Texas House Bill HB1149

Texas 2011 - 82nd Regular

• Introduced: 2/7/11
• Refer: 2/28/11

Caption

Relating to a moratorium on increases paid to certain employees of and investment managers for the Teacher Retirement System of Texas.

Impact

The introduction of this bill reflects concerns about the financial sustainability of pension funds, as well as the need for fiscal responsibility in managing public resources. By prohibiting salary increases and bonuses, HB 1149 seeks to stabilize expenses associated with the TRS amidst economic uncertainties. Additionally, the bill mandates the preparation of a report evaluating cost-of-living adjustments, which will provide necessary oversight over how adjustments are implemented and their timing relative to pension benefits.

Summary

House Bill 1149 establishes a moratorium on salary increases and bonuses for certain key employees and investment managers within the Teacher Retirement System of Texas (TRS). This legislation targets the executive director, the chief investment officer, and any private professional investment managers to whom management responsibilities have been delegated. The intent of the bill is to control compensation costs within the retirement system, particularly in the context of the broader economic environment and its implications for state pension funds.

Sentiment

The sentiment surrounding HB 1149 largely leans towards fiscal conservatism, aiming to curb expenditure growth within state-managed funds. Supporters of the bill argue that it demonstrates a commitment to responsible fund management and accountability, while critics may perceive it as a lack of incentive for performance among those managing significant pension assets. Essentially, the debate around the bill encapsulates differing views on the balance between employee compensation within public systems and accountability to taxpayers.

Contention

Some contention may arise from the perception that a moratorium on bonuses and salary increases could demotivate skilled professionals within the investment management field, potentially impacting the management of pension assets negatively. Stakeholders might argue that competitive compensation is essential for attracting and retaining talented investment managers who can optimize returns for TRS. Thus, while the bill aims to achieve cost savings, the potential implications for performance and management effectiveness are areas requiring careful consideration.