LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION April 6, 2011 TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1612 by Ogden (Relating to the monitoring, oversight, and funding of certain public retirement systems.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would amend Section 801.203 by adding Subsections (c), (d), and (e) to make the Pension Review Board (PRB) responsible for preparing an annual report on the performance of each public retirement system that administers a defined benefit plan and has total assets of at least $100 million and publish the reports on the PRB's Internet website. The bill would also amend Section 802.1013 to allow the PRB to request an actuarial experience study be performed by a public retirement system for a plan year. The PRB would not be able to request more than one study be performed every five years. The bill would repeal Chapter 107 of Local Government Code, which authorizes the use of pension obligation bonds. This repeal would not affect the validity of an obligation, nor would it diminish the rights of a holder of an obligation of a municipality issued before the effective date of the legislation. It is anticipated that any additional costs associated with implementation of the legislation could be absorbed within existing resources. The bill would take effect on September 1, 2011. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:327 Employees Retirement System, 338 Pension Review Board LBB Staff: JOB, KJG, MS, DEH, KKR
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
April 6, 2011
TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB1612 by Ogden (Relating to the monitoring, oversight, and funding of certain public retirement systems.), Committee Report 1st House, Substituted
TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB1612 by Ogden (Relating to the monitoring, oversight, and funding of certain public retirement systems.), Committee Report 1st House, Substituted
Honorable Robert Duncan, Chair, Senate Committee on State Affairs
Honorable Robert Duncan, Chair, Senate Committee on State Affairs
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
SB1612 by Ogden (Relating to the monitoring, oversight, and funding of certain public retirement systems.), Committee Report 1st House, Substituted
SB1612 by Ogden (Relating to the monitoring, oversight, and funding of certain public retirement systems.), 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 amend Section 801.203 by adding Subsections (c), (d), and (e) to make the Pension Review Board (PRB) responsible for preparing an annual report on the performance of each public retirement system that administers a defined benefit plan and has total assets of at least $100 million and publish the reports on the PRB's Internet website. The bill would also amend Section 802.1013 to allow the PRB to request an actuarial experience study be performed by a public retirement system for a plan year. The PRB would not be able to request more than one study be performed every five years. The bill would repeal Chapter 107 of Local Government Code, which authorizes the use of pension obligation bonds. This repeal would not affect the validity of an obligation, nor would it diminish the rights of a holder of an obligation of a municipality issued before the effective date of the legislation. It is anticipated that any additional costs associated with implementation of the legislation could be absorbed within existing resources. The bill would take effect on September 1, 2011.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 327 Employees Retirement System, 338 Pension Review Board
327 Employees Retirement System, 338 Pension Review Board
LBB Staff: JOB, KJG, MS, DEH, KKR
JOB, KJG, MS, DEH, KKR