On January 29, the actuarial committee of the Pension Review Board (PRB) met to discuss an upcoming study of the health of pension systems in Texas, as required by HB 13, 83R.
PRB Executive Director Chris Hanson noted that of the 93 pension systems in Texas, only 25 have an amortization period less than or equal to 25 years, the current PRB recommended standard. The study which is expected to be completed by the end of the year will take a holistic look at pension systems over the last decade and attempt to make determinations about what has worked and not worked to keep systems within the PRB’s Guidelines for Actuarial Soundness.
Issues that will be examined in the study include: what underlying factors impact systems such that they no longer meet the PRB Guidelines; what key indicators exist that would point to a deterioration of a system’s funding arrangement and financial health; and for system’s that maintained adequate funding, what steps dis those systems take or what best practices did they employ.
Stakeholders have been asked to provide comments and suggestions for the study to the Board as soon as possible. The full Board will be briefed on the progress of the study at future meetings.
