Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB4643 by Stephenson (relating to a study by the comptroller to implement a pilot program that establishes a pension revenue enhancement plan for the Employees Retirement System of Texas.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB4643, Committee Report 1st House, Substituted : a negative impact of ($300,000) through the biennium ending August 31, 2023.
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 to General Revenue Related Funds
2022
($300,000)
2023
$0
2024
$0
2025
$0
2026
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable (Cost) from General Revenue Fund 1
2022
($300,000)
2023
$0
2024
$0
2025
$0
2026
$0
Fiscal Analysis
The bill would require the Comptroller, in consultation with the Employees Retirement System board of trustees, the Texas Department of Insurance, and other appropriate entities, to conduct a feasibility study on the financial impact of implementing a pension revenue enhancement plan. The Comptroller would report findings to the Governor, Lieutenant Governor, Speaker of the House, and all members of the Legislature no later than September 1, 2022.
Methodology
According to the Comptroller, there would be a one-time administrative cost of $300,000 to contract with an outside financial analysis consulting firm to conduct the study on the feasibility and anticipated financial impact of implementing a pension revenue enhancement pilot program, as the agency does not have the in-house expertise to conduct the study.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 327 Employees Retirement System