85R11647 LED-D
By: Bettencourt S.B. No. 1750
A BILL TO BE ENTITLED
AN ACT
relating to a study of the cost-effectiveness and feasibility of
implementing a hybrid retirement plan for newly hired state
employees and teachers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) In this section, "hybrid retirement plan"
means a retirement plan that combines elements of a defined benefit
plan, a defined contribution plan, or an individual retirement
savings account.
(b) The State Pension Review Board shall contract with a
nationally recognized actuarial firm to conduct a comprehensive
study to:
(1) compare the cost-effectiveness and feasibility of
creating and implementing a hybrid retirement plan for newly hired
state employees and teachers that is to be:
(A) provided instead of the existing retirement
benefit plans provided to state employees and teachers; and
(B) administered by the Employees Retirement
System of Texas or the Teacher Retirement System of Texas, as
appropriate; and
(2) evaluate the experiences of other municipalities
and states that have implemented a hybrid retirement plan for their
employees, including whether those entities experienced a
reduction in employee benefits or an increase in costs to the
entity.
(c) Any actuarial analysis conducted for purposes of the
study required by this section must be conducted by an enrolled
actuary under the Employee Retirement Income Security Act of 1974
(29 U.S.C. Section 1001 et seq.).
(d) Not later than September 1, 2018, the State Pension
Review Board shall submit a written report to the legislature
containing the findings of the study conducted under this section
together with the board's recommendations to the legislature
regarding the cost-effectiveness and feasibility of implementing
hybrid retirement plans for newly hired state employees and
teachers.
(e) This Act expires December 31, 2018.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.