LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 2, 1997
         
         
      TO: Honorable Barry Telford, Chair            IN RE:  House Bill No. 862, Committee Report 1st House, Substituted
          Committee on Pensions and Investments                              By: Chisum
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB862 ( Relating 
to credit in the Employees Retirement System of Texas for service 
as a peace officer.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB862-Committee Report 1st House, Substituted
         
No fiscal implication to the State is anticipated.
         

         
 
The bill would allow law enforcement and custodial officer members 
of the Employees Retirement System to purchase service credit 
for previous service as a commissioned peace officer that is 
not credited to another system.  The member may purchase up 
to 60 months of previous peace officer service and can purchase 
the service over a five year period.   The member must contribute 
an amount based on the combined state and member contribution 
rates and the salary paid to the member for the service to be 
established, accumulated at 10% interest.  The state would not 
be required to make a contribution.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   327   Employees Retirement System
                                         
                      LBB Staff:   JK ,PE ,SC