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 specified timeframe, not exceeding 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 treated within the pension system. Additionally, it establishes that the state must contribute necessary funds to ensure the pension system remains actuarially sound, particularly focusing on the amortization of 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 bill outlines the process for determining significant changes in the pension system's liabilities and establishes a biennial review of the actuarially determined contribution amount required to maintain the system's financial health. Overall, these amendments aim to enhance the sustainability 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 865, Government Code 614, Government Code 861, Government Code 864)
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 865, Government Code 614, Government Code 861, Government Code 864)
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 865, Government Code 614, Government Code 861, Government Code 864)
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 865, Government Code 614, Government Code 861, Government Code 864)