LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 19, 2001
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        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.),
               Committee Report 1st House, Substituted
  
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*  No significant fiscal implication to the State is anticipated.        *
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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service by returning withdrawn contributions with interest.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