LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 13, 2021 TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3214 by Capriglione (relating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. However, there would be an impact to the Teacher Retirement System which could impact the actuarial soundness of the fund. The bill would provide an increase in the monthly annuity for most categories of members in payment status as of August 31, 2019. The amount of the increase is the lessor of 6% of the annuitant's monthly benefit or $100 per month.According to the Actuarial Impact Statement completed by the Pension Review Board, the Teacher Retirement System (TRS) is currently actuarially sound, with an amortization period of 26 years. TRS statute defines actuarial soundness, for purposes of making modifications to benefit and contribution levels, as no more than 31 years. The projected funding period for TRS would increase to 29 years following the passage of this bill. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 323 Teacher Retirement System, 338 Pension Review Board LBB Staff: b > td > JMc, AAL, AH, RSTE
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 13, 2021
TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3214 by Capriglione (relating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas.), Committee Report 1st House, Substituted
TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3214 by Capriglione (relating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas.), Committee Report 1st House, Substituted
Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB3214 by Capriglione (relating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas.), Committee Report 1st House, Substituted
HB3214 by Capriglione (relating to a cost-of-living adjustment applicable to certain benefits paid by the Teacher Retirement System of Texas.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated. However, there would be an impact to the Teacher Retirement System which could impact the actuarial soundness of the fund.
No significant fiscal implication to the State is anticipated. However, there would be an impact to the Teacher Retirement System which could impact the actuarial soundness of the fund.
The bill would provide an increase in the monthly annuity for most categories of members in payment status as of August 31, 2019. The amount of the increase is the lessor of 6% of the annuitant's monthly benefit or $100 per month.According to the Actuarial Impact Statement completed by the Pension Review Board, the Teacher Retirement System (TRS) is currently actuarially sound, with an amortization period of 26 years. TRS statute defines actuarial soundness, for purposes of making modifications to benefit and contribution levels, as no more than 31 years. The projected funding period for TRS would increase to 29 years following the passage of this bill.
According to the Actuarial Impact Statement completed by the Pension Review Board, the Teacher Retirement System (TRS) is currently actuarially sound, with an amortization period of 26 years. TRS statute defines actuarial soundness, for purposes of making modifications to benefit and contribution levels, as no more than 31 years. The projected funding period for TRS would increase to 29 years following the passage of this bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 323 Teacher Retirement System, 338 Pension Review Board
323 Teacher Retirement System, 338 Pension Review Board
LBB Staff: b > td > JMc, AAL, AH, RSTE
JMc, AAL, AH, RSTE