AT THE CAPITOL

Texas State Legislation & TCDRS

The 86th Texas State Legislature began on Jan. 8, 2019 and concluded on May 27, 2019. Throughout the session, we tracked and monitored bills that could have directly or potentially impacted TCDRS and, ultimately, our employers’ county and district plans.

BILLS THAT PASSED

Senate Bill 322

Sponsor: Sen. Joan Huffman

TCDRS impact: This bill requires TCDRS and all other statewide public retirement systems in Texas to select an independent firm to evaluate the appropriateness, adequacy and effectiveness of the retirement system’s investment policies, procedures and practices. TCDRS would be required to conduct such an evaluation every three years. The bill was amended to allow systems to use a firm with an existing relationship to prepare the evaluation.

Bill status: SB 322 was passed by the Legislature on May 24th and was signed by the Governor on June 10th. The bill is effective immediately.

TCDRS anticipates no problems with implementation of SB 322. After the PRB adopts rules for implementation, the first TCDRS report will be due May 1, 2020.

Senate Bill 2224

Sponsor: Sen. Joan Huffman

TCDRS impact: This bill applies to all public retirement systems in Texas. It requires a written funding policy.

Bill status: SB 2224 was passed by the Legislature on May 21st and was signed by the Governor on June 4th. The bill is effective immediately.

TCDRS already has a written funding policy and we anticipate no problem with compliance.


BILLS THAT DID NOT PASS

Senate Bill 680

Sponsor: Sen. Pat Fallon

TCDRS impact: This bill would have restricted the annuity for new members of any Texas public retirement system to be no higher than certain federal salaries (about $186,998 annually).

Bill status: SB 680 was filed on Feb. 6 and referred to State Affairs on March 1. This bill would have affected members that join TCDRS on or after Sept. 1, 2019. Sen. Fallon filed similar bills while he was a House member in 2015 and 2017, which did not pass. This session, the bill did not get out of the Senate State Affairs Committee.

House Bill 2538

Sponsor: Rep. Sam Harless

TCDRS impact: The bill would have excluded the Texas Association of Counties from future participation in TCDRS. It also would have amended the definition of a subdivision that is eligible to participate in TCDRS to exclude an incorporated nongovernmental entity, nonprofit corporation, or other external service provider of a political subdivision.

Bill status: HB 2538 was filed on Feb. 26 and was referred to Pensions, Investments & Financial Services on March 11. The bill did not get out of the House Pensions, Investments & Financial Services Committee.


TCDRS EXECUTIVE DIRECTOR SPOKE AT HOUSE PENSIONS, INVESTMENTS & FINANCIAL SERVICES COMMITTEE MEETING

On Wed., Feb. 13, the House Pensions, Investments & Financial Services Committee met for organizational purposes and to hear invited testimony from statewide retirement systems.

At the meeting, TCDRS Executive Director Amy Bishop provided an overview of the TCDRS plan. She also covered the unique features that make TCDRS financially strong and sound, such as savings-based benefits, responsible funding and flexibility and local control for employers.

The session recording is available in the committee’s broadcast archives. TCDRS testimony begins at the 2-hour, 4-minute mark. For more information, please visit the committee’s web page.


MEET THE PENSIONS, INVESTMENTS AND FINANCIAL SERVICES COMMITTEE

The Honorable Dennis Bonnen has been elected as Speaker of the House for the 86th session. The Speaker determines the composition and jurisdiction of the House Committees. Retirement bills will be referred to the Pensions, Investments and Financial Services Committee.

The committee members who will serve during the 86th session are: 

For more information about this committee and its members, visit the committee’s web page.


GET TO KNOW THE SENATE COMMITTEE ON STATE AFFAIRS

On the Senate side, the Senate Committee on State Affairs generally holds hearings on bills that affect public pension plans (such as TCDRS).

Lt. Gov. Dan Patrick has appointed the committee members for the 86th session, naming Sen. Joan Huffman as chair and Sen. Bryan Hughes as vice chair.

A full list of committee members is available on the committee’s web page.


Previous Legislation

You can read summaries of legislation that impacts TCDRS here:

2017 TCDRS Legislation Summary

2015 TCDRS Legislation Summary

2013 TCDRS Legislation Summary

Copies of bills, as well as tracking information, may be found on the Texas Legislature’s website. You can use the “Search Legislation” tool to find specific bills by keyword or bill number.


Pension Review Board Documentation

The Pension Review Board (PRB) oversees all Texas public retirement systems. One of the requirements of the PRB is that we create and publish an Investment Return and Assumptions Report (PRB-1000). The report shows our actual rate of investment return and our assumed rate of return over the 10 most recent fiscal years, as well as our annualized rolling rate of return. This report is updated annually. We also provide the PRB with our Investment Policy and Comprehensive Annual Financial Report (CAFR).


External Links

House Pensions Committee hearings

Broadcasts of the committee hearings are available in the committee’s broadcast archives.

These websites are included for informational purposes only. The inclusion of links on this website does not constitute endorsement of information or opinions of other organizations.

 

 

05.10.19

Three Trustees Appointed to the TCDRS Board

Gov. Greg Abbott has appointed Susan Fletcher and Kara Sands, and reappointed Mary Louise Nicholson, to serve on the nine-member TCDR...

View article
04.17.19

TCDRS Board Updates Capital Market Assumptions

The TCDRS Board of Trustees has reviewed and updated our capital market assumptions for 2019. The revised assumptions are available...

View article

TOP PUBLICATIONS

Doing Retirement Right
2017 Economic Impact Study