Relating to the crediting and charging of investment gains and losses on the assets held in trust by the Texas Municipal Retirement System and providing a guaranteed minimum credit to employee accounts.
Impact
The bill's implications for state law are significant as it introduces stricter guidelines regarding how investment returns are allocated to different municipal accounts. By formalizing the requirement for a guaranteed minimum credit to employee accounts, SB908 aims to bolster the financial security of municipal employees' retirement savings. This could potentially enhance confidence in the municipal retirement system, improving recruitment and retention in public service roles.
Summary
SB908 aims to amend the Government Code to enhance the handling of investment gains and losses within the Texas Municipal Retirement System. Specifically, the bill outlines new provisions for the crediting and charging of net investment income or losses attributed to the retirement system's assets. This legislation is designed to ensure that employee accounts receive minimum guaranteed credits, thus providing a more stable and predictable retirement fund for employees participating in the system.
Contention
While proponents of SB908 argue that it provides necessary safeguards for employee accounts and promotes financial prudence, notable points of contention may arise regarding the fiscal responsibilities placed on municipalities. Some local governments might voice concerns over the implications of guaranteed credits, particularly how these obligations might affect their budgeting and financial planning related to retirement contributions. As the economic environment and market conditions fluctuate, ensuring sufficient funding for guaranteed credits could pose challenges for municipalities.
Identical
Relating to the crediting and charging of investment gains and losses on the assets held in trust by the Texas Municipal Retirement System and providing a guaranteed minimum credit to employee accounts.
Relating to the fiduciary responsibility of the governing body of the public retirement systems in this state and the investment managers and proxy advisors acting on behalf of those systems.
Relating to the crediting and charging of investment gains and losses on the assets held in trust by the Texas Municipal Retirement System and providing a guaranteed minimum credit to employee accounts.
Requires payment of fair market value to owners of unused interment space seeking to transfer ownership back to cemetery from which space was purchased.