S.B. No. 2065 amends various sections of the Government Code related to the Texas Emergency Services Retirement System. Key changes include the definition of "actuarially sound," which now specifies that contributions must cover the normal cost and amortize the unfunded actuarial accrued liability within a period not exceeding 15 years or by September 1, 2055. The bill introduces new terms such as "legacy liability," "liability gain layer," and "liability loss layer," which clarify how different types of liabilities are managed within the pension system. Additionally, it establishes that state contributions will be made to ensure the pension system remains actuarially sound, with specific provisions for amortizing the legacy liability.

The bill also modifies the rules governing service retirement annuities, ensuring that state contributions cannot be used for supplemental payments or annuity increases without prior approval from the state board. It mandates that the governing body of a political subdivision must cover the costs of any increased benefits provided. Furthermore, the state board is tasked with determining what constitutes a "significant change" in the context of amortizing unfunded liabilities. Overall, the bill aims to enhance the financial stability and accountability of the Texas Emergency Services Retirement System.

Statutes affected:
Introduced: Government Code 614.104, Government Code 861.001, Government Code 864.002, Government Code 865.015, Government Code 865.011, Government Code 865.014 (Government Code 861, Government Code 864, Government Code 614, Government Code 865)
Senate Committee Report: Government Code 614.104, Government Code 861.001, Government Code 864.002, Government Code 865.015, Government Code 865.011, Government Code 865.014 (Government Code 861, Government Code 864, Government Code 614, Government Code 865)
Engrossed: Government Code 614.104, Government Code 861.001, Government Code 864.002, Government Code 865.015, Government Code 865.011, Government Code 865.014 (Government Code 861, Government Code 864, Government Code 614, Government Code 865)
House Committee Report: Government Code 614.104, Government Code 861.001, Government Code 864.002, Government Code 865.015, Government Code 865.011, Government Code 865.014 (Government Code 861, Government Code 864, Government Code 614, Government Code 865)
Enrolled: Government Code 614.104, Government Code 861.001, Government Code 864.002, Government Code 865.015, Government Code 865.011, Government Code 865.014 (Government Code 861, Government Code 864, Government Code 614, Government Code 865)