LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 17, 1997
         
         
      TO: Honorable Eddie Lucio, Jr., Chair            IN RE:  House Bill No. 1113, As Engrossed
          Committee on Intergovernmental Relations                              By: Kuempel
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1113 ( relating 
to participation and credit in, contributions to, and benefits 
and administration of the Texas Municipal Retirement System) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1113-As Engrossed
         
No fiscal implication to the State is anticipated.
         

         
 
          
The bill would make technical changes to the Texas Municipal 
Retirement System (TMRS) statutes in response to changes in 
federal law, allow for a partial lump sum distribution option, 
and make changes in allowable amortization periods for member 
cities when actuarial assumptions change.  The basic structure 
of TMRS allows municipalities to choose among various plan options. 
There are new options in this bill which could increase costs 
for municipalities that choose them, however any increased costs 
would be known to the municipality and TMRS before a change 
in plan structure could be adapted by the municipality.

It 
is not anticipated that the bill would result in increased costs 
for member municipalities. Under certain scenarios, the extended 
amortization periods would decrease costs for some member municipalities.

          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TL ,WM