LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 6, 2021 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB288 by Seliger (Relating to preventing the loss of benefits by certain retirees of the Teacher Retirement System of Texas who resume service.), As Introduced No significant fiscal implication to the State is anticipated. The bill provides if the Teacher Retirement System (TRS) determines that a retiree who has returned to work is in violation of employment after retirement (EAR) laws and rules, TRS shall first provide a written warning regarding the consequences of further employment that exceeds EAR limitations. After that if the retiree is still in violation, TRS shall provide notice to the retiree and either require the retiree to pay a prorated amount of their annuity that is attributable to when the violation occurred or pay TRS the difference between the amount of hours the retiree was permitted to work and the amount of hours the retiree actually worked. If the retiree is still in violation after the second notice, TRS may withhold the entire monthly annuity. This analysis assumes that the provisions of the bill could be absorbed by TRS using existing resources.According to the actuarial impact statement provided by the Pension Review Board, it is unlikely the bill would have an impact on the actuarial soundness of TRS. 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, KK, AH, RSTE
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 6, 2021
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB288 by Seliger (Relating to preventing the loss of benefits by certain retirees of the Teacher Retirement System of Texas who resume service.), As Introduced
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB288 by Seliger (Relating to preventing the loss of benefits by certain retirees of the Teacher Retirement System of Texas who resume service.), As Introduced
Honorable Jane Nelson, Chair, Senate Committee on Finance
Honorable Jane Nelson, Chair, Senate Committee on Finance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB288 by Seliger (Relating to preventing the loss of benefits by certain retirees of the Teacher Retirement System of Texas who resume service.), As Introduced
SB288 by Seliger (Relating to preventing the loss of benefits by certain retirees of the Teacher Retirement System of Texas who resume service.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill provides if the Teacher Retirement System (TRS) determines that a retiree who has returned to work is in violation of employment after retirement (EAR) laws and rules, TRS shall first provide a written warning regarding the consequences of further employment that exceeds EAR limitations. After that if the retiree is still in violation, TRS shall provide notice to the retiree and either require the retiree to pay a prorated amount of their annuity that is attributable to when the violation occurred or pay TRS the difference between the amount of hours the retiree was permitted to work and the amount of hours the retiree actually worked. If the retiree is still in violation after the second notice, TRS may withhold the entire monthly annuity. This analysis assumes that the provisions of the bill could be absorbed by TRS using existing resources.According to the actuarial impact statement provided by the Pension Review Board, it is unlikely the bill would have an impact on the actuarial soundness of TRS.
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, KK, AH, RSTE
JMc, KK, AH, RSTE