H.B. No. 4736 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 managed within the pension system. Additionally, it establishes that the state will 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 emphasizes the importance of biennial actuarial evaluations to determine the required contributions and outlines the procedures for local boards to request supplemental payments. Overall, the legislation aims to enhance the financial stability and accountability of the Texas Emergency Services Retirement System while ensuring that the pension system remains sustainable for future beneficiaries.

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 864, Government Code 614, Government Code 865, Government Code 861)
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 864, Government Code 614, Government Code 865, Government Code 861)