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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring a supplemental actuarial analysis by certain |
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public retirement systems. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 802, Government Code, is |
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amended by adding Section 802.109 to read as follows: |
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Sec. 802.109. SUPPLEMENTAL ACTUARIAL ANALYSIS ASSUMING |
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CERTAIN RATES OF RETURN BY PUBLIC RETIREMENT SYSTEMS; REPORT. (a) |
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In this section, "assumed rate of return" means the expected |
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long-term rate of return on the investment of public retirement |
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system assets. |
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(b) Each public retirement system shall submit to the board |
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a supplemental analysis prepared in conjunction with the system's |
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actuarial valuation that performs a 30-year forward-looking |
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projection of system assets and liabilities using the following |
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assumptions: |
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(1) annual investment returns for the full 30-year |
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period equal to the assumed rate of return used in the system's |
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actuarial valuation; |
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(2) annual investment returns for the: |
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(A) first 20-year period equal to the assumed |
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rate of return used in the system's actuarial valuation less 300 |
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basis points; and |
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(B) final 10-year period equal to the assumed |
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rate of return used in the system's actuarial valuation; and |
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(3) annual investment returns for the: |
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(A) first 20-year period equal to the assumed |
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rate of return used in the system's actuarial valuation plus 300 |
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basis points; and |
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(B) final 10-year period equal to the assumed |
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rate of return used in the system's actuarial valuation. |
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(c) The board shall adopt rules necessary to implement this |
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section, including rules regarding the level of detail that must be |
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included in analyses required under Subsection (b). |
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(d) The board shall annually compile the analyses described |
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by Subsection (b) in a report and submit the report to the governor, |
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lieutenant governor, speaker of the house of representatives, and |
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members of the legislature. The report required by this subsection |
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may be combined with any other report required by this chapter or |
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other law. |
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SECTION 2. This Act takes effect September 1, 2017. |