Texas Senate Bill SJR4

Texas 2019 - 86th Regular

Caption

Proposing a constitutional amendment to increase the minimum amount that the state may contribute to the Employees Retirement System of Texas and the Teacher Retirement System of Texas.

Impact

The implications of SJR4 are significant, especially in terms of the financial sustainability of the retirement systems. By raising the state's minimum contribution, the amendment is intended to ensure that the pension funds are better equipped to meet the future retirement benefits owed to employees. This could directly affect the fiscal health of the systems, potentially allowing for more robust benefits for retirees and enhancing the state's commitment to its public employees.

Summary

SJR4 proposes a constitutional amendment aimed at increasing the minimum state contribution to the Employees Retirement System of Texas and the Teacher Retirement System of Texas. The current state minimum contribution is set at six percent of total employee compensation, and the amendment seeks to raise this minimum to seven percent, with a cap of ten percent. This legislative measure is geared towards improving the financial stability and actuarial soundness of these retirement systems, which serve many public sector employees in Texas.

Contention

While the bill aims to strengthen retirement benefits, it may face contention regarding its fiscal impact on the state budget. Critics could raise concerns about the increased financial responsibility on the state and how it may influence funding allocations for other public services. Supporters argue that investing in public employee retirement systems is essential for attracting and retaining a capable workforce. The debate surrounding SJR4 may center around balancing budgetary constraints with the need for ensuring adequate retirement security for workers.