SB 522 would allow the board of the Texas Statewide Emergency Services Retirement System to make administrative changes and would codify the law in the Government Code in the same manner as the other statewide public retirement systems. The bill provisions would allow the state board of trustees to, by rule, establish the following:

• periods for full and partial vesting of benefits ;
• a minimum contribution level;
• the multiplier to be used in computing benefits;
• the method for providing an increase in benefits for service in excess of the vesting period;  
• an increase in local contributions for the purpose of funding the plan's unfunded actuarially accrued liability within 30 years;  
• an administrative fee to be charged to governing bodies for administering benefits to persons who were transferred from another pension system; and 
• changes to meet Internal Revenue Service requirements.

Other provisions of the bill would:

• provide a five-year period after the date of an election to participate for a department to revoke participation. No revocation could occur for a department joining after September 1, 2005; 
• broaden the definition of “qualified service” to include other kinds of training besides drills;
• prevent two administrative hearings on the same issue and to prevent appeal of a board decision to a district court; and 

• continue the requirement for the state obligation, by statute. of up to one-third of the aggregate departmental contributions if the plan becomes actuarially unsound.

Under current law the plan provides a benefit of 6.0 times the average monthly contribution made for a given ber and the state board of trustees has almost no flexibility to adjust benefits or eligibility for benefits. Moving to a benefit multiplier based on years of service and the contribution amount would be a significant change, as would allowing the board to determine vesting periods and minimum contributions by participating departments.

The bill, if enacted, could have a significant actuarial impact because it allows significant changes in both the funding and the obligations of the Texas Statewide Emergency Services Retirement System. Since the bill is permissive in the changes, no exact estimation of the actuarial impact of any changes can be made.