Staying ahead of economic shifts, policy changes, and market developments is essential for those managing Texas public employee retirement systems. This week's roundup features key updates on legislative hearings, national pension trends, investment insights, upcoming events, and research impacting public pensions. Each entry includes The Story and Why It Matters to help trustees, administrators, and stakeholders stay informed and make strategic decisions.

Texas House Committee to Consider Pension-Relevant Legislation on March 24

The Story

The Texas House Pensions, Investments & Financial Services Committee will hold a public hearing on March 24, 2025, at 10:00 AM in Room E2.012 at the Texas Capitol. The committee, chaired by Rep. Stan Lambert, will review several bills that could impact public finance:

• HB 1453: Relates to the issuance of anticipation notes and certificates of obligation by certain local governments. Read the bill text.
• HB 1718: Defines "closing" for purposes of certain private activity bonds. Read the bill text.
• HB 2043: Regulates earned wage access services; provides an administrative penalty. Read the bill text.
• HB 2207: Authorizes political subdivisions to propose voter approval for issuing general obligation bonds for purposes rejected by voters in the preceding two years. Read the bill text.
• HB 2798: Concerns disclosures and other requirements for virtual currency kiosk transactions; authorizes a fee. Read the bill text.

Texas residents can submit electronic comments or register to testify in person. A live video broadcast will also be available. 

Why It Matters

Several bills under consideration could affect Texas public pension funds, municipal financing, and investment regulations. Changes to bond issuance rules, wage access services, and virtual currency transactions may have financial implications for public funds. Pension trustees, administrators, and stakeholders should monitor these legislative developments to understand potential impacts and engage in the policy process.

Texas Ranks Mid-Tier in Retirement Affordability with $1.5M Nest Egg

The Story

A new analysis from 401(k) Specialist Magazine breaks down how long $1.5 million in retirement savings would last across all 50 U.S. states. The study factors in the cost of living, healthcare expenses, housing, and daily spending to calculate state-by-state retirement longevity. Mississippi tops the list, where $1.5 million could stretch for over 25 years. Hawaii ranks last, with the same amount projected to last just 10 years. Texas ranks near the middle of the list, with savings expected to last about 17 years and 7 months. 

Why It Matters

For Texas public pension fund trustees and administrators, this analysis offers insight into how far retirement savings go—especially regarding demographic and economic factors. While defined benefit plans provide more predictable income than 401(k)s, understanding regional cost-of-living pressures helps inform plan sustainability, member education, and retirement readiness strategies. The report also reinforces the importance of complementary savings options and financial literacy efforts to ensure retirees can maintain quality of life regardless of where they live.

IRS Budget Cuts Could Delay SECURE Act Guidance for Public Plans

The Story

In a recent blog post, the National Conference on Public Employee Retirement Systems (NCPERS) highlighted growing concerns over the impact of the IRS budget and staffing cuts on the public pension community. While public pension systems are tax-exempt, they must maintain qualified status under the federal tax code to preserve critical tax advantages. With significant changes introduced under the SECURE Act and SECURE Act 2.0, the IRS is expected to issue substantial guidance—but its ability to do so is now in question.

Recent funding rollbacks have stripped billions from the agency's special allocation under the Inflation Reduction Act, and key leadership departures raise concerns about the IRS's capacity to enforce tax laws and issue timely guidance. These changes could also ripple down to state tax systems, which rely on federal figures to assess income tax obligations. 

For Texas public pension trustees and administrators, the IRS's weakened ability to provide guidance could complicate compliance with new federal retirement laws, particularly those impacting plan qualification, distributions, and contributions. Staying current on tax-related regulatory developments is essential to safeguard plan tax status and ensure continued tax-deferred treatment of contributions and earnings. Additionally, any disruption at the federal level could eventually impact state tax revenues and public finance operations—both closely tied to pension fund sustainability.

PRB Forms Due April 1: Stay in Compliance with MET Requirements

The Story

The Texas Pension Review Board (PRB) has updated its Minimum Educational Training (MET) program rules, impacting annual reporting requirements for public pension systems. The PRB-2000 and PRB-150 forms are due annually by April 1, and pension systems must ensure timely submission through the Pension Online Reporting Tool.

• PRB-2000: Must include any training completed between Aug. 1, 2024, and Dec. 31, 2024, along with any previously unreported training.
• PRB-150: Should list all current trustees to ensure compliance with reporting standards.

Why It Matters

Texas public pension trustees and administrators must comply with MET training requirements to uphold fiduciary responsibilities and meet regulatory obligations. Accurate reporting on the PRB-2000 and PRB-150 ensures transparency, accountability, and adherence to governance best practices. Submitting these forms on time helps avoid compliance issues and ensures pension systems meet state oversight requirements.

Texas Labor Market Grows as Tech and Energy Drive Hiring

The Story

The Texas Workforce Commission (TWC) reports that the state's labor market continued to expand in early 2025, adding 187,700 jobs from January 2024 to January 2025. This marks 55 months of job growth in the last 57 months, with a 1.3% annual growth rate in nonfarm employment. Key sectors contributing to the gains include technology, where data center employment rose 38% from 2018 to 2024, making Texas second in the nation in that category. Additionally, Midland holds the state's lowest unemployment rate at 3%, reflecting regional economic resilience. 

Why It Matters

For Texas public pension trustees and administrators, sustained job growth and economic strength directly affect pension fund health and revenue stability. A growing workforce contributes more to retirement systems and strengthens the tax base that supports public services. Understanding sector-specific and regional trends—such as tech growth and Midland's labor resilience—also aids in making informed investment and actuarial decisions that align with the state's economic trajectory.

NASRA Report: Pension Spending Remains Steady in State Budgets

The Story

A new National Association of State Retirement Administrators (NASRA) report highlights that state and local government contributions to public pension trust funds accounted for 5.11% of direct general spending in FY 2022, with projections holding steady for FY 2023. Despite a 10% increase in total pension contributions from FY 2021 to FY 2022, pension spending has remained stable as a share of total government budgets. The report also examines how states and municipalities have adjusted contribution levels and benefits to maintain pension fund sustainability following the 2008-09 financial crisis. 

Why It Matters

For Texas public pension trustees and administrators, understanding pension spending trends at the national level provides valuable context for funding decisions and policy discussions. The stability of pension costs as a percentage of government spending suggests that strategic reforms and responsible funding policies have helped sustain public pension systems. Monitoring these trends helps Texas pension funds stay ahead of fiscal challenges, optimize funding strategies, and ensure public employees' long-term health of retirement benefits.

Benchmark Compensation with the 2025 NCPERS Public Pension Survey

The Story

The National Conference on Public Employee Retirement Systems (NCPERS) and CBIZ are launching the 2025 Public Pension Compensation Survey to provide public pension funds with valuable insights into compensation, benefits, and hiring strategies. This annual survey captures data on 90 common positions in public pension funds, detailing salaries, bonuses, benefits, and fund oversight practices. The survey will be distributed on April 8, with a submission deadline of May 13. Participating organizations will receive complimentary access to the final report and an interactive dashboard for benchmarking against peers. Non-participating funds may purchase the results for $2,500. 

Why It Matters

Texas public pension funds can use this survey to benchmark compensation and benefits against similarly sized funds nationwide. Access to this data can help trustees and administrators make informed decisions about salary structures, hiring strategies, and fund oversight. Texas pension funds gain free access to the report and dashboard by participating, ensuring they stay competitive in attracting and retaining top talent.

BlackRock CEO Larry Fink Is Bullish on Gen Z's Financial Savvy

The Story

In a recent interview, BlackRock CEO Larry Fink expressed optimism about the financial future of today's younger generations. Reflecting on past economic challenges, Fink noted that while his generation faced more severe inflation during the 1970s and 1980s, today's young people are better equipped with technology, financial tools, and information. He emphasized their growing interest in investing and awareness of long-term financial planning, which he believes positions them well for the future. 

Read the full article

Why It Matters

For TEXPERS members, Fink's comments reinforce the importance of financial literacy, early investing, and generational engagement in long-term financial security. As public pension fund leaders and administrators, understanding younger workers' evolving mindsets and behaviors can inform plan communication strategies, investment education programs, and recruitment efforts. Encouraging early and informed participation in retirement planning helps support the long-term sustainability of public pension systems.

Only 10% Reach the $1 Million Retirement Goal, New Data Shows

The Story

A recent analysis featured on MSN explores how many Americans actually reach the milestone of saving $1 million for retirement. Despite this often-cited benchmark for a "comfortable retirement," the data shows that only about 10% of retirement savers hit that goal. The article examines why this threshold is difficult to achieve, citing factors like rising living costs, inconsistent saving habits, lack of financial literacy, and access to retirement plans. It also discusses how much people may realistically need based on lifestyle and location. 

Why It Matters

This story highlights public pensions' critical role in providing financial stability for retirees who may not have the means or tools to save $1 million on their own. For Texas public pension trustees and administrators, it underscores the value of maintaining strong, defined benefit plans that provide guaranteed lifetime income, especially as many workers struggle to reach personal retirement savings goals. It also reinforces the importance of retirement education and access to complementary savings options like deferred compensation plans.

Innovative Ideas for Building Generational Wealth Take Center Stage

The Story

The EBRI-Milken Institute Retirement Symposium, held on March 11, 2025, featured discussions on innovative strategies for generational wealth growth. The "Working and Saving for the Generations Ahead" panel introduced several forward-thinking financial initiatives, including:

• The Beta Baby Bonus: A program by Prudential Financial that grants a $150 investment bonus to each eligible child born on January 1, 2025. With compounding growth, this investment could reach $100,000 by age 70.
• New Mexico Baby Bond Program: A legislative proposal to provide $7,000 at birth for children born from July 1, 2025 to 2060, to support education, homeownership, entrepreneurship, and retirement.
• Invest America Account: A proposed universal $1,000 investment grant for every newborn American child, invested in a broad-based equity index fund. Projections suggest the amount could grow to $574,000 after 60 years. 

Why It Matters

These programs signal a growing policy and financial industry focus on lifelong wealth accumulation, which could influence future discussions on retirement security and pension funding. It is important for Texas public pension trustees and administrators to monitor these trends, as they could impact retirement planning behaviors, financial literacy efforts, and policy advocacy. Early investment strategies could complement existing pension structures and help future generations build long-term financial security.

Explore Trends at the 2025 Institutional Summer Retreat in Utah

The Story

The Institutional Summer Retreat, hosted by Markets Group, will be held July 14–16, 2025, at The St. Regis Deer Valley in Park City, Utah. This inaugural national event brings together 75 top institutional investment leaders, including chief investment officers and senior investment staff from public and corporate pension plans, endowments, foundations, insurance funds, and healthcare systems. Built on insights from 15 years of regional events, the retreat will feature high-level discussions, networking opportunities, award ceremonies, and expert panels.

Key topics on the agenda include:

• Asset Allocation in 2025 and Beyond
• Institutional Uses of ETFs
• Reassessing Fixed Income
• Private Credit's Expanding Role
• Alternative Investments as Return Generators
• Infrastructure Investing, DEI, Emerging Markets, and More

Why It Matters

This retreat offers Texas public pension trustees and administrators a valuable opportunity to gain insights into cutting-edge investment strategies, connect with peers nationwide, and explore practical solutions for navigating today's complex economic landscape. With sessions focused on evolving portfolio construction, inflation hedging, private markets, and leadership in times of disruption, the event is a rich resource for those managing public retirement fund assets in a rapidly changing world.

Slower Retail Growth Signals Potential Consumer Fatigue

The Story

According to a recent U.S. Department of Commerce report, retail sales rose by just 0.2% in February 2025, falling short of economists' expectations. The modest growth follows a stronger January increase and suggests that consumer spending may be slowing. Core retail sales, which exclude autos, gasoline, building materials, and food services, rose only 0.3%, signaling a potential cooling in consumer demand amid persistent inflation and high interest rates. 

Why It Matters

For TEXPERS members managing public pension funds, slower retail sales could be an early indicator of economic deceleration, impacting investment returns and fiscal policy outlooks. Consumer spending drives a significant portion of the U.S. economy, so a shift in behavior may influence equity markets, inflation forecasts, and Federal Reserve decision-making—all of which are important for asset allocation and long-term pension planning. Monitoring these trends helps trustees and administrators stay ahead of potential market shifts.

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