Texas Senate Bill SB1612

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/6/11
• Introduced: 3/11/11
• Voted on by Senate: 4/13/11
• Refer: 3/23/11
• Out of House Committee: 5/11/11
• Report Pass: 4/6/11
• Engrossed: 4/13/11
• Refer: 4/29/11
• Report Pass: 5/10/11

Caption

Relating to the monitoring, oversight, and funding of certain public retirement systems.

Impact

One notable impact of SB1612 is the introduction of mandatory annual reporting for public retirement systems. Each system will have to disclose information such as investment allocations, rates of return on cash and securities, compliance with reporting requirements, and solvency projections. Such detailed reporting is expected to hold retirement systems accountable for their financial management, thereby fostering greater trust and confidence among stakeholders, including beneficiaries and state policymakers.

Summary

SB1612 addresses the monitoring, oversight, and funding of certain public retirement systems in Texas. The bill amends existing sections of the Government Code to enhance the board's authority in requiring public retirement systems to provide detailed reports on their investment practices and systematically analyze their financial performance. This new legislative framework aims to ensure that significant public retirement systems maintain transparency regarding their operations and financial health, particularly those with assets exceeding $100 million.

Contention

Despite its goals, SB1612 may encounter points of contention. Some stakeholders might view the increased regulatory requirements as potentially burdensome, especially for smaller systems that might struggle with the compliance costs. Additionally, defining the thresholds and exact reporting requirements could spark debate among lawmakers and public retirement officials. Critics may argue that while the intent is sound, the implementation could inadvertently complicate the operations of public retirement systems and detract from their primary objectives.