| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to municipal control of certain local public retirement |
|
|
systems. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 810, Government Code, is amended by |
|
|
adding Section 810.0015 to read as follows: |
|
|
Sec. 810.0015. MUNICIPAL CONTROL OF RETIREMENT SYSTEM |
|
|
PROVISIONS. (a) In this section: |
|
|
(1) "Hybrid retirement plan" means a retirement plan |
|
|
that combines elements of a defined benefit plan, a defined |
|
|
contribution plan, or an individual retirement savings account. |
|
|
(2) "Public retirement system" has the meaning |
|
|
assigned by Section 802.001. |
|
|
(b) Except as provided by Sections 66 and 67, Article XVI, |
|
|
Texas Constitution, and notwithstanding any other law, a |
|
|
municipality that is the sponsoring authority of a public |
|
|
retirement system that was created under and is governed by a state |
|
|
statute, but is not a part of a statewide retirement system, may |
|
|
adopt by ordinance or resolution, as applicable, provisions that |
|
|
supplement or supersede the operative provisions of the public |
|
|
retirement system's governing statute. |
|
|
(c) Provisions adopted under Subsection (b): |
|
|
(1) must apply only to a person who becomes eligible |
|
|
for membership in the public retirement system after December 31, |
|
|
2021; and |
|
|
(2) may: |
|
|
(A) subject to Subsections (d), (e), and (f), |
|
|
create a defined contribution plan, hybrid retirement plan, or |
|
|
other alternative retirement plan instead of a defined benefit plan |
|
|
or other retirement plan required or authorized under the system's |
|
|
governing statute; and |
|
|
(B) apply to: |
|
|
(i) benefits, participation, or |
|
|
eligibility requirements of the system; |
|
|
(ii) the source or amount of funding for the |
|
|
system; and |
|
|
(iii) the administration of the system. |
|
|
(d) A defined contribution plan, hybrid retirement plan, or |
|
|
other alternative retirement plan created under Subsection (b) must |
|
|
be funded 100 percent by the municipality not later than the 180th |
|
|
day after the last day of the municipality's fiscal year. |
|
|
(e) Contributions by a person described by Subsection |
|
|
(c)(1) to a plan described by Subsection (d) must be deposited with: |
|
|
(1) the trustees of a retirement plan for which the |
|
|
person would have been eligible for participation in but for the |
|
|
municipality's action under Subsection (b); or |
|
|
(2) the custodian of an individual retirement account |
|
|
designated by the person. |
|
|
(f) A municipality may not retain custody of contributions |
|
|
made under Subsection (e) or determine the manner in which the |
|
|
contributions are invested. |
|
|
SECTION 2. To the extent of any conflict, this Act and a |
|
|
municipal ordinance or resolution adopted by the governing body of |
|
|
the sponsoring municipality of a public retirement system under |
|
|
Section 810.0015(b), Government Code, as added by this Act, prevail |
|
|
over another Act of the 87th Legislature, Regular Session, 2021, |
|
|
relating to a public retirement system subject to that section. |
|
|
SECTION 3. 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. |