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Senate Bill 321 |
Senate Author: Huffman et al. |
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Effective: 9-1-21 |
House Sponsor: Bonnen et al. |
Senate Bill 321 amends the Government Code and Insurance Code to provide for the establishment and implementation of a new Employees Retirement System of Texas (ERS) cash balance benefit retirement plan for members who are hired or take office on or after September 1, 2022. The bill establishes contribution requirements for the new plan, sets out eligibility requirements for a cash balance benefit, and provides for annual gainsharing among plan members. The bill continues for the new cash balance plan the requirement for law enforcement and custodial officers to contribute an additional two percent of their earnings into a supplemental retirement fund. The bill makes a cash balance group member eligible to participate in the proportionate retirement program and makes an individual who receives or is eligible to receive an annuity under the cash balance benefit plan and who has at least 10 years of eligible service credit eligible to participate in the state employees group benefits program.
Senate Bill 321 codifies in law the current 9.5 percent state contribution rate for the existing defined benefit plan for current ERS members and requires the state to make an actuarially determined payment each fiscal year in the amount necessary to amortize all ERS unfunded actuarial liabilities by not later than fiscal year 2054, which is in addition to the state's regular contributions. Implementation of a provision of the bill by ERS is mandatory only if a specific appropriation is made for that purpose.