By: Gates H.B. No. 4534
A BILL TO BE ENTITLED
AN ACT
relating to a study by the Employees Retirement System of Texas of
certain state pension and retirement reforms.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The Employees Retirement System of Texas
shall conduct a study of the feasibility, financial benefits, and
impact of adopting the following potential reforms to the state's
employee retirement system:
(1) transition to a hybrid pension plan that combines
elements of a defined contribution plan and a defined benefit plan;
(2) transition to a cash balance pension plan that
provides individual accounts for plan members;
(3) transition to any other pension or retirement plan
commonly utilized by other states; and
(4) changes to the state's current employee retirement
system that would reduce the state's unfunded liabilities,
including changes to:
(A) the amount of the state's contributions to
the system;
(B) the employee retirement eligibility age;
(C) the calculation of employee retirement
benefits; and
(D) reductions in employee benefits.
(b) In conducting the study required by this Act, the
Employees Retirement System of Texas shall review pension and
retirement systems in other states for best practices, financial
outcomes, and unfunded liability balances.
(c) The Employees Retirement System of Texas may cooperate
with the Pension Review Board, the Legislative Budget Board, and
other entities in conducting the study and preparing the report
required by this Act.
(c) Not later than September 1, 2022, the Employees
Retirement System of Texas shall prepare a report of its findings
under the study described by this Act. The report must include
estimates of the state's potential cost savings associated with
adopting each of the reforms described by Subsection (a), including
reductions in current and future unfunded liabilities of the
retirement system. The Employees Retirement System of Texas shall
deliver a copy of the report to the Governor, the Lieutenant
Governor, the Speaker of the House of Representatives, and each
member of the House and Senate.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all 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, 2021.