TITLE 34. PUBLIC FINANCE
PART 4. EMPLOYEES RETIREMENT SYSTEM OF TEXAS
CHAPTER 63. BOARD OF TRUSTEES
34 TAC §63.9, §63.13The Employees Retirement System of Texas (ERS) proposes amendments to 34 Texas Administrative Code (TAC) Chapter 63, concerning Board of Trustees, by amending §63.9 (Officers) and §63.13 (Committees).
ERS administers a constitutional trust fund and was established by the Texas Constitution, as currently set forth in Tex. Const. art. XVI, §67, and further organized pursuant to Title 8, Tex. Gov't Code, as well as 34 Texas Administrative Code, §§61.1 et seq.
Amendments are proposed for §63.9 and §63.13 in order to reduce the number of officer positions for the ERS Board of Trustees. Currently, three of the Board's six members serve as officers, and one of the officers (the Vice Chair) rarely performs any duties. If the amendments are adopted, the Chair of the Board and the Chair of the Internal Audit Committee will be the only officer positions, with the Chair of the Internal Audit Committee acting as the presiding member in the Board Chair's absence.
GOVERNMENT GROWTH IMPACT STATEMENT
ERS has determined that during the first five-year period the amended rules will be in effect:
(1) the proposed amendments will not create or eliminate a government program;
(2) implementation of the proposed amendments will not require the creation of new employee positions or eliminate existing employee positions;
(3) implementation of the proposed amendments will not require an increase or decrease in future legislative appropriations to the agency;
(4) the proposed amendments will not require an increase or decrease in fees paid to the agency;
(5) the proposed amendments will not create a new rule or regulation;
(6) the proposed amendments will not expand, limit, or repeal an existing rule or regulation;
(7) the proposed amendments will not increase or decrease the number of individuals subject to the rules' applicability; and
(8) the proposed amendments will not positively or adversely affect the state's economy.
Ms. Jennifer Chambers, Deputy Executive Director, has determined that for the first five-year period the amended rules are in effect, there will be no fiscal implication for state or local government or local economies as a result of enforcing or administering the rules; and small businesses, micro-businesses, and rural communities will not be affected.
The proposed amendments do not constitute a taking. Ms. Chambers has also determined that, to her knowledge, there are no known anticipated economic effects for persons who are required to comply with the amendments as proposed, and the proposed amendments do not impose a cost on regulated persons.
Ms. Chambers also determined that for each year of the first five years the amended rules are in effect, the public benefit anticipated as a result of adopting and complying with the rules would be that the organizational structure of the Board would better reflect the Board's small size. Because agency staff are responsible for the duties typically assigned to a board's secretary and treasurer, the Board does not need more than two officers.
Comments on the proposed amendments may be submitted to Cynthia C. Hamilton, General Counsel, Employees Retirement System of Texas, P.O. Box 13207, Austin, Texas 78711-3207, or you may email Ms. Hamilton at General.Counsel@ers.texas.gov. The deadline for receiving comments is Monday, August 24, 2026, at 10:00 a.m.
The amendments are proposed under Tex. Gov't Code §815.102, which provides authorization for the ERS Board of Trustees to adopt rules necessary for the administration of the funds of the retirement system and regarding the transaction of any other business of the Board.
No other statutes are affected by the proposed amendments.
§63.9.
At the last regularly scheduled board meeting each year, the board shall elect a chair [and vice chair] who shall take office the following September 1. The chair or the internal audit committee [vice] chair, in the chair's absence, shall preside at meetings of the board.
§63.13.
The internal audit committee shall be considered a standing committee, and members, including a committee chair, shall be appointed by the board chair at the beginning of each year. The board chair shall designate additional ad hoc committees as necessary. The term of an ad hoc committee shall be for the year in which the ad hoc committee is appointed or until the work of the ad hoc committee is completed if within the year.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on July 13, 2026.
TRD-202602861
Cynthia C. Hamilton
General Counsel and Chief Compliance Officer
Employees Retirement System of Texas
Earliest possible date of adoption: August 23, 2026
For further information, please call: (877) 275-4377