Bill > SB2065

This bill modifies the Texas Emergency Services Retirement System (TESRS) by updating several key definitions and contribution requirements. The bill redefines "actuarially sound" to mean a more specific calculation of pension system contributions, introducing concepts like "legacy liability" and "liability layers" that track how the system's unfunded actuarial accrued liability changes over time. It establishes a structured approach to amortizing the system's liability, with a goal of fully paying off the legacy liability by August 31, 2055. The bill requires the state to make annual contributions necessary to keep the pension system actuarially sound, replacing a previous limit of one-third of total contributions. It also adds provisions that require state board approval for supplemental payments or annuity increases by participating departments, and stipulates that state contributions cannot fund these additional benefits. The legislation mandates that before each legislative session, the pension system must provide the Legislative Budget Board with the necessary actuarially determined payment amount, which will be included in the general appropriations bill. The bill takes effect immediately if it receives a two-thirds vote in both legislative chambers, or on September 1, 2025, if it does not receive the immediate effect vote.

Budget and Finance, Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2065