| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the proportionate retirement program. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 803.101, Government Code, is amended by |
|
|
adding Subsection (g) to read as follows: |
|
|
(g) The governing body of a public retirement system in this |
|
|
state for municipal police officers or firefighters in a |
|
|
municipality described by Section 803.0021(1) that is a qualified |
|
|
plan under Section 401(a) of the Internal Revenue Code of 1986 (29 |
|
|
U.S.C. section 401) and the governing body of the municipality may |
|
|
elect to have the retirement system participate in the |
|
|
proportionate retirement program by adopting resolutions to that |
|
|
effect. The governing body of the municipality may not adopt a |
|
|
resolution unless an actuary acting for the municipality has |
|
|
reviewed the initial cost to the municipality of electing such |
|
|
participation. The governing body of the retirement system shall |
|
|
notify all other participating retirement systems of the election. |
|
|
The effective date of participation in the proportionate retirement |
|
|
program by a retirement system for which an election is made under |
|
|
this subsection is the first day of the third month after the month |
|
|
in which notice is given under this subsection. An election under |
|
|
this subsection does not require the approval of the participants |
|
|
in the public retirement system making the election. The governing |
|
|
body of the municipality that finances the retirement system shall |
|
|
appropriate and pay to the retirement system at the same time that |
|
|
the municipality makes its monthly contributions to the retirement |
|
|
system all additional contributions determined by the system's |
|
|
actuary to be necessary in order to fund the additional liabilities |
|
|
incurred by the retirement system as a result of participating in |
|
|
the proportionate retirement program. |
|
|
SECTION 2. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2007. |