Bill > HB4000

This bill makes significant changes to the public retirement systems for employees of certain municipalities in Texas. The key provisions are: - Defines new terms related to actuarial valuation, funding, and contribution rates, including "actuarial accrued liability," "actuarial value of assets," "amortization period," "amortization rate," "corridor," "corridor margin," "corridor midpoint," "employer contribution rate," "employer normal cost rate," "estimated employer contribution rate," "funded ratio," "legacy liability," "liability gain layer," "liability loss layer," "maximum employer contribution rate," "minimum employer contribution rate," "normal cost rate," "pensionable payroll," "projected pensionable payroll," and "unanticipated change." - Changes the composition of the retirement board, including adding requirements for board members to have certain experience. - Requires regular experience studies and gives the city the ability to review and provide input on the actuarial assumptions used by the retirement system. - Modifies member and employer contribution rates, including a phase-in of increased city contributions over two years. - Establishes a "risk sharing" valuation and adjustment process to determine contribution rates, with a "corridor" to limit contribution rate changes. - Allows the city to make additional contributions to reduce future required contributions. - Provides for reinstatement of prior service credit and conversion of sick leave to service credit. The overall purpose of the bill is to provide more transparency and stability in the funding of the municipal retirement systems through a risk-sharing approach between the cities and the retirement systems.

Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=88R&Bill=HB4000