The bill, 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. Additionally, new definitions for terms such as "legacy liability," "liability gain layer," and "liability loss layer" are introduced, providing clarity on how these liabilities are calculated and managed. The bill also outlines the responsibilities of the state in contributing to the pension system, ensuring that the system remains actuarially sound and detailing the amortization periods for various liability layers.

Furthermore, the bill modifies the rules governing service retirement annuities, emphasizing that state contributions cannot be used for supplemental payments or annuity increases without prior approval from the state board. It establishes that the governing body of a political subdivision must cover the costs of any increased benefits provided. The bill aims to enhance the financial stability of the Texas Emergency Services Retirement System by ensuring that contributions are sufficient to meet future liabilities while providing a structured approach to managing the system's unfunded liabilities.

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