Texas House Bill HJR148

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

If HJR148 is passed, it will lead to the modification of existing laws regarding state appropriations to retirement systems. By enabling the legislature to make larger appropriations when needed, particularly to eliminate unfunded liabilities, the bill could strengthen the financial standing of both the Employees Retirement System and the Teacher Retirement System. This could potentially result in more stable pension benefits for current and future retirees from these systems, providing them with greater financial assurance.

Summary

HJR148 is a joint resolution proposing an amendment to the Texas Constitution. It seeks to authorize the legislature to make specific appropriations to the Employees Retirement System of Texas and the Teacher Retirement System of Texas. The resolution establishes a minimum contribution rate for individuals participating in these retirement systems and allows the legislature to authorize contributions exceeding 10% of aggregate compensation to address unfunded liabilities. This approach aims to ensure better funding for the retirement systems and improve financial security for educators and state employees.

Contention

Discussions around HJR148 may involve points of contention regarding the sustainability of funding these retirement systems, especially given the state's fiscal responsibilities. While supporters might argue that addressing unfunded liabilities is essential for securing employee benefits, opponents could raise concerns about the long-term fiscal impact on the state budget. Additionally, there may be debates on how changes in appropriations could affect other budgetary priorities, reflecting the struggle to balance employee benefits with other financial commitments within state governance.