Texas House pitches fix for state employee pensions

ens of thousands of state employees would see their pension contributions increase yet again later this year under a plan the Texas House announced Tuesday that would shore up an insolvent retirement fund.

However, lower chamber leaders also announced 2.5-percent, across-the-board raises they say would completely cover that cost.

House Pensions Committee Chairman Dan Flynn said that both state and employee contributions would increase to 9.5 percent in the 2016-17 budget cycle that begins Aug. 31 under the House proposal. State agency contributions would remain at 0.5 percent, the Canton Republican said.

Employee contributions already were set to increase to 7.5 percent by 2017 under reforms the Legislature passed in 2013.

Read more: http://www.statesman.com/news/news/state-regional-govt-politics/texas-house-pitches-fix-for-state-employee-pension/nkSFP/

[font color=green]The article also states that the employees have received only one 3% pay raise within the last nine years. Considering that the cost of living in Austin has increased drastically it does not look good for state employees.[/font]