AFSCME Texas Retirees Support ERS Legislation

The Texas Senate today approved an amended version of Senate Bill 321 by Sen. Joan Huffman, which now commits $510 million in additional state funding each year moving forward to shoring up the Employees Retirement System. Final passage in the Senate is expected later this week.

This commitment will make the fund actuarily sound in three years — raising the prospects of the first cost of living adjustment for retired state employees since 2001. It will ultimately allow ERS to pay off its $15 billion unfunded liability. 

SB 321 also replaces ERS’s classic defined benefits plan for current employees and retirees with a so-called cash balance, defined benefit plan for future employees. This change would not affect current employees or retirees but could reduce pension payments for some future employees. 

Below is a statement from AFSCME Texas Retirees Chapter 12 President Luther Elmore:

With the Senate’s vote today, the state is finally poised to keep its promise to the essential workers who have made Texas safer, stronger and healthier for generations. This $510 million yearly commitment will make ERS actuarily sound and guarantee our retirees the stable and secure pension they have earned and expect.

The long-term structural changes to the state’s pension plan that are also in the bill will require future state workers, yet again, to go above and beyond in order to shore up ERS. We will work with lawmakers to ensure these changes do not make it harder to recruit and retain dedicated public employees.

We support this bill and fully support lawmakers shoring up ERS and protecting our pensions. We call on the House of Representatives to support this funding.