Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Tom Craddick, Speaker of the House, House of Representatives
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB155 by Pickett (Relating to correcting errors in the distribution of benefits by a public retirement system.), Conference Committee Report
No significant fiscal implication to the State is anticipated.
The bill would require public retirement systems to issue notices to members in the event of an error in calculation of payments, would limit the period during which recoveries of overpayments could be made, and would establish a complaint process regarding errors in payment calculations. To the extent that limitations placed on the period during which a system has to recover funds associated with overpayments prevents recovery, systems would incur a loss. The extent of potential losses cannot be estimated.
Local Government Impact
The TexasCounty and District Retirement System reports that it could cost up to $151,000 per year in legal fees and administrative costs to respond to complaints filed by error notice recipients.
Source Agencies:
323 Teacher Retirement System, 327 Employees Retirement System