tx-October232026-98: 40 TAC §§610.13 - 610.15, 610.20, 610.21, 610.30 - 610.32 (Amendment) — Funding Soundness Restoration Plans

Adopted Rules Title 40 TITLE 40. SOCIAL SERVICES AND ASSISTANCE PART 17. STATE PENSION REVIEW BOARD CHAPTER 610. FUNDING SOUNDNESS RESTORATION PLANS 40 TAC §§610.13 - 610.15, 610.20, 610.21, 610.30 - 610.32 The Pension Review (Board) adopts amendments to existing rules at 40 Texas Administrative Code (TAC), Chapter 610, §§610.13 - 610.15, 610.20, 610.21, and 610.30 - 610.32, regarding the Funding Soundness Restoration Plans for public retirement systems and their associated governmental entities, without changes to the proposed text as published in the August 7, 2026, issue of the Texas Register (51 TexReg 5151). These rules will not be republished. EXPLANATION OF AND JUSTIFICATION FOR THE RULES In 2015, the legislature passed House Bill 3310, creating the FSRP requirement for public retirement systems with a funding period greater than 40 years. In 2021, the legislature passed House Bill 3898, which updated the FSRP provisions, reducing the triggering funding period to greater than 30 years and adding additional requirements for public retirement systems and their associated governmental entities to formally adopt plans to improve their funding. The Board adopted 40 Texas Administrative Code Chapter 610 in 2022 to implement the updated statutory requirements. The Board recently completed its first quadrennial review of Chapter 610 and now adopts amendments to §§610.13 - 610.15, 610.20, 610.21 and 610.30 - 610.32 to clarify and improve compliance with the FSRP requirement. SECTION-BY-SECTION SUMMARY The adopted rules amend 40 TAC §610.13. The adopted rules make a minor grammatical correction. The adopted rules amend 40 TAC §610.14. The adopted rules modify the applicability for the rules to specify that the rules apply to systems that submitted a voluntary FSRP only if the system did so before September 1, 2025. The adopted rules amend 40 TAC §610.15. The adopted rules require that public retirement systems required by statute to provide a notice of inadequate financing to its members provide a copy of the notice to the Board. The adopted rules amend 40 TAC §610.20. The adopted rules modify the applicability for the rules to specify that the rules apply to systems that submitted a legacy FSRP only if the system did so before September 1, 2025. The adopted rules amend rule language pertaining to the allowable degree of variation from corridors to remove any appearance of subjectivity. The adopted rules also make minor technical corrections. The adopted rules amend 40 TAC §610.21. The adopted rules make a minor technical correction. The adopted rules amend 40 TAC §610.30. The adopted rules specify that a system may submit an FSRP before the deadline so long as the Board reviews and determines the plan is sufficient to amortize the unfunded liability within the statutorily required timeframe. The adopted rules amend 40 TAC §610.31. The adopted rules clarify that systems and sponsors must submit statutorily required progress updates and that the progress update must be submitted using a form prescribed by the Board. The adopted amendments also strike outdated references. The adopted rules amend 40 TAC §610.32. The adopted rules amend rule language pertaining to the allowable degree of variation from corridors to remove any appearance of subjectivity and reflect that voluntary FSRPs were previously authorized. PUBLIC COMMENTS AND INFORMATION RELATED TO THE COST, BENEFIT, OR EFFECT OF THE PROPOSED RULES The Board drafted and distributed the proposed rules to persons internal and external to the agency. The proposed rules were published in the August 7, 2026, issue of the Texas Register (51 TexReg 5151). The Board requested public comments on the proposed rules and information related to the cost, benefit, or effect of the proposed rules, including any applicable data, research, or analysis. The public comment period closed on September 7, 2026. The Board did not receive any comments from interested parties on the proposed rules. BOARD ACTION At its meeting on September 30, 2026, the Pension Review Board adopted the proposed rules as published in the Texas Register. STATUTORY AUTHORITY The adopted rules are adopted under Texas Government Code Sections 802.2015(h) and 802.2016(h), which authorize the Pension Review Board to adopt rules as necessary to implement the Funding Soundness Restoration Plan requirement. The statutory provisions affected by the adopted rules are those set forth in Texas Government Code Sections 802.106, 802.2015, and 802.2016. The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority. Filed with the Office of the Secretary of State on October 7, 2026. TRD-202604273 Tamara Aronstein General Counsel State Pension Review Board Effective date: October 27, 2026 Proposal publication date: August 7, 2026 For further information, please call: (512) 463-1736