SB 1812

83(R) - 2013

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral


Robert Duncan

Bill Caption

Relating to state contributions for participation by certain junior college employees in the state employees group benefits program, Teacher Retirement System of Texas, and Optional Retirement System.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for SB1812, As Engrossed: a positive impact of $69,055,336 through the biennium ending August 31, 2015. 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

Summary: SB 1812 would establish how much Texas contributes to junior college employees that are involved with education through various pension systems, such as the Teacher Retirement System of Texas. Over the past ten years, Texas contribution rates to junior colleges have been a point of controversy. In recent years, Texas has contributed 100% of compensation, but only for employees whose salaries are funded through General Revenue. SB 1812 would set Texas’ required contribution rate at 50% of compensation for every junior college employee involved with education, regardless of whether their salary comes out of General Revenue. SB 1812 would also limit the amount of employees Junior Colleges can make eligible for benefits to a rate that can be no more than the rate at which a junior college’s contact hours increases. Contact hours are a measurement of the hours a student has involvement with a junior college educator. According to the Legislative Budget Board, SB 1812 would produce nearly $70 million in savings for Texas through 2015, and it would continue to yield savings after 2015.

Analysis: We support SB 1812 because it makes changes to how Texas contributes to the retirement benefits of junior college employees that are involved with educating students that will save Texas millions of dollars. This promotes limited government because it reduces the amount of resources that will need to be taxed from Texans to fund these pensions.