TO: | Honorable Robert Duncan, Chair, Senate Committee on Jurisprudence |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB94 by McClendon (Relating to retirement benefits for visiting judges.), As Engrossed |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | ($300,000) |
2005 | ($300,000) |
2006 | ($300,000) |
2007 | ($527,600) |
2008 | ($498,400) |
Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
---|---|
2004 | ($300,000) |
2005 | ($300,000) |
2006 | ($300,000) |
2007 | ($527,600) |
2008 | ($498,400) |
This substitute extends the 10 percent benefit factor increase to former visiting judges for whom the first anniversary of their last day of that service has occurred. Currently, the 50 percent benefit factor is increased by 10 percent of the applicable salary for JRS I and JRS II members who have not been out of judicial office for more than one year or who were visiting judges whose first anniversary of the last day of that service has not occurred when their benefit commences.
JRS I is a pay as you go retirement program, and any increase in benefits causes in increase in General Revenue appropriations for annuity payments. Additional appropriation requirements related to this
benefits increase are estimated to be $300,000 in fiscal years 2004, 2005 and 2006, and $400,000 in fiscal years 2007 and 2008.According to the Employees Retirement System, the 10 percent benefits increase would not require an increase in the state contribution rate for the JRS II retirement system until fiscal year 2007. The current state contribution rate is 16.83 percent. Beginning in fiscal year 2007, increases in the state contribution rate are required in order for the JRS II retirement system to remain actuarially sound. The required increase in the state contribution rate for fiscal year 2007 is estimated to be 0.20 percent, an increase from 16.83 to 17.05 percent. In fiscal year 2008, the rate would increase by 0.22 percent to 17.12 percent. The additional cost to General Revenue attributable to the higher contribution rate is estimated to $127,600 in fiscal year 2007 and $98,400 in fiscal year 2008.
The additional cost to General Revenue associated with the benefits increase are shown in the fiscal impact table above.
Source Agencies: | 327 Employees Retirement System
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LBB Staff: | JK, GO, RR, MS, ZS
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