| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the amount of the employer contribution rate for |
|
|
certain public retirement systems; authorizing a penalty. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subtitle A, Title 8, Government Code, is amended |
|
|
by adding Chapter 808 to read as follows: |
|
|
CHAPTER 808. ADJUSTMENTS TO EMPLOYER CONTRIBUTION RATES |
|
|
SUBCHAPTER A. GENERAL PROVISIONS |
|
|
Sec. 808.001. DEFINITIONS. In this chapter: |
|
|
(1) "Funded ratio" means the ratio of a public |
|
|
retirement system's actuarial value of assets divided by the |
|
|
retirement system's actuarial accrued liability. |
|
|
(2) "Governmental entity" has the meaning assigned by |
|
|
Section 802.1012. |
|
|
(3) "Public retirement system" has the meaning |
|
|
assigned by Section 802.001. |
|
|
Sec. 808.002. EXEMPTIONS. This chapter does not apply to |
|
|
the Employees Retirement System of Texas, the Teacher Retirement |
|
|
System of Texas, the Texas County and District Retirement System, |
|
|
the Texas Municipal Retirement System, and the Judicial Retirement |
|
|
System of Texas Plan Two. |
|
|
Sec. 808.003. CONFLICT OF LAW. To the extent of a conflict |
|
|
between this chapter and any other law, this chapter prevails. |
|
|
SUBCHAPTER B. ADJUSTMENT IN EMPLOYER CONTRIBUTION RATES |
|
|
Sec. 808.051. CONTRIBUTION RATE ADJUSTMENT. If a public |
|
|
retirement system's most recent actuarial valuation reflects a |
|
|
funded ratio that is below 85 percent, the governmental entity |
|
|
shall contribute the recommended contribution rate determined |
|
|
under Section 802.101(a), if applicable, or the actuarially |
|
|
projected contribution rate otherwise recommended in the |
|
|
valuation. |
|
|
SUBCHAPTER C. ENFORCEMENT |
|
|
Sec. 808.101. PENALTY OWED TO ACTIVE MEMBERS. (a) During |
|
|
any period in which a governmental entity fails to comply with |
|
|
Section 808.051, the governmental entity is liable to each active |
|
|
member of the public retirement system for which the governmental |
|
|
entity fails to comply for a penalty in an amount equal to the |
|
|
member's contributions for that period. |
|
|
(b) A public retirement system is not liable for the penalty |
|
|
imposed on a governmental entity under this section. |
|
|
SECTION 2. This Act takes effect September 1, 2017. |