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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring a public retirement system to adopt a written |
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funding policy. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 802, Government Code, is |
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amended by adding Section 802.2011 to read as follows: |
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Sec. 802.2011. FUNDING POLICY. (a) In this section: |
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(1) "Funded ratio" means the ratio of a public |
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retirement system's actuarial value of assets divided by the |
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system's actuarial accrued liability. |
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(2) "Governmental entity" has the meaning assigned by |
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Section 802.1012. |
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(b) The governing body of a public retirement system shall: |
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(1) adopt a written funding policy that details the |
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governing body's plan for achieving a funded ratio of the system |
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that is equal to or greater than 100 percent; |
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(2) maintain for public review at its main office a |
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copy of the policy; |
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(3) file a copy of the policy and each change to the |
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policy with the board not later than the 31st day after the date the |
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policy or change, as applicable, is adopted; and |
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(4) submit a copy of the policy and each change to the |
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policy to the system's associated governmental entity not later |
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than the 31st day after the date the policy or change is adopted. |
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SECTION 2. Not later than January 1, 2020, each public |
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retirement system shall adopt a funding policy as required by |
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Section 802.2011, Government Code, as added by this Act. |
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SECTION 3. This Act takes effect September 1, 2019. |