The House Pensions, Investments & Financial Committee will meet at 10 a.m., Monday, March 31, to hear invited and public testimony on bills, including:
HB 3126 Darby – This bill amends the Insurance Code by adding Section 1579.1551, which facilitates the participation of certain small school districts in the uniform group coverage program for active school employees. It specifically targets districts that had opted out of the program as of September 1, 2022, and which currently employ 500 or fewer individuals. The legislation allows these districts to elect back into the program before five years have passed if they provide written notification of their intention by December 31, 2025. The effective participation for these districts will commence on September 1, 2026. For this group, the trustee will implement a risk stabilization fee on premiums during this initial plan year. Districts that choose to rejoin must commit to remaining in the program until at least September 1, 2031. The trustee holds the authority to set additional requirements for participation.
HB 3474 Lambert – This bill amends Section 802.109 of the Government Code regarding the evaluation and reporting of investment practices and performance of public retirement systems in Texas. The primary changes include the Pension Review Board’s role in establishing a detailed schedule for evaluations based on total assets. Specifically, systems with assets of at least $100 million must conduct evaluations every three years, while those with $30 million to $100 million must evaluate every six years. If a retirement system surpasses these thresholds, it must complete its evaluation by the next scheduled deadline. Additionally, the bill clarifies that even systems that have completed prior evaluations are required to continue evaluations based on total pension liability. An independent firm will now provide a preliminary draft report, and the final report will have a specified submission timeline to ensure timely compliance.
