Lawmakers could no longer “double dip” into pension funds under new bill

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State Sen. Joan Huffman filed a bill Friday that might bar longtime lawmakers from increasing their annual take-home pay by $140,000 by means of dipping into their pensions ahead of they retire.

Senate Bill 1509 would repeal a provision in state regulation, handed within the 2021 consultation, that allowed longtime lawmakers who had maxed out their annuities within the state’s Employees Retirement System to “double dip” by means of amassing their pension bills whilst nonetheless proceeding to paintings and amassing a wage. Pension bills develop in keeping with years of provider and are in most cases capped on the state employee’s most wage, to be amassed upon retirement. But state lawmakers, who make an annual wage of $7,200, have retirement advantages tied to the salaries of state district judges, who make $140,000 — that means lawmakers who keep in workplace could have a chance to gather retirement bills that some distance exceed their state salaries.

Huffman’s workplace didn’t instantly reply to a request for remark.

The provision went into impact in September 2021 after lawmakers within the House quietly added it as an modification final consultation to a an important bill supposed to handle a $15 billion hollow within the Employees Retirement System. Huffman were given the bill again within the Senate within the ultimate days of the consultation and used to be compelled to cross it with the modification however advised newshounds she would paintings to take away the availability within the following consultation.

The provision applies to all state workers who’ve labored sufficient years that they’ve maxed out their pension bills, however state lawmakers, not like different workers who qualify for the convenience, paintings most effective section time. To max out their annuities, state workers in most cases need to paintings 43.5 years. That supposed that most effective 3 lawmakers — state Sen. John Whitmire, D-Houston, and state Reps. Senfronia Thompson, D-Houston, and Tom Craddick, R-Midland — certified for the advantages outright. (Other lawmakers could be incomes the convenience since the Employees Retirement System lets in workers to shop for or switch credit for years of provider.)

Whitmire, who’s working for Houston mayor, mentioned he had declined the benefit when it went into impact in 2021. Lawmakers needed to decide in to tug their annuities whilst proceeding to paintings. Thompson and Craddick have stayed silent at the factor.

Whitmire accused Craddick of instigating the regulation exchange despite the fact that the bill used to be filed by means of Rep. Greg Bonnen, R-Friendswood. Neither Craddick nor Bonnen addressed the accusation.

Huffman, a Houston Republican, is a significant participant within the Senate and leads the Senate Finance Committee, which handles monetary and budgetary issues. It’s unclear whether or not Bonnen, who leads the an identical committee within the House, will strengthen the bill.