HB2945 would allow an institution of higher education to request the Texas Higher Education Coordinating Board to expand the eligibility requirements for participation in ORP for certain employment positions based upon the competitive labor market requirements of the institution.  Upon approval of an employment position for participation, the Higher Education Coordinating Board would periodically require the institution to reapply for continued participation in the ORP for each position approved for participation.

Employees in the approved employment positions who chose the Optional Retirement Program would no longer be eligible for the Teacher Retirement System (TRS). In the long run, allowing additional employees choice as to whether to join TRS or ORP would be expected to have some impact on TRS due to anti-selection; employees who did not think it likely they would remain with university employment for a long time would opt for ORP and those who expected to remain with university employment for a long time would choose TRS. The actuarial impact would not be significant.