Texas § GV.844.601 - PLAN FUNDING BY NON-ADOPTING COUNTY

§ GV.844.601. PLAN FUNDING BY NON-ADOPTING COUNTY

PLAN FUNDING BY NON-ADOPTING COUNTY. (a) This section applies only to a county that began participation in the retirement system before January 1, 1992, and has not adopted the provisions of Subchapter H. (b) Except as provided by Subsections (c) and (d), the county shall contribute to its account in the subdivision accumulation fund at the same rate of current service compensation as the employee contribution rate for the county. (c) If in any year the retirement system's actuary determines that the contributions of the county to the subdivision accumulation fund under Subsection (b) will not finance the county's obligations to the fund within the closed or open amortization period recommended by the actuary and adopted by the board of trustees for all subdivisions, the governing body of the county shall adopt an order to reduce the amortization period to the maximum period established by the board. The actuary shall determine appropriate remedies for review and adoption by the county. An order adopted under this subsection must first be approved by the board of trustees and must require: (1) a reduction in the employee contribution rate to a rate not less than four percent of current service compensation; (2) additional employer contributions under a supplemental contribution rate as provided by Subsection (e); (3) a reduction in the percentage for determining multiple matching credits in five percent increments for contributions made after the effective date of the reduction; or (4) any combination of these actions. (d) An order adopted under Subsection (c) takes effect on the first day of the calendar year that begins after the date the retirement system's actuary makes a determination described by Subsection (c). (e) A supplemental contribution rate under this section is the rate of contribution by the county to its account in the subdivision accumulation fund, in addition to the contributions required under Subsection (b), that the retirement system's actuary determines and certifies is required to amortize the obligations of the county to the subdivision accumulation fund within the established amortization period. (f) A county that has not adopted the provisions of Subchapter H may not adopt additional options and may not increase service credits or benefits otherwise allowable under this subtitle except for an increase in the rate of employee contributions or an increase in the percentage of multiple matching credits to a rate or percentage that does not exceed the rate or percentage in effect on January 1, 2010. Added by Acts 2009, 81st Leg., R.S., Ch. 300 (H.B. 407 ), Sec. 22, eff. September 1, 2009. SUBCHAPTER H. ANNUALLY DETERMINED CONTRIBUTION RATE PLAN