Texas House Bill HB2198

Texas 2013 - 83rd Regular

Caption

Relating to the continuation and functions of the State Pension Review Board.

Impact

The bill aims to strengthen the accountability of the State Pension Review Board by instituting clearer guidelines for member eligibility and operational procedures. By mandating annual audits performed by certified public accountants and establishing requirements for actuarial experience studies, the bill enhances the transparency and reliability of the pension systems managed under the board's jurisdiction. This is expected to lead to improved financial health and stability within the state’s public retirement systems, which is critical for the beneficiaries who rely on these pensions.

Summary

House Bill 2198 focuses on the continuation and functions of the State Pension Review Board in Texas. The bill includes amendments that enhance the governance and operational framework of the board, specifically addressing eligibility requirements for board members and the responsibilities related to the oversight of public pension systems. Provisions are made for improved auditing standards and the necessity for public retirement systems to conduct regular actuarial experience studies. The aim is to ensure the board operates effectively while adapting to current practices in pensions management.

Contention

Despite its intended benefits, the bill has raised points of contention mainly around the implications of the Sunset Provision which suggests that the State Pension Review Board could be abolished if not continued, creating uncertainty regarding its future. Critics argue that the changes may not adequately consider the unique circumstances of various retirement systems, particularly those that are exempt from certain statutory requirements. Additionally, there are concerns about the balance of power between state regulation and local autonomy, potentially limiting specific local retirement system adaptations.