Texas Senate Bill SB1511

Texas 2009 - 81st Regular

Caption

Relating to participation in, contributions to, and the benefits and administration of retirement systems for police officers in certain municipalities.

Impact

The bill's provisions will reform the existing pension and retirement systems for police officers, emphasizing compliance with the Internal Revenue Code's limitations on benefit payments. It specifies that if benefit payments exceed these limits, they must be reduced accordingly, which is expected to safeguard municipalities against excessive payouts. Moreover, municipalities will have a clearly defined structure for making contributions over time, with a focus on maintaining actuarial soundness within the pension plans.

Summary

SB1511 addresses the participation in, contributions to, and administration of retirement systems specifically for police officers in certain municipalities. The bill outlines the structures and limits regarding contributions made by both police officers and the municipalities they serve. It aims to ensure that retirement benefits for police officers are administered in accordance with both state laws and federal regulations, particularly those outlined in the Internal Revenue Code.

Contention

One notable point of contention surrounding SB1511 revolves around the balance between employee benefits and fiscal responsibility. Some legislators may argue that the limits imposed on benefit payments could be detrimental to attracting and retaining qualified police officers, potentially undermining public safety if compensation packages are perceived as inadequate. Conversely, proponents emphasize the necessity of protecting municipal finances from unsustainable pension liabilities, suggesting that the bill strikes a vital balance between these competing interests.