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TexasSB 206589th Legislature Regular SessionSenateWALLET

Relating to the Texas Emergency Services Retirement System.

Sponsored By: Greg Bonnen, Benjamin Bumgarner, Joan Huffman (Republican)

Signed by Governor

Health--Emergency Services & PersonnelRetirement Systems--GeneralRetirement Systems--MunicipalLEGISLATIVE BUDGET BOARD

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 1 costs, 3 mixed.

New pension rules for emergency volunteers

The law clarifies who counts as a volunteer in the Texas Emergency Services Retirement System. Volunteers serve for civic, charitable, or humanitarian reasons, receive no departmental pay, and fall outside federal employee pay requirements. Service retirement payments use average monthly contributions during qualified service, excluding money paid to reduce unfunded pension costs. The state board must set a benefit formula that keeps the system financially sound, without assuming maximum state contributions. The law does not state how much individual payments change.

Local governments must fund pension extras

Local governments tied to participating emergency departments must cover all added costs when they choose extra pension payments or increases. The state board can set request procedures and require its approval before departments provide those benefits. State contributions cannot fund these extra payments or increases. The board can also set regular schedules for local funding payments. The law does not grant an automatic pension increase or set an increase amount.

Payoff deadlines govern emergency pension funding

The emergency pension system must cover newly earned benefits and pay down unfunded costs on fixed schedules. Each new shortfall gets a separate payoff schedule, starting 12 months after recognition. Its deadline is the later of 15 years after the valuation or September 1, 2055. Funding gains follow the largest remaining shortfall's payoff period, including later changes to that period. Without a remaining shortfall, gains use a 15-year schedule starting the next fiscal year, or through September 1, 2055, whichever is later. Each two-year valuation measures the combined payoff period using a weighted average. The board must treat a longer payoff period as a significant change when it makes the system financially unsound.

Texas must fund emergency service pensions

Texas must contribute enough each year to keep its Emergency Services Retirement System financially sound. State payments must pay off its legacy shortfall by the fiscal year ending August 31, 2055. That shortfall starts with unfunded pension costs on August 31, 2024, using a 7% assumed investment return. Annual updates subtract payoff contributions and apply the 7% return assumption. Unfunded costs equal promised pension costs minus the actuarial value of assets. Valuations generally use returns no higher than 7%; when the system's expected return exceeds 7%, they use the latest average from Texas' employee and teacher retirement systems. The actuary sets required payments every two years. Before each regular legislative session, the system must report required payments to the Legislative Budget Board for inclusion in the appropriations bill; this requirement ends September 1, 2057. The law also allows pension-fund money to be appropriated for system contributions.

Sponsors & Cosponsors

Sponsors

  • Greg Bonnen

    House

  • Benjamin Bumgarner

    House

  • Joan Huffman

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 367 • No: 1

House vote • 4/30/2025

Record vote

Yes: 140 • No: 0

House vote • 4/29/2025

Record vote

Yes: 146 • No: 1

Senate vote • 4/7/2025

Record vote

Yes: 30 • No: 0

Senate vote • 4/7/2025

Record vote

Yes: 30 • No: 0

House vote • Unknown

Committee vote: Pensions, Investments & Financial Services

Yes: 6 • No: 0

Senate vote • Unknown

Committee vote: Finance

Yes: 15 • No: 0

Actions Timeline

  1. Effective immediately

    5/15/2025House

  2. Signed by the Governor

    5/15/2025House

  3. Sent to the Governor

    5/6/2025House

  4. Signed in the House

    5/5/2025House

  5. Signed in the Senate

    5/5/2025Senate

  6. Reported enrolled

    4/30/2025Senate

  7. House passage reported

    4/30/2025Senate

  8. Statement(s) of vote recorded in Journal

    4/30/2025House

  9. Record vote (RV#957)

    4/30/2025House

  10. Passed

    4/30/2025House

  11. Read 3rd time

    4/30/2025House

  12. Statement(s) of vote recorded in Journal

    4/29/2025House

  13. Record vote (RV#928)

    4/29/2025House

  14. Passed to 3rd reading

    4/29/2025House

  15. Read 2nd time

    4/29/2025House

  16. Laid out in lieu of companion (HB 4736)

    4/29/2025House

  17. Comm. report sent to Local & Consent Calendar

    4/28/2025House

  18. Committee report distributed

    4/28/2025House

  19. Comte report filed with Committee Coordinator

    4/28/2025House

  20. Reported favorably w/o amendment(s)

    4/24/2025House

  21. Recommended to be sent to Local & Consent

    4/24/2025House

  22. Considered in formal meeting

    4/24/2025House

  23. Referred to Pensions, Investments & Financial Services

    4/17/2025House

  24. Read first time

    4/17/2025House

  25. Received from the Senate

    4/8/2025House

Bill Text

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