Texas House Bill HB4199

Texas 2009 - 81st Regular

Caption

Relating to public financing of the public education employee retirement system and an annual cost-of-living adjustment for certain retirement benefits.

Impact

The enactment of HB4199 is set to influence the financial obligations of the state related to the public education retirement system. By mandating a cost-of-living adjustment, the bill requires that the state contribute sufficient funds to amortize the actuarial liability of the retirement system over a 30-year funding period. This contribution is intended to cover not only the base retirement benefits but also the new COLA, thereby facilitating long-term financial health for retirees.

Summary

House Bill 4199 addresses public financing within the public education employee retirement system and establishes an annual cost-of-living adjustment (COLA) for certain retirement benefits. The bill proposes amending Subchapter A, Chapter 824 of the Government Code to introduce a systematic adjustment to retirement benefits based on inflation, aligning the adjustments with those provided by the United States Social Security Administration. This is aimed at ensuring that retired public education employees maintain their purchasing power over time.

Contention

As with many bills that impact budgetary allocations and public employee benefits, HB4199 may face scrutiny over potential fiscal ramifications. Opponents may raise concerns regarding the increased budgetary burden on the state, particularly in terms of funding sustainability and the effect of such obligations on other public financial commitments. Proponents, however, argue for the necessity of protecting the economic security of retired educators, underlining the moral and ethical responsibility to provide adequate support for those who have served in the public education sector.