Texas 2025 - 89th Regular

Texas House Bill HB4736

Filed
3/13/25  
Out of Senate Committee
 
Voted on by Senate
 
Governor Action
 
Bill Becomes Law
 

Caption

Relating to the Texas Emergency Services Retirement System.

Impact

The amendments proposed by HB 4736 may significantly impact state laws regarding pension obligations and regulations surrounding emergency service providers. Specifically, the bill revises how contributions to the retirement system are calculated and the processes for making additional payments or increasing annuities. It mandates state contributions to properly address unfunded liabilities and adjusts the framework for pension valuation, which could help clarify the expectations and responsibilities of both the state and participating local departments in managing the pension system effectively.

Summary

House Bill 4736 pertains to the Texas Emergency Services Retirement System. The primary goal of the bill is to amend existing laws to enhance the financial stability and accountability of the pension system. This includes provisions for determining what constitutes an 'actuarially sound' pension system, including the establishment of clear definitions and parameters for the management of unfunded actuarial liabilities. By addressing these aspects, the bill aims to ensure that the pension system is sustainable for emergency service providers in Texas going forward.

Sentiment

The sentiment surrounding the bill appears to be generally supportive among stakeholders focused on the long-term health of the retirement system for emergency service providers. Proponents express optimism that the updates and enhancements will create a more reliable funding structure, promoting confidence among current and future retirees. However, some concerns have been raised regarding the implications of increased contributions on local jurisdictions and their budgets. This reflects an underlying tension between the need for fiscal responsibility and the potential strain on local governance.

Contention

Notable points of contention involve how the bill's funding requirements and definitions could translate into real-world impacts for emergency service departments. There is some apprehension regarding the potential financial burden placed on local boards tasked with funding supplemental payments or increasing annuities under stricter guidelines. Additionally, the requirements imposed for ensuring that the pension system remains actuarially sound could lead to debates about the division of financial responsibility between state and local levels.

Texas Constitutional Statutes Affected

Government Code

  • Chapter 614. Peace Officers And Fire Fighters
    • Section: 104
    • Section: 104
    • Section: 104
  • Chapter 861. General Provisions
    • Section: New Section
    • Section: New Section
    • Section: New Section
  • Chapter 864. Benefits
    • Section: 002
    • Section: 0135
    • Section: 002
    • Section: 0135
    • Section: 002
    • Section: 0135
  • Chapter 865. Administration
    • Section: 011
    • Section: 014
    • Section: 015
    • Section: 011
    • Section: 014
    • Section: 015
    • Section: 011
    • Section: 014
    • Section: 015

Companion Bills

TX SB2065

Identical Relating to the Texas Emergency Services Retirement System.

Previously Filed As

TX HB4000

Relating to the public retirement systems for employees of certain municipalities.

TX SB1444

Relating to the public retirement systems for employees of certain municipalities.

TX SB10

Relating to certain benefits paid by the Teacher Retirement System of Texas.

TX HB600

Relating to contributions to, benefits from, and the administration of systems and programs administered by the Teacher Retirement System of Texas.

TX SB1245

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

TX HB1651

Relating to the eligibility for custodial officer service in the Employees Retirement System of Texas of juvenile justice officers employed by the Texas Juvenile Justice Department.

TX HB3367

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

TX SB1062

Relating to requiring the inclusion of certain proposals in reports on the actuarial experience of the Employees Retirement System of Texas and the Teacher Retirement System of Texas.

TX HB3056

Relating to the cash balance benefit under the Employees Retirement System of Texas.

TX SB729

Relating to the cash balance benefit under the Employees Retirement System of Texas.

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