LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 12, 2001
TO: Honorable Toby Goodman, Chair, House Committee on
Juvenile Justice & Family Issues
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB413 by Zbranek (Relating to qualified domestic
relations orders.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB413, As Introduced: negative impact of $(87,670) through the *
* biennium ending August 31, 2003. *
* *
* 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 *
* 2002 $(46,335) *
* 2003 (41,335) *
* 2004 (41,335) *
* 2005 (41,335) *
* 2006 (41,335) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(46,335) 1.0 *
* 2003 (41,335) 0.0 *
* 2004 (41,335) 0.0 *
* 2005 (41,335) 0.0 *
* 2006 (41,335) 0.0 *
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Technology Impact
None
Fiscal Analysis
The bill would require the secretary of state to accept complaints
against a private pension or retirement plan reported by an alternate
payee, designated in a Qualified Domestic Relations Order (QDRO), if the
plan administrator or other person rejects the QDRO. The secretary of
state would be required to, after notice and hearing, determine whether
the plan administrator or other person violated the order. On
determination that the order was violated the secretary of state shall
prohibit the plan administrator or other person from engaging in
business in this state.
Methodology
According to the agency, it is anticipated that several complaints may be
received the first five years that the Act in effect. The agency advised
that according to the U.S. Dept. of Labor, as of 1996 there were 696,224
private pension plans in existence. Texas Employees Retirement System
(ERS) stated that it had 187 QDROs filed in fiscal year 2000 and 36 of
those filed were denied. Twenty-five of the denied orders were amended
and later accepted by ERS. If 1% of the 696.224 plans operate in Texas,
there would be 6,962 plans doing business in Texas. If 50% of the plans
denied one QDRO there would be over 3,000 denials a year.
It is estimated that 2 one-half FTEs equaling 1 FTE total would be
required at a cost of $41,335 a year for salary and benefits and
approximately $5,000 for operating costs in the first year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 327 Employees Retirement System, 307 Secretary of
State, 325 Fire Fighters Pension Commission, 323
Teacher Retirement System, 338 State Pension
Review Board
LBB Staff: JK, RB, SK, SC