This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.

 
 
  H.B. No. 2664
 
 
 
 
AN ACT
  relating to audits of certain public retirement system actuarial
  valuations, studies, and reports.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 802, Government Code, is
  amended by adding Section 802.1012 to read as follows:
         Sec. 802.1012.  AUDITS OF ACTUARIAL VALUATIONS, STUDIES, AND
  REPORTS.  (a)  In this section, "governmental entity" means a unit
  of government that is the employer of active members of a public
  retirement system.
         (b)  Except as provided by Subsection (k), this section
  applies only to a public retirement system with total assets the
  book value of which, as of the last day of the preceding fiscal
  year, is at least $100 million.
         (c)  Every five years, the actuarial valuations, studies,
  and reports of a public retirement system most recently prepared
  for the retirement system as required by Section 802.101 or other
  law under this title or under Title 109, Revised Statutes, must be
  audited by an independent actuary who:
               (1)  is engaged for the purpose of the audit by the
  governmental entity; and
               (2)  has the credentials required for an actuary under
  Section 802.101(d).
         (d)  Before beginning an audit under this section, the
  governmental entity and the independent actuary must agree in
  writing to maintain the confidentiality of any nonpublic
  information provided by the public retirement system for the audit.
         (e)  Before beginning an audit under this section, the
  independent actuary must meet with the manager of the pension fund
  for the public retirement system to discuss the appropriate
  assumptions to use in conducting the audit.
         (f)  Not later than the 30th day after completing the audit
  under Subsection (c), the independent actuary shall submit to the
  public retirement system for purposes of discussion and
  clarification a preliminary draft of the audit report that is
  substantially complete.
         (g)  The independent actuary shall:
               (1)  discuss the preliminary draft of the audit report
  with the governing body of the public retirement system; and
               (2)  request in writing that the retirement system, on
  or before the 30th day after the date of receiving the preliminary
  draft, submit to the independent actuary any response that the
  retirement system wants to accompany the final audit report.
         (h)  The independent actuary shall submit to the
  governmental entity the final audit report that includes the audit
  results and any response received from the public retirement
  system:
               (1)  not earlier than the 31st day after the date on
  which the preliminary draft is submitted to the retirement system;
  and
               (2)  not later than the 60th day after the date on which
  the preliminary draft is submitted to the retirement system.
         (i)  At the first regularly scheduled open meeting after
  receiving the final audit report, the governing body of the
  governmental entity shall:
               (1)  include on the posted agenda for the meeting the
  presentation of the audit results;
               (2)  present the final audit report and any response
  from the public retirement system; and
               (3)  provide printed copies of the final audit report
  and the response from the public retirement system for individuals
  attending the meeting.
         (j)  The governmental entity shall:
               (1)  maintain a copy of the final audit report at its
  main office for public inspection;
               (2)  submit a copy of the final audit report to the
  public retirement system and the State Pension Review Board not
  later than the 30th day after the date the final audit report is
  received by the governmental entity; and
               (3)  pay all costs associated with conducting the audit
  and preparing and distributing the report under this section.
         (k)  This section 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, or the Judicial Retirement System of Texas Plan
  Two.
         SECTION 2.  The first audit required under Section 802.1012,
  Government Code, as added by this Act:
               (1)  shall be conducted not later than September 1,
  2008; and
               (2)  must include an audit of each actuarial valuation,
  study, and report of the public retirement system that was prepared
  for that retirement system in the preceding five years.
         SECTION 3.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2664 was passed by the House on May 4,
  2007, by the following vote:  Yeas 143, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2664 was passed by the Senate on May
  22, 2007, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor