LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 15, 2003

TO:	Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations
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 Introduced

No fiscal implication to the State is anticipated.

Local Government Impact

The bill has a provision which 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, DLBa, WM