AUSTIN, TX -- House leaders facing a $7.2 billion shortfall for state worker retirement pensions have unveiled a plan to increase what Texas pays but also upping employee contributions.
At current funding levels, the Texas Employees Retirement System may be depleted by 2052.
A bipartisan plan announced Tuesday increases the state's contribution to pensions to 9.5 percent of an employee's pay, up from the current 7.5 percent. It also maintains state agency contributions at 0.5 percent.
And the proposal increases to 9.5 percent for 2016 and 2017 employee contributions that are currently set for 7.2 percent and 7.5 percent, respectively, those two years.
To soften the blow, the plan includes a 2.5 percent pay raise for state employees taking effect next year.
The pension system covers around 230,000 active state workers and retirees.
Bipartisan House plan moves to bolster state pension fund