LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 10, 2025 TO: Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4609 by Dean (Relating to participation in, administration of, contributions to, and benefits under the Texas Municipal Retirement System.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Government Code as it relates to the administration, contributions, and benefits under the Texas Municipal Retirement System.No significant impact to the state is anticipated from implementing the provisions of the bill. Local Government ImpactAccording to the Texas Municipal Retirement System (TMRS), among other things, the bill would add cost of living adjustments (COLA) of 40 percent and 60 percent to the current options of 30 percent, 50 percent, and 70 percent. The impact on a participating city's unfunded liabilities would depend on what, if any, if these options a city chose to make to its current benefits.According to TMRS, the bill would allow participating cities to select COLA and Updated Service Credit (USC) benefit options independent of each other, and this provision could result in lower unfunded liabilities for certain cities.According to TMRS, other provisions of the bill could result in lower costs and unfunded liabilities for certain cities, and none of the provisions of the bill would reduce a current retiree's monthly benefit. Source Agencies: b > td > 338 Pension Review Board, 360 State Office of Administrative Hearings LBB Staff: b > td > JMc, FV, JPO
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 10, 2025
TO: Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4609 by Dean (Relating to participation in, administration of, contributions to, and benefits under the Texas Municipal Retirement System.), As Introduced
TO: Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB4609 by Dean (Relating to participation in, administration of, contributions to, and benefits under the Texas Municipal Retirement System.), As Introduced
Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services
Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB4609 by Dean (Relating to participation in, administration of, contributions to, and benefits under the Texas Municipal Retirement System.), As Introduced
HB4609 by Dean (Relating to participation in, administration of, contributions to, and benefits under the Texas Municipal Retirement System.), 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 as it relates to the administration, contributions, and benefits under the Texas Municipal Retirement System.No significant impact to the state is anticipated from implementing the provisions of the bill.
No significant impact to the state is anticipated from implementing the provisions of the bill.
Local Government Impact
According to the Texas Municipal Retirement System (TMRS), among other things, the bill would add cost of living adjustments (COLA) of 40 percent and 60 percent to the current options of 30 percent, 50 percent, and 70 percent. The impact on a participating city's unfunded liabilities would depend on what, if any, if these options a city chose to make to its current benefits.According to TMRS, the bill would allow participating cities to select COLA and Updated Service Credit (USC) benefit options independent of each other, and this provision could result in lower unfunded liabilities for certain cities.According to TMRS, other provisions of the bill could result in lower costs and unfunded liabilities for certain cities, and none of the provisions of the bill would reduce a current retiree's monthly benefit.
According to TMRS, the bill would allow participating cities to select COLA and Updated Service Credit (USC) benefit options independent of each other, and this provision could result in lower unfunded liabilities for certain cities.
According to TMRS, other provisions of the bill could result in lower costs and unfunded liabilities for certain cities, and none of the provisions of the bill would reduce a current retiree's monthly benefit.
Source Agencies: b > td > 338 Pension Review Board, 360 State Office of Administrative Hearings
338 Pension Review Board, 360 State Office of Administrative Hearings
LBB Staff: b > td > JMc, FV, JPO
JMc, FV, JPO