LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 12, 1999 TO: Honorable Florence Shapiro, Chair, Senate Committee on State Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: SB82 by Brown, J. E. "Buster" (relating to benefits payable by the Judicial Retirement System of Texas Plan Two), Committee Report 1st House, Substituted ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** 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, SD, SC