LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 5, 1999
TO: Honorable Florence Shapiro, Chair, Senate Committee on
State Affairs
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB838 by Wentworth (Relating to service credit in 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 *
* SB838, As Introduced: negative impact of $(453,400) 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 $(126,400) *
* 2001 (327,000) *
* 2002 (527,400) *
* 2003 (527,800) *
* 2004 (627,900) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year General Revenue Fund Judicial Fund *
* 0001 0573 *
* 2000 $(126,400) $(4,300) *
* 2001 (327,000) (4,400) *
* 2002 (527,400) (4,500) *
* 2003 (527,800) (4,500) *
* 2004 (627,900) (4,500) *
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Fiscal Analysis
The bill would allow members of the Judicial Retirement System Plan One
(JRS-1) and Judicial Retirement System Plan 2 (JRS-2) to purchase
service credit for the remaining months in any calendar year in which
the member held an office of that calendar year.
Methodology
The Employees Retirement System (ERS) projects that the purchase of
additional service credit will enable JRS-1 members to retire earlier
than they would have otherwise. The JRS-1 system is a pay-as-you-go
system, with the state making benefit payments from the General Revenue
Fund. Benefit payments are expected to increase over current levels due
to the earlier retirements. The additional cost is estimated to be
$100,000 in fiscal year 2000, increasing to $600,000 in fiscal year 2004.
When a JRS-2 member purchases service credit, the state contributes
16.83% of salary for the amount of service purchased. ERS estimates
that due to the service purchases, the state will contribute an
additional $30,700 in fiscal year 2000, increasing to an additional
$32,400 in fiscal year 2004. Contributions are funded from General
Revenue and from the Judicial Fund 573.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 327 Employees Retirement System
LBB Staff: JK, SD, SC