83R5168 TJS-F

By: Duncan S.B. No. 13

A BILL TO BE ENTITLED

AN ACT

relating to the State Pension Review Board and public retirement systems; authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter C, Chapter 801, Government Code, is amended by adding Sections 801.209, 801.210, and 801.211 to read as follows:

Sec. 801.209. PUBLIC RETIREMENT SYSTEM REPORTS AND INFORMATION. (a) For each public retirement system, the board shall post on the board's Internet website, or on a publicly available website that is linked to the board's website:

(1) the most recent data from each annual financial report received by the board;

(2) the most recent data from each report on investment returns and assumptions received by the board; and

(3) the name, business address, and business telephone number of the administrator of the public retirement system.

(b) On the 60th day after the date a report or information required by this chapter or Chapter 802 is due to the board, the board shall post on the board's website a list of public retirement systems that have not submitted the required reports or information.

(c) For each retirement system included on the list posted under Subsection (b), the board shall notify:

(1) the governor and the Legislative Budget Board regarding the lack of a timely submission by the Employees Retirement System of Texas, the Teacher Retirement System of Texas, the Texas County and District Retirement System, the Texas Municipal Retirement System, or the Judicial Retirement System of Texas Plan Two; or

(2) the governing body of the political subdivision of which members of the public retirement system are officers or employees regarding the lack of a timely submission by a public retirement system other than a system listed in Subdivision (1).

Sec. 801.210. MODEL ETHICAL STANDARDS AND CONFLICT-OF-INTEREST POLICIES. (a) The board shall develop and make reasonably accessible on the board's Internet website model ethical standards and model conflict-of-interest policies, including disclosure requirements, for voluntary use by a public retirement system.

(b) A public retirement system is not required to adopt a standard or policy based on the model developed under this section.

Sec. 801.211. PUBLIC RETIREMENT SYSTEM EDUCATIONAL TRAINING PROGRAM. (a) The board shall develop and administer an educational training program for trustees and administrators of public retirement systems.

(b) The curriculum of the educational training program must include minimum training requirements for board members and administrators. The board shall develop a system to track compliance with the minimum training requirements by board members and administrators and shall report the level of compliance in the biennial report required by Section 801.203.

(c) The curriculum of the educational training program under this section may include optional training classes for trustees, administrators, and employees of public retirement systems.

(d) To the extent practicable, the board shall make training classes reasonably accessible to trustees and administrators of public retirement systems on an Internet website maintained for that purpose.

(e) The board may adopt rules and appropriate fees to administer and provide educational training programs under this section. The net proceeds of the fees shall be deposited in the State Pension Review Board fund.

SECTION 2. The heading to Section 802.107, Government Code, is amended to read as follows:

Sec. 802.107. GENERAL PROVISIONS RELATING TO REPORTS AND CONTACT INFORMATION.

SECTION 3. Section 802.107, Government Code, is amended by adding Subsections (c), (d), and (e) to read as follows:

(c) A public retirement system shall post on a publicly available Internet website:

(1) the name, business address, and business telephone number of the administrator of the public retirement system; and

(2) a copy of the most recent edition of each report and other information that is required by this chapter or Chapter 801 to be submitted to the board.

(d) A public retirement system that maintains a website or for which a website is maintained shall prominently post a link on that website to the information required by Subsection (c). All other public retirement systems shall:

(1) prominently post the information required by Subsection (c) on a website that is maintained by the governing body of the political subdivision of which members of the public retirement system are officers or employees; or

(2) post the information required by Subsection (c) on a publicly available website that is maintained by a state agency.

(e) A report or other information posted under Subsection (c) must remain posted until replaced with a more recently submitted edition of the report or information.

SECTION 4. Subchapter B, Chapter 802, Government Code, is amended by adding Section 802.108 to read as follows:

Sec. 802.108. REPORT OF INVESTMENT RETURNS AND ASSUMPTIONS. A public retirement system shall, before the 211th day after the last day of the fiscal year under which the system operates, submit to the board an investment returns and assumptions report that includes:

(1) net investment returns for each of the most recent 10 fiscal years;

(2) the rolling net rate of return for the most recent 1-year, 3-year, 10-year, and 30-year periods;

(3) the net rate of return since inception of the system;

(4) the current assumed rate of return; and

(5) the assumed rates of return for the most recent 10 fiscal years.

SECTION 5. (a) In this section:

(1) "Governing body of a public retirement system" and "public retirement system" have the meanings assigned by Section 802.001, Government Code.

(2) "Pension review board" means the State Pension Review Board established under Chapter 801, Government Code.

(b) The pension review board shall conduct a study of the financial health of public retirement systems in this state, including each system's ability to meet its long-term obligations considering the contributions, benefits, and investments made under the system.

(c) Each public retirement system, including the governing bodies, officers, and employees of each retirement system, shall fully cooperate with the pension review board in conducting the study required under Subsection (b) of this section and timely respond to any request for information made by the board for the purpose of performing the study.

(d) Not later than September 1, 2014, the pension review board shall submit to the legislature a written report containing the findings of the study conducted under this section and the board's recommendations, including the board's recommendations regarding how each public retirement system may mitigate any risk of not meeting the system's long-term obligations.

SECTION 6. (a) The State Pension Review Board shall develop and publish the model ethical standards and conflict-of-interest policies required by Section 801.210, Government Code, as added by this Act, as soon as practicable after the effective date of this Act, but not later than December 31, 2013.

(b) The State Pension Review Board shall adopt rules to implement the educational training program required by Section 801.211, Government Code, as added by this Act, as soon as practicable after the effective date of this Act, but not later than necessary to begin providing training classes on or before September 1, 2014.

(c) For purposes of reporting the level of compliance with the minimum training requirements of the educational training program as required by Section 801.211(b), Government Code, as added by this Act, the State Pension Review Board may only evaluate compliance with the minimum training requirements by trustees and administrators of public retirement systems on or after January 1, 2015.

SECTION 7. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2013.