Texas House Bill HB3373

Texas 2019 - 86th Regular

Caption

Relating to the police pension fund in certain municipalities.

Impact

The proposed modifications in HB3373 have the potential to significantly enhance the administration of police pension funds. By establishing clearer guidelines for the board's authority and management practices, the legislation seeks to ensure that pensions are effectively managed. One notable impact is the stipulation that trustees appointed to the board must demonstrate expertise in relevant fields, which may help in making informed decisions regarding investments and benefit distributions. Additionally, the bill's provisions on contributions could stabilize funding for these pensions, helping municipalities fulfill their obligations to retirees.

Summary

House Bill 3373 aims to amend the management and operation of the police pension funds in certain municipalities across Texas. The bill establishes a board of trustees to oversee the pension fund and specifies the requirements for appointments to ensure qualified individuals manage the fund. The bill outlines the authority of the board to make essential decisions regarding the administration of the fund, including setting rules for member contributions and benefit modifications. Changes in the structure intend to enhance accountability and improve financial management of police pensions.

Contention

The bill's provision that prohibits modifications in contributions or benefits due to collective bargaining may lead to contention among members of pension funds and local government representatives. This aspect of the bill is seen as an effort to protect the fund's integrity from potentially detrimental negotiations that might alter critical financial frameworks. Opponents argue that this restriction could undermine the bargaining power of police unions and affect the welfare of the officers they represent. Moreover, the requirement for actuarial reviews before any benefit modifications raises questions regarding the practicalities of adapting pension plans in response to changing financial realities.