LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 19, 1995



 TO:     Honorable Barry Telford, Chair         IN RE:  House Bill No. 411
         Committee on Pensions & Investments            By: Longoria
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
411 (relating to eligibility for service retirement from the
Judicial Retirement System of Texas Plan One or the Judicial
Retirement System of Texas Plan Two) this office has determined
the following:

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 lower the age at which members of the Judicial
Retirement System (JRS), Plans One and Two, may retire with
unreduced benefits from age 65 with 12 years of service (10 years
of service if currently holding office) to age 60 with 10 years
of service (8 years of service if currently holding office).
Retirement would also be allowed for anyone whose age plus years
of service add to at least 75. For those who meet the service
requirements, early retirement with actuarial reductions would be
allowed at age 55, instead of the current age of 60.

The estimated state contribution for a 31-year amortization
period for JRS  Plan Two would be 24.49% compared to the current
requirement of 16.54%. The cost of additional contributions for
JRS Plan Two increases from $1.8 million in Fiscal Year 1996 to
$2.0 million in FY 2000. Additional contributions would be also
required  on a yearly basis for JRS Plan One, recognizing that
members will retire earlier due to the revised eligibility for
benefits. The cost of additional contributions for JRS Plan One
increases from $1.6 million in FY 1996 to $2.4 million in FY    




2000.  The combined fiscal implication on both plans is indicated 
below.

The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:



            Fiscal   Probable Cost   
             Year       Out of       
                    General Revenue  
                        Fund 001     
                                     
          1996             $3,458,132
          1997              3,795,294
                                     
          1998              4,033,200
                                     
          1999              4,271,864
          2000              4,411,301
                                     
                                     
                                     

Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No fiscal implication to units of local government is
anticipated.


Source:   Employees Retirement System, State Pension Review Board
          LBB Staff: JK, RN, WM, RR