85R14848 KFF-F     By: Taylor of Collin S.B. No. 2009       A BILL TO BE ENTITLED   AN ACT   relating to requiring a supplemental actuarial analysis by certain   public retirement systems.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 802, Government Code, is   amended by adding Section 802.109 to read as follows:          Sec. 802.109.  SUPPLEMENTAL ACTUARIAL ANALYSIS ASSUMING   CERTAIN RATES OF RETURN BY PUBLIC RETIREMENT SYSTEMS; REPORT. (a)   In this section, "assumed rate of return" means the expected   long-term rate of return on the investment of public retirement   system assets.          (b)  Each public retirement system shall submit to the board   a supplemental analysis prepared in conjunction with the system's   actuarial valuation that performs a 30-year forward-looking   projection of system assets and liabilities using the following   assumptions:                (1)  annual investment returns for the full 30-year   period equal to the assumed rate of return used in the system's   actuarial valuation;                (2)  annual investment returns for the:                      (A)  first 20-year period equal to the assumed   rate of return used in the system's actuarial valuation less 300   basis points; and                      (B)  final 10-year period equal to the assumed   rate of return used in the system's actuarial valuation; and                (3)  annual investment returns for the:                      (A)  first 20-year period equal to the assumed   rate of return used in the system's actuarial valuation plus 300   basis points; and                      (B)  final 10-year period equal to the assumed   rate of return used in the system's actuarial valuation.          (c)  The board shall adopt rules necessary to implement this   section, including rules regarding the level of detail that must be   included in analyses required under Subsection (b).          (d)  The board shall annually compile the analyses described   by Subsection (b) in a report and submit the report to the governor,   lieutenant governor, speaker of the house of representatives, and   members of the legislature. The report required by this subsection   may be combined with any other report required by this chapter or   other law.          SECTION 2.  This Act takes effect September 1, 2017.