TO: | Honorable Teel Bivins, Chair, Senate Committee on Finance |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | SB1369 by Duncan (Relating to certain group benefits for retired school employees.), Committee Report 1st House, Substituted |
Estimated savings should be compared to funding levels sufficient to conform to current policies and law. Estimated savings should not be compared to agency "building block" funding requests.
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $0 |
2005 | $0 |
2006 | $0 |
2007 | $0 |
2008 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) from OTHER FUNDS 997 |
---|---|
2004 | $152,133,072 |
2005 | $161,869,589 |
2006 | $172,229,242 |
2007 | $183,251,914 |
2008 | $194,980,037 |
The bill would amend the statutes governing the Teacher Retirement System's group insurance program for public education retired employees. The provisions in the bill would have a direct fiscal impact related to contributions to the retired school district employees' group insurance program.
Increasing the active public education employees' contribution to 0.50 percent from 0.25 percent would generate $110.6 million to the Teacher Retirement System' trust fund, shown as "Other Funds" above, for the retired public education employees' insurance program over the 2004-2005 biennium. Establishing a school district contribution of 0.46 percent of payroll, the contribution assumed in the Senate version of the proposed General Appropriations Act, would generate approximately $203.4 million to the TRS retiree insurance fund over the 2004-2005 biennium.
This fiscal note does not reflect the fiscal impact which may result from the TRS trustees establishing a different insurance program for retired public education employees than the one currently in use.
The bill would also transfer $42 million from the TRS insurance fund for active school district employees to the TRS retiree insurance program. Because this would be an inter-fund transfer, it has no fiscal impact to the state.
Source Agencies: | 323 Teacher Retirement System
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LBB Staff: | JK, WP, JO, SD, UP, RN
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