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House Bill 3310 |
House Author: Paul et al. |
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Effective: 6-18-15 |
Senate Sponsor: Taylor, Larry |
House Bill 3310 amends the Government Code to set out provisions addressing transparency and actuarial soundness with regard to public retirement systems, and these provisions do not apply to certain statewide retirement systems. The bill requires an actuarial valuation of a public retirement system to include a recommended contribution rate needed for the system to achieve and maintain an amortization period that does not exceed 30 years. The bill requires a public retirement system that has assets of at least $100 million to conduct an actuarial experience study once every five years and to submit a copy of the study to the State Pension Review Board.
House Bill 3310 requires a public retirement system to notify the system's associated governmental entity in writing if the system receives an actuarial valuation indicating that the system's actual contributions are not sufficient to amortize the unfunded actuarial accrued liability within 40 years. If a public retirement system's actuarial valuation shows that the system's amortization period has exceeded 40 years for either two or three consecutive actuarial valuations, depending on the frequency with which valuations are conducted, the bill requires the formulation of a funding soundness restoration plan for the system that is designed to achieve a contribution rate that will be sufficient to amortize the unfunded actuarial accrued liability within 40 years not later than the 10th anniversary of the date on which the final version of the plan is agreed to. The bill also provides for the posting of funding soundness restoration plan data on the State Pension Review Board website.