HB 13 would amend the Government Code, Chapters 801 and 802 and would provide for several changes relating to the PRB (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 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 administrators of public retirement systems. The curriculum of the educational training program would include minimum training requirements for trustees and 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, administrators, and employees of the retirement systems. The board may adopt rules and appropriate fees to administer and provide an educational training program.

•  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 net investment returns for each of the most recent 10 fiscal years; the rolling net rate of return for the most recent 1-year, 3-year, 10-year, and 30-year periods; current assumed rate of return; and assumed rate of return for the most recent 10 fiscal years.     

• The PRB would conduct a onetime 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 PRB would submit to the legislature a written report containing the findings of the study 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.  

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.