16-04-2025
City votes down support for HB 4591; change to law that deals with first responder's pension funds
EL PASO, Texas (KTSM) — During Tuesday's April 15 City Council meeting, city representatives voted to not approve an agenda item that would support how El Paso fire and police employees allocate pension fund contributions.
In a 7-1 vote, representatives struck down support for House Bill 4591, filed by state representative Mary González (D-Texas), that would essentially remove the requirement for voters to approve any increase to tax-funded contributions.
District 7 Lily Limon was the sole dissenting vote.
'This is a very well-run fund. That's not our concern as a city. Our concern is that right now, the only pathway for an increased contribution for this from the city, for the pension fund, is through the taxpayer. What this bill does is it creates an alternative pathway that council could unilaterally decide to increase the contribution without ever going to the taxpayer,' said Ian Voglewede, Director of Strategic and Legislative Affairs for the City of El Paso.
Currently, employees under the fund contribute 18 percent of their salaries to the pension fund and benefits. The City of El Paso matches that amount, also contributing 18 percent.
According to the presentation given by City staff, the El Paso Firemen and Policemen's Pension Fund (EPFPPF) was underfunded resulting in a $207 memorandum agreement being made in 2007. A tier 2 cost-of-living-adjustment (COLA) was also created with foundational safeguards that require any benefit increase to be supported by the existing funding status of the fund.
Under the current law, taxpayers have to vote before any new or increase in benefits are made. Under H.B. 4591 an increase can happen at any time regardless of the fund's health. Should the council vote to not increase the pension, the matter would be sent to an election which staff says could be costly.
The City said it supports first responders and respects their work but given its financial responsibility to constituents and the current economy, supporting H.B 4591 would not be in the taxpayer's best interest.
'This is a very, very well-run pension fund, but it still has significant money invested in the stock market. And so, some shock, like a tariff could send the stock market tumbling and damage to the performance of not just this fund, but all funds… We absolutely would want to be able to give them the full benefits. We just have to make sure that we can afford them first,' said Vogleweed.
The result of the discussions came as a disappointment to the board that oversees the pension fund and benefits.
'I feel there's some disagreement on what the bill does and how it acts when it comes to the voters. You know, fire and police welcome the voters who will go to the voters every time. As it stands now, it only goes to the voters if the city allows it to, or fire and police go to, and get signatures in order to have it placed on the ballot,' said Tyler Grossman, the Executive Director and Chief Financial Officer for the EPFPPF.
'The bill would allow flexibility for the city in order to raise contributions. We were hoping that they would add another tool in our toolbox in order to do so in the future, but unfortunately, they did not want to support this bill,' said Grossman who told council members he was not seeking more money or benefits.
The city said while they could not support the bill, they were not opposed to forming a work group to develop a framework for future legislation sessions.
The 2025 Texas Legislative session ends June 2. At this time, Rep. González's H.B. 4591 has not had a hearing scheduled. KTSM reached out to her office for a statement but has not received one by the time of publication.
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