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A BILL TO BE ENTITLED
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AN ACT
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relating to the monitoring, oversight, and funding of certain |
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public retirement systems. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (b), Section 801.201, Government |
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Code, is amended to read as follows: |
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(b) For the purpose of performing its duties under Section |
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801.202(1) or (2), the board by rule may require clarification of |
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information provided by a public retirement system in a report that |
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is required by law and is required to be filed with the board. [A
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rule adopted under this subsection may not be enforced against a
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public retirement system if compliance with the rule would cause
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the system to incur a major expense.] |
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SECTION 2. Section 801.203, Government Code, is amended by |
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adding Subsections (c), (d), and (e) to read as follows: |
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(c) The board shall prepare an annual report relating to the |
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performance of each public retirement system that administers a |
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defined benefit plan and has total assets the book value of which, |
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as of the last day of the preceding fiscal year, is at least $100 |
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million. The report required under this section must include: |
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(1) each system's investment allocations and practices |
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during the preceding fiscal year; |
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(2) the rate of return on the investment of each |
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system's cash and securities during the preceding fiscal year; |
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(3) a description of the extent to which, during the |
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preceding fiscal year, each system complied with: |
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(A) the reporting requirements under this |
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chapter and Chapter 802; and |
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(B) the system's investment strategy; |
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(4) rate of return sensitivity analysis for a |
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projected ten-year period from the current fiscal year; and |
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(5) solvency and cash flow projections for the current |
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fiscal year. |
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(d) The board shall: |
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(1) prepare the report required under Subsection (c) |
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in two parts, with the first part posted on the board's Internet |
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website not later than March 1 of each year and the second part |
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posted on the board's Internet website not later than September 1 of |
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each year, and shall include the information required for a public |
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retirement system in one of the two parts based on the date the |
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system's fiscal year ends; |
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(2) provide a review and comment period for the public |
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retirement systems included in a report prior to posting the report |
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on the board's Internet website; and |
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(3) immediately notify the legislature and governor |
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when the report, or part of the report, is available for viewing on |
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the board's Internet website. |
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(e) The board shall include in any report to the legislature |
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or governor: |
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(1) a description of any information that was not |
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provided by a public retirement system pursuant to a requirement of |
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this chapter or Chapter 802 or pursuant to a request by the board; |
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(2) details regarding the circumstances of the |
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requirement or request described in Subdivision (1), including the |
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identification of the public retirement system, the requirement or |
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request, and any response provided by the public retirement system; |
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and |
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(3) the effect of the lack of the information on the |
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board's ability to meet the duties and reporting requirements in |
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this chapter or Chapter 802. |
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SECTION 3. Subchapter B, Chapter 802, Government Code, is |
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amended by adding Section 802.1013 to read as follows: |
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Sec. 802.1013. ACTUARIAL EXPERIENCE STUDIES. (a) In this |
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section, "plan year" means the 12-month accounting period of the |
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affected pension plan of a public retirement system subject to this |
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section. |
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(b) Subject to Subsection (c), the board may require a |
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public retirement system with total assets the book value of which, |
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as of the last day of the preceding plan year, is at least $100 |
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million to conduct an actuarial experience study. A public |
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retirement system shall provide to the board any actuarial |
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experience study conducted by or for the public retirement system. |
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(c) The board may not require a public retirement system to |
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conduct more than one actuarial experience study every five years. |
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(d) The board may adopt rules to implement this section. |
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SECTION 4. Chapter 107, Local Government Code, is repealed. |
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SECTION 5. The repeal of Chapter 107, Local Government |
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Code, by this Act does not: |
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(1) affect the validity of an obligation issued under |
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that chapter before the effective date of this Act; or |
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(2) diminish or impair the rights of a holder of an |
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obligation of a municipality issued for the purpose authorized by |
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that chapter before the effective date of this Act. |
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SECTION 6. This Act takes effect September 1, 2011. |