HBA-MPM H.B. 2122 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2122 By: Tillery Pensions & Investments 3/25/2001 Introduced BACKGROUND AND PURPOSE Under current law, the monthly retirement annuity for a member receiving benefits from the Texas Statewide Emergency Services Personnel Retirement Fund (fund) is six times the average monthly contribution made by the governing body, increased by seven percent for each year of qualified service in excess of 15 years. At a December 2000 meeting of the board of trustees (board) of the fund, board members considered increasing benefits administered to retirees. An actuarial report prepared by the Legislative Budget Board indicated that an increase in benefits would allow the fund to remain actuarially sound, and the board voted unanimously to increase the multiplier from six to seven and to increase the compounder from seven to 7.5 percent, effective for members who terminate service on or after September 1, 2001. House Bill 2122 increases benefits for retirees as recommended by the board and makes technical and administrative changes to the Texas Statewide Emergency Services Retirement Act. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 2122 amends the Texas Statewide Emergency Services Retirement Act to increase the amount of a monthly retirement annuity from six to seven times the governing body's average monthly contribution over the member's term of qualified service. The bill also increases the percentage from seven to 7.5 percent of a member's monthly pension compounded annually to which a member is entitled for each year of additional qualified service in excess of 15 years. The bill specifies that six members, rather than all nine members of the state board of trustees, must be active members of the fund, and that five members of the local board of trustees representing emergency services personnel are active. EFFECTIVE DATE September 1, 2001.