Bill Text: TX SB936 | 2017-2018 | 85th Legislature | Comm Sub
Bill Title: Relating to the creation of a joint interim committee to undertake a study of the public retirement systems of this state.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Engrossed - Dead) 2017-05-19 - Committee report sent to Calendars [SB936 Detail]
Download: Texas-2017-SB936-Comm_Sub.html
By: Huffman, et al. | S.B. No. 936 | |
(Flynn, Paul) | ||
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relating to the creation of a joint interim committee to undertake a | ||
study of the public retirement systems of this state. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. DEFINITION. In this Act, "public retirement | ||
system" has the meaning assigned by Section 802.001, Government | ||
Code. | ||
SECTION 2. CREATION OF JOINT INTERIM COMMITTEE. (a) A | ||
joint interim committee is created to study and assess each public | ||
retirement system of this state and report on the issues described | ||
by Section 3 of this Act. | ||
(b) The joint interim committee shall be composed of three | ||
senators appointed by the lieutenant governor and three members of | ||
the house of representatives appointed by the speaker of the house | ||
of representatives. | ||
(c) The lieutenant governor and speaker of the house of | ||
representatives shall each designate a co-chair from among the | ||
joint interim committee members. | ||
(d) The joint interim committee shall convene at the joint | ||
call of the co-chairs. | ||
(e) The joint interim committee has all other powers and | ||
duties provided to a special or select committee by the rules of the | ||
senate and house of representatives, by Subchapter B, Chapter 301, | ||
Government Code, and by policies of the senate and house committees | ||
on administration. | ||
SECTION 3. INTERIM STUDY REGARDING PUBLIC RETIREMENT | ||
SYSTEMS. The joint interim committee created by Section 2 of this | ||
Act shall: | ||
(1) review and assess: | ||
(A) the different types of retirement system | ||
plans, including: | ||
(i) defined contribution plans; | ||
(ii) defined benefit plans; | ||
(iii) hybrid public pension plans; and | ||
(iv) cash balance pension plans; | ||
(B) the actuarial assumptions used in making | ||
actuarial valuations and analyses of public retirement systems and | ||
the consequences of amending an assumption rate; and | ||
(C) the effect that local agreements, including | ||
meet and confer agreements, have on the sustainability of this | ||
state's public retirement systems; | ||
(2) study: | ||
(A) the potential for allowing public retirement | ||
systems to pool their assets for the purposes of taking advantage of | ||
economies of scale and reducing costs; and | ||
(B) the governance policies of this state's | ||
public retirement systems and the effect of imposing more formal | ||
requirements on governance, including a requirement that the | ||
retirement systems and their associated governmental entities | ||
jointly develop written funding, investment, and benefits policies | ||
that have goals and objectives that reference one another, are | ||
coordinated, and promote transparency; | ||
(3) consider enhancing fee disclosures, specifically | ||
the disclosure of fees that are related to alternative investment | ||
vehicles; | ||
(4) consider requiring: | ||
(A) additional actuarial analyses, including a | ||
discount rate sensitivity analysis and risk assessments; and | ||
(B) additional disclosures, including disclosure | ||
of: | ||
(i) the sustained differences between the | ||
actual and assumed rate of return on assets; | ||
(ii) projected cash flows; | ||
(iii) risks; and | ||
(iv) the potential impact of actual future | ||
measurements differing significantly from expected future | ||
measurements; and | ||
(5) study the public retirement systems' valuation | ||
methodology for the illiquid asset class, including the | ||
effectiveness of and compliance with the fair value measurement | ||
requirement under the Governmental Accounting Standards Board | ||
Statement No. 72. | ||
SECTION 4. COMMITTEE FINDINGS AND RECOMMENDATIONS. | ||
(a) Not later than January 15, 2019, the joint interim committee | ||
shall report the committee's findings and recommendations to the | ||
lieutenant governor, the speaker of the house of representatives, | ||
and the governor. The joint interim committee shall include in its | ||
recommendations specific statutory and regulatory changes that | ||
appear necessary from the results of the committee's study under | ||
Section 3 of this Act. | ||
(b) Not later than the 60th day after the effective date of | ||
this Act, the lieutenant governor and the speaker of the house of | ||
representatives shall appoint the members of the joint interim | ||
committee created under Section 2 of this Act in accordance with | ||
that section. | ||
SECTION 5. ABOLITION OF COMMITTEE. The joint interim | ||
committee created by this Act is abolished and this Act expires | ||
January 20, 2019. | ||
SECTION 6. EFFECTIVE DATE. 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. |