LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session February 28, 1997 TO: Honorable Barry Telford, Chair IN RE: House Bill No. 1113, Committee Report 1st House Committee on Pensions and Investments By: Kuempel House 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-Committee Report 1st House 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 ,PE ,WM