LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 1, 2001 TO: Honorable Dale B. Tillery, Chair, House Committee on Pensions & Investments FROM: John Keel, Director, Legislative Budget Board IN RE: SB372 by Barrientos (Relating to the reestablishment of service credit in a public retirement system participating in the proportionate retirement program.), As Engrossed ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** Local Government Impact No significant fiscal implication to units of local government is anticipated. The bill would allow members of the retirement systems that participate in the Proportionate Retirement Program (PRP) to re-establish service credit for previously canceled service in another system covered by the Proportionate Retirement System. Members of Texas Municipal Retirement System (TMRS) and Texas County and District Retirement System (TCDRS) could use the service for eligibility only, though TCDRS would allow any member to count the service for benefits as well by paying the actuarial cost of increased benefits, allowing for minimal costs to the systems. Members of El Paso Firemen and Policeman's Pension System would also pay the actuarial cost of increased benefits, so there should be no costs to this underfunded system. Municipalities in TMRS and subdivisions in TCDRS would make a determination as to whether they want to allow members to re-establish service by returning withdrawn contributions with interest. For the vast majority of municipalities and subdivisions, electing this provision will not have a material impact on their system. Source Agencies: LBB Staff: JK, RB, WM