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A BILL TO BE ENTITLED
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AN ACT
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relating to a study by the Employees Retirement System of Texas of |
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certain state pension and retirement reforms. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) The Employees Retirement System of Texas |
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shall conduct a study of the feasibility, financial benefits, and |
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impact of adopting the following potential reforms to the state's |
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employee retirement system: |
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(1) transition to a hybrid pension plan that combines |
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elements of a defined contribution plan and a defined benefit plan; |
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(2) transition to a cash balance pension plan that |
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provides individual accounts for plan members; |
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(3) transition to any other pension or retirement plan |
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commonly utilized by other states; and |
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(4) changes to the state's current employee retirement |
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system that would reduce the state's unfunded liabilities, |
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including changes to: |
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(A) the amount of the state's contributions to |
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the system; |
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(B) the employee retirement eligibility age; |
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(C) the calculation of employee retirement |
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benefits; and |
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(D) reductions in employee benefits. |
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(b) In conducting the study required by this Act, the |
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Employees Retirement System of Texas shall review pension and |
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retirement systems in other states for best practices, financial |
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outcomes, and unfunded liability balances. |
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(c) The Employees Retirement System of Texas may cooperate |
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with the Pension Review Board, the Legislative Budget Board, and |
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other entities in conducting the study and preparing the report |
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required by this Act. |
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(c) Not later than September 1, 2022, the Employees |
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Retirement System of Texas shall prepare a report of its findings |
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under the study described by this Act. The report must include |
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estimates of the state's potential cost savings associated with |
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adopting each of the reforms described by Subsection (a), including |
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reductions in current and future unfunded liabilities of the |
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retirement system. The Employees Retirement System of Texas shall |
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deliver a copy of the report to the Governor, the Lieutenant |
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Governor, the Speaker of the House of Representatives, and each |
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member of the House and Senate. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |