TO: | Honorable Allan Ritter, Chair, House Committee on Pensions & Investments |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB3173 by Pitts (Relating to the group benefits program operated by the Teacher Retirement System of Texas.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $264,802,000 |
2005 | $229,501,000 |
2006 | $242,576,000 |
2007 | $258,101,000 |
2008 | $274,620,000 |
Fiscal Year | Probable Savings/(Cost) fromGENERAL REVENUE FUND 1 |
---|---|
2004 | $264,802,000 |
2005 | $229,501,000 |
2006 | $242,576,000 |
2007 | $258,101,000 |
2008 | $274,620,000 |
The estimate assumes that the additional revenue provided to the TRS-Care retiree insurance fund by increasing the active member contribution rate and requiring a school district contribution would result in savings to General Revenue because the total amount appropriated to the TRS-Care insurance fund to maintain its solvency could be reduced. Savings associated with increasing the active member contribution rate to 0.75 percent from 0.25 percent are estimated at $221 million for the 2004-2005 biennium, which is also the savings associated with requiring a 0.50 percent school district contribution.
Savings from the one-month delay of the supplementation payments, estimated at $52 million for the 2004-2005 biennium, are calculated based on the current statutory amount of $1,000. If the amount funded is less than $1,000 then the savings amount will also be less.
Source Agencies: | 323 Teacher Retirement System, 701 Central Education Agency
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LBB Staff: | JK, JO, RR, UP, RN
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