Relating to the evaluation and reporting of investment practices and performance of certain public retirement systems.

New review rules for Texas pensions

Effective September 1, 2025, the law changes investment reviews for Texas public retirement systems. Systems with at least $100 million in assets must get an independent evaluation every three years. Those with at least $30 million but less than $100 million must get one every six years. These cycles use assets measured at the previous evaluation. A six-year system that reaches $100 million in total pension liability during a fiscal year must meet the next board-scheduled deadline. Pension liability measures the current value of benefits earned through past service, using standard pension accounting rules. An evaluation requirement continues until both assets and pension liability fall below its applicable minimum. A separate exemption applies when assets are below $30 million at the fiscal year-end immediately before the next evaluation deadline. The State Pension Review Board must set the deadline schedule by January 1, 2026. Independent reviewers must share a nearly complete draft with the system for discussion and clarification. They must request, in writing, details of actions taken or planned and any response the system wants included. Reviewers must file the final report, including results and any system responses, with the system's governing body. That body must send it to the board. The law does not directly change pension benefits, taxes, or household payments.