(a) After considering the results of the actuarial experience study performed by the retirement system's actuary or at such other times as necessary, the Board of trustees may adopt changes to the actuarial cost method, actuarial assumptions and mortality tables by Board resolution. The Board resolution shall specify the first actuarial valuation and plan year affected by the changes. (b) If as the result of actuarial changes, including, but not limited to, changes in actuarial cost methods or actuarial assumptions, a municipality's contribution rate increases by more than one-half of one percent, the Board may, after consultation with the retirement system's actuary, take one or both of the following actions: (1) phase in the increase in contribution rate for the municipality over a reasonable period of time; or (2) increase the period for amortizing the municipality's unfunded actuarial accrued liabilities up to thirty years. (c) A municipality may decline to phase in the increase in its contribution rate or increase its amortization period as set out in subsection (b) of this section by notifying the retirement system in writing. (d) The Board of trustees, after consultation with the retirement system's actuary, may change the period for amortizing a municipality's unfunded actuarial accrued liabilities from an open period to a closed period. The Board of trustees may also decrease the amortization period. The Board of trustees may, but is not required to, set different amortization periods for unfunded actuarial accrued liabilities arising from different types of benefit enhancements and ladder the amortization of the liabilities.
Source Note: The provisions of this §123.7 adopted to be effective January 1, 2008, 32 TexReg 10055