LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 6, 2001
  
  
          TO:  Honorable Dale B. Tillery, Chair, House Committee on
               Pensions & Investments
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1242  by Kuempel (Relating to participation and credit
               in, contributions to, and benefits and administration of
               the Texas County and District Retirement System.), As
               Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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Local Government Impact
  
The bill would affect the benefits payable by  the Texas County and
District Retirement System (TCDRS), as well as make updates for
administrative simplifications in response to changes in federal law.
Most of the changes would be voluntary and only affect participating
counties and districts if they were to choose to adopt those provisions
in their benefits. Other provisions of the bill would have no actuarial
impact on the fund and no cost to the subdivisions.

The one provision that would result in increased costs is the proposed
increase in the supplemental death benefit for retirees from $2,500 to
$5,000. This benefit change would increase the contribution rates to
TCDRS by various subdivisions by approximately 0.2 percent of pay,
though some would be faced with a slightly higher percentage.
  
  
Source Agencies:   
LBB Staff:         JK, DB, WM