Sec. 5.03.  BOARD CHAIR.  The board of trustees shall elect a chair from the membership of the board.
Sec. 5.04.  QUORUM; VOTING.  (a)  Each member of the board of trustees is entitled to one vote.
(b)  Except as provided by Subsection (c) of this section, seven members of the board of trustees constitute a quorum to transact the business of the board.
(c)  In the event of a vacancy on the board of trustees, the number of members required to constitute a quorum is reduced by the number of vacancies on the board of trustees.
Sec. 5.05.  QUALIFIED ACTUARY; ACTUARIAL ASSUMPTIONS.  (a)  The board of trustees may employ a qualified actuary.
(b)  To be a qualified actuary, an actuary must be:
(1)  a fellow of the Society of Actuaries; or
(2)  a member of the American Academy of Actuaries.
(c)  At least 30 days before the date the board of trustees adopts actuarial assumptions to be used by the public retirement system, the board must submit to the governing body a detailed report regarding the proposed actuarial assumptions.  The report must include the fiscal impact of the proposed actuarial assumptions on the public retirement system.
Sec. 5.06.  RULE AMENDMENTS ADOPTED BY BOARD OF TRUSTEES.  (a)  Except as provided by Sections 4.03, 5.07, 5.09, and 5.10 of this article and subject to Section 4.02 of this article, the board of trustees may adopt amendments to the administrative rules if:
(1)  a qualified actuary performs an actuarial analysis of the fiscal impact of the proposed amendment and determines that the amendment will not impact the actuarial soundness of the retirement fund;
(2)  the proposed amendment is placed on the agenda of the board of trustees for at least two consecutive meetings of the board that are not less than 30 days apart for the purpose of giving participating members an opportunity to comment on the proposed amendment; and
(3)  the proposed amendment is approved by a majority vote of the full membership of the board of trustees.
(b)  An amendment to the administrative rules adopted in accordance with this section becomes effective immediately unless otherwise provided by the amendment.
Sec. 5.07.  AMENDMENTS CONCERNING CONTRIBUTIONS BY MUNICIPALITY.  (a)  An amendment to the administrative rules governing municipal contributions, including an amendment to the rate or manner of making contributions, may be made only if:
(1)  a qualified actuary performs an actuarial analysis of the fiscal impact of the proposed amendment;
(2)  the board of trustees or the governing body, by majority vote, calls a special election of all participating members to approve the amendment;
(3)  the amendment is approved by a majority of the participating members eligible to vote in the special election; and
(4)  the amendment is approved by a majority vote of:
(A)  the board of trustees, if the governing body called the special election under Subdivision (2) of this subsection; or
(B)  the governing body, if the board of trustees called the special election under Subdivision (2) of this subsection.
(b)  The board of trustees or the governing body, as applicable, shall approve or reject the proposed amendment under Subsection (a)(4) of this section by the 90th day after the date the votes of the special election are canvassed.
(c)  The pension office shall conduct a special election under Subsection (a) of this section by secret ballot.  The board of trustees shall canvass the vote.
(d)  A person who is a participating member on the date of the special election is eligible to vote in the special election.
(e)  Unless otherwise provided by the proposed amendment, an amendment to the administrative rules becomes effective on approval by the board of trustees or the governing body, as appropriate, under Subsection (a)(4) of this section.
(f)  Notwithstanding Subsections (a) through (e) of this section, only the governing body may adopt an amendment to the administrative rules that increases municipal contributions.
Sec. 5.08.  AMENDMENTS BY GOVERNING BODY IN EVENT OF FISCAL EMERGENCY.  (a)  Notwithstanding Section 5.07 of this article, in the event a municipality to which this article applies has a fiscal emergency that requires an amendment to the administrative rules governing municipal contributions, the governing body may amend the administrative rules to address the emergency if the governing body:
(1)  determines that the emergency exists and approves the proposed amendment by the unanimous vote of all members of the governing body; and
(2)  provides written notice to the administrative head of the public retirement system at least five business days before the date the proposed amendment takes effect.
(b)  On the 90th day after the date an amendment under this section takes effect and for each subsequent 90-day period while the amendment is in effect, the governing body shall determine whether the emergency continues to exist. If the governing body does not determine by a unanimous vote that the emergency continues to exist or if the governing body fails to vote on whether the emergency exists as required by this subsection, the amendment automatically expires on the date the vote is taken or on the date the vote should have been taken, as applicable.
Sec. 5.09.  AMENDMENTS INCREASING CONTRIBUTIONS BY MEMBERS.  (a)  An amendment to the administrative rules that increases member contributions must be adopted in accordance with the procedures provided by Sections 5.07(a) through (e) of this article for adopting an amendment governing municipal contributions.
(b)  Notwithstanding any other law, an amendment made in accordance with Subsection (a) of this section may require a participating member to contribute an amount that exceeds 10 percent of the compensation paid to the participating member for each payroll period.
Sec. 5.10.  EMERGENCY, ROUTINE, OR STATUTORILY REQUIRED AMENDMENTS BY BOARD.  (a)  Unless an amendment to the administrative rules requires adoption in accordance with Section 5.07 or 5.09 of this article, the board of trustees may adopt emergency or routine amendments to the administrative rules or amendments that are required by federal or state law if the board of trustees by unanimous vote of the members present and voting:
(1)  agrees that the proposed amendment is an emergency, routine, or statutorily required amendment; and
(2)  approves the proposed amendment.
(b)  An amendment adopted in accordance with this section is an automatic agenda item for the next regular meeting of the board of trustees and is subject to review or repeal by the board at that meeting.
Sec. 5.11.  SEMIANNUAL MEETING OF BOARD AND GOVERNING BODY.  At least once every six months, the board of trustees and the governing body shall meet to review the performance of the retirement fund and determine how to address the unfunded liabilities, if any, of the public retirement system.