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