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Relating to the police pension fund in certain municipalities.
No significant fiscal implication to the State is anticipated.
HB 2763 changes the composition of the pension board for local pension funds, qualifications and training for trustees, and the procedures for certain municipalities (City of Galveston). The bill would provide that the rate of contributions to the pension fund is prohibited from being reduced or eliminated, a new monetary benefit payable by the pension fund is prohibited from being established, and the amount of a monetary benefit from the fund is prohibited from being increased if, as a result of the particular action, the time required to amortize the unfunded actuarial liabilities of the pension fund would be increased to a period that exceed 25 years.
Also, this bill would require each member to make contributions to the fund, and authorizes the municipality to deduct 12 percent of the member's monthly wages as contributions for service rendered after August 31, 2019, rather than requiring each member to make contributions except in times of national emergency, and authorizing the municipality to deduct a sum of not less than one percent and not more than 10 percent of monthly wages. The municipality would be required to contribute to the fund 18 percent of payroll based on authorized positions.
Texas Action is neutral on HB 2763 because it is a local bill does not not appear to affect our liberty principles.