TO: | Honorable Allan Ritter, Chair, House Committee on Pensions & Investments |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | SB1442 by Barrientos (Relating to participation in, contributions to, and benefits and administration of retirement systems for police officers in certain municipalities.), As Engrossed |
The bill has a provision that would allow the City of Austin Police Retirement System board to modify or eliminate the RETRO DROP benefit. If this benefit were improved, long-term increases in costs to the city of Austin would be expected. There is a requirement that at the time such a change were to be made, the amortization period for the retirement system's unfunded actuarial accrued liability could not exceed a standard; therefore, the benefit could only be improved if there were no immediate contribution increases required of the city.
No significant fiscal implication to units of local government is anticipated.
Source Agencies: |
LBB Staff: | JK, RR, DLBa, WM
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