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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 local public retirement |
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systems. |
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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 810.0015 to read as follows: |
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Sec. 810.0015. MUNICIPAL CONTROL OF RETIREMENT SYSTEM |
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PROVISIONS. (a) In this section: |
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(1) "Hybrid retirement plan" means a retirement plan |
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that combines elements of a defined benefit plan, a defined |
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contribution plan, or an individual retirement savings account. |
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(2) "Public retirement system" has the meaning |
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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 and is governed by a state |
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statute, but is not a part of a statewide retirement system, may |
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adopt by ordinance or resolution, as applicable, provisions that |
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supplement or supersede the operative provisions of the public |
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retirement system's governing statute. |
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(c) Provisions adopted under Subsection (b): |
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(1) must apply only to a person who becomes eligible |
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for membership in the public retirement system after December 31, |
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2019; and |
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(2) may: |
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(A) subject to Subsections (d), (e), and (f), |
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create a defined contribution plan, hybrid retirement plan, or |
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other alternative retirement plan instead of a defined benefit plan |
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or other retirement plan required or authorized under the system's |
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governing statute; and |
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(B) apply to: |
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(i) benefits, participation, or |
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eligibility requirements of the system; |
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(ii) the source or amount of funding for the |
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system; and |
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(iii) the administration of the system. |
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(d) A defined contribution plan, hybrid retirement plan, or |
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other alternative retirement plan created under Subsection (b) must |
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be funded 100 percent by the municipality not later than the 180th |
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day after the last day of the municipality's fiscal year. |
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(e) Contributions by an employee described by Subsection |
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(c)(1) to a plan described by Subsection (d) must be deposited with: |
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(1) the trustees of a retirement plan for which the |
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employee would have been eligible for participation in but for the |
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municipality's action under 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) A municipality may not retain custody of contributions |
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made under Subsection (e) or determine the manner in which the |
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contributions are invested. |
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SECTION 2. To the extent of any conflict, this Act and a |
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municipal ordinance or resolution adopted by the governing body of |
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the sponsoring municipality of a public retirement system under |
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Section 810.0015(b), Government Code, as added by this Act, prevail |
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over another Act of the 86th Legislature, Regular Session, 2019, |
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relating to a public retirement system subject to that section. |
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SECTION 3. 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, 2019. |