AUSTIN, TX –Today, Texas House Republican Caucus members (THRC), Rep. Dan Flynn (R-Van), Chair of the House Pensions Committee, joined by Rep. John Otto (R- Dayton), Chair of the House Appropriations Committee, outlined a plan to return to solvency the Employees Retirement System of Texas (ERS).
They stated their intent to introduce legislation that will increase funding to the state employee pension system, making it actuarially sound. The state’s Retirement Trust Fund currently has $7.5 billion in unfunded liabilities. This legislation will fund the state employee pension without reducing benefits for current and future retirees, in conjunction with an increase in contributions by active state employees. It will reduce unfunded liabilities for ERS, while also mitigating the risk and burden to state taxpayers.
“With this legislation, we are keeping our commitment to our hardworking state employees in their retirement years,” Chairman Flynn said. “This is a vital benefit to employees who earn an average salary of approximately $45,000 a year.”
This is another important item that will signal to Wall Street that Texas has a plan to achieve actuarial soundness in its pension systems. “The Appropriations Committee recognizes the importance of prioritizing expenditures and fulfilling our obligation to state employees. This proposal accomplishes both of these goals while also attaining actuarial soundness,” said Chairman Otto.
The Texas House Republican Caucus is proud to support this initiative by Caucus members Chairman Flynn and Chairman Otto to fully fund the ERS and honor the commitment made by the Texas Legislature to reduce the burden of the tax payer and create stability in Texas’ retirement system.