LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 15, 2021 TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4368 by Rodriguez (Relating to the administration of certain municipal police retirement systems.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend Vernon's Civil Statutes to make changes to the benefits and financing structure of the Austin Police Retirement System (APRS). According to the actuarial impact statement provided by the Pension Review Board (PRB), if the bill were enacted, the long-term cost of the retirement system would be reduced, and the contribution changes would move the system from an infinite amortization period to an effective amortization period of 31 years. No significant impact to state agencies is anticipated from the provisions of the bill. Local Government ImpactThe City of Austin estimates a fiscal impact of approximately $14.0 million growing 3% annually (to cover the legacy liability) with the possibility to grow by another 5% to the maximum of the corridor (or approximately $9.5M). Source Agencies: b > td > 338 Pension Review Board LBB Staff: b > td > JMc, AAL, LCO, JPO, AF
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 15, 2021
TO: Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4368 by Rodriguez (Relating to the administration of certain municipal police 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: HB4368 by Rodriguez (Relating to the administration of certain municipal police 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
HB4368 by Rodriguez (Relating to the administration of certain municipal police retirement systems.), As Introduced
HB4368 by Rodriguez (Relating to the administration of certain municipal police 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 Vernon's Civil Statutes to make changes to the benefits and financing structure of the Austin Police Retirement System (APRS). According to the actuarial impact statement provided by the Pension Review Board (PRB), if the bill were enacted, the long-term cost of the retirement system would be reduced, and the contribution changes would move the system from an infinite amortization period to an effective amortization period of 31 years. No significant impact to state agencies is anticipated from the provisions of the bill.
Local Government Impact
The City of Austin estimates a fiscal impact of approximately $14.0 million growing 3% annually (to cover the legacy liability) with the possibility to grow by another 5% to the maximum of the corridor (or approximately $9.5M).
Source Agencies: b > td > 338 Pension Review Board
338 Pension Review Board
LBB Staff: b > td > JMc, AAL, LCO, JPO, AF
JMc, AAL, LCO, JPO, AF