Bill Text: TX SB482 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to a biennial study and report by the Employees Retirement System of Texas and Teacher Retirement System of Texas on converting to a defined contribution plan.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-03-09 - Referred to Finance [SB482 Detail]
Download: Texas-2021-SB482-Introduced.html
| 87R3246 BDP-D | ||
| By: Schwertner | S.B. No. 482 | |
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| relating to a biennial study and report by the Employees Retirement | ||
| System of Texas and Teacher Retirement System of Texas on | ||
| converting to a defined contribution plan. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter F, Chapter 815, Government Code, is | ||
| amended by adding Section 815.5105 to read as follows: | ||
| Sec. 815.5105. BIENNIAL STUDY AND REPORT ON CONVERTING TO | ||
| DEFINED CONTRIBUTION PLAN. (a) Not later than January 1 of each | ||
| odd-numbered year, the retirement system shall: | ||
| (1) conduct a study to evaluate the cost and | ||
| feasibility of converting from providing benefits to members | ||
| primarily under a defined benefit plan to providing benefits to | ||
| members primarily under a defined contribution plan; and | ||
| (2) submit a written report to each member of the | ||
| legislature containing the findings of the study. | ||
| (b) The report required under this section must: | ||
| (1) evaluate the following two conversion scenarios: | ||
| (A) a conversion under which all persons who are | ||
| members of the system as of January 1 of the next odd-numbered year | ||
| are required to transition to a defined contribution plan; and | ||
| (B) a conversion under which only employees or | ||
| officers initially hired, appointed, or elected on or after January | ||
| 1 of the next odd-numbered year are required to participate in a | ||
| defined contribution plan; and | ||
| (2) include: | ||
| (A) a broad description of how each conversion | ||
| scenario described by Subdivision (1) would be achieved, including | ||
| a projected timeline for the various stages of conversion; | ||
| (B) a detailed estimate of the costs to the state | ||
| associated with each conversion scenario, including a detailed | ||
| estimate of the costs to the state associated with maintaining the | ||
| defined benefit plan for retirees and beneficiaries entitled to | ||
| benefits under that plan; | ||
| (C) a summary of the assumptions and methods used | ||
| to estimate costs under Paragraph (B); | ||
| (D) recommendations for legislation the system | ||
| determines would be necessary to accomplish conversion under each | ||
| conversion scenario; and | ||
| (E) any additional information the system | ||
| determines appropriate. | ||
| (c) The report required by this section may be combined with | ||
| any other report required by law. | ||
| SECTION 2. Subchapter B, Chapter 825, Government Code, is | ||
| amended by adding Section 825.1085 to read as follows: | ||
| Sec. 825.1085. BIENNIAL STUDY AND REPORT ON CONVERTING TO | ||
| DEFINED CONTRIBUTION PLAN. (a) Not later than January 1 of each | ||
| odd-numbered year, the retirement system shall: | ||
| (1) conduct a study to evaluate the cost and | ||
| feasibility of converting from providing benefits to members | ||
| primarily under a defined benefit plan to providing benefits to | ||
| members primarily under a defined contribution plan; and | ||
| (2) submit a written report to each member of the | ||
| legislature containing the findings of the study. | ||
| (b) The report required under this section must: | ||
| (1) evaluate the following two conversion scenarios: | ||
| (A) a conversion under which all persons who are | ||
| members of the system as of January 1 of the next odd-numbered year | ||
| are required to transition to a defined contribution plan; and | ||
| (B) a conversion under which only employees | ||
| initially hired on or after January 1 of the next odd-numbered year | ||
| are required to participate in a defined contribution plan; and | ||
| (2) include: | ||
| (A) a broad description of how each conversion | ||
| scenario described by Subdivision (1) would be achieved, including | ||
| a projected timeline for the various stages of conversion; | ||
| (B) a detailed estimate of the costs to the state | ||
| associated with each conversion scenario, including a detailed | ||
| estimate of the costs to the state associated with maintaining the | ||
| defined benefit plan for retirees and beneficiaries entitled to | ||
| benefits under that plan; | ||
| (C) a summary of the assumptions and methods used | ||
| to estimate costs under Paragraph (B); | ||
| (D) recommendations for legislation the system | ||
| determines would be necessary to accomplish conversion under each | ||
| conversion scenario; and | ||
| (E) any additional information the system | ||
| determines appropriate. | ||
| (c) The report required by this section may be combined with | ||
| any other report required by law. | ||
| SECTION 3. This Act takes effect September 1, 2021. | ||
