| (a) The board will consider a retirement system to
have submitted a funding soundness restoration plan when the board
receives:
(1) a completed form approved by the board for this
purpose;
(2) any supplementary or explanatory documents necessary
to illustrate how the system's funding period will be within the maximum
by the prescribed date, including a revised funding policy; and
(3) documentation of the date the plan was adopted
by both the governing body of the system and of the governmental entity.
Documentation may include the minutes or other record of an open meeting
when each adoption occurred.
(b) The board will consider a retirement system to
have completed the funding soundness restoration plan requirement
when the board receives an actuarial valuation or separate analysis
under Texas Government Code §§802.2015(e-2) or 802.2016(e-2)
and the staff actuary or board actuary determines the actuarial valuation
or separate analysis complies with actuarial standards of practice.
An actuarial valuation and separate analysis are equivalent for the
purposes of Texas Government Code §§802.2015(e-2) or 802.2016(e-2)
and either may be submitted in lieu of the other during the respective
submission periods, provided it includes the components required by
the applicable subsection.
(c) For a system submitting a revised funding soundness
restoration plan with specific changes required by statute, "automatic
risk-sharing mechanisms" means changes to plan provisions, including
adjustments to benefit levels or contribution amounts, upon meeting
or exceeding certain criteria established beforehand without needing
additional approval at the time of the change. The plan shall specify
how the changes to the contribution amounts are split between the
employer and members. At least one of the automatic risk-sharing mechanisms
included in the plan must be an adjustable benefit or contribution
mechanism.
(d) A system or associated governmental entity shall
submit to the board the materials related to a funding soundness restoration
plan that adequately fulfill the analysis and documentation requirements
in statute and rules to be considered compliant. If the board determines
the materials are inadequate, the board will notify the system of
the determination with an explanation of the reason and may request
additional information. The system shall submit additional materials
consistent with the board's instructions. The board would consider
a system noncompliant if the board does not receive the system's funding
soundness restoration plan; if the system fails to comply with an
approved funding soundness restoration plan, revised funding soundness
restoration plan, or other type of funding soundness restoration plan;
or if the system fails to submit to the board the funding soundness
restoration plan materials that adequately satisfy the requirements
in statute and board rules within the appropriate time periods for
those materials.
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