Texas 2021 - 87th Regular

Texas Senate Bill SB482 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R3246 BDP-D
2	2	By: Schwertner S.B. No. 482
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a biennial study and report by the Employees Retirement
8	8	System of Texas and Teacher Retirement System of Texas on
9	9	converting to a defined contribution plan.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter F, Chapter 815, Government Code, is
12	12	amended by adding Section 815.5105 to read as follows:
13	13	Sec. 815.5105. BIENNIAL STUDY AND REPORT ON CONVERTING TO
14	14	DEFINED CONTRIBUTION PLAN. (a) Not later than January 1 of each
15	15	odd-numbered year, the retirement system shall:
16	16	(1) conduct a study to evaluate the cost and
17	17	feasibility of converting from providing benefits to members
18	18	primarily under a defined benefit plan to providing benefits to
19	19	members primarily under a defined contribution plan; and
20	20	(2) submit a written report to each member of the
21	21	legislature containing the findings of the study.
22	22	(b) The report required under this section must:
23	23	(1) evaluate the following two conversion scenarios:
24	24	(A) a conversion under which all persons who are
25	25	members of the system as of January 1 of the next odd-numbered year
26	26	are required to transition to a defined contribution plan; and
27	27	(B) a conversion under which only employees or
28	28	officers initially hired, appointed, or elected on or after January
29	29	1 of the next odd-numbered year are required to participate in a
30	30	defined contribution plan; and
31	31	(2) include:
32	32	(A) a broad description of how each conversion
33	33	scenario described by Subdivision (1) would be achieved, including
34	34	a projected timeline for the various stages of conversion;
35	35	(B) a detailed estimate of the costs to the state
36	36	associated with each conversion scenario, including a detailed
37	37	estimate of the costs to the state associated with maintaining the
38	38	defined benefit plan for retirees and beneficiaries entitled to
39	39	benefits under that plan;
40	40	(C) a summary of the assumptions and methods used
41	41	to estimate costs under Paragraph (B);
42	42	(D) recommendations for legislation the system
43	43	determines would be necessary to accomplish conversion under each
44	44	conversion scenario; and
45	45	(E) any additional information the system
46	46	determines appropriate.
47	47	(c) The report required by this section may be combined with
48	48	any other report required by law.
49	49	SECTION 2. Subchapter B, Chapter 825, Government Code, is
50	50	amended by adding Section 825.1085 to read as follows:
51	51	Sec. 825.1085. BIENNIAL STUDY AND REPORT ON CONVERTING TO
52	52	DEFINED CONTRIBUTION PLAN. (a) Not later than January 1 of each
53	53	odd-numbered year, the retirement system shall:
54	54	(1) conduct a study to evaluate the cost and
55	55	feasibility of converting from providing benefits to members
56	56	primarily under a defined benefit plan to providing benefits to
57	57	members primarily under a defined contribution plan; and
58	58	(2) submit a written report to each member of the
59	59	legislature containing the findings of the study.
60	60	(b) The report required under this section must:
61	61	(1) evaluate the following two conversion scenarios:
62	62	(A) a conversion under which all persons who are
63	63	members of the system as of January 1 of the next odd-numbered year
64	64	are required to transition to a defined contribution plan; and
65	65	(B) a conversion under which only employees
66	66	initially hired on or after January 1 of the next odd-numbered year
67	67	are required to participate in a defined contribution plan; and
68	68	(2) include:
69	69	(A) a broad description of how each conversion
70	70	scenario described by Subdivision (1) would be achieved, including
71	71	a projected timeline for the various stages of conversion;
72	72	(B) a detailed estimate of the costs to the state
73	73	associated with each conversion scenario, including a detailed
74	74	estimate of the costs to the state associated with maintaining the
75	75	defined benefit plan for retirees and beneficiaries entitled to
76	76	benefits under that plan;
77	77	(C) a summary of the assumptions and methods used
78	78	to estimate costs under Paragraph (B);
79	79	(D) recommendations for legislation the system
80	80	determines would be necessary to accomplish conversion under each
81	81	conversion scenario; and
82	82	(E) any additional information the system
83	83	determines appropriate.
84	84	(c) The report required by this section may be combined with
85	85	any other report required by law.
86	86	SECTION 3. This Act takes effect September 1, 2021.