TX SB2065

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

Establishes the "legacy liability" as the total unfunded actuarial accrued liability determined as of August 31, 2024, using a 7% assumed investment return rate, and requires the state to make payments sufficient to fully amortize this liability by fiscal year ending August 31, 2055

Creates new definitions for liability layers, including "liability gain layers" (decreasing unfunded liability) and "liability loss layers" (increasing unfunded liability), with specific amortization periods assigned to each

Requires the pension system to provide the Legislative Budget Board with the actuarially determined payment amount before each legislative session, and mandates inclusion of this payment in the general appropriations bill

Prohibits state contributions from funding supplemental payments or annuity increases elected by participating departments under Section 864.0135, requiring those costs to be covered by the governing body of the associated political subdivision