Texas House Bill HB321

Texas 2017 - 85th 1st C.S.

Caption

Relating to required state contributions to the Teacher Retirement System of Texas; making an appropriation.

Impact

If enacted, HB321 would substantially impact the financial health of the TRS by guaranteeing that the state will increasingly contribute a fixed percentage of active employees' salaries to the retirement system. This enhanced funding mechanism could potentially support better retirement benefits for educators in Texas. The appropriations outlined in the bill reflect a commitment to stabilizing and improving the pension system, which is crucial for attracting and retaining high-quality teachers in Texas schools.

Summary

House Bill 321 aims to amend state contributions to the Teacher Retirement System of Texas (TRS) by establishing a schedule for the percentage of salary that the state will contribute each fiscal year. The bill outlines specific incremental increases in contributions, starting from two percent for the 2018 and 2019 fiscal years and culminating in a six percent contribution by the 2034 fiscal year. This structured approach to contributions is designed to ensure the long-term sustainability of the teacher retirement system and provide more predictable funding levels over time.

Contention

While the bill received support across various sectors, there may be concerns regarding the financial implications for the state budget in the future. There might be apprehensions about whether the incremental increases are sufficient to meet the growing obligations of the TRS, especially in light of demographic shifts and longer life expectancies among retirees. Legislative discussions may focus on balancing the need for robust pension funding with other budgetary priorities, addressing issues both of growth in the state’s educational workforce and the sustainability of its financial commitments.