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A BILL TO BE ENTITLED
|
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AN ACT
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|
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relating to the monitoring and oversight of certain public |
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retirement systems and public investments; providing civil |
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penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 801, Government Code, is |
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amended to read as follows: |
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CHAPTER 801. STATE PENSION AND INVESTMENT REVIEW BOARD |
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SECTION 2. Subdivision (1), Section 801.001, Government |
|
Code, is amended to read as follows: |
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(1) "Board" means the State Pension and Investment |
|
Review Board. |
|
SECTION 3. Section 801.101, Government Code, is amended to |
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read as follows: |
|
Sec. 801.101. PENSION AND INVESTMENT REVIEW BOARD. The |
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State Pension and Investment Review Board is an agency of the state. |
|
SECTION 4. Subsection (a), Section 801.102, Government |
|
Code, is amended to read as follows: |
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(a) The board is composed of seven [nine] members. |
|
SECTION 5. Section 801.103, Government Code, is amended to |
|
read as follows: |
|
Sec. 801.103. MEMBERS APPOINTED BY GOVERNOR. (a) The |
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governor shall appoint, with the advice and consent of the senate, |
|
five [seven] members to the board. |
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(b) The governor shall appoint to the board: |
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(1) three persons who have experience in the fields of |
|
securities investment, pension administration, [or] pension law, |
|
institutional investment, investment risk management, or |
|
institutional audits but who are not members or retirees of a public |
|
retirement system; |
|
(2) one person who is a fellow of the Society of |
|
Actuaries, a member of the American Academy of Actuaries, or an |
|
enrolled actuary under the federal Employee Retirement Income |
|
Security Act of 1974 (29 U.S.C. Sec. 1001 et seq.); and |
|
(3) [one person who has experience in the field of
|
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governmental finance;
|
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[(4)] one person who: |
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(A) is a contributing member of a public |
|
retirement system; or |
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(B) [and
|
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[(5) one person who] is receiving retirement benefits |
|
from a public retirement system. |
|
SECTION 6. Section 801.104, Government Code, is amended to |
|
read as follows: |
|
Sec. 801.104. MEMBERS APPOINTED BY OTHERS. (a) The |
|
lieutenant governor shall appoint one member to the board [one
|
|
member of the senate]. |
|
(b) The speaker of the house of representatives shall |
|
appoint one member to the board [one member of the house]. |
|
(c) Each person appointed to the board under this section |
|
must have experience in the field of securities investment, pension |
|
administration, pension law, institutional investment, investment |
|
risk management, or institutional audits. |
|
SECTION 7. Section 801.106, Government Code, is amended to |
|
read as follows: |
|
Sec. 801.106. TERMS OF OFFICE. Members of the board hold |
|
office for staggered terms of six years, with the terms of two or |
|
three members expiring on January 31 of each odd-numbered year. |
|
SECTION 8. Section 801.107, Government Code, is amended to |
|
read as follows: |
|
Sec. 801.107. SUNSET PROVISION. The State Pension and |
|
Investment Review Board is subject to Chapter 325 (Texas Sunset |
|
Act). Unless continued in existence as provided by that chapter, |
|
the board is abolished and this chapter expires September 1, 2013. |
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SECTION 9. The heading to Section 801.113, Government Code, |
|
is amended to read as follows: |
|
Sec. 801.113. PROVISION OF CERTAIN SERVICES [FUND]. |
|
SECTION 10. Subsection (e), Section 801.113, Government |
|
Code, is amended to read as follows: |
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(e) The board is authorized to conduct training sessions, |
|
schools, or other educational activities for trustees and |
|
administrators of public retirement systems. The board may also |
|
furnish other appropriate services such as actuarial studies or |
|
other requirements of systems and may establish appropriate fees |
|
for these activities and services. [The fees may be based on
|
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whether or not the trustees, administrators, or systems contribute
|
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to the State Pension Review Board fund under Subsection (c) of this
|
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section. The net proceeds of these fees shall be deposited in the
|
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fund.] |
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SECTION 11. Subsections (b) and (c), Section 801.201, |
|
Government Code, are amended to read as follows: |
|
(b) For the purpose of performing its duties under Section |
|
801.202(1) or (2), the board by rule may require clarification of |
|
information provided by a public retirement system or other entity |
|
subject to Subchapter D 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.] |
|
(c) The board by rule shall: |
|
(1) adopt actuarial standards that the public |
|
retirement systems must use to submit information to the board; |
|
(2) adopt a brief standard form that will assist the |
|
board in efficiently determining the actuarial soundness, if |
|
applicable, and current financial condition of a public retirement |
|
system or other entity subject to Subchapter D; and |
|
(3) [(2)] require that a retirement system or other |
|
entity subject to Subchapter D submitting information required for |
|
the review or study described under Section 801.202(1) or (2) |
|
include the form with the submission. |
|
SECTION 12. Section 801.202, Government Code, is amended to |
|
read as follows: |
|
Sec. 801.202. GENERAL DUTIES. The board shall: |
|
(1) conduct a continuing review of: |
|
(A) public retirement systems, compiling and |
|
comparing information about benefits, creditable service, |
|
financing, and administration of systems; and |
|
(B) the investment practices of public |
|
retirement systems and other entities subject to Subchapter D; |
|
(2) conduct intensive studies of potential or existing |
|
problems that threaten [the actuarial soundness of] or inhibit: |
|
(A) the financial condition or actuarial |
|
soundness of public funds managed or invested by an entity subject |
|
to Subchapter D; or |
|
(B) an equitable distribution of benefits in one |
|
or more public retirement systems; |
|
(3) provide information and technical assistance on |
|
pension planning to public retirement systems on request; [and] |
|
(4) review and document whether the board believes an |
|
entity subject to Subchapter D is investing funds in compliance |
|
with: |
|
(A) the entity's investment strategy; and |
|
(B) applicable law governing the entity's |
|
investments; and |
|
(5) recommend policies, practices, and legislation to |
|
public retirement systems and other entities subject to Subchapter |
|
D and appropriate governmental entities. |
|
SECTION 13. Subsection (a), Section 801.203, Government |
|
Code, is amended to read as follows: |
|
(a) The board shall present to the legislature and the |
|
governor, in November of each even-numbered year, a public report |
|
explaining the work and findings of the board during the preceding |
|
two-year period and including drafts or recommendations of any |
|
legislation relating to public retirement systems or other entities |
|
subject to Subchapter D that the board finds advisable. |
|
SECTION 14. Section 801.204, Government Code, is amended to |
|
read as follows: |
|
Sec. 801.204. INSPECTION OF RECORDS. To the extent it is |
|
necessary to perform [In performing] its functions, the board may |
|
inspect the books, records, or accounts of a public retirement |
|
system or another entity subject to Subchapter D during business |
|
hours of the system. |
|
SECTION 15. Chapter 801, Government Code, is amended by |
|
adding Subchapter D to read as follows: |
|
SUBCHAPTER D. BOARD INVESTMENT OVERSIGHT |
|
Sec. 801.301. APPLICABILITY. (a) This subchapter applies |
|
only to the investment of: |
|
(1) public funds by: |
|
(A) the comptroller; |
|
(B) the Employees Retirement System of Texas, |
|
including a retirement system administered by that system; |
|
(C) the Teacher Retirement System of Texas; |
|
(D) the Texas Municipal Retirement System; |
|
(E) the Texas County and District Retirement |
|
System; and |
|
(F) the Texas Emergency Services Retirement |
|
System; |
|
(2) the permanent university fund by the board of |
|
regents of The University of Texas System or any entity acting on |
|
behalf of the board of regents, including a nonprofit corporation |
|
acting under Section 66.08, Education Code; and |
|
(3) the permanent school fund by the State Board of |
|
Education or any entity acting on behalf of the State Board of |
|
Education, including a nonprofit corporation acting under Section |
|
43.006, Education Code. |
|
(b) For purposes of this subchapter, a reference to "public |
|
retirement system" means a public retirement system subject to this |
|
subchapter. |
|
Sec. 801.302. ANNUAL REPORT TO BOARD. An entity subject to |
|
this subchapter shall, not later than six months after the last day |
|
of the fiscal year under which the entity operates or, if a public |
|
retirement system, the plan year under which the entity operates, |
|
file with the board and post on the entity's Internet website |
|
information that the board determines is necessary to perform the |
|
board's duties under Section 801.202. |
|
Sec. 801.303. REPORT ON INVESTMENT STRATEGY. (a) An |
|
entity subject to this subchapter shall: |
|
(1) develop and adopt a written investment strategy; |
|
(2) file a copy of the strategy with the board not |
|
later than the 90th day after the date the strategy is adopted; and |
|
(3) file a copy of each change to the strategy with the |
|
board not later than the 90th day after the change is adopted. |
|
(b) A report under this section may be combined with any |
|
other report required by this chapter or Chapter 802. |
|
Sec. 801.304. TIMELY SUBMISSION OF CERTAIN REPORTS AND |
|
RESPONSES REQUIRED. (a) The presiding officer of an entity |
|
subject to this subchapter or the governing body of an entity |
|
subject to this subchapter is responsible for ensuring that a |
|
report or a response to a request for information made by the board |
|
for the purpose of performing the board's duties under Section |
|
801.202 is filed timely with the board. |
|
(b) It is grounds for removal by the appropriate appointing |
|
officer if the presiding officer of an entity subject to this |
|
subchapter or the governing body of an entity subject to this |
|
subchapter consistently fails to timely submit a report or respond |
|
to a request for information under Subsection (a). |
|
(c) If the board determines that the presiding officer of an |
|
entity subject to this subchapter consistently fails to timely |
|
report or respond to a request for information under Subsection |
|
(a), the board shall notify the appropriate appointing officer, if |
|
any, the governor, if the governor is not the appropriate |
|
appointing officer, and the Legislative Budget Board of its |
|
determination. |
|
Sec. 801.305. CONTRACTS WITH INVESTMENT MANAGERS AND |
|
CERTAIN OTHERS. A contract with an investment manager or other |
|
person to provide services to an entity subject to this subchapter |
|
relating to the management and investment of public funds for or on |
|
behalf of the entity is subject to review by the board regarding the |
|
fees charged and paid by the subject entity and the services |
|
rendered to the entity in consideration for the fees. |
|
Sec. 801.306. DISCLOSURE OF CERTAIN POTENTIAL CONFLICTS OF |
|
INTEREST; ANNUAL FILING. (a) This section applies to: |
|
(1) a member of the governing body of a public |
|
retirement system subject to this subchapter; |
|
(2) an investment manager for a public retirement |
|
system appointed by contract; |
|
(3) a member of the board of regents of The University |
|
of Texas System; |
|
(4) the officers and directors of a nonprofit |
|
corporation under contract with the board of regents of The |
|
University of Texas System under Section 66.08, Education Code, to |
|
invest the funds of the permanent university fund on behalf of the |
|
board of regents; |
|
(5) a member of the State Board of Education; |
|
(6) the officers and directors of a nonprofit |
|
corporation acting under contract with the State Board of Education |
|
to invest the funds of the permanent school fund under Section |
|
43.006, Education Code; |
|
(7) any private professional investment manager who |
|
has entered into a contract with the comptroller under Section |
|
404.024(k) to assist the comptroller in investing public funds; and |
|
(8) any other person, including an investment manager, |
|
consultant, or advisor, providing services under contract to an |
|
entity subject to this subchapter relating to the management and |
|
investment of the entity's assets. |
|
(b) A person to whom this section applies and who has a |
|
business, commercial, or other relationship that a reasonable |
|
person would find likely to materially diminish the person's |
|
independence of judgment in the performance of the person's |
|
responsibilities with respect to the management or investment of |
|
public funds for or on behalf of an entity subject to this |
|
subchapter shall immediately disclose the relationship in writing |
|
to the entity. |
|
(c) If a person described by Subsection (a)(1) or (3) |
|
intentionally fails to disclose a relationship under Subsection |
|
(b), it is a ground for removal from the governing body of the |
|
entity on which the person serves. |
|
(d) If a person described by Subsection (a)(2), (4), (6), |
|
(7), or (8) intentionally fails to disclose a relationship under |
|
Subsection (b): |
|
(1) the contract is voidable by the entity; and |
|
(2) the governing body of the entity may enter an order |
|
declaring the person ineligible to contract for business relating |
|
to the management or investment of public funds for or on behalf of |
|
the entity. |
|
(e) At least annually and not later than a date specified by |
|
the entity, a person to whom this section applies shall file a |
|
statement with the entity stating that the person is aware that the |
|
person is required to disclose material conflicts of interest under |
|
this section and that the person is in compliance with this section. |
|
Sec. 801.307. PROHIBITION AGAINST ACCEPTANCE OF CERTAIN |
|
GIFTS. In any 12-month period, the comptroller or a person who is a |
|
member of the governing body of a public retirement system, the |
|
board of regents of The University of Texas System, or the State |
|
Board of Education or an employee of an entity subject to this |
|
subchapter employed in a "bona fide executive, administrative, or |
|
professional capacity," as that phrase is used for purposes of |
|
establishing an exemption to the overtime provisions of the federal |
|
Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), |
|
may not accept a gift or gifts, the total value of which is more than |
|
$250, including food, entertainment, and a promised future benefit, |
|
from another person doing business with or seeking to do business |
|
with the entity. |
|
Sec. 801.308. PROHIBITED CONTRACTS. A public retirement |
|
system, the board of regents of The University of Texas System, or |
|
the State Board of Education may not directly or indirectly enter |
|
into a contract with a former member of the governing body of a |
|
public retirement system, the board of regents of The University of |
|
Texas System, or the State Board of Education, respectively, to |
|
provide services relating to the management and investment of |
|
public funds before the second anniversary of the date the person |
|
ceases to be a member of the body or board, as applicable. |
|
Sec. 801.309. CIVIL PENALTY. (a) A person who commits a |
|
breach of the person's fiduciary duty, fraud, theft, embezzlement, |
|
fraudulent conversion, unlawful appropriation, or misapplication |
|
of property in relation to a service provided by the person to an |
|
entity subject to this subchapter is liable to this state for a |
|
civil penalty in an amount not to exceed $250,000 for each offense. |
|
(b) The attorney general may bring an action to recover the |
|
civil penalty imposed under this section. |
|
(c) The penalty under this section is in addition to any |
|
other remedy provided by law. |
|
Sec. 801.310. INVESTIGATION OF CERTAIN COMPLAINTS; |
|
ASSISTANCE OF ATTORNEY GENERAL. (a) The board shall adopt rules |
|
and procedures for receiving and investigating a complaint against |
|
a person who provides management or investment services to an |
|
entity subject to this subchapter alleging that the person: |
|
(1) violated or may have violated Section 801.306 or |
|
another applicable conflict of interest provision; or |
|
(2) has been or may have been involved in criminal |
|
conduct relating to the services provided by the person to the |
|
entity. |
|
(b) The board or the attorney general may, without receiving |
|
a complaint, initiate an investigation under this section if the |
|
board or the attorney general, as applicable, determines an |
|
investigation is appropriate. |
|
(c) The board may enter into a memorandum of understanding |
|
with the attorney general to assist in an investigation under this |
|
section. The memorandum must specify the type, scope, and format of |
|
the investigative assistance provided by the attorney general. |
|
(d) If the board or the attorney general determines that a |
|
criminal offense may have been committed, the board or the attorney |
|
general, as applicable, shall refer the case to the appropriate law |
|
enforcement agency for prosecution. |
|
SECTION 16. Subdivision (1), Section 802.001, Government |
|
Code, is amended to read as follows: |
|
(1) "Board" means the State Pension and Investment |
|
Review Board. |
|
SECTION 17. Subsection (d), Section 802.003, Government |
|
Code, is amended to read as follows: |
|
(d) The State Pension and Investment Review Board may file |
|
an appropriate pleading, in the manner provided by this section for |
|
filing by an individual, for the purpose of enforcing a requirement |
|
of Subchapter B or C, other than a requirement of Section |
|
802.101(a), 802.101(d), 802.102, 802.103(a), or 802.104. |
|
SECTION 18. Subsection (c), Section 802.101, Government |
|
Code, is amended to read as follows: |
|
(c) The governing body of a public retirement system shall |
|
file with the State Pension and Investment Review Board a copy of |
|
each actuarial study and each separate report made as required by |
|
law. |
|
SECTION 19. Subsection (j), Section 802.1012, Government |
|
Code, is amended to read as follows: |
|
(j) The governmental entity shall: |
|
(1) maintain a copy of the final audit report at its |
|
main office for public inspection; |
|
(2) submit a copy of the final audit report to the |
|
public retirement system and the State Pension and Investment |
|
Review Board not later than the 30th day after the date the final |
|
audit report is received by the governmental entity; and |
|
(3) pay all costs associated with conducting the audit |
|
and preparing and distributing the report under this section. |
|
SECTION 20. Subchapter B, Chapter 802, Government Code, is |
|
amended by adding Section 802.1013 to read as follows: |
|
Sec. 802.1013. ACTUARIAL EXPERIENCE STUDIES. (a) In this |
|
section, "plan year" means the 12-month accounting period of the |
|
affected pension plan of a public retirement system subject to this |
|
section. |
|
(b) Subject to Subsection (c), the board may require a |
|
public retirement system with total assets the book value of which, |
|
as of the last day of the preceding plan year, is at least $100 |
|
million to conduct an actuarial experience study. |
|
(c) The board may not require a public retirement system to |
|
conduct more than one actuarial experience study every five years. |
|
(d) The board may adopt rules to implement this section. |
|
SECTION 21. Subsection (b) and (c), Section 802.103, |
|
Government Code, are amended to read as follows: |
|
(b) The governing body of a public retirement system shall, |
|
before the 211th day after the last day of the fiscal year under |
|
which the system operates, file with the State Pension and |
|
Investment Review Board a copy of each annual financial report it |
|
makes as required by law. |
|
(c) A public retirement system that is subject to Chapter |
|
125, Acts of the 45th Legislature, Regular Session, 1937 (Article |
|
6243e, Vernon's Texas Civil Statutes), and that has total assets |
|
with a book value, as of the last day of the fiscal year, of less |
|
than $50,000, may submit to the State Pension and Investment Review |
|
Board for that year, instead of the financial report otherwise |
|
required by this section to be published and submitted, a copy of |
|
the financial report it submits to the firemen's pension |
|
commissioner. |
|
SECTION 22. Subsection (a), Section 802.105, Government |
|
Code, is amended to read as follows: |
|
(a) Each public retirement system shall, before the 91st day |
|
after the date of its creation, register with the State Pension and |
|
Investment Review Board. |
|
SECTION 23. Subsection (h), Section 802.106, Government |
|
Code, is amended to read as follows: |
|
(h) A public retirement system shall submit to the State |
|
Pension and Investment Review Board copies of the summarized |
|
information required by Subsections (a) and (b). A system shall |
|
submit a copy of the information required by Subsection (a) before |
|
the 31st day after the date of publication and a copy of the |
|
information required by Subsection (b) before the 271st day after |
|
the date a change is adopted. |
|
SECTION 24. Section 802.107, Government Code, is amended to |
|
read as follows: |
|
Sec. 802.107. GENERAL PROVISIONS RELATING TO REPORTS. |
|
(a) A public retirement system shall maintain for public review at |
|
its main office and at such other locations as the retirement system |
|
considers appropriate copies of the most recent edition of each |
|
type of report or other information required by this chapter to be |
|
submitted to the State Pension and Investment Review Board unless |
|
the information is confidential under law. Public information |
|
required to be reported annually to the board may be posted on the |
|
retirement system's Internet website or on the website of the |
|
board. |
|
(b) Information required by this chapter to be submitted to |
|
the State Pension and Investment Review Board may be contained in |
|
one or more documents but must be submitted within the period |
|
provided by the provision requiring the information. |
|
SECTION 25. Subsection (d), Section 802.202, Government |
|
Code, is amended to read as follows: |
|
(d) The governing body of a public retirement system shall: |
|
(1) develop and adopt a written investment policy; |
|
(2) maintain for public review at its main office a |
|
copy of the policy; |
|
(3) file a copy of the policy with the State Pension |
|
and Investment Review Board not later than the 90th day after the |
|
date the policy is adopted; and |
|
(4) file a copy of each change to the policy with the |
|
State Pension and Investment Review Board not later than the 90th |
|
day after the change is adopted. |
|
SECTION 26. The heading to Section 802.3021, Government |
|
Code, is amended to read as follows: |
|
Sec. 802.3021. STATE PENSION AND INVESTMENT REVIEW BOARD |
|
ACTUARY. |
|
SECTION 27. Subsection (f), Section 810.001, Government |
|
Code, is amended to read as follows: |
|
(f) Every political entity which establishes or maintains a |
|
public retirement system covered under this Act shall file all |
|
reports with the State Pension and Investment Review Board required |
|
by Chapter 802. If a political subdivision establishes a |
|
retirement program that would be a "public retirement system" |
|
within the meaning ascribed to that term by Section 801.001, but for |
|
the fact that the program is administered by a life insurance |
|
company, the subdivision shall notify the State Pension and |
|
Investment Review Board of the establishment of the program and the |
|
name of the administering company. |
|
SECTION 28. Subsection (d), Section 815.110, Government |
|
Code, is amended to read as follows: |
|
(d) No later than 30 days after the legislative audit |
|
committee receives an audit report, the committee shall file a copy |
|
of the report with the retirement system, the governor, the |
|
lieutenant governor, the speaker of the house of representatives, |
|
the State Pension and Investment Review Board, the state auditor, |
|
and the secretary of state for publication in the Texas Register. |
|
SECTION 29. Subsection (a), Section 815.510, Government |
|
Code, is amended to read as follows: |
|
(a) The Employees Retirement System of Texas shall submit a |
|
report not later than the 25th day of the month following the end of |
|
each fiscal year to the governor, the lieutenant governor, the |
|
speaker of the house of representatives, the executive director of |
|
the State Pension and Investment Review Board, the appropriate |
|
oversight committees of the house and senate, and the Legislative |
|
Budget Board. The report shall include the following: |
|
(1) the current end-of-fiscal-year market value of the |
|
trust fund; |
|
(2) the asset allocations of the trust fund expressed |
|
in percentages of stocks, fixed income, cash, or other financial |
|
investments; and |
|
(3) the investment performance of the trust fund |
|
utilizing accepted industry measurement standards. |
|
SECTION 30. Subsection (c) and (d), Section 825.108, |
|
Government Code, are amended to read as follows: |
|
(c) A copy of the report required by Subsection (a) must be |
|
filed with the governor, the lieutenant governor, the speaker of |
|
the house of representatives, the State Pension and Investment |
|
Review Board, the legislative audit committee, and the state |
|
auditor no later than December 15 of each year. |
|
(d) A copy of the report required by Subsection (b) must be |
|
filed with the governor, the lieutenant governor, the speaker of |
|
the house of representatives, the State Pension and Investment |
|
Review Board, the legislative audit committee, and the state |
|
auditor no later than March 1 of each year. |
|
SECTION 31. Subsection (d), Section 825.111, Government |
|
Code, is amended to read as follows: |
|
(d) No later than 30 days after the legislative audit |
|
committee receives an audit report, the committee shall file a copy |
|
of the report with the retirement system, the governor, the |
|
lieutenant governor, the speaker of the house of representatives, |
|
the State Pension and Investment Review Board, the state auditor, |
|
and the secretary of state for publication in the Texas Register. |
|
SECTION 32. Subsection (e), Section 825.512, Government |
|
Code, is amended to read as follows: |
|
(e) The retirement system shall submit an annual investment |
|
performance report not later than the 45th day after the end of each |
|
fiscal year to the governor, the lieutenant governor, the speaker |
|
of the house of representatives, the executive director of the |
|
State Pension and Investment Review Board, the legislative audit |
|
committee, the committees of the senate and the house of |
|
representatives having jurisdiction over appropriations, the |
|
committees of the senate and the house of representatives having |
|
principal jurisdiction over legislation governing the retirement |
|
system, and the Legislative Budget Board. The report shall include |
|
a listing of all commissions and fees paid by the system during the |
|
reporting period for the sale, purchase, or management of system |
|
assets. |
|
SECTION 33. Section 825.513, Government Code, is amended to |
|
read as follows: |
|
Sec. 825.513. INFORMATION FOR PUBLICATION. The retirement |
|
system shall verify with the State Pension and Investment Review |
|
Board the accuracy of information about the effects of proposed |
|
legislation on benefits and the trust fund before including the |
|
information in an official publication of the retirement system. |
|
SECTION 34. Section 825.518, Government Code, is amended to |
|
read as follows: |
|
Sec. 825.518. ANNUAL REPORT. The Teacher Retirement System |
|
of Texas shall submit a statistical analysis based on information |
|
compiled under Section 822.005(d) not later than the 25th day of the |
|
month following the end of each fiscal year to the governor, the |
|
lieutenant governor, the speaker of the house of representatives, |
|
the executive director of the State Pension and Investment Review |
|
Board, the appropriate oversight committees of the house and |
|
senate, and the Legislative Budget Board. |
|
SECTION 35. Section 2, Chapter 817 (S.B. 127), Acts of the |
|
73rd Legislature, Regular Session, 1993 (Article 4413(34e), |
|
Vernon's Texas Civil Statutes), is amended to read as follows: |
|
Sec. 2. The manager of each state trust fund shall submit to |
|
the governor, the lieutenant governor, the speaker of the house of |
|
representatives, and the executive director of the State Pension |
|
and Investment Review Board: |
|
(1) not later than January 25 of each year, a report |
|
with the information required by Section 3 of this Act covering the |
|
last six months of the previous calendar year; and |
|
(2) not later than June 25 of each year, a report with |
|
the information required by Section 3 of this Act covering the first |
|
six months of that calendar year. |
|
SECTION 36. Subsection (d), Section 12.03, Chapter 183 |
|
(S.B. 598), Acts of the 64th Legislature, Regular Session, 1975 |
|
(Article 6243e.1, Vernon's Texas Civil Statutes), is amended to |
|
read as follows: |
|
(d) The board of trustees shall file with the State Pension |
|
and Investment Review Board a copy of each actuarial study and each |
|
separate report made as required by law. |
|
SECTION 37. Section 10, Article 6243e.2(1), Revised |
|
Statutes, is amended to read as follows: |
|
Sec. 10. NONSTATUTORY BENEFIT INCREASES. The benefits |
|
provided by this article may be increased if: |
|
(1) an actuary selected by the board who, if an |
|
individual, is a Fellow of the Society of Actuaries, a Fellow of the |
|
Conference of Actuaries in Public Practice, or a member of the |
|
American Academy of Actuaries determines that the increase cannot |
|
reasonably be viewed as posing a material risk of jeopardizing the |
|
fund's ability to pay any existing benefit; |
|
(2) a majority of the participating members of the |
|
fund vote for the increase by a secret ballot; |
|
(3) the increase does not deprive a member, without |
|
the member's written consent, of a right to receive benefits that |
|
have already become fully vested and matured in a member; and |
|
(4) the State Pension and Investment Review Board |
|
approves the determination by the actuary selected by the board |
|
that the increase cannot reasonably be viewed as posing a material |
|
risk of jeopardizing the fund's ability to pay any existing |
|
benefit. |
|
SECTION 38. Subsections (a), (b), (c), (d), and (f), |
|
Sections 801.113, Government Code, are repealed. |
|
SECTION 39. (a) The name of the State Pension Review Board |
|
is changed to the State Pension and Investment Review Board. A |
|
reference in law to the State Pension Review Board means the State |
|
Pension and Investment Review Board. A reference in law to the |
|
State Pension Review Board fund means the State Pension and |
|
Investment Review Board fund. |
|
(b) An appropriation for the use and benefit of the State |
|
Pension Review Board is available for the use and benefit of the |
|
State Pension and Investment Review Board. |
|
SECTION 40. (a) As soon as practicable on or after the |
|
effective date of this Act: |
|
(1) the governor shall appoint five members to the |
|
State Pension and Investment Review Board as provided by Section |
|
801.103, Government Code, as amended by this Act, as follows: |
|
(A) two members for a term expiring January 31, |
|
2011; |
|
(B) two members for a term expiring January 31, |
|
2013; and |
|
(C) one member for a term expiring January 31, |
|
2015; |
|
(2) the lieutenant governor shall appoint one member |
|
to the State Pension and Investment Review Board as provided by |
|
Subsection (a), Section 801.104, Government Code, as amended by |
|
this Act, for a term expiring January 31, 2013; and |
|
(3) the speaker of the house of representatives shall |
|
appoint one member to the State Pension and Investment Review Board |
|
as provided by Subsection (b), Section 801.104, Government Code, as |
|
amended by this Act, for a term expiring January 31, 2015. |
|
(b) The term of a member of the State Pension Review Board |
|
serving immediately before the effective date of this Act expires |
|
at the time five or more of the members appointed to the State |
|
Pension and Investment Review Board under Subsection (a) of this |
|
section qualify for office. Until the expiration of a member's term |
|
occurs under this subsection, the member has the same powers and |
|
duties that the member had immediately before that date. |
|
SECTION 41. Subchapter D, Chapter 801, Government Code, as |
|
added by this Act, applies to the oversight of funds by the State |
|
Pension and Investment Review Board, regardless of whether the |
|
investment of those funds was made before, on, or after the |
|
effective date of this Act. |
|
SECTION 42. This Act takes effect September 1, 2009. |
|
|
|
* * * * * |