Bill Text: TX SB1619 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to municipal control of certain local public retirement systems.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-24 - Referred to Local Government [SB1619 Detail]
Download: Texas-2021-SB1619-Introduced.html
| 87R837 KFF-F | ||
| By: Bettencourt | S.B. No. 1619 | |
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| relating to municipal control of certain local public retirement | ||
| systems. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 810, Government Code, is amended by | ||
| adding Section 810.0015 to read as follows: | ||
| Sec. 810.0015. MUNICIPAL CONTROL OF RETIREMENT SYSTEM | ||
| PROVISIONS. (a) In this section: | ||
| (1) "Hybrid retirement plan" means a retirement plan | ||
| that combines elements of a defined benefit plan, a defined | ||
| contribution plan, or an individual retirement savings account. | ||
| (2) "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 and is governed by a state | ||
| statute, but is not a part of a statewide retirement system, may | ||
| adopt by ordinance or resolution, as applicable, provisions that | ||
| supplement or supersede the operative provisions of the public | ||
| retirement system's governing statute. | ||
| (c) Provisions adopted under Subsection (b): | ||
| (1) must apply only to a person who becomes eligible | ||
| for membership in the public retirement system after December 31, | ||
| 2021; and | ||
| (2) may: | ||
| (A) subject to Subsections (d), (e), and (f), | ||
| create a defined contribution plan, hybrid retirement plan, or | ||
| other alternative retirement plan instead of a defined benefit plan | ||
| or other retirement plan required or authorized under the system's | ||
| governing statute; and | ||
| (B) apply to: | ||
| (i) benefits, participation, or | ||
| eligibility requirements of the system; | ||
| (ii) the source or amount of funding for the | ||
| system; and | ||
| (iii) the administration of the system. | ||
| (d) A defined contribution plan, hybrid retirement plan, or | ||
| other alternative retirement plan created under Subsection (b) must | ||
| be funded 100 percent by the municipality not later than the 180th | ||
| day after the last day of the municipality's fiscal year. | ||
| (e) Contributions by a person described by Subsection | ||
| (c)(1) to a plan described by Subsection (d) must be deposited with: | ||
| (1) the trustees of a retirement plan for which the | ||
| person would have been eligible for participation in but for the | ||
| municipality's action under Subsection (b); or | ||
| (2) the custodian of an individual retirement account | ||
| designated by the person. | ||
| (f) A municipality may not retain custody of contributions | ||
| made under Subsection (e) or determine the manner in which the | ||
| contributions are invested. | ||
| SECTION 2. To the extent of any conflict, this Act and a | ||
| municipal ordinance or resolution adopted by the governing body of | ||
| the sponsoring municipality of a public retirement system under | ||
| Section 810.0015(b), Government Code, as added by this Act, prevail | ||
| over another Act of the 87th Legislature, Regular Session, 2021, | ||
| relating to a public retirement system subject to that section. | ||
| SECTION 3. 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, 2021. | ||
