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 timeframe not exceeding 15 years or by September 1, 2055. The bill introduces new definitions 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 the necessary amount 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 pension system's actuary determine the required contributions biennially, adhering to established actuarial standards. Furthermore, the bill outlines the responsibilities of local boards and political subdivisions in managing contributions and benefits, emphasizing the need for financial accountability in the pension system. The act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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 614, Government Code 864, 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 614, Government Code 864, 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 614, Government Code 864, 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 614, Government Code 864, 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 614, Government Code 864, Government Code 865)