| TO: | Honorable Craig Eiland, Chair, House Committee on Pensions & Investments |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB1114 by Nixon (Relating to contributions by and benefits for certain members and retirees under the Judicial Retirement System of Texas Plan Two.), As Introduced |
No significant fiscal implication to the State is anticipated.
The proposal would increase benefits for members of the Judicial Retirement System Plan II (JRS II). This will increase long-term costs to the state. The fund currently has a surplus, and the JRS II actuary did not calculate any additional required contributions for the 2006-07 biennium.
The above analysis does not consider the combined impact with a judicial salary increase. The plan assumes annual 4 percent salary increases; however if an increase were larger, it could reduce the actuarial surplus, and the plan might require additional contributions to remain actuarially sound.
| Source Agencies: | 327 Employees Retirement System
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| LBB Staff: | JOB, SR, WP, WM
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