H.B. No. 3474 amends Section 802.109 of the Government Code to enhance the evaluation and reporting processes for public retirement systems in Texas. The bill establishes a schedule of deadlines for these evaluations, requiring systems with total assets of at least $100 million to conduct evaluations every three years, while those with assets between $30 million and $100 million must do so every six years. Additionally, if a system's total pension liability increases to at least $100 million during a fiscal year, it must complete its next evaluation by the next deadline set by the board. The bill also clarifies that a retirement system remains subject to evaluation requirements unless both its total assets and total pension liability fall below specified thresholds.

Furthermore, the bill introduces new definitions, including "evaluation schedule" and "total pension liability," to ensure clarity in the evaluation process. It mandates that independent firms conducting evaluations submit a draft report to the retirement system for discussion and clarification, and outlines the timeline for filing the final report with the governing body of the system. The governing body is then required to submit the report to the board. The State Pension Review Board is tasked with developing the evaluation schedule by January 1, 2026, and the act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Government Code 802.109 (Government Code 802)
House Committee Report: Government Code 802.109 (Government Code 802)
Engrossed: Government Code 802.109 (Government Code 802)
Senate Committee Report: Government Code 802.109 (Government Code 802)
Enrolled: Government Code 802.109 (Government Code 802)