Part 17. STATE PENSION REVIEW BOARD
Chapter 605. STANDARDIZED FORM
The State Pension Review Board adopts amendments to §605.1 and §605.3 with changes. The amendments, regarding the submission of forms, require public pension systems to submit quarterly information to the Board. The amended sections are adopted with changes to the text published in the February 9, 2007, issue of the Texas Register (32 TexReg 510).
The changes to the published proposed text are as follows: The change to the text proposed for §605.1 changes the word "proposes" to "adopts," and the change to the proposed text for §605.3 changes the word "date" to "day" in subsection (c). These changes to the proposed text are non-substantive, and they affect no new parties or subjects of regulation. For these reasons, re-publication of the proposed rules is not necessary before adopting the rules.
Adoption of the amendments to §605.1 and §605.3 facilitates the request by the 79th Legislature (2005) to develop an early warning system capable of analyzing all actuarially funded pension plans. By adopting a higher frequency of reporting the Board will be able to study changes nearer to the time of an occurrence. The form PRB-500, adopted by reference in §605.1(b)(5), requests data that reflects the legislative intent expressed in the 2005 General Appropriations Act for the 2006-2007 biennium. The form requests: (1) the market value of assets at the beginning and end of the quarter; (2) the payments of benefits from the fund during the quarter; (3) the contributions to the fund during the quarter; (4) the number of new retirees during the quarter; (5) the number of active members at the end of the quarter; and (6) any benefit changes to the fund implemented or considered during the quarter. This information will aid the State Pension Review Board in tracking changes in public retirement systems, as they are defined in Tex. Gov't Code §802.001, and will assist in ensuring actuarially sound retirement systems.
The State Pension Review Board received one public comment on the proposed rule amendment from interested parties. Dallas Police & Fire Pension System, the Houston Firefighters' Relief and Retirement Fund, the Houston Municipal Employees Pension System, and the Houston Police Officers' Pension System requested that a disclaimer be included in the proposed form PRB-500 allowing public pensions to explain that the numbers used to complete PRB-500 are unaudited and approximated. The State Pension Review Board is incorporating the standardized form PRB-500 by reference and the disclaimer requested is a part of that form. Given this fact, there is no reason to amend the rule being adopted.
The amendments are adopted pursuant to Texas Government Code, §801.201(c)(2) which empowers the Board to require public retirement systems to complete and submit standard forms, §801.202(1) and (2), empowers the Board to conduct continuing review and intensive studies of public retirement systems, and Acts of 2005, General Appropriations Act, Article I, Pension Review Board Rider 2, requiring the Board to develop an early warning system that addresses the factors regarding the actuarial and financial soundness of pension systems on a quarterly basis.
§605.1.Adoption of Standard Forms.
(a) The Board hereby adopts by reference the standard forms identified below under subsection (b) of this section to assist in efficiently determining the actuarial soundness and current financial condition of public retirement systems, to implement a quarterly reporting system addressing factors included in these forms, under subsection (b)(5) of this section and to assist in the conduct of the Board's business.
(b) The standard forms hereby adopted by the Board are the following
(1) Pension System Registration--Form Series PRB-100
(2) Benefits and Membership Report--Form Series PRB-200
(3) Financial Statement Report--Form Series PRB-300
(4) Actuarial Report--Form Series PRB-500
(5) Quarterly Plan Report--Form Series: PRB-500
(c) These forms are available from the offices of the State Pension Review Board and on its web site at http:/www.prb.state.tx.us
§605.3.Submission of Forms.
(a) A public retirement system must complete and submit to the Board the standard forms identified as Form numbers PRB-100, PRB-200, PRB-300, PRB-400, and PRB-500 in §605.1 regarding adoption of standard forms.
(b) The public system must submit the forms with the information the system submits to the Board as a result of reviews and studies conducted by the Board regarding the actuarial soundness and current financial condition of the fund the system administers.
(c) A public retirement system must complete and submit to the Board Form PRB 500 no later than the 45th day after each quarter ending March, June, September and December.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on April 18, 2007.
TRD-200701456
Lynda Baker
Executive Assistant
State Pension Review Board
Effective date: May 8, 2007
Proposal publication date: February 9, 2007
For further information, please call: (512) 463-1736