LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 3, 2001
TO: Honorable Dale B. Tillery, Chair, House Committee on
Pensions & Investments
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB783 by Tillery (Relating to systems and programs
administered by the Teacher Retirement System of Texas.),
Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB783, Committee Report 1st House, Substituted: negative impact *
* of $(275,000) 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:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(150,000) *
* 2003 (125,000) *
* 2004 (125,000) *
* 2005 (125,000) *
* 2006 (125,000) *
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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 $(150,000) 2.0 *
* 2003 (125,000) 2.0 *
* 2004 (125,000) 2.0 *
* 2005 (125,000) 2.0 *
* 2006 (125,000) 2.0 *
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Fiscal Analysis
The bill, as substituted, makes various changes to the retirement
programs administered by the Teacher Retirement System (TRS). The
provisions with a direct fiscal impact relate to new responsibilities
given to TRS to oversee 403(b) investment products offered to school
district employees. TRS would be responsible for approving the
investment and annuity products before they could be marketed to school
district employees.
Methodology
It is estimated that 2 additional full-time-equivalent employees will be
needed by TRS to perform the new duties. The associated cost is
estimated to be $150,000 in fiscal year 2002, and $125,000 in the
subsequent years. According to TRS, the pension trust fund could not be
used to pay these costs, so general revenue funds would be needed.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 323 Teacher Retirement System
LBB Staff: JK, RB, SC