Bill Text: TX HB2657 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the funding soundness restoration plans required for certain public retirement systems.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-05-02 - Left pending in committee [HB2657 Detail]
Download: Texas-2019-HB2657-Introduced.html
86R7345 TSR-D | ||
By: Flynn | H.B. No. 2657 |
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relating to the funding soundness restoration plans required for | ||
certain public retirement systems. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 802.2015(c), (d), and (e), Government | ||
Code, are amended to read as follows: | ||
(c) A public retirement system shall notify the associated | ||
governmental entity in writing if the retirement system receives an | ||
actuarial valuation indicating that the system's actual | ||
contributions are not sufficient to amortize the unfunded actuarial | ||
accrued liability within 30 [ |
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system's actuarial valuation shows that the system's amortization | ||
period has exceeded 30 [ |
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actuarial valuations, or two consecutive actuarial valuations in | ||
the case of a system that conducts the valuations every two or three | ||
years, the governing body of the public retirement system and the | ||
associated governmental entity shall formulate a funding soundness | ||
restoration plan under Subsection (e) in accordance with the | ||
system's governing statute. | ||
(d) The governing body of a public retirement system and the | ||
associated governmental entity that have formulated a funding | ||
soundness restoration plan under Subsection (e) shall formulate a | ||
revised funding soundness restoration plan under that subsection, | ||
in accordance with the system's governing statute, if the system | ||
conducts an actuarial valuation showing that: | ||
(1) the system's amortization period exceeds 30 [ |
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years; and | ||
(2) the previously formulated funding soundness | ||
restoration plan has not been adhered to. | ||
(e) A funding soundness restoration plan formulated under | ||
this section must: | ||
(1) be developed by the public retirement system and | ||
the associated governmental entity in accordance with the system's | ||
governing statute; and | ||
(2) be designed to achieve a contribution rate that | ||
will be sufficient to amortize the unfunded actuarial accrued | ||
liability within 30 [ |
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of the date on which the final version of a funding soundness | ||
restoration plan is agreed to. | ||
SECTION 2. Sections 802.2016(c), (d), and (e), Government | ||
Code, are amended to read as follows: | ||
(c) A public retirement system shall notify the associated | ||
governmental entity in writing if the retirement system receives an | ||
actuarial valuation indicating that the system's actual | ||
contributions are not sufficient to amortize the unfunded actuarial | ||
accrued liability within 30 [ |
||
system's actuarial valuation shows that the system's amortization | ||
period has exceeded 30 [ |
||
actuarial valuations, or two consecutive actuarial valuations in | ||
the case of a system that conducts the valuations every two or three | ||
years, the associated governmental entity shall formulate a funding | ||
soundness restoration plan under Subsection (e) in accordance with | ||
the public retirement system's governing statute. | ||
(d) An associated governmental entity that has formulated a | ||
funding soundness restoration plan under Subsection (e) shall | ||
formulate a revised funding soundness restoration plan under that | ||
subsection, in accordance with the public retirement system's | ||
governing statute, if the system conducts an actuarial valuation | ||
showing that: | ||
(1) the system's amortization period exceeds 30 [ |
||
years; and | ||
(2) the previously formulated funding soundness | ||
restoration plan has not been adhered to. | ||
(e) A funding soundness restoration plan formulated under | ||
this section must: | ||
(1) be developed in accordance with the public | ||
retirement system's governing statute by the associated | ||
governmental entity; and | ||
(2) be designed to achieve a contribution rate that | ||
will be sufficient to amortize the unfunded actuarial accrued | ||
liability within 30 [ |
||
of the date on which the final version of a funding soundness | ||
restoration plan is formulated. | ||
SECTION 3. A public retirement system and an associated | ||
governmental entity subject to Section 802.2015, Government Code, | ||
as amended by this Act, or a governmental entity subject to Section | ||
802.2016, Government Code, as amended by this Act, shall formulate | ||
a funding soundness restoration plan, if required to do so under the | ||
applicable section, based on the most recent actuarial valuation | ||
study conducted under Section 802.101, Government Code, not later | ||
than November 1, 2020. | ||
SECTION 4. This Act takes effect September 1, 2019. |