CSHB 13 would amend the Government Code, Chapters 801 and 802 and would provide for several changes relating to the Pension Review Board (the board) and reporting requirements of public retirement systems. The bill proposes to amend Chapter 801 of the Government Code (governing statute of the PRB) by adding Sections 801.209, 801.210, and 801.211. The bill further proposes to amend Chapter 802 of the Government Code (administrative requirements for public retirement systems) by amending Section 802.107 and adding Section 802.108. The provisions of the bill include the following.

• The board would post on its internet website or on a public website linked to the board’s website, certain financial, actuarial and membership data, and contact information of the administrators of public retirement systems. Also, the board would post on its website a list of public retirement systems that failed to provide the required reports or information and notify certain entities regarding the lack of timely submission by these public retirement systems.
• The board would develop and make accessible on the board’s Internet website model ethical standards and conflict-of-interest policies, including disclosure requirements, for the voluntary use by a public retirement system. It would not be mandatory for a public retirement system to adopt a standard based on the model developed by the board.
• The board would develop and administer an educational training program for trustees and system administrators of public retirement systems. The curriculum of the educational training program would include minimum training requirements for trustees and system administrators and the board would develop a system to track compliance with the minimum training requirements. The curriculum may include optional training classes for trustees, system administrators, and other employees of the retirement systems. The board may adopt rules and set reasonable fees to cover the actual cost of conducting the training classes. The governing body of the retirement system would have the discretion to determine an appropriate source to pay for such fees.  
• A public retirement system would post on a publicly available Internet website a copy of the most recent report and other information required under Chapters 801 and 802; and the name, business address, and business telephone number of the administrator of the retirement system. If a retirement system does not have a website of its own, it can post the information on the website maintained by its sponsoring entity or on a publicly available website that is maintained by a state agency.
• A public retirement system, within 210 days of the end of its fiscal year, would submit to the PRB an investment returns and assumptions report, including gross and net investment returns for each of the most recent 10 fiscal years; the rolling gross and net investment return for the most recent 1-year, 3-year, and 10-year periods; rolling gross and net investment return for 30-year period or since inception of the system, whichever is shorter; and assumed rate of returns used in the most recent actuarial valuation and in the most recent 10 actuarial valuations.  
• The PRB would conduct a one-time study of the financial health of public retirement systems, including each system’s ability to meet its long-term obligations considering the contributions, benefits, and investments made under the system. The board may adopt rules to define the scope of the study.
• The PRB would prepare a written report containing the findings of the study and the board’s recommendations regarding how a public retirement system may mitigate its risk of not meeting its long-term obligations and submit the final written report to the Legislature by December 31, 2014.

The provisions of the bill would become effective immediately if it receives the required votes or if not, September 1, 2013.

The bill, if enacted, will not have a significant actuarial effect on any public retirement system because it does not propose to change their benefit structure, funding or obligations.