LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION March 14, 2023 TO: Honorable Giovanni Capriglione, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1393 by Frank (Relating to an optional service retirement annuity of the Employees Retirement System of Texas.), As Introduced No significant fiscal implication to the State is anticipated. The bill would allow a member of the Employees Retirement System (ERS) pension plan who is eligible for an unreduced service retirement annuity the ability to select a service retirement annuity option that provides for cost-of-living adjustments. ERS would provide the periodic increases by reducing benefits at the beginning of the member's retirement. The service retirement annuity option would be required to be actuarially equivalent to the standard annuity, and the annuity and periodic adjustments would be required to result in no actuarial loss to the retirement system. According to ERS, though some initial costs would be expended for actuarial development and pension system changes needed to implement the bill, no significant fiscal impact is anticipated from the provisions of the bill. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 327 Employees Retirement System LBB Staff: b > td > JMc, MOc, LCO, JPO
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
March 14, 2023
TO: Honorable Giovanni Capriglione, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1393 by Frank (Relating to an optional service retirement annuity of the Employees Retirement System of Texas.), As Introduced
TO: Honorable Giovanni Capriglione, Chair, House Committee on Pensions, Investments & Financial Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1393 by Frank (Relating to an optional service retirement annuity of the Employees Retirement System of Texas.), As Introduced
Honorable Giovanni Capriglione, Chair, House Committee on Pensions, Investments & Financial Services
Honorable Giovanni Capriglione, Chair, House Committee on Pensions, Investments & Financial Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1393 by Frank (Relating to an optional service retirement annuity of the Employees Retirement System of Texas.), As Introduced
HB1393 by Frank (Relating to an optional service retirement annuity of the Employees Retirement System of Texas.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would allow a member of the Employees Retirement System (ERS) pension plan who is eligible for an unreduced service retirement annuity the ability to select a service retirement annuity option that provides for cost-of-living adjustments. ERS would provide the periodic increases by reducing benefits at the beginning of the member's retirement. The service retirement annuity option would be required to be actuarially equivalent to the standard annuity, and the annuity and periodic adjustments would be required to result in no actuarial loss to the retirement system. According to ERS, though some initial costs would be expended for actuarial development and pension system changes needed to implement the bill, no significant fiscal impact is anticipated from the provisions of the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 327 Employees Retirement System
327 Employees Retirement System
LBB Staff: b > td > JMc, MOc, LCO, JPO
JMc, MOc, LCO, JPO