Texas Statutes
Article VIII.
Section 8.05. Adjustment to City Contribution Rate if Lower Than Corridor Midpoint

Sec. 8.05. ADJUSTMENT TO CITY CONTRIBUTION RATE IF LOWER THAN CORRIDOR MIDPOINT. (a) This section governs the determination of the city contribution rate applicable in a calendar year under Section 8.04(b)(4) of this Act if the estimated city contribution rate determined under Section 8.04(b)(3) of this Act is lower than the corridor midpoint.
(b) If the estimated city contribution rate is lower than the corridor midpoint and the funded ratio is:
(1) less than 90 percent, the city contribution rate for the applicable year equals the corridor midpoint; or
(2) equal to or greater than 90 percent and the city contribution rate is:
(A) equal to or greater than the minimum city contribution rate, the estimated city contribution rate is the city contribution rate for the calendar year; or
(B) less than the minimum city contribution rate for the corresponding calendar year, the city contribution rate for the calendar year equals the minimum city contribution rate.
(c) If the funded ratio is equal to or greater than 100 percent:
(1) all existing liability layers, including the legacy liability, are considered fully amortized and paid; and
(2) the city legacy contribution amount may no longer be included in the city contribution under Section 8.02 of this Act.

Structure Texas Statutes