89R15746 KFF-D
By: Y. Davis of Dallas H.B. No. 4280
A BILL TO BE ENTITLED
AN ACT
relating to deferred retirement option plans under the public
retirement systems for police and firefighters in certain
municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Part 4, Article 6243a-1, Revised Statutes, is
amended by adding Section 4.081 to read as follows:
Sec. 4.081. DROP EXCLUDED FROM ACTUARIAL ANALYSIS OF FUND;
SEPARATE TREATMENT REQUIRED. Notwithstanding any other law, an
actuarial valuation or other continuing actuarial observation of
the assets of the fund under this article or other law may not treat
assets or liabilities associated with DROP as assets or liabilities
of the fund, including for purposes of determining the period
required to amortize the unfunded actuarial accrued liability of
the fund. The pension system's qualified actuary shall separately
account for the assets or liabilities associated with DROP.
SECTION 2. Section 6.14(e-1), Article 6243a-1, Revised
Statutes, is amended to read as follows:
(e-1) The board may adopt a shorter period for annuitizing
DROP account balances under Subsection (e) of this section [if the
pension system's qualified actuary determines that the shorter
period will not cause the pension system's amortization period to
exceed 25 years].
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, 2025.