Legislative Issues

Interim Studies Focus on the
Group Insurance Program and Pension Plan

The General Appropriations Act includes provisions that require the Employees Retirement System (ERS) to conduct studies on the group insurance program and on the pension plan. Both reports must be submitted to the Legislative Budget Board and the Governor no later than September 1, 2012.

The insurance study will include, at a minimum, potential plan design and other changes that would improve the long-term sustainability of the group insurance program.

Both ERS and the Teacher Retirement System will each individually report on the actuarial and fiscal impacts from potential changes to the state, university and school district pension plans as of August 31, 2011. These studies will include, but are not limited to: retirement eligibility; final average salary; benefit multiplier; and the creation of a hybrid plan that includes defined benefit and defined contribution features such as a two-part plan or a cash balance plan.

ERS is in the initial stages of designing and implementing the two studies. They will place a sharp focus on gathering input from employees, retirees, employee and retiree associations, and other stakeholders. ERS will keep everyone posted on input opportunities through postings on the website and other communications channels.

--David Dennis and Elizabeth Blount

LBB issues report on benefits

The Legislative Budget Board has issued a Government Effectiveness and Efficiency Report. A number of recommendations address employee benefit issues. You can read the executive summary from the LBB website.

Source: Employees Retirement System of Texas o PO Box 13207 o Austin TX 78711-3207 o www.ers.state.tx.us

Legislative Issues

Interim Studies Focus on the Group Insurance Program and Pension Plan

Interim Studies Focus on the
Group Insurance Program and Pension Plan