Funding Soundness Restoration Plan

Funding Soundness Restoration Plans (FSRPs) are developed by Texas public retirement systems and their sponsors to improve the funding status of financially-distressed plans. The requirement was established by the Texas Legislature in 2015 and updated in 2021. In 2016, Representative Dennis Paul issued a letter outlining the implementation process for FSRPs. Click here to view the letter.
 
Some systems have legacy FSRPs, or L-FSRPs, that were formulated before the law was changed. If a system is adhering to one of these L-FSRPs, it may continue operating under the old version of the FSRP statute.
 
The PRB has created a variety of graphics and educational materials to help system trustees and administrators understand the FSRP requirements. Click here to view the FSRP educational materials.
 
On April 5, 2022, the PRB gave a presentation covering FSRPs at the 2022 Annual TEXPERS Conference. Click here to view the presentation.
 

FSRP Rulemaking

The PRB is engaging in rulemaking to facilitate implementation of the legislature’s 2021 changes to the Funding Soundness Restoration Plan (FSRP) statute. The PRB plans to adopt these rules in October 2022.  As a first step, the board’s Actuarial Committee discussed the initial rule concepts at its January 28 meeting. The Actuarial Committee discussed the draft rules and draft board policy on May 18th. You may also submit your comments by email to prb@prb.texas.gov. Staff is also available for discussion by phone or video conference.

 


Stakeholder Participation Timeline:

Staff will be accepting comments and feedback throughout the process, but there are some notable milestones for stakeholder participation:

  • Staff will be drafting the rules and seeking informal feedback in March and April 2022.
  • The initial draft rules will be presented for discussion at the Actuarial Committee meeting on May 18, 2022 and distributed for informal comment afterwards.
  • Staff will then present the draft rules to the full board at the July 14, 2022 meeting for approval to post in the Texas Register for the 30-day formal public comment period.
 

 

Reference Materials:

FSRP Report

PRB Staff provides the board with periodic updates on plans who have submitted FSRPs. View the recent reports below.

July 2022 |February 2022 |July 2021