LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION May 11, 2011 TO: Honorable Joe Straus, Speaker of the House, House of Representatives FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1061 by Otto (Relating to the expiration of certain investment authority of the Teacher Retirement System of Texas.), As Passed 2nd House No fiscal implication to the State is anticipated. The bill would extend the statutory expiration date from September, 2012 to September, 2019 for use of external managers and would re-authorize the TRS board of trustees to delegate investment authority over a portion of the assets of the Retirement Trust Fund to external managers. According to the agency, the bill would provide more flexibility with the TRS investment portfolio and increase the likelihood of TRS achieving a higher rate of return. The bill would increase the allowable amount that the Teacher Retirement System (TRS) can invest in hedge funds to not more than 10 percent of the total investment portfolio. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JOB, KJG, AG, JGM, JW
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
May 11, 2011
TO: Honorable Joe Straus, Speaker of the House, House of Representatives FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1061 by Otto (Relating to the expiration of certain investment authority of the Teacher Retirement System of Texas.), 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: HB1061 by Otto (Relating to the expiration of certain investment authority of the Teacher Retirement System of Texas.), 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
HB1061 by Otto (Relating to the expiration of certain investment authority of the Teacher Retirement System of Texas.), As Passed 2nd House
HB1061 by Otto (Relating to the expiration of certain investment authority of the Teacher Retirement System of Texas.), As Passed 2nd House
No fiscal implication to the State is anticipated.
No fiscal implication to the State is anticipated.
The bill would extend the statutory expiration date from September, 2012 to September, 2019 for use of external managers and would re-authorize the TRS board of trustees to delegate investment authority over a portion of the assets of the Retirement Trust Fund to external managers. According to the agency, the bill would provide more flexibility with the TRS investment portfolio and increase the likelihood of TRS achieving a higher rate of return. The bill would increase the allowable amount that the Teacher Retirement System (TRS) can invest in hedge funds to not more than 10 percent of the total investment portfolio.
The bill would increase the allowable amount that the Teacher Retirement System (TRS) can invest in hedge funds to not more than 10 percent of the total investment portfolio.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JOB, KJG, AG, JGM, JW
JOB, KJG, AG, JGM, JW