Bill Text: TX HB13 | 2013-2014 | 83rd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the State Pension Review Board and public retirement systems; authorizing a fee.
Spectrum: Partisan Bill (Republican 14-0)
Status: (Passed) 2013-05-24 - Effective immediately [HB13 Detail]
Download: Texas-2013-HB13-Introduced.html
Bill Title: Relating to the State Pension Review Board and public retirement systems; authorizing a fee.
Spectrum: Partisan Bill (Republican 14-0)
Status: (Passed) 2013-05-24 - Effective immediately [HB13 Detail]
Download: Texas-2013-HB13-Introduced.html
83R5168 TJS-F | ||
By: Callegari | H.B. No. 13 |
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relating to the State Pension Review Board and public retirement | ||
systems; authorizing a fee. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter C, Chapter 801, Government Code, is | ||
amended by adding Sections 801.209, 801.210, and 801.211 to read as | ||
follows: | ||
Sec. 801.209. PUBLIC RETIREMENT SYSTEM REPORTS AND | ||
INFORMATION. (a) For each public retirement system, the board | ||
shall post on the board's Internet website, or on a publicly | ||
available website that is linked to the board's website: | ||
(1) the most recent data from each annual financial | ||
report received by the board; | ||
(2) the most recent data from each report on | ||
investment returns and assumptions received by the board; and | ||
(3) the name, business address, and business telephone | ||
number of the administrator of the public retirement system. | ||
(b) On the 60th day after the date a report or information | ||
required by this chapter or Chapter 802 is due to the board, the | ||
board shall post on the board's website a list of public retirement | ||
systems that have not submitted the required reports or | ||
information. | ||
(c) For each retirement system included on the list posted | ||
under Subsection (b), the board shall notify: | ||
(1) the governor and the Legislative Budget Board | ||
regarding the lack of a timely submission by 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; or | ||
(2) the governing body of the political subdivision of | ||
which members of the public retirement system are officers or | ||
employees regarding the lack of a timely submission by a public | ||
retirement system other than a system listed in Subdivision (1). | ||
Sec. 801.210. MODEL ETHICAL STANDARDS AND | ||
CONFLICT-OF-INTEREST POLICIES. (a) The board shall develop and | ||
make reasonably accessible on the board's Internet website model | ||
ethical standards and model conflict-of-interest policies, | ||
including disclosure requirements, for voluntary use by a public | ||
retirement system. | ||
(b) A public retirement system is not required to adopt a | ||
standard or policy based on the model developed under this section. | ||
Sec. 801.211. PUBLIC RETIREMENT SYSTEM EDUCATIONAL | ||
TRAINING PROGRAM. (a) The board shall develop and administer an | ||
educational training program for trustees and administrators of | ||
public retirement systems. | ||
(b) The curriculum of the educational training program must | ||
include minimum training requirements for board members and | ||
administrators. The board shall develop a system to track | ||
compliance with the minimum training requirements by board members | ||
and administrators and shall report the level of compliance in the | ||
biennial report required by Section 801.203. | ||
(c) The curriculum of the educational training program | ||
under this section may include optional training classes for | ||
trustees, administrators, and employees of public retirement | ||
systems. | ||
(d) To the extent practicable, the board shall make training | ||
classes reasonably accessible to trustees and administrators of | ||
public retirement systems on an Internet website maintained for | ||
that purpose. | ||
(e) The board may adopt rules and appropriate fees to | ||
administer and provide educational training programs under this | ||
section. The net proceeds of the fees shall be deposited in the | ||
State Pension Review Board fund. | ||
SECTION 2. The heading to Section 802.107, Government Code, | ||
is amended to read as follows: | ||
Sec. 802.107. GENERAL PROVISIONS RELATING TO REPORTS AND | ||
CONTACT INFORMATION. | ||
SECTION 3. Section 802.107, Government Code, is amended by | ||
adding Subsections (c), (d), and (e) to read as follows: | ||
(c) A public retirement system shall post on a publicly | ||
available Internet website: | ||
(1) the name, business address, and business telephone | ||
number of the administrator of the public retirement system; and | ||
(2) a copy of the most recent edition of each report | ||
and other information that is required by this chapter or Chapter | ||
801 to be submitted to the board. | ||
(d) A public retirement system that maintains a website or | ||
for which a website is maintained shall prominently post a link on | ||
that website to the information required by Subsection (c). All | ||
other public retirement systems shall: | ||
(1) prominently post the information required by | ||
Subsection (c) on a website that is maintained by the governing body | ||
of the political subdivision of which members of the public | ||
retirement system are officers or employees; or | ||
(2) post the information required by Subsection (c) on | ||
a publicly available website that is maintained by a state agency. | ||
(e) A report or other information posted under Subsection | ||
(c) must remain posted until replaced with a more recently | ||
submitted edition of the report or information. | ||
SECTION 4. Subchapter B, Chapter 802, Government Code, is | ||
amended by adding Section 802.108 to read as follows: | ||
Sec. 802.108. REPORT OF INVESTMENT RETURNS AND ASSUMPTIONS. | ||
A public retirement system shall, before the 211th day after the | ||
last day of the fiscal year under which the system operates, submit | ||
to the board an investment returns and assumptions report that | ||
includes: | ||
(1) net investment returns for each of the most recent | ||
10 fiscal years; | ||
(2) the rolling net rate of return for the most recent | ||
1-year, 3-year, 10-year, and 30-year periods; | ||
(3) the net rate of return since inception of the | ||
system; | ||
(4) the current assumed rate of return; and | ||
(5) the assumed rates of return for the most recent 10 | ||
fiscal years. | ||
SECTION 5. (a) In this section: | ||
(1) "Governing body of a public retirement system" and | ||
"public retirement system" have the meanings assigned by Section | ||
802.001, Government Code. | ||
(2) "Pension review board" means the State Pension | ||
Review Board established under Chapter 801, Government Code. | ||
(b) The pension review board shall conduct a study of the | ||
financial health of public retirement systems in this state, | ||
including each system's ability to meet its long-term obligations | ||
considering the contributions, benefits, and investments made | ||
under the system. | ||
(c) Each public retirement system, including the governing | ||
bodies, officers, and employees of each retirement system, shall | ||
fully cooperate with the pension review board in conducting the | ||
study required under Subsection (b) of this section and timely | ||
respond to any request for information made by the board for the | ||
purpose of performing the study. | ||
(d) Not later than September 1, 2014, the pension review | ||
board shall submit to the legislature a written report containing | ||
the findings of the study conducted under this section and the | ||
board's recommendations, including the board's recommendations | ||
regarding how each public retirement system may mitigate any risk | ||
of not meeting the system's long-term obligations. | ||
SECTION 6. (a) The State Pension Review Board shall develop | ||
and publish the model ethical standards and conflict-of-interest | ||
policies required by Section 801.210, Government Code, as added by | ||
this Act, as soon as practicable after the effective date of this | ||
Act, but not later than December 31, 2013. | ||
(b) The State Pension Review Board shall adopt rules to | ||
implement the educational training program required by Section | ||
801.211, Government Code, as added by this Act, as soon as | ||
practicable after the effective date of this Act, but not later than | ||
necessary to begin providing training classes on or before | ||
September 1, 2014. | ||
(c) For purposes of reporting the level of compliance with | ||
the minimum training requirements of the educational training | ||
program as required by Section 801.211(b), Government Code, as | ||
added by this Act, the State Pension Review Board may only evaluate | ||
compliance with the minimum training requirements by trustees and | ||
administrators of public retirement systems on or after January 1, | ||
2015. | ||
SECTION 7. 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. |