a state
statute, but is not a part of a statewide retirement system, may
adopt by ordinance or resolution, as applicable, provisions that
supplement or supersede the operative provisions of the public
retirement system's governing statute.
(c) Provisions adopted under Subsection (b):
(1) must apply only to a person who becomes eligible
for membership in the public retirement system after December 31,
2021; and
(2) may:
(A) subject to Subsections (d), (e), and (f),
create a defined contribution plan, hybrid retirement plan, or
other alternative retirement plan instead of a defined benefit plan
or other retirement plan required or authorized under the system's
governing statute; and
(B) apply to:
(i) benefits, participation, or
eligibility requirements of the system;
(ii) the source or amount of funding for the
system; and
(iii) the administration of the system.
(d) A defined contribution plan, hybrid retirement plan, or
other alternative retirement plan created under Subsection (b) must
be funded 100 percent by the municipality not later than the 180th
day after the last day of the municipality's fiscal year.
(e) Contributions by a person described by Subsection
(c)(1) to a plan described by Subsection (d) must be deposited with:
(1) the trustees of a retirement plan for which the
person would have been eligible for participation in but for the
municipality's action under Subsection (b); or
(2) the custodian of an individual retirement account
designated by the person.
(f) A municipality may not retain custody of contributions
made under Subsection (e) or determine the manner in which the
contributions are invested.
SECTION 2. To the extent of any conflict, this Act and a
municipal ordinance or resolution adopted by the governing body of
the sponsoring municipality of a public retirement system under
Section 810.0015(b), Government Code, as added by this Act, prevail
over another Act of the 87th Legislature, Regular Session, 2021,
relating to a public retirement system subject to that section.
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.