LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 21, 1997
         
         
      TO: Honorable Barry Telford, Chair            IN RE:  House Bill No. 1113
          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-As Introduced
         
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, remove some restrictions on military service credit, 
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:   
                                         Texas Municipal Retirement System
                      LBB Staff:   JK ,PE ,WM