TPX is using LSERV and setup as a Generic resource on two separate Lpars.
Load distribution / balancing was not being observed, between the two Lpars, defeating the purpose of 'load balancing' by using GR / CF facility.
Release : 5.4
Component: TPX for Z/OS
Detailed investigation identified that this was NOT a TPX deficiency, rather the 'TelnetParms active' in the two TN3270E server setup was the cause.
SYS1 was set as 'TelnetParms inactive' 0 and
SYS2 was set as 'TelnetParms inactive' to 3600
The purpose of these statements is to clean up sessions that are simply inactive.
If a terminal or printer SNA session is inactive for (x)hours, then the
TN3270E server ends both the TN3270E connection and the SNA session.
Note, that the activity only applies to communication occurring on the SNA session side of the TN3270E server.
Once both were set to 'inactive' 3600, load balancing was achieved as expected.
Verify that both TN3270E server's are setup with the same value for 'TelnetParms inactive' .