The Employees Retirement System of Texas (ERS) offers retirement benefits, health insurance, and other benefits to employees of Texas state agencies and some universities and colleges. It serves over 500,000 active and retired employees, including state officials, law enforcement personnel, and judicial employees.
The benefits programs are funded in part by participating members, in part by the state, and in part by investment earnings. Employees and the state contribute roughly equal percentages of employee salaries to the ERS Retirement Trust Fund.
ERS manages assets worth about $29 billion. Returns on these investments are the main source of funding for state retirement benefits. The agency follows a diversified investment strategy that includes domestic and international equities, fixed income, private equity, and real estate to ensure long-term financial stability.
State employees are required to participate in an ERS retirement plan. They may also participate in optional benefit programs offered by the agency, like dental insurance, vision insurance, and life insurance. Additional voluntary benefits include disability insurance, TexFlex flexible spending accounts, and short-term and long-term care insurance.
The state retirement plan is a defined benefit plan. That means that when an employee chooses to retire after reaching eligibility, the employee will get a monthly payment (or annuity) for the rest of his or her life.
An employee’s eligibility to retire and the amount of the annuity depend on the employee’s hire date, years of service, age, and salary. An employee’s eligibility to retire and the amount of the annuity depend on the employee’s hire date, years of service, age, and salary.
The Employees Retirement System of Texas is overseen by a six-member board of trustees. Three trustees are appointed, one each by the Governor, Speaker of the Texas House of Representatives, and Chief Justice of the Texas Supreme Court. The other three members are elected by ERS members and retirees (current and former state employees).
The trustees serve six-year terms. The ERS chair and vice-chair are selected annually during a quarterly board meeting by standing board members. The board is responsible for policy decisions, investment oversight, and ensuring the long-term sustainability of the retirement fund.
ERS was created in 1947 and is headquartered at 200 E. 18th Street in Austin (map).
