LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 27, 2001
TO: Honorable Teel Bivins, Chair, Senate Committee on
Education
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1769 by Ogden (Relating to certain contributions by
members of the Teacher Retirement System of Texas.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1769, As Introduced: positive impact of $0 through the biennium *
* ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Gain/(Loss) Probable Revenue Gain/(Loss) *
* Year from Teacher Retirement System from Retired School Employees *
* Trust Account Fund Group Insurance Trust Fund *
* 0960 0998 *
* 2002 $(90,240,000) $76,420,000 *
* 2003 (95,380,000) 81,000,000 *
* 2004 (100,820,000) 85,860,000 *
* 2005 (106,570,000) 91,010,000 *
* 2006 (112,650,000) 96,470,000 *
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Fiscal Analysis
The bill modifies the statutory provisions related to member
contributions in the Teachers Retirement System (TRS) pension system and
the TRS-Care health insurance system. The bill decreases the active
member contributions to the pension system from 6.4% of salary to 6.0%
of salary, and increases the active member contributions to the health
insurance system from 0.25% of salary to 0.65% of salary.
Methodology
The provisions of the bill do not require any change in the state's
contributions for retirement and health insurance, but do affect the
revenue that is deposited into the two program funds. For the TRS
pension system, which includes both public education and higher education
employees, the reduction in the contribution rate would reduce
contributions to the pension trust fund by $90,240,000 in fiscal year
2002, and $112,650,000 by fiscal year 2006. This reduction in revenues
would not have a significant actuarial impact on the pension fund.
For the TRS-Care insurance system, which covers only public education
employees, the increase in revenues to the fund would total an estimated
$76,420,000 in fiscal year 2002, and $96,470,000 by fiscal year 2006.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 323 Teacher Retirement System
LBB Staff: JK, CT, SC