Monitoring the Session

HB 2434

bill lets state employees buy credit for their 90-day wait

Became law, effective Sep 1, 2025

Verdict: No flags

No flagsInitial review
Rep. Mihaela PlesaDHouse 70

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the purchase of service credit by certain members of the Employees Retirement System of Texas.

Caption from analyzed text · version I.

Summary

Even the months with no contribution.

The bill lets state employees in the Employees Retirement System buy service credit for each month of their 90-day waiting period, even months where they made no contribution. If a member buys credit for months before their latest hire date, the system treats their hire date as the first day of the earliest purchased month. The system must price these purchases so the fund takes no actuarial loss, and the change starts September 1, 2025.

Labels

Labels: BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 3254 by Rep. Burns (Did not pass). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.CROSS-PARTY HANDOFF. Lead author Mihaela Plesa (D) in the House. Lead sponsor Adam Hinojosa (R) in the Senate. Party as the Legislative Reference Library lists it for the 89th Legislature.ACROSS THE AISLE. Joint authors: 1 Republican, 1 Democrat. Party as the Legislative Reference Library lists it for the 89th Legislature.

Receipt

The receipt

89R-HB2434 · 2025-02-05

SOLD BY

ITEM

relating to the purchase of service credit by certain members of the Employees Retirement System of Texas.

WHAT IT DOES

Even the months with no contribution.

The bill lets state employees in the Employees Retirement System buy service credit for each month of their 90-day waiting period, even months where they made no contribution. If a member buys credit for months before their latest hire date, the system treats their hire date as the first day of the earliest purchased month. The system must price these purchases so the fund takes no actuarial loss, and the change starts September 1, 2025.

CHARGES

[ ] NONE FOUND

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 20, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Pensions, Investments & Financial Services
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Testimony taken/registration(s) recorded in committee
  7. Left pending in committee
  8. Considered in formal meeting
  9. Reported favorably w/o amendment(s)
  10. Comte report filed with Committee Coordinator
  11. Committee report distributed
  12. Committee report sent to Calendars
  13. Considered in Calendars
  14. Placed on General State Calendar
  15. Read 2nd time
  16. Passed to engrossment
  17. Record vote RV#2103
  18. Statement(s) of vote recorded in Journal
  19. Read 3rd time
  20. Passed
  21. Record vote RV#2139
  22. Statement(s) of vote recorded in Journal
  23. Reported engrossed
  24. Received from the House
  25. Read first time
  26. Referred to Finance
  27. Scheduled for public hearing on . . .
  28. Considered in public hearing
  29. Vote taken in committee
  30. Reported favorably w/o amendments
  31. Recommended for local & uncontested calendar
  32. Committee report printed and distributed
  33. Placed on intent calendar
  34. Rules suspended-Regular order of business
  35. Read 2nd time & passed to 3rd reading
  36. Vote recorded in Journal
  37. Three day rule suspended
  38. Record vote
  39. Read 3rd time
  40. Passed
  41. Record vote
  42. Senate passage reported
  43. Reported enrolled
  44. Signed in the House
  45. Signed in the Senate
  46. Sent to the Governor
  47. Signed by the Governor
  48. Effective on 9/1/25
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 145 yea · 1 nay

Senate · 31 yea · 0 nay

Sources

House: Final passage · May 12, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 23, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 27, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas REALTORS Political Action Committee$79,480.35

Texas REALTORS Political Action Committee

$79,480.35

Cash
$37,500.00
Paid by others
$41,980.35
Total
$79,480.35
mail $33,992.76digital $4,945.63text $2,016.96advertising $525.00fundraiser $500.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 31, 2024 to Oct 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101012300, 101032600, 101059513, 101069108, 101072533.

Texas Trial Lawyers Association PAC$55,000.00

Texas Trial Lawyers Association PAC

$55,000.00

Cash
$55,000.00
Paid by others
$0.00
Total
$55,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 11, 2024 to Sep 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101012300, 101032600, 101059513, 101069108.

TexBlue Media PAC$32,511.00

TexBlue Media PAC

$32,511.00

Cash
$0.00
Paid by others
$32,511.00
Total
$32,511.00
advertising $32,511.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · Sep 25, 2026 to Sep 27, 2026. State data as of Nov 4, 2026.

TEC account match.

Sources

Derived itemized flow · Sep 25, 2026 to Sep 27, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101072533.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas REALTORS Political Action Committee

$79,480.35

Cash
$37,500.00
Paid by others
$41,980.35
Total
$79,480.35
mail $33,992.76digital $4,945.63text $2,016.96advertising $525.00fundraiser $500.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 31, 2024 to Oct 20, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101012300, 101032600, 101059513, 101069108, 101072533.

×

Texas Trial Lawyers Association PAC

$55,000.00

Cash
$55,000.00
Paid by others
$0.00
Total
$55,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 11, 2024 to Sep 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101012300, 101032600, 101059513, 101069108.

×

TexBlue Media PAC

$32,511.00

Cash
$0.00
Paid by others
$32,511.00
Total
$32,511.00
advertising $32,511.00

Also funds 0 other sitting lawmakers.

Derived recipient stock · Sep 25, 2026 to Sep 27, 2026. State data as of Nov 4, 2026.

TEC account match.

Sources

Derived itemized flow · Sep 25, 2026 to Sep 27, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101072533.

Votes5

Senate May 23, 2025

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Sources

Senator A. Hinojosa moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that HB 2434 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 31, Nays 0. The bill was read third time and was passed by the following vote: Yeas 31, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 23, 2025

Yea
31
Nay
0
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Sources

Senator A. Hinojosa moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that HB 2434 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 31, Nays 0.

Published stock of positions for this vote, except where marked derived.

  • Yea: 31 (published)
  • Nay: 0 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 23, 2025

Yea
Not printed
Nay
Not printed
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Senate journal

Names were not printed. No individual positions are inferred.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

The bill was read second time and was passed to third reading by a viva voce vote.

Published stock of positions for this vote, except where marked derived.

  • Yea: Not printed
  • Nay: Not printed
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

House May 12, 2025

Yea
145
Nay
1
Present, not voting
1
Absent
0
Excused
3
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2139

HB 2434 was passed by (Record 2139): 145 Yeas, 1 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 145 (published)
  • Nay: 1 (published)
  • Present, not voting: 1 (published)
  • Absent: 0 (derived from named list)
  • Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 10, 2025

Yea
114
Nay
6
Present, not voting
1
Absent
7
Excused
22
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2103

HB 2434 was passed to engrossment by (Record 2103): 114 Yeas, 6 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 114 (published)
  • Nay: 6 (published)
  • Present, not voting: 1 (published)
  • Absent: 7 (derived from named list)
  • Excused: 22 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses10
For
8
Against
0
On
2
Names

For

  • Combined Law Enforcement Associations of Texas (CLEAT)2 registrations
  • Self4 registrations
  • Self; TPEA1 registration
  • Texas Public Employees Association1 registration

On

  • Employees Retirement System1 registration
  • Employees Retirement System of Texas1 registration
Sources

10 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 20, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 3254

by Rep. Burns, different lead author · Did not pass · same text

Introduced text

Last action, May 11, 2023: Placed on General State Calendar

Relating to the purchase of service credit by certain members of the Employees Retirement System of Texas.

Caption, 88R bill history

Sources

Texas House · Filed Feb 5, 2025

06/20/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · House Committee Report · Engrossed · Senate Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Sponsors

House committee · Pensions, Investments & Financial Services · Committee vote 6 aye, 0 nay, 3 absent · Out of committee

Senate committee · Finance · Committee vote 13 aye, 0 nay, 2 absent · Out of committee

Subjects

Retirement Systems--State Employees

EMPLOYEES RETIREMENT SYSTEM OF TEXAS (ERS)

Text

The text as introduced · 242 words

89R5565 JCG-D

By: Plesa
H.B. No. 2434

A BILL TO BE ENTITLED

AN ACT

relating to the purchase of service credit by certain members of the

Employees Retirement System of Texas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 813.514, Government Code, is amended by

amending Subsection (a-1) and adding Subsections (f) and (g) to

read as follows:

(a-1) A member may establish service credit under this

section in the employee class only for service performed during a

90-day waiting period to become a member after beginning employment

or holding office. The member may establish service credit for each

month of any 90-day waiting period in which the member performed

service, regardless of whether the member made a contribution

during the 90-day waiting period for which the member establishes

service credit.

(f) Notwithstanding any other provision of this subtitle,

if a member purchases service credit under this section for a month

that occurred before the member's most recent date of hiring, the

retirement system shall consider for purposes of this subtitle the

member's date of hiring to be the first day of the month of the

earliest month for which service credit is purchased under this

section.

(g) The retirement system shall compute the amount of the

deposit required by this section in a manner that does not result in

an actuarial loss to the retirement system.

SECTION 2. This Act takes effect September 1, 2025.