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
  
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*  No significant fiscal implication to the State is anticipated.        *
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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