Texas Senate Bill SB1245

Texas 2023 - 88th Regular

• Filed: 2/27/23
• Out of Senate Committee: 4/3/23
• Voted on by Senate: 4/12/23
• Out of House Committee: 4/25/23
• Voted on by House: 5/18/23
• Governor Action: 6/18/23

Caption

Relating to contributions to, benefits from, and the administration of the Judicial Retirement System of Texas Plan Two.

Impact

The implications of SB 1245 extend to the state's judicial system, significantly impacting the pension provisions for more than 1,000 active and retired judges. By compelling a restructuring of benefits based on actuarial evaluations, the bill is positioned as a critical measure for maintaining the financial integrity of judicial retirements. It allows for enhanced financial planning, potentially preventing future funding crises within the Judicial Retirement System. This shift could lead to increased morale among judges, knowing their retirement system is more reliable and capable of meeting obligations.

Summary

Senate Bill 1245 addresses contributions, benefits, and the administration of the Judicial Retirement System of Texas Plan Two. This legislation seeks to ensure that the retirement system remains financially viable by making necessary adjustments to benefits and contributions. A notable aspect of the bill is the introduction of a cash balance plan that aligns contemporary payment structures with the retirement needs of newly elected judges, facilitating a more sustainable pension framework for the state's judiciary. The bill also proposes a one-time fund allocation of $100 million aimed at supporting judicial pensions, thereby improving actuarial soundness in the long term.

Sentiment

The general sentiment surrounding SB 1245 appears to be largely positive, especially from sectors involved with judicial governance and benefits administration. Members of the legislature who supported the bill noted the importance of creating a sustainable retirement pathway for judges, enabling them to seek service without the fear of underfunding. However, some concerns have been expressed regarding the potential complexities introduced by transitioning to a cash balance plan, sparking discussions about how changes might affect current judicial officers and their income stability in retirement.

Contention

Notable contention arose during discussions about the funding mechanisms for the pension changes and the prioritization of judicial pension reforms against other pressing state needs. Critics, though few, of the bill raised concerns that allocating funds to judicial pensions might detract from essential services elsewhere in the state. The balance between ensuring robust judicial compensation while also managing fiscal responsibility was a focal point in legislative arguments, leading to some pushback even from within the ranks of the legislature.

Texas Constitutional Statutes Affected

Government Code

• Chapter 803. Proportionate Retirement Program
  • Section: 202
  • Section: 202
  • Section: 202
  • Section: 202
  • Section: 202

• Chapter 804. Domestic Relations Orders And Spousal Consent
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section
  • Section: New Section

• Chapter 836. General Provisions
  • Section: 001
  • Section: 001
  • Section: 001
  • Section: 001
  • Section: 001

• Chapter 837. Membership
  • Section: 102
  • Section: New Section
  • Section: 102
  • Section: 103
  • Section: 102

• Chapter 840. Administration
  • Section: 407
  • Section: New Section
  • Section: 009
  • Section: New Section
  • Section: New Section
  • Section: 105
  • Section: 009
  • Section: New Section
  • Section: 009
  • Section: New Section

• Chapter 838. Creditable Service
  • Section: 001
  • Section: New Section
  • Section: 001

• Chapter 839. Benefits
  • Section: 005