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A BILL TO BE ENTITLED
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AN ACT
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relating to the state's contributions to the Employees Retirement |
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System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 815.403(a), Government Code, is amended |
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to read as follows: |
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(a) During each fiscal year, the state shall contribute to |
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the retirement system: |
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(1) an amount equal to 10 [7.4] percent of the total |
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compensation of all members of the retirement system for that year; |
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(2) money to pay lump-sum death benefits for retirees |
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under Section 814.501; |
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(3) an amount for the law enforcement and custodial |
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officer supplemental retirement fund equal to 2.13 percent of the |
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aggregate state compensation of all custodial and law enforcement |
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officers for that year; |
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(4) money necessary for the administration of the law |
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enforcement and custodial officer supplemental retirement fund; |
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[and] |
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(5) money for service credit not previously |
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established, as provided by Section 813.202(c) or 813.302(d); and |
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(6) an amount adopted by the board of trustees under |
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Section 815.4031. |
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SECTION 2. Subchapter E, Chapter 815, Government Code, is |
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amended by adding Section 815.4031 to read as follows: |
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Sec. 815.4031. ACTUARIALLY DETERMINED STATE CONTRIBUTION |
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AMOUNT. (a) For the fiscal year beginning September 1, 2021, and |
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for each subsequent fiscal year: |
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(1) the actuary designated under Section 815.206 shall |
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recommend to the board of trustees an actuarially determined |
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contribution amount for review and adoption as the state |
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contribution amount under Section 815.403(a)(6); and |
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(2) the board shall adopt as the state contribution |
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amount under Section 815.403(a)(6) the actuarially determined |
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contribution amount recommended by the actuary under Subdivision |
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(1). |
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(b) For purposes of Subsection (a)(1), an actuarially |
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determined contribution amount reflects the sum of: |
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(1) the state's normal cost of projected benefits for |
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the fiscal year; and |
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(2) the state's portion of the total payment toward the |
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unfunded actuarial accrued liabilities of the retirement system |
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that is: |
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(A) attributable to the fiscal year; and |
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(B) sufficient to amortize the unfunded |
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actuarial accrued liabilities of the system in a period that does |
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not exceed 30 years by one or more years. |
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(c) The actuarially determined contribution amount |
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recommended by the actuary under Subsection (a)(1) must be based |
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on: |
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(1) reasonable actuarial assumptions and methods; |
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(2) tables adopted by the board under Section 815.105; |
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and |
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(3) the funding policy adopted by the board under |
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Section 802.2011. |
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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, 2021. |