Texas House Bill HJR73

Texas 2021 - 87th 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

If approved, this amendment would solidify a legislative commitment to increase state funding for retirement systems. The proposed change is set to be voted on by the public, allowing taxpayers to directly influence the financial landscape for public sector employees. By ensuring a minimum contribution of seven percent, the amendment underscores the state's dedication to securing better retirement benefits, which may positively impact recruitment and retention of employees in both sectors.

Summary

HJR73 proposes a constitutional amendment to increase the minimum contribution that the State of Texas makes to both the Employees Retirement System of Texas and the Teacher Retirement System of Texas. This amendment seeks to raise the state's minimum contribution from six percent to seven percent of the total compensation paid to individuals participating in these retirement systems, thereby enhancing their financial sustainability. It addresses the need for improvements in the actuarial soundness of these pension systems, which is crucial as the state aims to maintain robust and reliable retirement benefits for its employees and educators.

Contention

The hike in the state's minimum contribution could lead to discussions on budgetary allocations and fiscal responsibility, as public funds must be judiciously managed. Stakeholders may argue about the long-term effects on the state budget, especially concerning how increased contributions may affect other areas of public spending. Potential opposition could arise from fiscal conservatives who prioritize balanced budgets and might view increased retirement contributions as an encumbrance to state finances.