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Amend SB 2190 (house committee printing) as follows:
(1) On page 1, line 8, strike "(12),".
(2) Strike page 4, line 26, through page 5, line 2.
(3) Strike page 12, line 11, through page 17, line 4, and substitute the following:
Sec. 1C. ALTERNATIVE RETIREMENT PLANS. (a) In this section, "salary-based benefit plan" means a retirement plan provided by the fund under this article that provides member benefits calculated in accordance with a formula that is based on multiple factors, one of which is the member's salary at the time of the member's retirement.
(b) Notwithstanding any other law, including Section 13G of this article, the board and the municipality may enter into a written agreement to offer an alternative retirement plan or plans, including a cash balance retirement plan or plans, if both parties consider it appropriate.
(c) Notwithstanding any other law, including Section 13G of this article, if, beginning with the final risk sharing valuation study prepared under Section 13B of this article on or after July 1, 2021, either the funded ratio of the fund is less than 65 percent as determined in the final risk sharing valuation study without making any adjustments under Section 13E or 13F of this article, or the funded ratio of the fund is less than 65 percent as determined in a revised and restated risk sharing valuation study prepared under Section 13B(a)(7) of this article, the board and the municipality shall, as soon as practicable but not later than the 60th day after the date the determination is made:
(1) enter into a written agreement to establish a cash balance retirement plan that complies with Section 1D of this article; and
(2) require each firefighter first hired by the municipality on or after the 90th day after the date the cash balance retirement plan is established to participate in the cash balance retirement plan established under this subsection instead of participating in the salary-based benefit plan, provided the firefighter would have otherwise been eligible to participate in the salary-based benefit plan.
Sec. 1D. REQUIREMENTS FOR CERTAIN CASH BALANCE RETIREMENT PLANS. (a) In this section:
(1) "Cash balance plan participant" means a firefighter who participates in a cash balance retirement plan.
(2) "Cash balance retirement plan" means a cash balance retirement plan established by written agreement under Section 1C(b) or 1C(c) of this article.
(3) "Interest" means the interest credited to a cash balance plan participant's notional account, which may not:
(A) exceed a percentage rate equal to the cash balance retirement plan's most recent five fiscal years' smoothed rate of return; or
(B) be less than zero percent.
(4) "Salary-based benefit plan" has the meaning assigned by Section 1C of this article.
(b) The written agreement establishing a cash balance retirement plan must:
(1) provide for the administration of the cash balance retirement plan;
(2) provide for a closed amortization period not to exceed 20 years from the date an actuarial gain or loss is realized;
(3) provide for the crediting of municipal and cash balance plan participant contributions to each cash balance plan participant's notional account;
(4) provide for the crediting of interest to each cash balance plan participant's notional account;
(5) include a vesting schedule;
(6) include benefit options, including options for cash balance plan participants who separate from service prior to retirement;
(7) provide for death and disability benefits;
(8) allow a cash balance plan participant who is eligible to retire under the plan to elect to:
(A) receive a monthly annuity payable for the life of the cash balance plan participant in an amount actuarially determined on the date of the cash balance plan participant's retirement based on the cash balance plan participant's accumulated notional account balance annuitized in accordance with the actuarial assumptions and actuarial methods established in the most recent actuarial experience study conducted under Section 13D of this article, except that the assumed rate of return applied may not exceed the fund's assumed rate of return in the most recent risk sharing valuation study; or
(B) receive a single, partial lump-sum payment from the cash balance plan participant's accumulated notional account balance and a monthly annuity payable for life in an amount determined in accordance with Paragraph (A) of this subdivision based on the cash balance plan participant's notional account balance after receiving the partial lump-sum payment; and
(9) include any other provision determined necessary by:
(A) the board and the municipality; or
(B) the fund for purposes of maintaining the tax-qualified status of the fund under Section 401 of the code.
(c) Notwithstanding any other law, including Section 13 of this article, a firefighter who participates in a cash balance retirement plan:
(1) subject to Subsection (d) of this section, is not eligible to be a member of and may not participate in the fund's salary based benefit plan; and
(2) may not accrue years of participation or establish service credit in the salary-based benefit plan during the period the firefighter is participating in the cash balance retirement plan.
(d) A cash balance plan participant is considered a member for purposes of Sections 13A through 13H of this article.
(e) At the time the cash balance retirement plan is implemented, the employer normal cost rate of the cash balance retirement plan may not exceed the employer normal cost rate for the salary-based benefit plan.
(4) On page 27, line 13, strike "13(c)" and substitute "13(c-1)".
(5) On page 33, line 4, strike "section" and substitute "subsection".
(6) On page 67, lines 14 through 16, strike "In this context, the term does not include an alternative retirement plan established under Section 2B of this article."
(7) Strike page 70, line 15, through page 75, line 4, and substitute the following:
Sec. 2B. ALTERNATIVE RETIREMENT PLANS. (a) In this section, "salary-based benefit plan" means a retirement plan provided by the pension system under this article that provides member benefits calculated in accordance with a formula that is based on multiple factors, one of which is the member's salary at the time of the member's retirement.
(b) Notwithstanding any other law, including Section 9F of this article, and except as provided by Subsection (c) of this section, the board and the city may enter into a written agreement under Section 27 of this article to offer an alternative retirement plan or plans, including a cash balance retirement plan or plans, if both parties consider it appropriate.
(c) Notwithstanding any other law, including Section 9F of this article, and except as provided by Subsection (d) of this section, if, beginning with the final risk sharing valuation study prepared under Section 9A of this article on or after July 1, 2021, either the funded ratio of the pension system is less than 65 percent as determined in the final risk sharing valuation study without making any adjustments under Section 9D or 9E of this article, or the funded ratio of the pension system is less than 65 percent as determined in a revised and restated risk sharing valuation study prepared under Section 9A(a)(7) of this article, the board and the city shall, as soon as practicable but not later than the 60th day after the date the determination is made:
(1) enter into a written agreement under Section 27 of this article to establish a cash balance retirement plan that complies with Section 2C of this article; and
(2) require each employee first hired by the city on or after the 90th day after the date the cash balance retirement plan is established to participate in the cash balance retirement plan established under this subsection instead of participating in the salary-based benefit plan, provided the employee would have otherwise been eligible to participate in the salary-based benefit plan.
(d) If the city fails to deliver the proceeds of the pension obligation bonds described by Section 9B(j)(1) of this article within the time prescribed by that subdivision, notwithstanding the funded ratio of the pension system, the board and the city may not establish a cash balance retirement plan under Subsection (c) of this section.
Sec. 2C. REQUIREMENTS FOR CERTAIN CASH BALANCE RETIREMENT PLANS. (a) In this section:
(1) "Cash balance plan participant" means an employee who participates in a cash balance retirement plan.
(2) "Cash balance retirement plan" means a cash balance retirement plan established by written agreement under Section 2B(b) of this article or Section 2B(c) of this article.
(3) "Interest" means the interest credited to a cash balance plan participant's notional account, which may not:
(A) exceed a percentage rate equal to the cash balance retirement plan's most recent five fiscal years' smoothed rate of return; or
(B) be less than zero percent.
(4) "Salary-based benefit plan" has the meaning assigned by Section 2B of this article.
(b) The written agreement establishing a cash balance retirement plan must:
(1) provide for the administration of the cash balance retirement plan;
(2) provide for a closed amortization period not to exceed 20 years from the date an actuarial gain or loss is realized;
(3) provide for the crediting of city and cash balance plan participant contributions to each cash balance plan participant's notional account;
(4) provide for the crediting of interest to each cash balance plan participant's notional account;
(5) include a vesting schedule;
(6) include benefit options, including options for cash balance plan participants who separate from service prior to retirement;
(7) provide for death and disability benefits;
(8) allow a cash balance plan participant who is eligible to retire under the plan to elect to:
(A) receive a monthly annuity payable for the life of the cash balance plan participant in an amount actuarially determined on the date of the cash balance plan participant's retirement based on the cash balance plan participant's accumulated notional account balance annuitized in accordance with the actuarial assumptions and actuarial methods established in the most recent actuarial experience study conducted under Section 9C of this article, except that the assumed rate of return applied may not exceed the pension system's assumed rate of return in the most recent risk sharing valuation study; or
(B) receive a single, partial lump-sum payment from the cash balance plan participant's accumulated account balance and a monthly annuity payable for life in an amount determined in accordance with Paragraph (A) of this subdivision based on the cash balance plan participant's notional account balance after receiving the partial lump-sum payment; and
(9) include any other provision determined necessary by:
(A) the board and the city; or
(B) the pension system for purposes of maintaining the tax-qualified status of the pension system under Section 401 of the code.
(c) Notwithstanding any other law, including Sections 2(1), 11, and 12 of this article, an employee who participates in a cash balance retirement plan:
(1) subject to Subsection (d) of this section, is not eligible to be an active member of and may not participate in the salary-based benefit plan; and
(2) may not accrue years of service or establish service credit in the salary-based benefit plan during the period the employee is participating in the cash balance retirement plan.
(d) A cash balance plan participant is considered an active member for purposes of Sections 9 through 9G of this article.
(e) At the time of implementation of the cash balance retirement plan, the employer normal cost rate of the cash balance retirement plan may not exceed the employer normal cost rate of the salary-based benefit plan.
(8) On page 164, lines 11 through 13, strike "In this context, the term does not include a cash balance retirement plan established under Section 1C of this Act."
(9) Strike page 168, line 18, through page 173, line 7, and substitute the following:
Sec. 1C. ALTERNATIVE RETIREMENT PLANS. (a) In this section, "salary-based benefit plan" means a retirement plan provided by the pension system under this Act that provides member benefits that are calculated in accordance with a formula that is based on multiple factors, one of which is the employee's salary at the time of the member's retirement.
(b) Notwithstanding any other law, including Section 8H of this Act, and except as provided by Subsection (c) of this section, the pension board and the city may enter into a written agreement under Section 3(n) of this Act to offer an alternative retirement plan or plans, including a cash balance retirement plan or plans, if both parties consider it appropriate.
(c) Notwithstanding any other law, including Section 8H of this Act, and except as provided by Subsection (d) of this section, if, beginning with the final risk sharing valuation study prepared under Section 8B of this Act on or after July 1, 2027, either the funded ratio of the pension system is less than 60 percent as determined in the final risk sharing valuation study without making any adjustments under Section 8E or 8F of this Act, or the funded ratio of the pension system is less than 60 percent as determined in a revised and restated risk sharing valuation study prepared under Section 8B(a)(8) of this Act, the pension board and the city shall, as soon as practicable but not later than the 60th day after the date the determination is made:
(1) enter into a written agreement under Section 3(n) of this Act to establish a cash balance retirement plan that complies with Section 1D of this Act; and
(2) require each employee first hired by the city on or after the 90th day after the date the cash balance retirement plan is established to participate in the cash balance retirement plan established under this subsection instead of participating in the salary-based benefit plan, provided the employee would have otherwise been eligible to participate in the salary-based benefit plan.
(d) If the city fails to deliver the proceeds of the pension obligation bonds described by Section 8C(j)(1) of this Act within the time prescribed by that subdivision, notwithstanding the funded ratio of the pension system, the pension board and the city may not establish a cash balance retirement plan under Subsection (c) of this section.
Sec. 1D. REQUIREMENTS FOR CERTAIN CASH BALANCE RETIREMENT PLANS. (a) In this section:
(1) "Cash balance plan participant" means an employee who participates in a cash balance retirement plan.
(2) "Cash balance retirement plan" means a cash balance retirement plan established by written agreement under Section 1C(b) or Section 1C(c) of this Act.
(3) "Interest" means the interest credited to a cash balance plan participant's notional account, which may not:
(A) exceed a percentage rate equal to the cash balance retirement plan's most recent five fiscal years' smoothed rate of return; or
(B) be less than zero percent.
(4) "Salary-based benefit plan" has the meaning assigned by Section 1C of this Act.
(b) The written agreement establishing a cash balance retirement plan must:
(1) provide for the administration of the cash balance retirement plan;
(2) provide for a closed amortization period not to exceed 20 years from the date an actuarial gain or loss is realized;
(3) provide for the crediting of city and cash balance plan participant contributions to each cash balance plan participant's notional account;
(4) provide for the crediting of interest to each cash balance plan participant's notional account;
(5) include a vesting schedule;
(6) include benefit options, including options for cash balance plan participants who separate from service prior to retirement;
(7) provide for death and disability benefits;
(8) allow a cash balance plan participant who is eligible to retire under the plan to elect to:
(A) receive a monthly annuity payable for the life of the cash balance plan participant in an amount actuarially determined on the date of the cash balance plan participant's retirement based on the cash balance plan participant's accumulated notional account balance annuitized in accordance with the actuarial assumptions and actuarial methods established in the most recent actuarial experience study conducted under Section 8D of this Act, except that the assumed rate of return applied may not exceed the pension system's assumed rate of return in the most recent risk sharing valuation study; or
(B) receive a single, partial lump-sum payment from the cash balance plan participant's accumulated account balance and a monthly annuity payable for life in an amount determined in accordance with Paragraph (A) of this subdivision based on the cash balance plan participant's account balance after receiving the partial lump-sum payment; and
(9) include any other provision determined necessary by:
(A) the pension board and the city; or
(B) the pension system for purposes of maintaining the tax-qualified status of the pension system under Section 401, Internal Revenue Code of 1986, as amended.
(c) Notwithstanding any other law, including Section 5 of this Act, an employee who participates in a cash balance retirement plan:
(1) subject to Subsection (d) of this section, is not eligible to be a member of and may not participate in the salary-based benefit plan; and
(2) may not earn credited service in the salary-based benefit plan during the period the employee is participating in the cash balance retirement plan.
(d) A cash balance plan participant is considered a member for purposes of Section 8A through 8I of this Act.
(e) At the time of implementation of the cash balance retirement plan, the employer normal cost rate of the cash balance retirement plan may not exceed the employer normal cost rate of the salary-based benefit plan.