LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 15, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: House Bill No. 2915, As Engrossed Committee on State Affairs By: Oliveira Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB2915 ( relating to retirement benefits for certain state employees whose state jobs are lost as a result of contracts to provide services previously provided by the state and to benefits under the contracts.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB2915-As Engrossed No fiscal implication to the State is anticipated. HB 2915 would modify the retirement benefits paid under the Employees Retirement System (ERS) to employees of the Texas Workforce Commission (TWC) who terminate state employment as a result of the transfer of certain responsibilities from the TWC to private contractors working for local workforce development boards. Employees who meet the age and service requirements for retirement at the time TWC employment ends and retire will have their benefits calculated using a 2.25% multiplier instead of the current 2.0% multiplier. There is a minor actuarial loss, but no fiscal impact, associated with this provision because the liabilities of the Employees Retirement System will increase. Employees who do not meet age and service requirements but have at least 15 years of service will, upon reaching retirement eligibility, have their benefits calculated using the lesser of a 2.25% multiplier or the multiplier in effect at the time of the member's future retirement. There is no actuarial or fiscal impact associated with this provision. The language of the bill specifies "the lesser" of 2.25% or the plan's multiplier. If current statute remains unchanged, that multiplier would be 2.0% No fiscal implication to units of local government is anticipated. Source: Agencies: LBB Staff: JK ,JD ,TH ,PE ,SC