S.B. No. 1133
 
 
 
 
AN ACT
  relating to contributions to certain fire and police pension funds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 14, Chapter 101 (H.B. 31), Acts of the
  43rd Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
  Texas Civil Statutes), is amended to read as follows:
         Sec. 14.  USE OF PUBLIC FUNDS.  Except as provided by Section
  14A of this Act, no [No] funds shall be paid out of the public
  treasury of any such incorporated city or town, in carrying out any
  of the provisions of this law, except on a majority vote of the
  voters of such city or town, and where such funds have been voted on
  as provided by law, said city or town shall contribute such amount.
         SECTION 2.  Subsection (a), Section 14A, Chapter 101 (H.B.
  31), Acts of the 43rd Legislature, 1st Called Session, 1933
  (Article 6243b, Vernon's Texas Civil Statutes), is amended to read
  as follows:
         (a)  If at any time a qualified actuary that meets the
  requirements of Subdivision (1), Subsection (b), Section 10A of
  this Act, determines that the total contribution rate, expressed as
  a percentage of wages, is insufficient to amortize the unfunded
  actuarial accrued liability, as defined under the Governmental
  Accounting Standards Board Statement No. 25, over a 40-year period
  [not to exceed forty (40) years]:
               (1)  the city's or town's governing body may increase
  the city or town contribution rate; and
               (2)  to the extent that the city or town contribution
  rate increases under Subdivision (1) of this subsection, the member
  contribution rate must increase by an amount equal to the member
  contribution rate before the increase multiplied by a fraction:
                     (A)  the numerator of which is the increase in the
  amount of the city or town contribution rate; and
                     (B)  the denominator of which is the amount of the
  city or town contribution rate before the increase.
         SECTION 3.  Chapter 101 (H.B. 31), Acts of the 43rd
  Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
  Texas Civil Statutes), is amended by adding Section 14B to read as
  follows:
         Sec. 14B.  CONTRIBUTION DECREASES. (a)  If at any time a
  qualified actuary that meets the requirements of Section 10A(b)(1)
  of this Act determines that the total contribution rate, expressed
  as a percentage of wages, is sufficient to amortize the unfunded
  actuarial accrued liability, as defined under the Governmental
  Accounting Standards Board Statement No. 25, over a 25-year period:
               (1)  the city's or town's governing body may decrease
  the city or town contribution rate; and
               (2)  to the extent that the city or town contribution
  rate decreases under Subdivision (1) of this subsection, the member
  contribution rate must decrease by an amount equal to the member
  contribution rate before the decrease multiplied by a fraction:
                     (A)  the numerator of which is the decrease in the
  amount of the city or town contribution rate; and
                     (B)  the denominator of which is the amount of the
  city or town contribution rate before the decrease.
         (b)  The sum of the city or town contribution rate and the
  member contribution rate after a decrease under this section may
  not be less than the total contribution rate determined by the
  qualified actuary to be necessary to amortize the unfunded
  actuarial accrued liability over a 25-year period.
         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, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1133 passed the Senate on
  April 25, 2013, by the following vote:  Yeas 28, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1133 passed the House on
  May 8, 2013, by the following vote:  Yeas 142, Nays 5, two present
  not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor