HB 109 would amend the actuarial impact statement process. The provisions would be applicable to legislation, with the exception of the general appropriations bill, that affects a public retirement system of a municipality with a population of 750,000 or more. Currently, the retirement systems that would fall under this provision are: Houston Municipal, Police, and Fire; Dallas Municipal, Police and Fire; and San Antonio Police and Fire. HB 109 would require the author of any bill or resolution impacting these retirement systems to attach a statement of the results of a vote taken by the governing body of the municipality for or against the bill or resolution. Additionally, HB 109 will require an independent actuary appointed by the Pension Rview Board (PRB) to conduct a secondary actuarial analysis of any bill or resolution impacting these retirement systems. The independent actuary must not be under contract with the retirement system, or have any conflict of interest with the retirement system. HB 109 would require the PRB to prepare and submit a report to the Legislative Budget Board (LBB) including both actuarial analyses, the PRB’s comments on whether the bill or resolution would impact the actuarial soundness of the retirement system and the reason for the PRB’s comments. The LBB would then include in its actuarial impact statement the PRB’s full report on the bill or resolution, any actuarial analysis previously prepared for another bill or resolution affecting the retirement system within the last three years, and any additional comments by the LBB. The cost of the independent actuarial analysis introduced by HB 109 would be paid for by the public retirement system, the municipality under which the retirement system was created, or by some combination of both the municipality and the retirement system.

The bill, if enacted, will have no actuarial effect because it does not propose to change the funding or obligations of any public retirement system.