LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 13, 1999
  
  
          TO:  Honorable Sherri Greenberg, Chair, House Committee on
               Pensions & Investments
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2701  by Greenberg (Relating to systems and programs
               administered by the Teacher Retirement System of Texas.),
               As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2701, As Introduced:  negative impact of $(80,000) through the      *
*  biennium ending August 31, 2001.                                      *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                            $(80,000)  *
          *       2001                                    0  *
          *       2002                                    0  *
          *       2003                                    0  *
          *       2004                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                                $(80,000) *
         *      2001                                        0 *
         *      2002                                        0 *
         *      2003                                        0 *
         *      2004                                        0 *
         *****************************************************
  
Fiscal Analysis
  

The proposal would make numerous changes to the benefit structure of the
Teacher Retirement System benefit structure, including a 2.1 benefit
multiplier for active employees and an increase in annuities for
retirees. These proposals would not require an increase in state
contributions to TRS for retirement.

The proposal would require TRS to contract with one or more carriers to
provide a cafeteria benefits program of insurance, allowing all public
school employees and retirees to purchase insurance for long term health
care, whole life, and short-term and long term disability.
  
  
Methodology
  
The Teacher Retirement System estimates that administrative costs of
$80,000 in start up costs would be incurred in the bidding process and
selection of carriers for the new insurance programs.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   323   Teacher Retirement System
LBB Staff:         JK, PE, WM