87R11015 JCG-D
 
  By: Murphy H.B. No. 3397
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to contributions to the Employees Retirement System of
  Texas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 815.402(a), Government Code, is amended
  to read as follows:
         (a)  Except as provided by Section 813.201, each payroll
  period, each department or agency of the state shall cause to be
  deducted from each member's compensation a contribution of:
               (1)  9.5 percent of the compensation if the member is
  not a member of the legislature, for service rendered after August
  31, 2015, and before September 1, 2017;
               (2)  for service by a member who is not a member of the
  legislature rendered on or after September 1, 2017, and before
  September 1, 2021, the lesser of:
                     (A)  9.5 percent of the [member's annual]
  compensation; or
                     (B)  a percentage of the [member's annual]
  compensation equal to 9.5 percent reduced by one-tenth of one
  percent for each one-tenth of one percent that the state
  contribution rate for the fiscal year to which the service relates
  is less than the state contribution rate established for the 2017
  fiscal year; [or]
               (3)  9.5 percent of the compensation if the member is a
  member of the legislature, for service rendered before September 1,
  2021; or
               (4)  for service rendered by any member on or after
  September 1, 2021, an amount equal to the member contribution rate
  adopted by the board of trustees under Section 815.4036 for the
  applicable fiscal year multiplied by the member's compensation.
         SECTION 2.  Section 815.403(a), Government Code, is amended
  to read as follows:
         (a)  During each fiscal year, the state shall contribute to
  the retirement system:
               (1)  for the fiscal year beginning September 1, 2021,
  and subsequent fiscal years, an amount equal to the state
  contribution rate adopted by the board of trustees under Section
  815.4036 for the applicable fiscal year multiplied by [7.4 percent
  of] the total compensation of all members of the retirement system
  for that year;
               (2)  money to pay lump-sum death benefits for retirees
  under Section 814.501;
               (3)  an amount for the law enforcement and custodial
  officer supplemental retirement fund equal to 2.13 percent of the
  aggregate state compensation of all custodial and law enforcement
  officers for that year;
               (4)  money necessary for the administration of the law
  enforcement and custodial officer supplemental retirement fund;
  and
               (5)  money for service credit not previously
  established, as provided by Section 813.202(c) or 813.302(d).
         SECTION 3.  Subchapter E, Chapter 815, Government Code, is
  amended by adding Section 815.4036 to read as follows:
         Sec. 815.4036.  ACTUARIALLY DETERMINED STATE AND MEMBER
  CONTRIBUTION RATES. (a)  For the fiscal year beginning September 1,
  2021, and for each subsequent fiscal year:
               (1)  the actuary designated under Section 815.206
  shall:
                     (A)  calculate an actuarially determined
  contribution rate for the applicable fiscal year; and
                     (B)  recommend to the board of trustees for review
  and adoption the member contribution rate under Section
  815.402(a)(4) and the state contribution rate under Section
  815.403(a)(1) calculated by apportioning the actuarially
  determined contribution rate under Paragraph (A) among members, the
  state, and, subject to Section 815.4035(a), employers in a manner
  that results in the member contribution rate not exceeding 50
  percent of the actuarially determined contribution rate; and
               (2)  the board shall adopt the contribution rates
  recommended by the actuary under Subdivision (1)(B) as the member
  contribution rate under Section 815.402(a)(4) and the state
  contribution rate under Section 815.403(a)(1).
         (b)  For purposes of Subsection (a)(1), an actuarially
  determined contribution rate is a percentage rate that reflects the
  sum of:
               (1)  the normal cost of projected benefits for the
  fiscal year; and
               (2)  the portion of the total payment toward the
  unfunded actuarial accrued liabilities of the retirement system
  that is:
                     (A)  attributable to the fiscal year; and
                     (B)  sufficient to amortize the unfunded
  actuarial accrued liabilities of the system in a period that does
  not exceed 30 years by one or more years.
         (c)  The actuarially determined contribution rate
  recommended by the actuary under Subsection (a)(1) must be based
  on:
               (1)  reasonable actuarial assumptions and methods;
               (2)  tables adopted by the board under Section 815.105;
  and
               (3)  the funding policy adopted by the board under
  Section 802.2011.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.