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A BILL TO BE ENTITLED
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AN ACT
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relating to a study of the cost-effectiveness and feasibility of |
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implementing a hybrid retirement plan for newly hired state |
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employees and teachers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) In this section, "hybrid retirement plan" |
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means a retirement plan that combines elements of a defined benefit |
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plan, a defined contribution plan, or an individual retirement |
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savings account. |
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(b) The State Pension Review Board shall contract with a |
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nationally recognized actuarial firm to conduct a comprehensive |
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study to: |
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(1) compare the cost-effectiveness and feasibility of |
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creating and implementing a hybrid retirement plan for newly hired |
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state employees and teachers that is to be: |
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(A) provided instead of the existing retirement |
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benefit plans provided to state employees and teachers; and |
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(B) administered by the Employees Retirement |
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System of Texas or the Teacher Retirement System of Texas, as |
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appropriate; and |
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(2) evaluate the experiences of other municipalities |
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and states that have implemented a hybrid retirement plan for their |
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employees, including whether those entities experienced a |
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reduction in employee benefits or an increase in costs to the |
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entity. |
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(c) Any actuarial analysis conducted for purposes of the |
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study required by this section must be conducted by an enrolled |
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actuary under the Employee Retirement Income Security Act of 1974 |
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(29 U.S.C. Section 1001 et seq.). |
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(d) Not later than September 1, 2018, the State Pension |
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Review Board shall submit a written report to the legislature |
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containing the findings of the study conducted under this section |
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together with the board's recommendations to the legislature |
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regarding the cost-effectiveness and feasibility of implementing |
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hybrid retirement plans for newly hired state employees and |
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teachers. |
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(e) This Act expires December 31, 2018. |
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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. |