Amend HB 4653 on third reading by adding the following appropriately numbered SECTION to the bill and renumbering subsequent SECTIONS of the bill accordingly:
SECTION ____. Article 6243a-1, Revised Statutes, is amended by adding Section 6.142 to read as follows:
Sec. 6.142. CONTINUING STUDY ON IMPACT OF DROP. (a) In this section, "funded ratio" has the meaning assigned by Section 802.2011, Government Code.
(b) At least once every five years, the city council, in conjunction with the State Pension Review Board, shall conduct a study on the actuarial impact of DROP on the pension system and the impact of DROP on improving employee retention by the city. The study must state whether:
(1) during the five-year period preceding the study, the system continued to maintain a funded ratio that was equal to or greater than 40 percent according to each actuarial valuation prepared by the system during that period and, if the system did not maintain a funded ratio that was equal to or greater than 40 percent during that period, whether and to what extent providing DROP contributed to the reduced funded ratio; and
(2) in the opinion of the council, DROP meets the goal of lengthening the careers of police officers and fire fighters employed by the city.