TX HB4736

Redefines "actuarially sound" for the Texas Emergency Services Retirement System to require amortizing unfunded actuarial accrued liability within 15 years of valuation or by September 1, 2055, whichever is later, replacing the previous 30-year standard

Establishes new definitions for liability layers, including "legacy liability" (unfunded liability as of August 31, 2024, using 7% assumed investment return), "liability gain layers," and "liability loss layers" to track changes in unfunded liabilities over time

Requires the state to make actuarially determined payments sufficient to amortize the pension system's legacy liability by fiscal year ending August 31, 2055, removing the previous cap limiting state contributions to one-third of total governing body contributions

Mandates the pension system provide the Legislative Budget Board with required actuarially determined payment amounts before each regular session for inclusion in the general appropriations bill, with this requirement expiring September 1, 2057

Prohibits state contributions from funding optional supplemental payments or annuity increases, requiring participating departments' governing bodies to cover those costs directly