Recent analyses documenting the imminent threat posed by unfunded state pension liabilities contributed to several reforms by the 2013 Texas Legislature, including raising the retirement age and increasing contribution rates, to the two largest state pension systems—Teacher Retirement System (TRS) and Employees Retirement System (ERS). The 2015 Legislature raised the ERS member contribution rate to 9.5% to improve its solvency.
While these are positive first steps, these pension systems should be changed from defined benefit to defined contribution plans to make them sustainable long term for beneficiaries and not burden all Texans with higher taxes.