LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 31, 1999
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB761 by Duncan (Relating to member contributions to the
Judicial Retirement System of Texas Plan One or the
Judicial Retirement System of Texas Plan Two.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB761, As Introduced: negative impact of $(315,000) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(165,000) *
* 2001 (150,000) *
* 2002 (277,000) *
* 2003 (262,000) *
* 2004 (327,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2000 $(165,000) *
* 2001 (150,000) *
* 2002 (277,000) *
* 2003 (262,000) *
* 2004 (327,000) *
*****************************************************
Fiscal Analysis
The bill would allow members of the Judicial Retirement System Plan I
(JRS-1) and the Judicial Retirement System Plan Two (JRS-2) with 20 or
more years of service to cease making member contributions. Under
current statute, all active members of JRS-1 and JRS-2 contribute 6.0%
of salary.
Methodology
Member contributions by active JRS-1 members are deposited into the
General Revenue Fund. This revenue would be reduced from current
expected levels, which range from $803,000 in FY2000 to $526,000 in
FY2004. The revenue decrease would equal the amount members with 20
years or more of service would have contributed at 6.0% of their salary.
This decrease is estimated by the JRS actuary to range from $165,000 in
FY2000 to $327,000 in FY2004.
The elimination of member contributions for JRS-2 members with 20 or more
years of service would not have a fiscal impact to the state but would
result in a decrease in contributions available to amortize the fund's
unfunded actuarial accrued liability. As a result, the funding period
would increase from the current 6.7 years to 25.2 years.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, SD, SC