Bill Caption

Relating to contributions to the Employees Retirement System of Texas.

Fiscal Notes

Estimated Two­ year Net Impact to General Revenue Related Funds for HB3397, As Introduced: a NEGATIVE impact of ($637,931,946) through the biennium ending August 31, 2023.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. 

Bill Analysis

HB 3397 would require the Actuary for the State to calculate the contribution rate for the Employees Retirement System of Texas whether government employees voluntarily contribute or don't contribute to their retirement account. This action would then be sent to the Board of Trustees for the Retirement System who would be required to approve this recommendation. 

Vote Recommendation Notes

HB 3397 would grow the cost of government substantially by pumping in more taxpayer funded contributions to bail out the Employees Retirement System of Texas. Worse still, the bill would allow the legislature to shirk its duty to set the state's contribution rate by vesting that responsibility in an unelected official instead. Ultimately, reforms to fix this system must focus not solely on pumping in more contributions from taxpayers, but also on reforming the benefit structure. Ultimately, all public employee retirement systems should be shifted to defined benefit plans rather than defined contribution plans. Texas Action opposes HB 3397.