79R6005 HLT-D
By: Janek S.B. No. 1731
A BILL TO BE ENTITLED
AN ACT
relating to the composition of the pension board of certain
municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2, Chapter 88, Acts of the 77th
Legislature, Regular Session, 2001 (Article 6243h, Vernon's Texas
Civil Statutes), is amended by amending Subsections (c), (d), (e),
(h), (j), (n), and (p) and adding Subsections (c-1), (c-2), (j-1),
and (n-1) to read as follows:
(c) The pension board consists of nine trustees as follows:
(1) an employee of the city's financial division [the
mayor of the city, or the director of the civil service commission
as the mayor's representative];
(2) an actuary [the city treasurer or a person
performing the duties of treasurer];
(3) two [four] municipal employees of the city who are
members of the pension system;
(4) two retirees, each of whom:
(A) has at least five years of credited service
in the pension system;
(B) receives a retirement pension from the
pension system; and
(C) is not an officer or employee of the city;
[and]
(5) one person who:
(A) has been a resident of this state for the
three years preceding the date of initial appointment; [and]
(B) is not a city officer or employee and is not
related within the second degree by consanguinity or affinity, as
determined under Chapter 573, Government Code, to a person who is a
city officer or employee;
(C) is a registered voter of the city;
(D) is not a member of the municipal pension
system and is not related within the second degree by consanguinity
or affinity, as determined under Chapter 573, Government Code, to a
person who is a member of the municipal pension system; and
(E) meets the qualifications established by the
pension board under Subsection (j-1); and
(6) two registered investment advisors.
(c-1) To serve as a trustee under Subsection (c)(1) of this
section, the person must be appointed by the mayor.
(c-2) To serve as a trustee under Subsection (c)(2) of this
section, the person must be appointed by a vote of a majority of the
members of the city council. The city's actuarial association
shall nominate at least two certified actuaries to be voted on by
the city council.
(d) To serve as a trustee under Subsection (c)(3) of this
section, a person must be a member with at least five years of
credited service and be elected by the active members of the pension
system at an election called by the pension board. The [No more
than two of the] employee trustees may not be employees of the same
department.
(e) A person elected as an employee trustee under Subsection
(d) of this section who retires during the trustee's term shall
remain in office until the expiration of the term. [Persons elected
as employee trustees serve staggered four-year terms, with the
terms of two of the trustees expiring in each even-numbered year.
Each employee trustee shall continue to serve until a successor is
qualified.]
(h) To serve as a trustee under Subsection (c)(6) of this
section, the person must be appointed by a vote of a majority of the
members of the city council. The city's association of registered
investment advisors shall nominate at least four registered
investment advisors to be voted on by the city council. [Persons
elected as retiree trustees serve four-year staggered terms, with
the term of one trustee expiring in each even-numbered year.]
(j) To serve as a trustee under Subsection (c)(5) of this
section, the person must be appointed by a vote of a majority of the
elected trustees of the pension board. [The trustee appointed under
Subsection (c)(5) of this section serves a two-year term. The
appointment or reappointment of the appointed trustee shall take
place in January of each even-numbered year.] The appointed
trustee may be removed at any time by a vote of a majority of the
elected trustees of the pension board. A vacancy caused by the
appointed trustee's death, resignation, or removal shall be filled
by the elected trustees of the pension board. The appointee serves
for the remainder of the unexpired term of the replaced trustee. An
appointed trustee may not serve beyond the expiration of the
three-year [two-year] term other than by appointment for a new term
by the elected trustees of the pension board.
(j-1) The pension board shall adopt a rule requiring a
trustee appointed under Subsection (c)(5) to have an adequate
background in finance.
(n) The pension board shall appoint, by a vote of a majority
of the trustees of the pension board, a [The] person serving as a
trustee under Subsection (c)(6) [(c)(2)] of this section to serve
[serves] as the treasurer of the pension fund. The pension board
shall require the treasurer to file an [under penalty of that
person's] official bond payable to the pension board. The
treasurer is liable on the treasurer's official bond for the
faithful performance of the treasurer's duties under this Act in
connection with the pension fund [and oath of office. That person's
official bond to the city shall cover the person's position as
treasurer of the pension fund, and that person's sureties are
liable for the treasurer's actions pertaining to the pension fund
to the same extent as the sureties are liable under the terms of the
bond for other actions and conduct of the treasurer].
(n-1) Trustees serve staggered three-year terms. On
January 1 of each year, the appropriate number of trustees shall be
appointed or elected. A trustee may not serve more than four
consecutive terms.
(p) In each odd-numbered year, the pension board shall elect
from the elected trustees a chair, vice chair, and secretary. The
chair may not serve in that capacity more than two consecutive
terms.
SECTION 2. (a) The term of office for any person serving as
a trustee of the pension board under Chapter 88, Acts of the 77th
Legislature, Regular Session, 2001 (Article 6243h, Vernon's Texas
Civil Statutes), as of December 31, 2005, expires on January 1,
2006. The pension board and the city council shall appoint trustees
and the pension board shall hold an election as required by Section
2, Chapter 88, Acts of the 77th Legislature, Regular Session, 2001
(Article 6243h, Vernon's Texas Civil Statutes), as amended by this
Act, as soon as practicable after January 1, 2006.
(b) Trustees who are elected or appointed on January 1,
2006, under Section 2, Chapter 88, Acts of the 77th Legislature,
Regular Session, 2001 (Article 6243h, Vernon's Texas Civil
Statutes), as amended by this Act, shall draw lots to determine
three trustees to serve terms expiring January 1, 2007, three
trustees to serve terms expiring January 1, 2008, and three
trustees to serve terms expiring January 1, 2009.
SECTION 3. This Act takes effect September 1, 2005.