LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 16, 1999
  
  
          TO:  Honorable Sherri Greenberg, Chair, House Committee on
               Pensions & Investments
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2152  by King, Phil (Relating to a partial lump-sum
               distribution on retirement from the Texas County and
               District Retirement System), Committee Report 1st House,
               Substituted
  
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*  No fiscal implication to the State is anticipated.                    *
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Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.

The bill would allow subdivisions of Texas County and District Retirement
System to elect a partial lump sum option. This option would allow TCDRS
retirees to elect a distribution at retirement of up to 100% of the
total contributions and interest in a member's individual account in
return for a actuarially reduced retirement annuity. Currently some
members eligible for retirement withdraw their personal contributions
instead of receiving an annuity, thereby losing the effect of the
employer contributions. TCDRS subdivisions would lose this source of
actuarial gains. Also, it is anticipated that some members would retire
earlier. It is estimated that for those subdivisions that chose to adopt
the partial lump sum option, the provisions of the bill would on average
increase long term employer costs by a non significant amount,
approximately 0.1% to 0.3% of payroll.
  
  
Source Agencies:   
LBB Staff:         JK, PE, WM