Texas § GV.802.2011 - FUNDING POLICY

§ GV.802.2011. FUNDING POLICY

FUNDING POLICY. (a) In this section: (1) "Funded ratio" means the ratio of a public retirement system's actuarial value of assets divided by the system's actuarial accrued liability. (2) "Governmental entity" has the meaning assigned by Section 802.1012 . (3) "Statewide retirement system" means: (A) the Employees Retirement System of Texas, including a retirement system administered by that system; (B) the Teacher Retirement System of Texas; (C) the Texas County and District Retirement System; (D) the Texas Emergency Services Retirement System; and (E) the Texas Municipal Retirement System. (b) The governing body of a public retirement system and, if the system is not a statewide retirement system, its associated governmental entity shall: (1) jointly, if applicable: (A) develop and adopt a written funding policy that details a plan for achieving a funded ratio of the system that is equal to or greater than 100 percent; and (B) timely revise the policy to reflect any significant changes to the policy, including changes required as a result of formulating and implementing a funding soundness restoration plan, including a revised funding soundness restoration plan, under Section 802.2015 or 802.2016 ; (2) maintain for public review at its main office a copy of the policy; (3) file a copy of the policy and each change to the policy with the board not later than the 31st day after the date the policy or change, as applicable, is adopted; and (4) post a copy of the most recent edition of the policy on a publicly available Internet website in accordance with Section 802.107 (c)(2). (c) For purposes of Subsection (b)(1)(B), the written funding policy must outline any automatic contribution or benefit changes designed to prevent having to formulate a revised funding soundness restoration plan under Section 802.2015 (d), including any automatic risk-sharing mechanisms that have been implemented, the adoption of an actuarially determined contribution structure, and other adjustable benefit or contribution mechanisms. (d) The board may adopt rules necessary to implement this section. Added by Acts 2019, 86th Leg., R.S., Ch. 453 (S.B. 2224 ), Sec. 1, eff. September 1, 2019. Amended by: Acts 2021, 87th Leg., R.S., Ch. 1033 (H.B. 3898 ), Sec. 3, eff. September 1, 2021.