State Officials Face Tough Decisions Ahead to Avoid a Multibillion-Dollar Shortfall in the State Pensions System
Officials monitoring the state pensions system say they face tough decisions ahead to avoid a multibillion-dollar shortfall.
The Employees Retirement System of Texas faces many of the same problems as other pension systems, though not nearly to the scale of some states. Still, officials project the system will run out of money to pay benefits by 2052 if nothing is done.
The Austin American-Statesman reports that lawmakers at the next legislative session could consider raising the shared contribution rate for the state and employees from 14.6 percent to 20 percent. It could also make a massive one-time addition of $4.5 billion.