Texas Senate Bill SB1375

Texas 2019 - 86th Regular

Caption

Relating to terminating participation in the Texas Emergency Services Retirement System.

Impact

The change introduced by SB1375 is significant for departments relying on a mixture of volunteer and full-time firefighters, as it aims to provide more flexibility for municipalities. Under the new provisions, if a department consists of both volunteer firefighters and at least six full-time firefighters, and if they choose to provide retirement benefits for volunteer firefighters through an alternative system, they can terminate their pension system participation. This is expected to alter the retirement benefit dynamics for emergency service departments throughout Texas.

Summary

SB1375, relating to terminating participation in the Texas Emergency Services Retirement System, proposes amendments to the Government Code to allow departments that provide emergency services to terminate their participation in the pension system under certain conditions. Previously, an election made by a governing body to participate in the pension system was irrevocable for five years, creating a long-term commitment. This bill permits those governing bodies to opt out if they meet specific criteria related to staffing and alternative retirement benefits for volunteer firefighters.

Contention

One notable point of contention surrounding SB1375 is whether terminating pension system participation will effectively support employee retention in emergency services or lead to detrimental consequences for firefighters' long-term benefits. Critics may argue that opting out of traditional pension systems could lead to reduced security for firefighters who rely on these benefits, particularly in challenging economic climates. Supporters may counter that flexibility is necessary to accommodate modern emergency staffing needs and financial realities faced by local governments.