The proposal would deposit 30 percent of the tax attributable to gross premiums for fire insurance and allied lines from calendar year 2006 and 29.1 percent of this same tax from calendar year 2007 to the credit of the  Texas Statewide Emergency Personnel Retirement Fund (TSESPRF). The proposal expires December 31, 2008.

The bill is estimated to have the impact of depositing into the fund a total of $38.3 million in Fiscal Year (FY) 2007, and an additional $38.3 million in FY 2008.  The Unfunded Actuarial Accrued Liability (UAAL) for the 2004 actuarial valuation is $13.4 million dollars. Taking interest into account, the proposal would result in the fund being over funded by approximately $61.0 million in FY 2008.  CSHB 1655 would make no changes to the benefits paid by the Texas Statewide Emergency Services Retirement Act Fund.  The bill would not change the normal cost, or actuarial accrued liability.