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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing public retirement systems to study the |
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cost-effectiveness and feasibility of implementing certain pension |
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revenue enhancement strategies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) In this section: |
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(1) "Governing body of a public retirement system" and |
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"public retirement system" have the meanings assigned by Section |
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802.001, Government Code. |
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(2) "Pension revenue enhancement strategy" means a |
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strategy by which a public retirement system obtains a life |
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insurance policy for each employee participating in the retirement |
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system, with the employee's consent, held in a separate trust for |
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the benefit of the retirement system. On the death of the employee, |
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the proceeds of the life insurance policy would be payable to the |
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public retirement system and added to the retirement system's |
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assets. |
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(b) The governing body of a public retirement system may |
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conduct a study to evaluate the cost-effectiveness and feasibility |
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of implementing a pension revenue enhancement strategy to create an |
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additional source of funding to address potential deficiencies in |
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funding the retirement system's liabilities. |
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(c) Not later than September 1, 2018, the governing body of |
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a public retirement system that completes a study described by |
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Subsection (b) of this section shall submit a written report to the |
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legislature and the standing committees of the house of |
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representatives and senate that have primary jurisdiction over |
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state pension systems containing the findings of the study together |
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with the governing body's recommendations regarding the |
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cost-effectiveness and feasibility of implementing a pension |
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revenue enhancement strategy. |
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(d) This Act expires December 31, 2018. |
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SECTION 2. This Act takes effect September 1, 2017. |