By: Ashby H.B. No. 4945

A BILL TO BE ENTITLED

AN ACT

relating to a study conducted by the Teacher Retirement System of Texas on the feasibility of offering alternative service retirement benefits to Texas A&M Forest Service wildland firefighters that are members of the retirement system.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter B, Chapter 825, Government Code, is amended by adding Section 825.1086 to read as follows:

Section 825.1086. STUDY AND REPORT ON ALTERNATIVE SERVICE RETIREMENT BENEFITS FOR CERTAIN WILDLAND FIREFIGHTERS. (a) The retirement system shall conduct a study on the feasibility of offering members who are Texas A&M Forest Service wildland firefighters alternative service retirement benefits under the system.

(b) In conducting the study, the retirement system shall assess the costs to and impact on the retirement system associated with offering members who are Texas A&M Forest Service wildland firefighters the following alternative service retirement benefits:

(1) a service retirement benefit under the existing benefit plan that that provides retirement eligibility within a new tier described as Hazardous Duty for:

(A) a member who is at least 55 years old and who has at least 10 years of service credit in the appropriate field;

(B) a member who is at any age and has 25 years of service; or

(C) a member has 20 years of service that will be actuarily reduced by 5% for every year that is under the normal requirements within this tier; and

(2) a service retirement benefit under the existing plan that provides retirement eligibility within a new tier described as Hazardous Duty-Administrative Support for:

(A) a member who has become vested and has spent entire employment up to date of being vested in a wildland firefighter role within the Texas A&M Forest Service; or

(B) a member who has transferred out of a primary wildland firefighter role to a support role within Texas A&M Forest Service after the date of being fully vested.

(c) The standard service annuity for a member who qualifies under Subsection (b) is an amount computed on the basis of the member's average annual compensation for the five years of service, whether or not consecutive, in which the member received the highest annual compensation, times the sum of the percentage factor used in the computation of a standard service retirement annuity under Section 824.203 plus 0.5 percent. Members that transfer into Hazardous Duty-Administrative Support will be able to retain the reduced service age requirements but will only earn service by the normal age percentage factor, as described under Section 824.203.

(d) No later than March 1, 2026, the retirement system shall begin meeting with the Texas A&M Forest Service to determine:

(1) positions that will qualify for benefits outlined in Subsection (b) and the salaries of both existing and terminated employees that qualified beginning on September 1, 2009;

(2) the effectiveness of additional 0.5 percent to the percentage factor under Section 824.203 or an accrual rate that is feasible for a member to retire at reduced service age requirements, while maintaining the actuarial soundness of the pension fund;

(3) the additional percentage of salary contribution needed by both the employer and employee to sustain the additional tiers described by subsection (b) while maintaining actuarial soundness within the pension fund;

(4) the cost to cover the additional employer and employee contributions needed between September 1, 2009 to present day; and

(5) the cost and implications of benefits being extended to reduced retirement ages in subsection (b).

(e) No later than December 31, 2026, the retirement system shall prepare and submit a report that contains the findings of the study and the information submitted to the retirement system under Subsection (d).

(f) The Legislative Budget Board and the State Pension Review Board shall, as necessary:

(1) assist the retirement system in conducting the study; and

(2) provide the retirement system with any information needed to complete the report required under subsection (e).

(g) This section expires on September 1, 2027.

SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.