LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

May 26, 2005

TO:	Honorable Tom Craddick, Speaker of the House, House of Representatives
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB1079 by West, George "Buddy" (Relating to the eligibility of certain judges to retire with full benefits. ), As Passed 2nd House

No significant fiscal implication to the State is anticipated.

The bill would change the service retirement eligibility requirements for Judicial Retirement System Plan II (JRS II) to allow retirement with least 20 years of service at any age; currently members cannot retire before age 55. This would raise the normal cost by 0.07% and increase actuarial liabilities by $0.8 million. By itself, this proposal would not require an increase in the current state contribution rate of 16.83% for JRS II, though in combination with other proposals the fiscal impact could be larger.

The bill would be effective September 1, 2005.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

327 Employees Retirement System

LBB Staff:

JOB, SD, SR, WM