Bill Text: TX SB1133 | 2013-2014 | 83rd Legislature | Comm Sub

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Bill Title: Relating to contributions to certain fire and police pension funds.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2013-05-24 - Effective immediately [SB1133 Detail]

Download: Texas-2013-SB1133-Comm_Sub.html

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By: Rodriguez S.B. No. 1133
(In the Senate - Filed March 5, 2013; March 12, 2013, read
first time and referred to Committee on State Affairs;
April 22, 2013, reported favorably by the following vote: Yeas 9,
Nays 0; April 22, 2013, sent to printer.)

A BILL TO BE ENTITLED
AN ACT
relating to contributions to certain fire and police pension funds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 14, Chapter 101 (H.B. 31), Acts of the
43rd Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
Texas Civil Statutes), is amended to read as follows:
Sec. 14. USE OF PUBLIC FUNDS. Except as provided by Section
14A of this Act, no [No] funds shall be paid out of the public
treasury of any such incorporated city or town, in carrying out any
of the provisions of this law, except on a majority vote of the
voters of such city or town, and where such funds have been voted on
as provided by law, said city or town shall contribute such amount.
SECTION 2. Subsection (a), Section 14A, Chapter 101 (H.B.
31), Acts of the 43rd Legislature, 1st Called Session, 1933
(Article 6243b, Vernon's Texas Civil Statutes), is amended to read
as follows:
(a) If at any time a qualified actuary that meets the
requirements of Subdivision (1), Subsection (b), Section 10A of
this Act, determines that the total contribution rate, expressed as
a percentage of wages, is insufficient to amortize the unfunded
actuarial accrued liability, as defined under the Governmental
Accounting Standards Board Statement No. 25, over a 40-year period
[not to exceed forty (40) years]:
(1) the city's or town's governing body may increase
the city or town contribution rate; and
(2) to the extent that the city or town contribution
rate increases under Subdivision (1) of this subsection, the member
contribution rate must increase by an amount equal to the member
contribution rate before the increase multiplied by a fraction:
(A) the numerator of which is the increase in the
amount of the city or town contribution rate; and
(B) the denominator of which is the amount of the
city or town contribution rate before the increase.
SECTION 3. Chapter 101 (H.B. 31), Acts of the 43rd
Legislature, 1st Called Session, 1933 (Article 6243b, Vernon's
Texas Civil Statutes), is amended by adding Section 14B to read as
follows:
Sec. 14B. CONTRIBUTION DECREASES. (a) If at any time a
qualified actuary that meets the requirements of Section 10A(b)(1)
of this Act determines that the total contribution rate, expressed
as a percentage of wages, is sufficient to amortize the unfunded
actuarial accrued liability, as defined under the Governmental
Accounting Standards Board Statement No. 25, over a 25-year period:
(1) the city's or town's governing body may decrease
the city or town contribution rate; and
(2) to the extent that the city or town contribution
rate decreases under Subdivision (1) of this subsection, the member
contribution rate must decrease by an amount equal to the member
contribution rate before the decrease multiplied by a fraction:
(A) the numerator of which is the decrease in the
amount of the city or town contribution rate; and
(B) the denominator of which is the amount of the
city or town contribution rate before the decrease.
(b) The sum of the city or town contribution rate and the
member contribution rate after a decrease under this section may
not be less than the total contribution rate determined by the
qualified actuary to be necessary to amortize the unfunded
actuarial accrued liability over a 25-year period.
SECTION 4. 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, 2013.
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