BILL ANALYSIS



H.B. 1875
By: Turner, Sylvester
May 2, 1995
Committee Report (Unamended)


BACKGROUND

There are currently two statutes which affect pensions of Houston
Police officers.  New employees are governed by 6243g-3, which is
less favorable to those employees than the employees governed by
6243g-1.  The main difference is the COLA (Cost of Living Increase)
and when the COLA starts.  Members of 6243g-1 begin receiving a
compounded COLA upon retirement while members of 6243g-3 are
entitled to receive a non-compounded COLA only after reaching age
55, even though they may retire after 20 years of service.  This
means that an officer who retires at age 45 after 20 years of
service would not receive an inflation adjustment until age 55.

PURPOSE

Permits Houston Police officers to retire after 20 years of service
and begin receiving a benefit that is adjusted annually for
inflation.  This adjustment is compounded through time.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.

SECTION BY SECTION ANALYSIS

SECTION 1: Amends Section 24, Police Officers' Retirement Plan in
certain cities (Article 6243g-3, V.T.C.S.), by deleting references
relative to receiving a COLA beginning at age 55 and adding that
the COLA will be compounded.

SECTION 2: Emergency clause



Committee on Pensions & Investments

SUMMARY OF COMMITTEE ACTION

HB 1875 was considered by the committee in a public hearing on May
1, 1995.

Rep. Turner testified as the bill's author.

The bill was reported favorably without amendment with the
recommendation that it do pass and be printed and be sent to the
Committee on Local & Consent Calendars, by a record vote of 7 ayes,
0 nays, 0 pnv & 2 absent.