Thirteen municipal pension systems in Texas are enshrined in state statute. This means that, locally, Texans across the state are paying taxes into pension systems that they have no control over. Even worse, even the most menial changes to these systems must be approved by the legislature before going into effect. This gives municipalities 140 days every two years to coordinate all stakeholders to push for change.

This creates a major problem during times when local governments can’t afford to pay the full actuarial required amount into their pensions systems. Instead of working with their local pension board for temporary resolutions, they either have to go to the legislature for changes or redirect tax dollars from other local projects.

Local government entities should have direct governance, and responsibility, for the pensions of their municipal employees. Mayors and city councils shouldn’t have to go to the legislature for minor changes that should be handled locally; adding an extra layer of bureaucratic red tape only limits the potential for constructive change. The state should return control to local entities, as long as the local process proves to be accountable and transparent to taxpayers and municipal employees.

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