LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 25, 2001 TO: Honorable Dale B. Tillery, Chair, House Committee on Pensions & Investments FROM: John Keel, Director, Legislative Budget Board IN RE: HB2122 by Tillery (Relating to the benefits and administration of a statewide retirement system for volunteer firefighters and other emergency services personnel.), As Introduced ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The estimated fiscal impact of the bill is based on the actuarial estimate provided by the actuary for the Texas Statewide Emergency Services Retirement Act (TSESRA) fund dated March 5, 2001. That analysis was based on the fund's actuarial condition as of August 31, 2000. The agency requested in its Legislative Appropriations Request approximately $105,000 per year in increased appropriations to be paid out of the fund for one additional employee. The House Appropriations Committee and Senate Finance Committee have both increased funding for the agency by approximately $105,000 per year, including benefits, to pay for the additional employee, and the money will be paid out of the fund. Since the fund's actuarial value of assets is equal to its market value at the time of valuation, the most prudent fiduciary action would be to perform an updated written analysis based on the market value of the fund as of February 28, 2001. The effect on the fund of adding $105,000 per year to the explicit expense loading in the actuarial assumptions should also be considered in the analysis of any benefit increase. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 325 Fire Fighters Pension Commission LBB Staff: JK, RB, SC, WM