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Bill

Bill

HB 572

Relating to the purchase of military service credit in the Employees Retirement System of Texas.

89th Legislature (2025) Introduced by Cecil Bell

Allows Texas state employees to purchase military service credit toward ERS retirement benefits, potentially accelerating retirement eligibility for veteran hires.

Referred to Pensions, Investments & Financial Services
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Bill Summary · HB 572

Legislative bill overview

HB 572 allows members of the Employees Retirement System of Texas (ERS) to purchase credit for military service time toward their retirement benefits. This would enable eligible employees to count prior military service years as if they were ERS service years, potentially accelerating eligibility for retirement and increasing benefit calculations.

Why is this important

Military service buyback programs affect retirement security for veterans transitioning to state employment. This change could make state jobs more attractive to military veterans and reduce the financial penalty for those who served before joining the civil service workforce.

Potential points of contention

  • Fiscal impact on ERS: Allowing service credit purchases reduces the years employees must contribute to the system, potentially increasing long-term liabilities and affecting the pension fund's solvency
  • Cost fairness: Employees who didn't serve in the military may view this as preferential treatment or question why they subsidize others' expedited retirement timelines
  • Payment structure: Unclear whether the bill specifies what employees must pay to purchase this credit and whether payments are actuarially sound to cover the true cost
  • Administrative burden: The ERS would need systems to verify military service and process additional transactions

Compiled from official sources — confirm details with the bill’s official record.

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