| TO: | Honorable Allan Ritter, Chair, House Committee on Pensions & Investments |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB1047 by McClendon (Relating to the State Pension Review Board fund.), As Introduced |
In response to your request for an Actuarial Impact Statement on HB1047 (relating to the State Pension Review Board fund).
The Pension Review Board (PRB) receives funding both from the General Revenue Fund and PRB Fund 662. Under current law, Texas public pension plans are allowed to voluntarily contribute up to $.50 per member to assist in funding the agency, and these contributions are deposited into Fund 662. HB 1047, if enacted, would require all Texas public pension plans to make mandatory contributions in the amount of $.50 for each active member and annuitant. No retirement system would be required to remit more than $100,000.
The probable annual impact would be $100,000 to the Teachers Retirement System, $100,000 to the Employees Retirement System, and $ 265,673 to all other local and governmental pension funds. The payment would likely be accounted for as additional administrative expenses.
The bill, if enacted, is not expected to have a significant actuarial impact on any public retirement system. Similar annual impacts would continue as long as the provisions of the bill are in effect.
| Source Agencies: | 338 Pension Review Board
|
| LBB Staff: | JK, WM
|