Texas Senate Bill SJR53

Texas 2021 - 87th Regular

Caption

Proposing a constitutional amendment authorizing the legislature to make certain appropriations to the Employees Retirement System of Texas and the Teacher Retirement System of Texas.

Impact

The proposed changes would modify the Texas Constitution to empower the legislature to make appropriations beyond the current cap of 10% on contributions from the state to these retirement systems. This flexibility is crucial, especially during emergencies as determined by the governor, allowing for appropriations that are actuarially determined as necessary to fund benefits authorized under Texas law. If passed, this amendment could significantly impact the financial health of the retirement systems and their ability to fund pensions for state employees and teachers.

Summary

SJR53 proposes a constitutional amendment that allows the Texas legislature to appropriate funds to the Employees Retirement System and the Teacher Retirement System of Texas. The primary aim of the amendment is to address the unfunded liabilities of these retirement systems, ensuring that they remain solvent and can provide benefits to their members. This would enable the state to take necessary financial actions to secure the future of these retirement plans amidst changing economic conditions and improving funding stability.

Contention

Discussion surrounding SJR53 may center on differing opinions regarding fiscal responsibility and the sustainability of retirement systems. Proponents argue that the amendment is crucial for maintaining trust in state retirement benefits and ensuring that retirees receive their due pensions without relying on future state revenues that might not materialize. Opponents, however, may express concerns about over-reliance on state appropriations, risking taxpayer funds and potentially leading to budgetary constraints in other critical areas of state funding.