Relating to the retirement system in certain municipalities for firefighters and police officers.
Impact
The bill's implications extend to municipal financial responsibilities, mandating municipalities to contribute an amount that equals double the sum total of member contributions and a percentage of each firefighter and police officer's salary. This is expected to enhance pension security for public safety employees while ensuring that municipalities meet their funding obligations. This shift could alleviate funding shortfalls that exist in some municipal pension funds, thereby strengthening the overall financial health of the retirement system applicable to firefighters and police officers.
Summary
House Bill 3349 proposes significant amendments to the retirement system for firefighters and police officers in certain municipalities within Texas. The bill seeks to redefine key terms within the retirement framework, including adjustments to the definitions of dependent children and total salary calculations for retirement benefits. It also introduces provisions for calculating retirement annuities based on varying service years, aiming to provide a more equitable approach to benefit distribution across different lengths of service. Additionally, the bill includes specifics about funding contributions from municipalities to the retirement system that will bolster financial support for retiring personnel.
Contention
Notably, the bill addresses contentions related to service credits and pensions for disabled members. Changes include provisions ensuring that members on suspension who sustain a disability can gain annuity benefits, further solidifying protections for these individuals. Despite its focus on enhancing benefits, potential debates may arise over the increased financial burdens placed on smaller municipalities, which may struggle to meet the proposed mandatory contributions. Stakeholders will need to weigh the benefits to public servants against the fiscal realities for municipal governance.
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 participation in a deferred retirement option plan by members of the retirement systems for police and fire fighters in certain municipalities.
Relating to participation in a deferred retirement option plan by members of the retirement systems for police and fire fighters in certain municipalities.
Provides relative to the payment of unfunded accrued liabilities of the Teachers' Retirement System of La. from minimum foundation program funds allocated to charter schools (OR INCREASE SG RV See Note)
Modifies school district property tax cap law; appropriates $67.9 million to provide additional State school aid to school districts experiencing reductions in 2025-2026 school year.
Modifies school district property tax cap law; appropriates $67.9 million to provide additional State school aid to school districts experiencing reductions in 2025-2026 school year.
A bill for an act relating to and making appropriations to the judicial branch, including by modifying the judicial retirement fund, and including effective date provisions. (Formerly SSB 3203.) Effective date: 06/21/2024, 07/01/2024.