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A BILL TO BE ENTITLED
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AN ACT
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relating to financial accounting and reporting of pension benefits |
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for employees of this state and political subdivisions of this |
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state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter C, Chapter 2266, |
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Government Code, is amended to read as follows: |
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SUBCHAPTER C. PENSION AND OTHER POSTEMPLOYMENT BENEFITS |
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SECTION 2. Section 2266.102, Government Code, is amended to |
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read as follows: |
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Sec. 2266.102. ACCOUNTING FOR PENSION AND OTHER |
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POSTEMPLOYMENT BENEFITS. To the extent that generally accepted |
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accounting principles require accounting or reporting of pension |
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and other postemployment benefits at the government-wide or fund |
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level on any basis other than pay-as-you-go, this state and its |
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political subdivisions may account for or report those pension and |
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other postemployment benefits in accordance with the statutory |
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accounting principles in this chapter. |
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SECTION 3. The heading to Section 2266.103, Government |
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Code, is amended to read as follows: |
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Sec. 2266.103. COMMUNICATION OF STATE SYSTEM'S OBLIGATIONS |
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TO PROVIDE PENSION AND OTHER POSTEMPLOYMENT BENEFITS. |
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SECTION 4. Sections 2266.103(a) and (c), Government Code, |
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are amended to read as follows: |
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(a) In this section, "member" means a person to whom a state |
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system provides, or has promised to provide, pension or other |
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postemployment benefits, including: |
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(1) a retiree, annuitant, or employee; or |
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(2) a spouse, surviving spouse, or other dependent. |
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(c) A state system shall inform its members about the extent |
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of the system's commitments regarding pension or other |
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postemployment benefits, including whether the pension or other |
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postemployment benefits are limited by funding obligations or |
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whether the funding obligations extend throughout the life of the |
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member. |
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SECTION 5. Section 2266.104, Government Code, is amended to |
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read as follows: |
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Sec. 2266.104. DISCLOSURE OF INFORMATION ON FINANCIAL |
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STATEMENTS; GENERALLY. This state or a political subdivision of |
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this state shall disclose in its notes to the financial statement in |
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a manner consistent with this subchapter: |
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(1) pension and other postemployment benefits that it |
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provides in its substantive plan, including: |
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(A) the covered employee groups; |
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(B) eligibility requirements; and |
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(C) the amount, described in an appropriate |
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manner, of obligations that it and the member contribute; |
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(2) the statutory, contractual, or other authority |
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under which pension and other postemployment benefits are provided |
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under Subdivision (1); |
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(3) the accounting, financing, and funding policies |
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that it follows; |
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(4) the amount of pension and other postemployment |
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benefits expenditures that it recognizes during the period, net of |
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member contributions; |
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(5) the number of members currently eligible to |
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receive pension or other postemployment benefits; |
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(6) any significant matters that affect the |
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comparability of the disclosures required by this section with |
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those for the previous period; and |
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(7) any additional information that it believes will |
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assist in explaining the nature and cost of its commitment to |
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provide pension and other postemployment benefits. |
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SECTION 6. Section 2266.106(b), Government Code, is amended |
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to read as follows: |
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(b) The site must include information that makes the site a |
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resource tool for the state and its political subdivisions to |
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consistently manage pension and other postemployment benefits to |
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conform to statutory, constitutional, and other legal |
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requirements. |
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SECTION 7. This Act takes effect September 1, 2013. |