LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
                                Revision 1
  
                               May 12, 1999
  
  
          TO:  Honorable Sherri Greenberg, Chair, House Committee on
               Pensions & Investments
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3755  by Clark (Relating to benefits payable by the
               Judicial Retirement System of Texas Plan Two), Committee
               Report 1st House, Substituted
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would change the retirement annuities for Judicial Retirement
Plan Two (JRS-2) members to be based on the state salary, as adjusted
from time to time, of a judge of the court on which the retired member
last served.  The change would only take effect during the 2000-01
biennium if the Comptroller determines that implementation of the bill
would not require an increase in the state's contribution rate.

The bill would have no fiscal impact to the state in the short term.  If
the JRS-2 fund developed an actuarial surplus, it could be possible to
implement the bill without having to increase the state's contribution
rate immediately.  However, if the bill became effective, actuarial
normal costs would increase to 35.67%, exceeding by 12.84% the current
total contributions of 22.83% (16.83% from the state, 6.0% from JRS-2
members).  Hence there would be an expected increase in state
contributions in the long term of 12.84%, or approximately $5 million
per year using current payroll rates.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, PE, SD, SC