6 Pension Reforms from TPPF

TPPF’s pension, local & state, related recommendations:

  • TheLegislatureshouldremovefromstatestatuteallstatemandatesoverlocal retirement systems and allow municipalities to have control of them. 

    The Legislature should not place any new retirement systems not presently in the statute under state control. 

  • Freeze enrollment in the current defined benefit system and enroll newly hired or unvested employees in a 401(k)-style defined contribution pen- sion plan.

  • Implement either a hard or soft freeze of the system for vested employees.

  • Replace current employee health care plans with Health Savings Accounts. 

  • Moving Texas’ public pension systems away from the defined benefit system and into a defined contribution model would go a long way to restoring sustainability in the system, benefitting both the taxpayers and state employees.

    ​  TPPF

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