Bill Text: TX SB152 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to municipal control of certain public retirement systems established for the benefit of municipal employees.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2017-01-25 - Referred to State Affairs [SB152 Detail]
Download: Texas-2017-SB152-Introduced.html
| 2017S0005-1 10/20/16 | ||
| By: Bettencourt | S.B. No. 152 | |
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| relating to municipal control of certain public retirement systems | ||
| established for the benefit of municipal employees. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 810, Government Code, is amended by | ||
| adding Section 810.002 to read as follows: | ||
| Sec. 810.002. MUNICIPAL CONTROL OF RETIREMENT SYSTEM | ||
| PROVISIONS. (a) In this section, "public retirement system" has | ||
| the meaning assigned by Section 802.001. | ||
| (b) Except as provided by Sections 66 and 67, Article XVI, | ||
| Texas Constitution, and notwithstanding any other law, a | ||
| municipality that is the sponsoring authority of a public | ||
| retirement system that was created under a state statute, but is not | ||
| a part of a statewide public retirement system, may adopt by | ||
| ordinance or resolution, as applicable, provisions that supplement | ||
| or supersede the operative provisions of the public retirement | ||
| system. | ||
| (c) Provisions adopted under Subsection (b): | ||
| (1) apply only to a person who becomes eligible for | ||
| membership in the public retirement system after December 31, 2017; | ||
| and | ||
| (2) subject to Subsection (d), may include or apply | ||
| to: | ||
| (A) the use of a defined contribution plan | ||
| instead of a defined benefit plan; | ||
| (B) any provision relating to benefits, | ||
| participation, or eligibility requirements; | ||
| (C) the source or amount of the funding; and | ||
| (D) the administration of the system. | ||
| (d) Any plan governed by a provision adopted under | ||
| Subsection (b) must be funded 100 percent by the municipality not | ||
| later than 180 days after the ending date of the municipality's | ||
| fiscal year. | ||
| (e) Contributions by an employee described by Subsection | ||
| (c)(1) to a plan that is governed by a provision adopted under | ||
| Subsection (b) are deposited with: | ||
| (1) the trustees of any plan for which the employee | ||
| would have qualified if not for the municipality's action under | ||
| Subsection (b); or | ||
| (2) the custodian of an individual retirement account | ||
| designated by the employee. | ||
| (f) In no event shall a municipality retain custody of any | ||
| contribution made under Subsection (e) or the ability to determine | ||
| the manner in which such contribution shall be invested. | ||
| (g) In the event of a conflict between a statute adopted | ||
| before the effective date of the Act enacting this section that | ||
| applies to a public retirement system described by Subsection (b) | ||
| and a municipal ordinance or resolution adopted by the governing | ||
| body of the sponsoring municipality of that retirement system under | ||
| this section, the municipal ordinance or resolution prevails. | ||
| SECTION 2. 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, 2017. | ||
