Bill Text: TX SB2009 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to requiring a supplemental actuarial analysis by certain public retirement systems.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-27 - Referred to State Affairs [SB2009 Detail]
Download: Texas-2017-SB2009-Introduced.html
85R14848 KFF-F | ||
By: Taylor of Collin | S.B. No. 2009 |
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relating to requiring a supplemental actuarial analysis by certain | ||
public retirement systems. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter B, Chapter 802, Government Code, is | ||
amended by adding Section 802.109 to read as follows: | ||
Sec. 802.109. SUPPLEMENTAL ACTUARIAL ANALYSIS ASSUMING | ||
CERTAIN RATES OF RETURN BY PUBLIC RETIREMENT SYSTEMS; REPORT. (a) | ||
In this section, "assumed rate of return" means the expected | ||
long-term rate of return on the investment of public retirement | ||
system assets. | ||
(b) Each public retirement system shall submit to the board | ||
a supplemental analysis prepared in conjunction with the system's | ||
actuarial valuation that performs a 30-year forward-looking | ||
projection of system assets and liabilities using the following | ||
assumptions: | ||
(1) annual investment returns for the full 30-year | ||
period equal to the assumed rate of return used in the system's | ||
actuarial valuation; | ||
(2) annual investment returns for the: | ||
(A) first 20-year period equal to the assumed | ||
rate of return used in the system's actuarial valuation less 300 | ||
basis points; and | ||
(B) final 10-year period equal to the assumed | ||
rate of return used in the system's actuarial valuation; and | ||
(3) annual investment returns for the: | ||
(A) first 20-year period equal to the assumed | ||
rate of return used in the system's actuarial valuation plus 300 | ||
basis points; and | ||
(B) final 10-year period equal to the assumed | ||
rate of return used in the system's actuarial valuation. | ||
(c) The board shall adopt rules necessary to implement this | ||
section, including rules regarding the level of detail that must be | ||
included in analyses required under Subsection (b). | ||
(d) The board shall annually compile the analyses described | ||
by Subsection (b) in a report and submit the report to the governor, | ||
lieutenant governor, speaker of the house of representatives, and | ||
members of the legislature. The report required by this subsection | ||
may be combined with any other report required by this chapter or | ||
other law. | ||
SECTION 2. This Act takes effect September 1, 2017. |