Texas Senate Bill SB976

Texas 2021 - 87th Regular

Caption

Relating to inclusion of appropriations from the economic stabilization fund to the Employees Retirement System of Texas in certain general appropriations bills prepared by the Legislative Budget Board.

Impact

The implementation of SB976 is expected to provide a significant boost to the financial health of the Employees Retirement System by addressing its unfunded liabilities. By ensuring regular appropriations from a reserved stabilization fund, the bill aims to create a more robust fiscal landscape for retired employees in Texas. This could enhance the attractiveness of state employment and reassure current and future employees regarding the security of their retirement benefits.

Summary

Senate Bill 976 addresses the incorporation of appropriations from the Economic Stabilization Fund specifically aimed at the Employees Retirement System of Texas. The bill mandates that the director of the Legislative Budget Board includes a provision for a $50 million appropriation from the Economic Stabilization Fund in each general appropriations bill. This funding is intended for use in reducing or eliminating the unfunded actuarial liabilities associated with the pension system, reflecting a strategic effort to strengthen the state's financial commitments to its employees' retirement funding.

Contention

While proponents of the bill see it as a necessary measure to protect state employees' retirement options, there could be potential points of contention regarding the sustainability of funding from the Economic Stabilization Fund. Critics might argue about the appropriateness of using stabilization funds to address pension liabilities and whether such actions could divert funds from other critical state services. The expiration date of the appropriation requirement, set for September 1, 2039, reflects a limited timeframe during which the fiscal implications will be evaluated, potentially leading to debates on the long-term viability of such funding strategies.