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A BILL TO BE ENTITLED
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AN ACT
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relating to contributions to, benefits under, and administration of |
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Texas local fire fighters' retirement systems. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 29(b), Texas Local Fire Fighters |
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Retirement Act (Article 6243e, Vernon's Texas Civil Statutes), is |
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amended to read as follows: |
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(b) A municipality or other political subdivision that has |
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employees who are participating members of a retirement system |
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shall make contributions to the system each payroll period. Except |
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as provided by Subsection (d) of this section, contributions |
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required under this subsection are computed on the total |
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compensation paid to the employees who are participating members of |
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the system. A municipality or other political subdivision is |
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required to make contributions under this subsection at the same |
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rate paid by employees or 12 percent, whichever is the smaller rate. |
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The governing body of a municipality or other political subdivision |
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by ordinance or, in accordance with Section 29A of this Act, by |
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contract may adopt a rate of employer contributions that is greater |
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than the rate required by this subsection. |
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SECTION 2. Texas Local Fire Fighters Retirement Act |
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(Article 6243e, Vernon's Texas Civil Statutes), is amended by |
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adding Section 29A to read as follows: |
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Sec. 29A. CONTRACT TO INCREASE EMPLOYER CONTRIBUTIONS AND |
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MAKE CERTAIN RELATED SYSTEM MODIFICATIONS. (a) A municipality or |
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other political subdivision may contract with the board of trustees |
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of a retirement system to adopt a rate of employer contributions |
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that is greater than the rate required by Section 29(b) of this Act. |
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(b) Notwithstanding any other law, a contract entered into |
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under this section may include provisions modifying the following |
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with respect to a retirement system: |
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(1) employee contributions; |
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(2) actuarial assumptions, provided the actuarial |
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assumptions are approved by an actuary who meets the qualifications |
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prescribed by Section 7(c) of this Act; and |
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(3) benefits. |
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SECTION 3. (a) Except as provided by Subsection (b) of this |
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section, a contract described by Section 29A, Texas Local Fire |
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Fighters Retirement Act (Article 6243e, Vernon's Texas Civil |
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Statutes), as added by this Act, that was entered into by a |
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municipality or other political subdivision and the board of |
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trustees of a retirement system before the effective date of this |
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Act is validated as of the date the contract was made or attempted |
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to be made. |
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(b) This section does not validate: |
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(1) an act that, under the law of this state at the |
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time the act occurred, was a misdemeanor or felony; or |
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(2) a matter that on the effective date of this Act: |
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(A) is involved in litigation if the litigation |
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ultimately results in the matter being held invalid by a final |
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judgment of a court; or |
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(B) has been held invalid by a final judgment of a |
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court. |
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SECTION 4. This Act takes effect September 1, 2023. |