R Street urges Texas to restore local control of pension plans
Sponsored by Rep. Jim Murphy, R-Houston, the legislation would restore local control of retirement systems currently under state governance.
“Local governments need to have control over their pension systems if they are to govern effectively,” said Josiah Neeley, R Street’s Texas director. “This bill will restore local control over public retirement systems and end the growing practice of making plans difficult to change by enshrining them in state law.”
Currently, more than a dozen municipal retirement systems have their pension plans in state statute, placing yet another layer of government bureaucracy between plans and community stakeholders. H.B. 2608 seeks to eliminate that layer by granting municipalities the ability to administer their own pension systems.
“It’s important for stakeholders in the community to have a seat at the table when it comes to their own employee retirement plans,” said Neeley.