LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 1, 1997
         
         
      TO: Honorable Rene Oliveira, Chair            IN RE:  House Bill No. 2915
          Committee on Economic Development                              By: Oliveira
          House
          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 Introduced   FN Revision 2
         
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 ,TH ,PE ,SC