Texas Senate Bill SB350

Texas 2011 - 82nd Regular

• Out of Senate Committee: 3/15/11
• Voted on by Senate: 3/17/11
• Out of House Committee: 4/12/11
• Voted on by House: 5/23/11
• Governor Action: 6/17/11
• Refer: 3/29/11
• Enrolled: 5/23/11
• Passed: 6/17/11

Caption

Relating to the restructuring of fund obligations and accounts of the Texas Municipal Retirement System and related actuarial and accounting procedures.

Impact

The implementation of SB350 would notably impact how municipalities interact with the TMRS, particularly regarding their obligations to fund retirement benefits for employees. By reforming the benefit accumulation fund and redefining how contributions are calculated and applied, the bill seeks to promote fiscal responsibility and ensure that municipal benefit obligations can be met without exceeding defined contribution rates. This is essential for maintaining the long-term viability of retirement benefits promised to municipal employees throughout the state.

Summary

SB350 is a legislative proposal pertaining to the restructuring of fund obligations and accounts within the Texas Municipal Retirement System (TMRS). This bill aims to enhance and clarify the actuarial and accounting procedures that govern the financial operations of the TMRS, especially in relation to the management and allocation of funds for municipal employees' pensions. It proposes amendments to several sections of the Government Code to streamline operations and ensure that the TMRS can sustainably manage its contributions and obligations.

Contention

While SB350 aims to provide a more structured framework for TMRS, it may face scrutiny from different stakeholders. Some may argue that the proposed changes might serve as a means to restrict local municipalities' flexibility in managing their retirement obligations, potentially leading to concerns over local control. Critics might be apprehensive that stringent actuarial requirements could hinder smaller municipalities from adequately funding their retirement systems, affecting the benefits available to employees who have served in local government roles.