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A BILL TO BE ENTITLED
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AN ACT
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relating to municipal control of certain public retirement systems |
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established for the benefit of municipal employees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 810, Government Code, is amended by |
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adding Section 810.002 to read as follows: |
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Sec. 810.002. MUNICIPAL CONTROL OF RETIREMENT SYSTEM |
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PROVISIONS. (a) In this section, "public retirement system" has |
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the meaning assigned by Section 802.001. |
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(b) Except as provided by Sections 66 and 67, Article XVI, |
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Texas Constitution, and notwithstanding any other law, a |
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municipality that is the sponsoring authority of a public |
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retirement system that was created under a state statute, but is not |
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a part of a statewide public retirement system, may adopt by |
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ordinance or resolution, as applicable, provisions that supplement |
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or supersede the operative provisions of the public retirement |
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system. |
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(c) Provisions adopted under Subsection (b): |
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(1) apply only to a person who becomes eligible for |
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membership in the public retirement system after December 31, 2017; |
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and |
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(2) subject to Subsection (d), may include or apply |
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to: |
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(A) the use of a defined contribution plan |
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instead of a defined benefit plan; |
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(B) any provision relating to benefits, |
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participation, or eligibility requirements; |
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(C) the source or amount of the funding; and |
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(D) the administration of the system. |
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(d) Any plan governed by a provision adopted under |
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Subsection (b) must be funded 100 percent by the municipality not |
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later than 180 days after the ending date of the municipality's |
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fiscal year. |
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(e) Contributions by an employee described by Subsection |
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(c)(1) to a plan that is governed by a provision adopted under |
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Subsection (b) are deposited with: |
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(1) the trustees of any plan for which the employee |
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would have qualified if not for the municipality's action under |
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Subsection (b); or |
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(2) the custodian of an individual retirement account |
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designated by the employee. |
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(f) In no event shall a municipality retain custody of any |
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contribution made under Subsection (e) or the ability to determine |
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the manner in which such contribution shall be invested. |
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(g) In the event of a conflict between a statute adopted |
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before the effective date of the Act enacting this section that |
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applies to a public retirement system described by Subsection (b) |
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and a municipal ordinance or resolution adopted by the governing |
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body of the sponsoring municipality of that retirement system under |
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this section, the municipal ordinance or resolution prevails. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |