Texas House OKs pension fix
The Texas House gave preliminary approval Monday to a bill designed to shore up an insolvent state employee retirement fund.
House Bill 9 would put the state’s second largest pension plan on the path to actuarial soundness — meaning contributions and investment returns cover expenses and payouts — by increasing contributions from both the state and active employees later this year.
For employees, who would see their contribution rates increase from 6.9 percent to 9.5 percent after Sept. 1, the bump would be offset by a 2.5-percent across-the-board pay raise included in the House budget. The state’s contribution would increase from 7.5 percent to 9.5 percent. State agencies still would pitch in half a percent.
The increased contributions would make the fund sound within three years, according to a bill analysis.
Read more: http://www.statesman.com/news/news/state-regional-govt-politics/texas-house-oks-pension-fix/nksgq/