Texas Senate Bill SJR55

Texas 2019 - 86th Regular

Caption

Proposing a constitutional amendment providing for periodic transfers of money from the economic stabilization fund to fully fund the Employees Retirement System of Texas and the Teacher Retirement System of Texas.

Impact

The periodic transfers mandated by SJR55 are designed to eliminate or reduce the unfunded actuarial liabilities of both retirement systems. This amendment represents a significant shift in how state funds can be allocated, ensuring that fluctuations in economic stabilization funds directly aid in maintaining the viability of retirement systems. The comptroller is tasked with determining the amount to be transferred based on biennial assessments of the state's fiscal well-being.

Summary

SJR55 proposes a constitutional amendment to facilitate periodic transfers of funds from the economic stabilization fund to ensure that the Employees Retirement System of Texas and the Teacher Retirement System of Texas are fully funded. The bill amends Section 49-g of Article III of the Texas Constitution to establish a 'state retirement systems stabilization set-aside', calculated as a percentage of the unencumbered balance of the economic stabilization fund. By doing this, it aims to enhance financial security for state employees and teachers reliant on these retirement systems.

Contention

Notable points of contention surrounding SJR55 are likely to arise from debates about the adequacy of the proposed funding mechanisms and the impact on the overall state budget. Critics may argue that tying retirement funding to the economic stabilization fund could lead to unpredictability in state financial commitments, especially in economic downturns. On the other hand, proponents will advocate that ensuring robust funding for retirement systems is essential for honoring the commitments made to public employees and educators, underlining its long-term benefits for the state's workforce.