79R7576 HLT-F

By:  Eiland                                                       H.B. No. 2567



A BILL TO BE ENTITLED

AN ACT

relating to requiring public retirement systems periodically to 
submit an asset and liability study to the Pension Review Board.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 801.201(b), Government Code, is amended 
to read as follows:
	(b)  For the purpose of performing its duties under Section 
801.202(1) or (2) or Section 801.2025, the board by rule may require 
clarification of information provided by a public retirement system 
in a report that is required by law and is required to be filed with 
the board.  A rule adopted under this subsection may not be enforced 
against a public retirement system if compliance with the rule 
would cause the system to incur a major expense.
	SECTION 2.  Subchapter C, Chapter 801, Government Code, is 
amended by adding Section 801.2025 to read as follows:
	Sec. 801.2025.  ASSET AND LIABILITY STUDY REQUIRED.  The 
board by rule shall require each public retirement system to submit 
to the board, not less than quarterly, an asset and liability study 
that contains:
		(1)  a liability payment schedule of projected annual 
benefit payments;
		(2)  disclosure, weighted by present dollar values, of 
the growth rate of liabilities for the year to date, the average 
duration of the liabilities, and the average yield on the 
liabilities;
		(3)  a listing of asset classes priced at present 
market values;     
		(4)  a calculation of a funding ratio at present market 
values;  and 
		(5)  a comparison of asset growth rate minus liability 
growth rate for the year to date.
	SECTION 3.  This Act takes effect September 1, 2005.