Subscribe to receive our Floor Reports covering all the action on the Texas House and Senate floor!
No significant fiscal implication to the State is anticipated.
There would be administrative costs associated with conducting, formulating, and implementing a plan to obtain actuarial soundness for applicable public retirement systems.
According to the Pension Review Board, the bill would have a positive actuarial effect on public retirement systems that adopt and adhere to a funding soundness restoration plan that is actuarially sound.
The bill would amend Chapters 801 and 802 of the Government Code. In Section 802.101 (a), the bill would require an actuary of a public retirement system to include in the required valuation a recommended contribution rate needed for the system to achieve and maintain an amortization period that does not exceed 30 years.
Excluding 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, the bill would require a public retirement system that has assets of at least $100 million to conduct once every five years an actuarial experience study. A copy of the study would be required to be submitted to the Pension Review Board before the 31st day after the date of the study’s adoption.
The bill would require certain public retirement systems to notify and collaborate with the associated governmental entity to formulate and adopt a funding soundness restoration plan. A copy of the plan and updates would be required to be submitted to the Pension Review Board. The bill would require the Pension Review Board to post on its Internet website the most recent data from public retirement systems' funding soundness restoration plan.
This bill was amended on the House floor and in the Senate committee, but we continue to support HB 3310.
The second chamber sponsor is Senator Larry Taylor.
First chamber recommendation below:
The purpose of the legislation is to help public retirement systems meet their long-term obligations by providing an avenue in which systems and their sponsoring governmental entities can collaborate on the system’s actuarial soundness. We support HB 3310 because it enhances fiscal transparency.