LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 10, 2001
  
  
          TO:  Honorable Dale B. Tillery, Chair, House Committee on
               Pensions & Investments
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1043  by Kuempel (Relating to participation and credit
               in, contributions to, and benefits and administration of
               the Texas Municipal Retirement System.), As Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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Local Government Impact
  

No significant impact to units of local government is anticipated.

The bill would make various administrative and technical changes to the
Texas Municipal Retirement System, as well as some minor adjustments to
the benefit provisions. Two of these adjustments have the potential of
raising costs for participating municipalities. Municpalities would have
a choice of allowing their employees to retire at age 60 with 5 years of
service. Also, retirement annuity options would be expanded, and allow
for changing the option after retirement with an actuarial adjustment for
the participant. Both of these provisions may be expected to increase
contributions by participating municpalities in the long term, however
not by a significant amount.
  
  
Source Agencies:   
LBB Staff:         JK, RB, WM