LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION Revision 1 May 20, 2009 TO: Honorable Joe Straus, Speaker of the House, House of Representatives FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2283 by Truitt (Relating to increasing state employee participation in the TexaSaver program.), As Passed 2nd House No significant fiscal implication to the State is anticipated. The bill would implement recommendations from the Legislative Budget Board's 2009 Government Effectiveness and Efficiency Report entitled "Increase the Employee Participation in the TexaSaver Program." The bill would make changes to the TexaSaver Program, the 401(k) and 457 plans offered to state employees for voluntary retirement savings. Changes made by this bill include permitting the Employees Retirement System (ERS) to add a Roth 401(k), permitting ERS to add a Roth 457 when permissible under federal law, and permitting an employer match within the 401(k) plan subject to a separate legislative appropriation. The Employees Retirement System estimates that there would be an administrative cost to the agency to make the program changes related to adding a Roth plan option. The TexaSaver Program is funded by monthly participant fees. To add a Roth plan option would require fees by the participants selecting this option. Additional costs to the state would be incurred if the Legislature appropriates funds for an employer match for the 401(k) plan. The employer matching amount, if offered, would be determined by a separate, specific appropriation level, and is not set to a certain amount by this bill. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:327 Employees Retirement System LBB Staff: JOB, SD, KJG, JI, JJO, JRO
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
Revision 1
May 20, 2009
Revision 1
Revision 1
TO: Honorable Joe Straus, Speaker of the House, House of Representatives FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2283 by Truitt (Relating to increasing state employee participation in the TexaSaver program.), As Passed 2nd House
TO: Honorable Joe Straus, Speaker of the House, House of Representatives
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB2283 by Truitt (Relating to increasing state employee participation in the TexaSaver program.), As Passed 2nd House
Honorable Joe Straus, Speaker of the House, House of Representatives
Honorable Joe Straus, Speaker of the House, House of Representatives
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB2283 by Truitt (Relating to increasing state employee participation in the TexaSaver program.), As Passed 2nd House
HB2283 by Truitt (Relating to increasing state employee participation in the TexaSaver program.), As Passed 2nd House
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would implement recommendations from the Legislative Budget Board's 2009 Government Effectiveness and Efficiency Report entitled "Increase the Employee Participation in the TexaSaver Program." The bill would make changes to the TexaSaver Program, the 401(k) and 457 plans offered to state employees for voluntary retirement savings. Changes made by this bill include permitting the Employees Retirement System (ERS) to add a Roth 401(k), permitting ERS to add a Roth 457 when permissible under federal law, and permitting an employer match within the 401(k) plan subject to a separate legislative appropriation. The Employees Retirement System estimates that there would be an administrative cost to the agency to make the program changes related to adding a Roth plan option. The TexaSaver Program is funded by monthly participant fees. To add a Roth plan option would require fees by the participants selecting this option. Additional costs to the state would be incurred if the Legislature appropriates funds for an employer match for the 401(k) plan. The employer matching amount, if offered, would be determined by a separate, specific appropriation level, and is not set to a certain amount by this bill.
The bill would implement recommendations from the Legislative Budget Board's 2009 Government Effectiveness and Efficiency Report entitled "Increase the Employee Participation in the TexaSaver Program." The bill would make changes to the TexaSaver Program, the 401(k) and 457 plans offered to state employees for voluntary retirement savings. Changes made by this bill include permitting the Employees Retirement System (ERS) to add a Roth 401(k), permitting ERS to add a Roth 457 when permissible under federal law, and permitting an employer match within the 401(k) plan subject to a separate legislative appropriation.
The Employees Retirement System estimates that there would be an administrative cost to the agency to make the program changes related to adding a Roth plan option. The TexaSaver Program is funded by monthly participant fees. To add a Roth plan option would require fees by the participants selecting this option.
Additional costs to the state would be incurred if the Legislature appropriates funds for an employer match for the 401(k) plan. The employer matching amount, if offered, would be determined by a separate, specific appropriation level, and is not set to a certain amount by this bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 327 Employees Retirement System
327 Employees Retirement System
LBB Staff: JOB, SD, KJG, JI, JJO, JRO
JOB, SD, KJG, JI, JJO, JRO