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A BILL TO BE ENTITLED
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AN ACT
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relating to deferred retirement option plans under the public |
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retirement systems for police and firefighters in certain |
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municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Part 4, Article 6243a-1, Revised Statutes, is |
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amended by adding Section 4.081 to read as follows: |
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Sec. 4.081. DROP EXCLUDED FROM ACTUARIAL ANALYSIS OF FUND; |
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SEPARATE TREATMENT REQUIRED. Notwithstanding any other law, an |
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actuarial valuation or other continuing actuarial observation of |
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the assets of the fund under this article or other law may not treat |
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assets or liabilities associated with DROP as assets or liabilities |
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of the fund, including for purposes of determining the period |
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required to amortize the unfunded actuarial accrued liability of |
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the fund. The pension system's qualified actuary shall separately |
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account for the assets or liabilities associated with DROP. |
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SECTION 2. Section 6.14(e-1), Article 6243a-1, Revised |
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Statutes, is amended to read as follows: |
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(e-1) The board may adopt a shorter period for annuitizing |
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DROP account balances under Subsection (e) of this section [if the |
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pension system's qualified actuary determines that the shorter |
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period will not cause the pension system's amortization period to |
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exceed 25 years]. |
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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, 2025. |