HB 2747 as Engrossed would change the statutes governing the San Antonio Fire and Police Retiree Health Plan. Currently, benefits and contributions are determined by collective bargaining agreements. The bill would increase the contribution rates to the fund by the city of San Antonio over a 15-year period, as well as increase the dollar amount of contributions to the fund by the firefighters and policemen over a 15-year period. The proposal would add a requirement for contributions after retirement by those members who retire after October 1, 2005 with less than 30 years of service. The bill would also give the Board of Trustees of the fund the authority to decrease benefits.

The bill, if enacted, would increase both city and employee contributions to the plan. Thus, the proposal would have a positive actuarial impact on the plan. Since the plan is a post-retirement health care benefit plan, and not a pension or retirement income plan, it is not within the purview of the Pension Review Board (PRB), and so the PRB is unable to perform an actuarial review of the bill. The bill does not propose to change the funding or obligations of any public retirement system.

SOURCES:

Actuarial Analyses by Robert M. May, Actuary, Rudd and Wisdom, Inc., March 28, 2005