LEGISLATIVE BUDGET BOARD
Austin, Texas
 
ACTUARIAL IMPACT STATEMENT
 
78TH LEGISLATIVE REGULAR SESSION
 
May 8, 2003

TO:
Honorable David Swinford, Chair, House Committee on Government Reform
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB2 by Swinford (Relating to the reorganization of, efficiency in, and other reform measures applying to state government. ), Committee Report 1st House, Substituted


CSHB 2 amends various sections of state law in an effort to reorganize and reform a variety of measures relative to state government. The Fire Fighters’ Pension Commissioner would be authorized to procure goods or services from funds other than general revenue funds. Also, the bill requires new employees to wait 90 days before gaining membership in the employees’ retirement system. Upon the establishment of membership, the new member may purchase, at the actuarial present value, service credit based on rates determined by the retirement system’s actuary and approved by the board of trustees. A member may establish not more than three months of service credit under this provision. Any member who is re-employed after withdrawing contributions made for previous service credit is subject to the provisions of this statute. The bill, if enacted, would not have a significant actuarial effect on any public retirement system.



Source Agencies:
338 Pension Review Board
LBB Staff:
JK, WM