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Texas legislature passes anti-ESG bill
If the governor signs the bill, the state s six public pension funds would be prohibited from investing in financial products that boycott energy companies.
May 28, 2021
A bill that would prevent Texas from investing in environmental, social, and governance financial products that boycott Texas energy companies has been passed by the state’s legislative bodies and awaits the signature of Republican Gov. Greg Abbott.
If enacted, the law would affect the state’s six pension funds, including the Employees Retirement System and the Teacher Retirement System of Texas, which manage over $200 billion.
Under the law, Texas’ public pension funds would be required to “sell, redeem, divest, or withdraw all publicly traded securities of [any] financial company” that “boycott[s] energy companies.” The bill defines “boycott[s] energy companies” as “refusing to deal with, terminating business activities with, or otherwise taking any a
Senate Bill 321 would enroll new state workers in a cash-balance plan similar to a common 401(k) retirement account rather than the defined-benefit pension plan that current employees have.
The Texas Legislature on Thursday finished work on a $248.6 billion, two-year state budget that lawmakers say keeps their 2019 promises to better fund.
Overhaul to Texas state government employees’ retirement accounts advanced by House
Texas Tribune
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The dome of the Texas Capitol on April 12, 2021. (JORDAN VONDERHAAR)
A major overhaul to Texas’ pension system for state employees advanced out of the Texas House on Wednesday, inching one step closer toward becoming law amid impending legislative deadlines.
Senate Bill 321, authored by state Sen. Joan Huffman, R-Houston, would enroll new state workers hired after Sept. 1, 2022, in a cash-balance plan similar to a common 401(k) retirement account rather than the defined-benefit pension plan that current employees have.
Traditional pensions are calculated based on a set formula that considers factors such as length of employment and salary history. The change would mean employees’ accounts would instead be credited with a set percentage of their annual compensation, plus interest. Opponents argue it could lead to diminished benefits.