Relating to the Texas Emergency Services Retirement System.

Contracts

• Volunteer Service Agreements: You must amend volunteer agreements to align with the new statutory definition in Section 861.001(12-a). Agreements must explicitly state services are performed for "civic, charitable, or humanitarian reasons" and confirm the individual is not subject to FLSA compensation requirements.
• Stipend Policies: Review stipend structures. If payments resemble hourly wages rather than nominal reimbursement, the individual may be legally disqualified from the pension system under the new strict definitions.

Hiring/Training

• Roster Classification: HR and Command Staff must audit current personnel rosters to segregate "Volunteers" (strictly defined) from "Employees." Misclassification now carries a higher risk of pension disqualification.

Reporting & Record-Keeping

• Actuarial Cost Certification: Before placing a benefit increase on a meeting agenda, you must obtain and file an actuarial estimate proving the department can cover 100% of the cost.
• State Board Approval Filings: A new workflow is required to submit requests for supplemental payments to the TESRS Board. These filings will likely be required months in advance of the intended payment date.

Fees & Costs

• 100% Local Liability for Enhancements: The law prohibits the use of state contributions to fund optional annuity increases. If your department approves a "13th check," you must budget for the full actuarial cost of that payment.
• Segregated Funds: Departments must prepare to segregate funds specifically for "local liability layers" separate from the general state-subsidized contribution.