The bill would amend the Government Code as it relates to the administration, contributions, and benefits under the Texas Municipal Retirement System.
No significant impact to the state is anticipated from implementing the provisions of the bill.
According to the
Texas Municipal Retirement System (TMRS), among other things, the bill would add cost of living adjustments (COLA) of 40 percent and 60 percent to the current options of 30 percent, 50 percent, and 70 percent. The impact on a participating city's unfunded liabilities would depend on what, if any, if these options a city chose to make to its current benefits.
According to TMRS, the bill would allow participating cities to select COLA and Updated Service Credit (USC) benefit options independent of each other, and this provision could result in lower unfunded liabilities for certain cities.
According to TMRS, other provisions of the bill could result in lower costs and unfunded liabilities for certain cities, and none of the provisions of the bill would reduce a current retiree's monthly benefit.