LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 6, 1995 TO: Honorable Barry Telford, Chair IN RE: House Bill No. 1264 Committee on Pensions & Investments By: Dear House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 1264 (relating to service required under the Teacher Retirement System of Texas in certain circumstances to qualify for group insurance coverage) this office has determined the following: The bill would make those Teacher Retirement System of Texas members who purchase out-of-state service credit and have at least five years of TRS service credit eligible for TRS retiree health insurance. Currently such individuals must have at least 10 years of service credit. There would be no cost to funds from which the Legislature appropriates money. The bill would result in increased costs to the TRS retiree insurance fund. It is estimated that as many as 200 additional TRS members would be eligible for insurance benefits under this bill, at annual cost of $370,000 to the TRS insurance fund. No fiscal implication to units of local government is anticipated. Source: Teacher Retirement System and Optional Retirement Program LBB Staff: JK, RN, RR