Texas 2023 88th Regular

Texas House Bill HB3869 Introduced / Fiscal Note

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                    LEGISLATIVE BUDGET BOARD     Austin, Texas       FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION             March 28, 2023       TO: Honorable Giovanni Capriglione, Chair, House Committee on Pensions, Investments & Financial Services     FROM: Jerry McGinty, Director, Legislative Budget Board      IN RE: HB3869 by Bryant (Relating to the retirement eligibility of certain peace officers who are members of the Teacher Retirement System of Texas.), As Introduced     No significant fiscal implication to the State is anticipated. This bill would change retirement eligibility for peace officers by removing changes to retirement eligibility that occurred for members who had less than five years of service as of August 31, 2014. This change would reduce the minimum age from 62 to 60 years for unreduced retirement for these members. 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 27 years, as of August 31, 2023. Government Code, Section 821.006 defines actuarial soundness, for the purposes of making modifications to benefit and contribution levels, as less than 31 years. The projected funding period would remain unchanged 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  LBB Staff: b > td > JMc, MOc, ASA, MMo

LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
March 28, 2023

 

 

  TO: Honorable Giovanni Capriglione, Chair, House Committee on Pensions, Investments & Financial Services     FROM: Jerry McGinty, Director, Legislative Budget Board      IN RE: HB3869 by Bryant (Relating to the retirement eligibility of certain peace officers who are members of the Teacher 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: HB3869 by Bryant (Relating to the retirement eligibility of certain peace officers who are members of the Teacher 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 

 HB3869 by Bryant (Relating to the retirement eligibility of certain peace officers who are members of the Teacher Retirement System of Texas.), As Introduced 

 HB3869 by Bryant (Relating to the retirement eligibility of certain peace officers who are members of the Teacher Retirement System of Texas.), As Introduced 



No significant fiscal implication to the State is anticipated.

No significant fiscal implication to the State is anticipated.

This bill would change retirement eligibility for peace officers by removing changes to retirement eligibility that occurred for members who had less than five years of service as of August 31, 2014. This change would reduce the minimum age from 62 to 60 years for unreduced retirement for these members. 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 27 years, as of August 31, 2023. Government Code, Section 821.006 defines actuarial soundness, for the purposes of making modifications to benefit and contribution levels, as less than 31 years. The projected funding period would remain unchanged 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 27 years, as of August 31, 2023. Government Code, Section 821.006 defines actuarial soundness, for the purposes of making modifications to benefit and contribution levels, as less than 31 years. The projected funding period would remain unchanged 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

323 Teacher Retirement System

LBB Staff: b > td > JMc, MOc, ASA, MMo

JMc, MOc, ASA, MMo