| 1 | 1 | | 89R15746 KFF-D |
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| 2 | 2 | | By: Y. Davis of Dallas H.B. No. 4280 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to deferred retirement option plans under the public |
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| 10 | 10 | | retirement systems for police and firefighters in certain |
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| 11 | 11 | | municipalities. |
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| 12 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 13 | 13 | | SECTION 1. Part 4, Article 6243a-1, Revised Statutes, is |
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| 14 | 14 | | amended by adding Section 4.081 to read as follows: |
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| 15 | 15 | | Sec. 4.081. DROP EXCLUDED FROM ACTUARIAL ANALYSIS OF FUND; |
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| 16 | 16 | | SEPARATE TREATMENT REQUIRED. Notwithstanding any other law, an |
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| 17 | 17 | | actuarial valuation or other continuing actuarial observation of |
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| 18 | 18 | | the assets of the fund under this article or other law may not treat |
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| 19 | 19 | | assets or liabilities associated with DROP as assets or liabilities |
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| 20 | 20 | | of the fund, including for purposes of determining the period |
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| 21 | 21 | | required to amortize the unfunded actuarial accrued liability of |
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| 22 | 22 | | the fund. The pension system's qualified actuary shall separately |
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| 23 | 23 | | account for the assets or liabilities associated with DROP. |
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| 24 | 24 | | SECTION 2. Section 6.14(e-1), Article 6243a-1, Revised |
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| 25 | 25 | | Statutes, is amended to read as follows: |
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| 26 | 26 | | (e-1) The board may adopt a shorter period for annuitizing |
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| 27 | 27 | | DROP account balances under Subsection (e) of this section [if the |
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| 28 | 28 | | pension system's qualified actuary determines that the shorter |
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| 29 | 29 | | period will not cause the pension system's amortization period to |
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| 30 | 30 | | exceed 25 years]. |
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| 31 | 31 | | SECTION 3. This Act takes effect immediately if it receives |
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| 32 | 32 | | a vote of two-thirds of all the members elected to each house, as |
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| 33 | 33 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 34 | 34 | | Act does not receive the vote necessary for immediate effect, this |
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| 35 | 35 | | Act takes effect September 1, 2025. |
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