85(R) - 2017
Relating to the operations and functions of the Employees Retirement System of Texas and the sunset review date for, financial management of, and programs administered by the agency.
No significant fiscal implication to the State is anticipated.
HB 2459 would change the dates regarding: the sunset review date for the Employees Retirement System to 2029; the actuary’s investigation and valuation of the system to once every four years; and the adoption of tables to once every four years.
Along with this, the board would be required to: complete a training program designed by the executive director; develop policy to encourage the use of negotiated rulemaking and appropriate alternative dispute resolution procedures; develop a method to calculate, track, and report profit share data in connection with alternative investments; create a precedent manual; and include more informational items in their annual report.
The executive director, a private professional investment manager, or any other person delegated authority to invest assets may not invest retirement system assets in a single alternative investment that exceeds one percent of the total market value of the trust fund unless the board votes for its approval. Additionally, the cost-of-living adjustment would be repealed.
Vote Recommendation Notes
Texas Action supports this bill because of its provisions to provide a higher level of accountability for the pension system and its board of trustees. This upholds our principle of limited government, and this we support this legislation.