AT THE CAPITOL

Texas State Legislation & TCDRS

The 86th Texas State Legislature began on Jan. 8, 2019. We will track and monitor bills that could directly or potentially impact TCDRS and, ultimately, our employers’ county and district plans.

We will update this page if anything should arise related to state pension systems during the session. 

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.


BILLS WE’RE TRACKING

Senate Bill 322

Sponsor: Sen. Joan Huffman

TCDRS impact: This bill would require all public retirement systems to hire independent investment firms to evaluate their investment practices and performance every three years.

Bill status: SB 322 was filed on Jan. 10, referred to State Affairs on March 7 and heard in Committee on March 25. The bill was voted favorably from Committee on April 1 as substituted (CSSB 322). The only changes were the due date of the first report and alignment of all future due dates.

TCDRS currently contracts with an independent investment firm, so the bill has minimal impact on the system. (House Bill 1887 listed below is a companion bill.)

Senate Bill 680

Sponsor: Sen. Pat Fallon

TCDRS impact: This bill would restrict 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 affect 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.

House Bill 1887

Sponsor: Rep. Jim Murphy

TCDRS impact: The bill would require all public retirement systems to hire independent investment firms to evaluate their investment practices and performance every three years.

Bill status: HB 1887 was filed on Feb. 15, referred to Pensions, Investments & Financial Services on March 5, and heard in Committee on March 26. Committee action is pending.

TCDRS currently contracts with an independent investment firm so the bill has minimal impact on the system. (Senate Bill 322 listed above is a companion bill.)

House Bill 2538

Sponsor: Rep. Sam Harless

TCDRS impact: The bill would exclude the Texas Association of Counties from future participation in TCDRS. It would also amend 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.


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.

 

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 online. Capital market assumptions help us build a diversified portfolio. They are forward-loo...

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04.17.19

Asset Allocation Targets Adjusted 2019

  TCDRS trustees and investment staff carefully construct our portfolio to achieve our long-term investment goal of 8% within an acceptable level of risk. Based on the capital market assumptions adopted at their April mee...

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TOP PUBLICATIONS

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