In response to your request for an Actuarial Impact Statement on CSSB 976 (relating to the public retirement system of certain municipalities) the Pension Review Board (PRB), has determined the following.

CSSB 976 amends Vernon’s Texas Civil Statutes, Title 109, by adding Article 6243(i) regarding the unitary retirement system for certain municipalities. The bill applies only to a municipality with a population of 500,000 or more that has already established, by municipal ordinance, a single unitary public retirement system for employees of all departments of the municipality. Benefit provisions for such a retirement system are to be determined in accordance with administrative rules governing the system as of May 1, 2007 or amendments to those rules as adopted under the provisions of the bill. Other provisions of the bill include:

• Establishing procedures for amendments concerning certain benefit programs or plans.
• Outlining the composition of the board of trustees, powers of the board, election of the board chair, and length of board terms.
• Providing guidelines for amendments to contributions by the municipality.
• Allows for member contributions to exceed 10 percent of compensation.
• Requiring the board to review, at least once every six months, the performance of the fund to determine how to address the unfunded liabilities, if any, of the retirement system.

Based on the provisions of the bill, the Fort Worth Employees’ Retirement Fund would qualify under Article 6243(i). According to the retirement fund, the bill, if enacted, will not have a significant actuarial effect because it does not propose to change the funding or obligations of any public retirement system and is administrative in nature only.