Bill Text: TX HB4232 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the amount of the employer contribution rate for certain public retirement systems; authorizing a penalty.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2017-04-03 - Referred to Pensions [HB4232 Detail]
Download: Texas-2017-HB4232-Introduced.html
| 85R10376 KFF-D | ||
| By: Moody | H.B. No. 4232 | |
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| relating to the amount of the employer contribution rate for | ||
| certain public retirement systems; authorizing a penalty. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle A, Title 8, Government Code, is amended | ||
| by adding Chapter 808 to read as follows: | ||
| CHAPTER 808. ADJUSTMENTS TO EMPLOYER CONTRIBUTION RATES | ||
| SUBCHAPTER A. GENERAL PROVISIONS | ||
| Sec. 808.001. DEFINITIONS. In this chapter: | ||
| (1) "Funded ratio" means the ratio of a public | ||
| retirement system's actuarial value of assets divided by the | ||
| retirement system's actuarial accrued liability. | ||
| (2) "Governmental entity" has the meaning assigned by | ||
| Section 802.1012. | ||
| (3) "Public retirement system" has the meaning | ||
| assigned by Section 802.001. | ||
| Sec. 808.002. EXEMPTIONS. This chapter 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, and the Judicial Retirement | ||
| System of Texas Plan Two. | ||
| Sec. 808.003. CONFLICT OF LAW. To the extent of a conflict | ||
| between this chapter and any other law, this chapter prevails. | ||
| SUBCHAPTER B. ADJUSTMENT IN EMPLOYER CONTRIBUTION RATES | ||
| Sec. 808.051. CONTRIBUTION RATE ADJUSTMENT. If a public | ||
| retirement system's most recent actuarial valuation reflects a | ||
| funded ratio that is below 85 percent, the governmental entity | ||
| shall contribute the recommended contribution rate determined | ||
| under Section 802.101(a), if applicable, or the actuarially | ||
| projected contribution rate otherwise recommended in the | ||
| valuation. | ||
| SUBCHAPTER C. ENFORCEMENT | ||
| Sec. 808.101. PENALTY OWED TO ACTIVE MEMBERS. (a) During | ||
| any period in which a governmental entity fails to comply with | ||
| Section 808.051, the governmental entity is liable to each active | ||
| member of the public retirement system for which the governmental | ||
| entity fails to comply for a penalty in an amount equal to the | ||
| member's contributions for that period. | ||
| (b) A public retirement system is not liable for the penalty | ||
| imposed on a governmental entity under this section. | ||
| SECTION 2. This Act takes effect September 1, 2017. | ||
