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A BILL TO BE ENTITLED
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AN ACT
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relating to contributions to certain fire and police pension funds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 14, Chapter 101, Acts of the 43rd |
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Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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Texas Civil Statutes), is amended to read as follows: |
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Sec. 14. USE OF PUBLIC FUNDS. Except as provided by Section |
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14A of this Act, no [No] funds shall be paid out of the public |
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treasury of any such incorporated city or town, in carrying out any |
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of the provisions of this law, except on a majority vote of the |
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voters of such city or town, and where such funds have been voted on |
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as provided by law, said city or town shall contribute such amount. |
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SECTION 2. Section 14A(a), Chapter 101, Acts of the 43rd |
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Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's |
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Texas Civil Statutes), is amended to read as follows: |
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(a) If at any time a qualified actuary that meets the |
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requirements of Subdivision (1), Subsection (b), Section 10A of |
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this Act, determines that the total contribution rate, expressed as |
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a percentage of wages, is insufficient to amortize the unfunded |
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actuarial accrued liability, as defined under the Governmental |
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Accounting Standards Board Statement No. 25, over a 40-year period |
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[not to exceed forty (40) years]: |
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(1) the city's or town's governing body may increase |
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the city or town contribution rate; and |
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(2) to the extent that the city or town contribution |
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rate increases under Subdivision (1) of this subsection, the member |
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contribution rate must increase by an amount equal to the member |
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contribution rate before the increase multiplied by a fraction: |
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(A) the numerator of which is the increase in the |
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amount of the city or town contribution rate; and |
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(B) the denominator of which is the amount of the |
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city or town contribution rate before the increase. |
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SECTION 3. Chapter 101, Acts of the 43rd Legislature, 1st |
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Called Session, 1933 (Article 6243b, Vernon's Texas Civil |
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Statutes), is amended by adding Section 14B to read as follows: |
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Sec. 14B. CONTRIBUTION DECREASES. (a) If at any time a |
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qualified actuary that meets the requirements of Section 10A(b)(1) |
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of this Act determines that the total contribution rate, expressed |
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as a percentage of wages, is sufficient to amortize the unfunded |
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actuarial accrued liability, as defined under the Governmental |
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Accounting Standards Board Statement No. 25, over a 25-year period: |
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(1) the city's or town's governing body may decrease |
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the city or town contribution rate; and |
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(2) to the extent that the city or town contribution |
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rate decreases under Subdivision (1) of this subsection, the member |
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contribution rate must decrease by an amount equal to the member |
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contribution rate before the decrease multiplied by a fraction: |
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(A) the numerator of which is the decrease in the |
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amount of the city or town contribution rate; and |
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(B) the denominator of which is the amount of the |
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city or town contribution rate before the decrease. |
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(b) The sum of the city or town contribution rate and the |
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member contribution rate after a decrease under this section may |
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not be less than the total contribution rate determined by the |
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qualified actuary to be necessary to amortize the unfunded |
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actuarial accrued liability over a 25-year period. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |