LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 12, 2025 TO: Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4736 by Bonnen (Relating to the Texas Emergency Services Retirement System.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB4736, As Introduced: an impact of $0 through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026$02027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromVolunteer Fire Dept Assistance5064 Probable Revenue Gain/(Loss) fromAppropriated Fund 0976 - Texas Emergency Services Retirement Trust Fund2026($2,005,832)$2,005,8322027($2,005,832)$2,005,8322028($2,005,832)$2,005,8322029($2,005,832)$2,005,8322030($2,005,832)$2,005,832 Fiscal AnalysisThe bill would amend the Government Code as it relates to the Texas Emergency Services Retirement System (TESRS). The bill would delete the provision in statute limiting the state's contribution to the pension system to one-third of the total of all contributions by governing bodies in a particular year. The bill would make the annual state contribution to the pension system an actuarially determined contribution necessary to amortize the pension system's legacy liability by not later than the fiscal year ending August 31, 2055.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 12, 2025
TO: Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4736 by Bonnen (Relating to the Texas Emergency Services 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: HB4736 by Bonnen (Relating to the Texas Emergency Services 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
HB4736 by Bonnen (Relating to the Texas Emergency Services Retirement System.), As Introduced
HB4736 by Bonnen (Relating to the Texas Emergency Services Retirement System.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4736, As Introduced: an impact of $0 through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB4736, As Introduced: an impact of $0 through the biennium ending August 31, 2027. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2026 $0
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($2,005,832) $2,005,832
2027 ($2,005,832) $2,005,832
2028 ($2,005,832) $2,005,832
2029 ($2,005,832) $2,005,832
2030 ($2,005,832) $2,005,832
Fiscal Analysis
The bill would amend the Government Code as it relates to the Texas Emergency Services Retirement System (TESRS). The bill would delete the provision in statute limiting the state's contribution to the pension system to one-third of the total of all contributions by governing bodies in a particular year. The bill would make the annual state contribution to the pension system an actuarially determined contribution necessary to amortize the pension system's legacy liability by not later than the fiscal year ending August 31, 2055.
Methodology
According to the actuarial analysis, the annual actuarially determined contribution required by the provisions of the bill that is necessary for the biennium beginning September 1, 2025 is $3,298,595. The current annual state contribution to the pension system is $1,292,763, resulting in a difference of $2,005,832 in additional annual state contributions required by the provisions of the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 326 Texas Emergency Services Retirement System, 338 Pension Review Board
304 Comptroller of Public Accounts, 326 Texas Emergency Services Retirement System, 338 Pension Review Board
LBB Staff: b > td > JMc, FV, LCO, JPO, KK, NV
JMc, FV, LCO, JPO, KK, NV