| (a) A public retirement system is adhering to a funding
soundness restoration plan formulated between September 1, 2021, and
September 1, 2025, if, during the period between the date the funding
soundness restoration plan is adopted by the system and governmental
entity and the 10th anniversary of the applicable date for the funding
soundness restoration plan to be formulated and the system to be within
the maximum funding period prescribed by Texas Government Code §§802.2015(e)(2)
or 802.2016(e)(2), the system's actuarial valuation shows the system's
funding period or funded ratio remain within the applicable compliance
corridors established in this section. If the system's funding period
is infinite, only the funded ratio will be evaluated to determine
compliance for the purposes of this subsection.
(b) The baseline for a system's funding period compliance
corridor will be 30 years, and the baseline for the funded ratio corridor
will be the actuarial projection of the system's expected future actuarial
value of assets and liabilities submitted as part of an actuarial
valuation or separate analysis in accordance with either Texas Government
Code §§802.2015(e-2)(1) or 802.2016(e-2)(1).
(c) The allowable degree of variation from the baseline
will begin at five percent for a funded ratio corridor or ten years
for a funding period corridor and will decrease over the 10-year period
as described by Figure: 40 TAC §610.32(c). A system would be
considered compliant if plan experience exceeds the corridor in a
favorable way. The board will use each system's baseline to provide
a compliance corridor unique to that system based on their amortization
period and funded ratio, using the corridor sizes specified in these
rules.
Attached Graphic
(d) A system may submit a voluntary funding soundness
restoration plan without first becoming subject to the requirement,
for the purposes of qualifying for the revision exemption, provided
the V-FSRP is consistent with all applicable submission requirements
in statute and rules.
|
