S.B. No. 463

	AN ACT
	relating to the restructuring of certain fund accounts of the Texas
	County and District Retirement System.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 842.056, Government Code, is amended to
	read as follows:
	Sec. 842.056.  CLASS C. If any assets remain after the
	transfers are made under Sections 842.054 and 842.055, the
	retirement system shall make a transfer to the closed subdivision
	[current service] annuity reserve fund in an amount computed as
	necessary to fund the basic and supplemental annuities of the
	annuitants of the subdivision and a transfer to the individual
	account of each member of the class eligible to retire in an amount
	that equals the multiple matching credits and prior service credits
	of the member.  If necessary, the retirement system shall
	proportionately reduce an individual's total credits or
	supplemental annuity, as applicable, based on the ratio that the
	individual's total actuarial equivalent of benefits described by
	this section bears to the aggregate total actuarial equivalent of
	all those benefits of the class.
	SECTION 2.  Section 844.002(b), Government Code, is amended
	to read as follows:
	(b)  A basic annuity is an amount payable from the
	subdivision accumulation [current service annuity reserve] fund
	and is actuarially determined from the sum of a member's:
	(1)  accumulated contributions; and
	(2)  current service credit.
	SECTION 3.  Section 844.309(a), Government Code, is amended
	to read as follows:
	(a)  If a disability retirement is canceled and the
	retirement annuity terminated under this subchapter, the person
	automatically resumes membership in the retirement system and the
	retirement system shall transfer[:
	[(1)]  from the subdivision accumulation [current
	service annuity reserve] fund and credit to the person's individual
	account in the employees saving fund an amount equal to the amount
	of accumulated contributions transferred to the subdivision
	accumulation [current service annuity reserve] fund at the time of
	retirement reduced by one percent for each year or part of a year
	during which disability annuity payments were made[; and
	[(2)     from the current service annuity reserve fund to
	the subdivision accumulation fund an amount equal to the amount
	transferred from the subdivision accumulation fund to the current
	service annuity reserve fund at the time of retirement reduced by
	one percent for each year or part of a year during which disability
	annuity payments were made].
	SECTION 4.  Section 844.402, Government Code, is amended by
	amending Subsection (c) and adding Subsection (d) to read as
	follows:
	(c)  The benefit provided by this section is payable from the
	[current service annuity reserve fund and the] subdivision
	accumulation fund [in the ratio that the parts of the retirement
	annuity that were payable from the funds bear to the entire benefit
	as determined on the effective date of retirement].
	(d)  For plans terminated under Subchapter A-1, Chapter 842,
	the benefit provided by this section is payable from the closed
	subdivision annuity reserve fund.
	SECTION 5.  Section 845.305(b), Government Code, is amended
	to read as follows:
	(b)  All assets of the pension trust of the retirement system
	shall be credited according to the purpose for which they are held
	to one of the following funds:
	(1)  employees saving fund;
	(2)  subdivision accumulation fund;
	(3)  closed subdivision [current service] annuity
	reserve fund;
	(4)  income fund;
	(5)  endowment fund; or
	(6)  expense fund.
	SECTION 6.  Section 845.307(b), Government Code, is amended
	to read as follows:
	(b)  Subject to Subsection (c), the retirement system shall
	pay from the subdivision accumulation fund all payments for
	annuities and other benefit payments [under prior service annuities
	granted before January 1, 1978, and currently in force and all
	payments under supplemental annuities from credits] granted by a
	participating subdivision. [The retirement system shall charge
	payments from the fund to the participating subdivision's account.]
	SECTION 7.  Section 845.308, Government Code, is amended to
	read as follows:
	Sec. 845.308.  CLOSED SUBDIVISION [CURRENT SERVICE] ANNUITY
	RESERVE FUND. (a)  The retirement system shall deposit and hold in
	the closed subdivision [current service] annuity reserve fund all
	reserves for annuities payable to annuitants who were members of
	subdivisions that terminated participation with the retirement
	system under Subchapter A-1, Chapter 842[:
	[(1)     current service annuities in force that were
	granted before January 1, 1978; and
	[(2)     all basic annuities granted on or after January
	1, 1978].
	(b)  The retirement system shall pay from the closed
	subdivision [current service] annuity reserve fund annuities
	described by Subsection (a) and all benefits in lieu of those
	annuities as provided by this subtitle.
	SECTION 8.  Section 845.315(a), Government Code, is amended
	to read as follows:
	(a)  As of December 31 of each year, the board of trustees
	shall make the following allocations that in the aggregate equal
	the net investment income or loss for the year:
	(1)  to the closed subdivision [current service]
	annuity reserve fund, interest as allowed under this subtitle on
	the mean amount in the closed subdivision [current service] annuity
	reserve fund during that year;
	(2)  to the optional group term life fund, interest as
	allowed under this subtitle on the mean amount in the optional group
	term life fund during that year;
	(3)  to the general reserves account of the endowment
	fund, a positive or negative amount determined by the board;
	(4)  to the employees saving fund, current interest as
	allowed under this subtitle on the member account balances on
	January 1 of that year of all persons who are members on December 31
	of that year;
	(5)  to the accounts of subdivisions, other than
	subdivisions otherwise described by this section, positive or
	negative amounts as determined under rules adopted by the board
	prescribing the allocation methodology for the accounts; and
	(6)  to the accounts of subdivisions to which Section
	842.052 or 842.053 applies, positive or negative amounts as
	determined by the board, and if a subdivision terminates
	participation before December 31 of that year, the board shall
	determine the allocation amount and transfer date before December
	31 of that year.
	SECTION 9.  Section 845.316, Government Code, is amended by
	amending Subsection (a) and adding Subsection (b) to read as
	follows:
	(a)  When a member retires, the retirement system shall
	transfer[:
	[(1)]  from the employees saving fund to the
	subdivision accumulation [current service annuity reserve] fund,
	the member's accumulated contributions[; and
	[(2)     from the subdivision accumulation fund to the
	current service annuity reserve fund, an amount equal to the
	member's current service credit].
	(b)  When a member retires from a subdivision that has
	terminated participation with the retirement system under
	Subchapter A-1, Chapter 842, the retirement system shall transfer
	the member's individual account to the closed subdivision annuity
	reserve fund.
	SECTION 10.  (a)  Effective January 1, 2017, the current
	service annuity reserve fund is renamed the closed subdivision
	annuity reserve fund and consists of the assets and liabilities of
	each of the respective accounts in the current service annuity
	reserve fund for each formerly participating subdivision that has
	terminated participation with the Texas County and District
	Retirement System under Subchapter A-1, Chapter 842, Government
	Code.
	(b)  Effective January 1, 2017, the Texas County and District
	Retirement System shall transfer, if appropriate, the assets and
	corresponding liabilities of each participating subdivision's
	accounts in the closed subdivision annuity reserve fund, formerly
	known as the current service annuity reserve fund, to the
	appropriate account in the subdivision accumulation fund, as
	determined by the board of trustees of the retirement system in
	consultation with the retirement system's actuary.
	(c)  In administering Subtitle F, Title 8, Government Code,
	as amended by this Act, including crediting interest and conducting
	the actuarial valuation required under that subtitle, the Texas
	County and District Retirement System shall make all necessary
	computations to reflect the transfers of assets and liabilities
	required by Subsection (b) of this section based on a valuation date
	of December 31, 2016.
	SECTION 11.  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 January 1, 2016.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 463 passed the Senate on
	April 9, 2015, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 463 passed the House on
	May 19, 2015, by the following vote:  Yeas 146, Nays 0,
	two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor