Statement on ERS Legislation, SB 321

The Senate Finance Committee has approved a new version of Senate Bill 321 by Sen. Joan Huffman with two primary goals.

First, it would replace the Employees Retirement System’s classic defined benefits plan for current employees and retirees with a so-called cash balance plan that will likely reduce pension payments for future employees and retirees.

Second, it would require the state to dedicate money annually to make ERS actuarily sound and pay off its $15 billion unfunded liability. The version that was voted out of committee includes $350 million a year — but Sen. Huffman publicly committed to increasing that to $510 million per year with an amendment on the Senate floor.

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

The $510 million yearly commitment will allow Texas to keep its promise of a secure retirement to 268,000 current and former essential workers. We look forward to working with lawmakers on the other elements of the plan to ensure that changes for future employees do not hinder Texas’s ability to recruit and retain essential workers in law enforcement, health care, and other vital areas of public service.