LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 15, 2009 TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3634 by Geren ( Relating to creditable service in the Employees Retirement System of Texas and the transfer of that credit between classes of membership for certain state employees.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would add Section 813.201(d) and 813.503(e) to the Government Code and amend Section 813.503(a) of the Government Code to require that the members or retirees of the elected class who served in the House of Representatives and who hold a position as an employee of the House of Representatives may accrue service credit for that position only if they are a full-time employee working 40 or more hours a week. Additionally, these members or retirees may transfer service credit between the employee and elected classes only if the service credited in the employee class was as a full-time employee. The bill would take effect September 1, 2009, or immediately upon a two-thirds vote of all members of each house. The Employees Retirement System (ERS) has determined that the bill's provisions would only affect two people, and would have no impact on the projected funded ratio, actuarially sound contribution rate or normal cost rate. The ERS actuary for pension matters reports that no additional state contributions will be required as a result of the bill's provisions. The actuary reports that the bill would result in a small decrease in the unfunded accrued liability. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:327 Employees Retirement System LBB Staff: JOB, JRO, MS, DEH
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 15, 2009
TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB3634 by Geren ( Relating to creditable service in the Employees Retirement System of Texas and the transfer of that credit between classes of membership for certain state employees.), Committee Report 1st House, Substituted
TO: Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB3634 by Geren ( Relating to creditable service in the Employees Retirement System of Texas and the transfer of that credit between classes of membership for certain state employees.), Committee Report 1st House, Substituted
Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB3634 by Geren ( Relating to creditable service in the Employees Retirement System of Texas and the transfer of that credit between classes of membership for certain state employees.), Committee Report 1st House, Substituted
HB3634 by Geren ( Relating to creditable service in the Employees Retirement System of Texas and the transfer of that credit between classes of membership for certain state employees.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would add Section 813.201(d) and 813.503(e) to the Government Code and amend Section 813.503(a) of the Government Code to require that the members or retirees of the elected class who served in the House of Representatives and who hold a position as an employee of the House of Representatives may accrue service credit for that position only if they are a full-time employee working 40 or more hours a week. Additionally, these members or retirees may transfer service credit between the employee and elected classes only if the service credited in the employee class was as a full-time employee. The bill would take effect September 1, 2009, or immediately upon a two-thirds vote of all members of each house. The Employees Retirement System (ERS) has determined that the bill's provisions would only affect two people, and would have no impact on the projected funded ratio, actuarially sound contribution rate or normal cost rate. The ERS actuary for pension matters reports that no additional state contributions will be required as a result of the bill's provisions. The actuary reports that the bill would result in a small decrease in the unfunded accrued liability.
The bill would add Section 813.201(d) and 813.503(e) to the Government Code and amend Section 813.503(a) of the Government Code to require that the members or retirees of the elected class who served in the House of Representatives and who hold a position as an employee of the House of Representatives may accrue service credit for that position only if they are a full-time employee working 40 or more hours a week. Additionally, these members or retirees may transfer service credit between the employee and elected classes only if the service credited in the employee class was as a full-time employee.
The bill would take effect September 1, 2009, or immediately upon a two-thirds vote of all members of each house.
The Employees Retirement System (ERS) has determined that the bill's provisions would only affect two people, and would have no impact on the projected funded ratio, actuarially sound contribution rate or normal cost rate. The ERS actuary for pension matters reports that no additional state contributions will be required as a result of the bill's provisions. The actuary reports that the bill would result in a small decrease in the unfunded accrued liability.
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, JRO, MS, DEH
JOB, JRO, MS, DEH