LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION March 30, 2021 TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3898 by Anchia (Relating to the funding of public retirement systems.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Government Code to enhance funding policy and funding soundness restoration plan requirements for certain public retirement systems. According to the Pension Review Board, the Teacher Retirement System, and the Employees Retirement System, no significant fiscal impact is anticipated from the provisions of the bill. According to the Actuarial Impact Statement provided by the Pension Review Board, the bill would have a positive actuarial effect on the retirement systems to the extent that those systems and their sponsoring entities adopt and adhere to a funding policy that is actuarially sound. Local Government ImpactAccording to the Pension Review Board, a local retirement system and its associated governmental entity may incur administrative costs associated with providing the aggregate analyses of changes made to an original or revised funding soundness restoration plan. The bill allows the associated governmental entity to pay all or part of the costs of these analyses. Source Agencies: b > td > 323 Teacher Retirement System, 327 Employees Retirement System, 338 Pension Review Board LBB Staff: b > td > JMc, AAL, LCO, JPO
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
March 30, 2021
TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3898 by Anchia (Relating to the funding of public retirement systems.), As Introduced
TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3898 by Anchia (Relating to the funding of public retirement systems.), As Introduced
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
HB3898 by Anchia (Relating to the funding of public retirement systems.), As Introduced
HB3898 by Anchia (Relating to the funding of public retirement systems.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend the Government Code to enhance funding policy and funding soundness restoration plan requirements for certain public retirement systems. According to the Pension Review Board, the Teacher Retirement System, and the Employees Retirement System, no significant fiscal impact is anticipated from the provisions of the bill. According to the Actuarial Impact Statement provided by the Pension Review Board, the bill would have a positive actuarial effect on the retirement systems to the extent that those systems and their sponsoring entities adopt and adhere to a funding policy that is actuarially sound.
Local Government Impact
According to the Pension Review Board, a local retirement system and its associated governmental entity may incur administrative costs associated with providing the aggregate analyses of changes made to an original or revised funding soundness restoration plan. The bill allows the associated governmental entity to pay all or part of the costs of these analyses.
Source Agencies: b > td > 323 Teacher Retirement System, 327 Employees Retirement System, 338 Pension Review Board
323 Teacher Retirement System, 327 Employees Retirement System, 338 Pension Review Board
LBB Staff: b > td > JMc, AAL, LCO, JPO
JMc, AAL, LCO, JPO