LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 14, 1997
         
         
      TO: Honorable Kenneth Armbrister, Chair            IN RE:  House Bill No. 2029, As Engrossed
          Committee on State Affairs                              By: Turner,Bob
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2029 ( Relating 
to retirement because of disability under the Employees Retirement 
System of Texas.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2029-As Engrossed
         
No fiscal implication to the State is anticipated.
         

         
 
This bill would provide occupational disability benefits to 
contributing members of the Employees Retirement System (ERS) 
who are injured while on active duty with the Texas National 
Guard or the Texas State Guard and are discharged from that 
entity and cease State employment.  The bill would become effective 
September 1, 1997.

The normal cost of the ERS is expected 
to increase from 12.305% to 12.307%, or approximately $80,000 
a year.  The liabilities of the ERS would increase by $600,000. 
 However, the fund has a sufficient actuarial surplus to absorb 
this increase in liabilities, and an increase in the state's 
contributions would not be necessary.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   327   Employees Retirement System
                                         
                      LBB Staff:   JK ,JD ,PE ,SC