The House Committee on Pensions, Investments, and Financial Services has released its interim report to the 89th Legislature. The report covers implementation of SB 10 and ESG policies. Representative John Bryant (D-Dallas) did not sign the report and submitted a statement alongside Representative Hubert Vo (D-Houston), which is included in the appendix. See below for a spotlight on recommendations from the report.
Monitor the implementation of SB 10, relating to certain benefits paid by the Teacher Retirement System of Texas.
- The Legislature should explore ways to offset inflationary increases for TRS retirees on a fixed income, including how an inflation-based permanent COLA would affect the pension’s actuarial soundness, funding period, and unfunded liability.
- The Legislature should maintain an actuarially sound fund, reduce unfunded liabilities, and support additional benefit enhancements.
Examine the ways in which environmental, social, and governance (ESG) policies are contradictory to fiduciary duties and the resultant detrimental effect on investors.
- The Legislature should ensure public funds are not used to further ESG initiatives by codifying recent state agency directives ensuring shareholder votes are used for the sole purpose of maximizing returns for beneficiaries.
