TO: | Honorable Vicki Truitt, Chair, House Committee on Pensions & Investments |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB2882 by Hughes (Relating to the service retirement annuity of certain members of the Judicial Retirement System of Texas Plan One and the Judicial Retirement System of Texas Plan Two.), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | ($60,000) |
2009 | ($90,000) |
2010 | ($120,000) |
2011 | ($170,000) |
2012 | ($190,000) |
Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
---|---|
2008 | ($60,000) |
2009 | ($90,000) |
2010 | ($120,000) |
2011 | ($170,000) |
2012 | ($190,000) |
The provisions of the bill would change the formula relating to benefits payable by the Judicial Retirement System Plan One and Judicial Retirement System Plan Two by increasing the accrual rate for the extra years of contributing service from 2 percent to 3 percent. The bill would increase the maximum benefit members may earn to an amount no greater than 90 percent of the state salary.
Based on the analysis by the Employees Retirement System actuaries, the Judicial Retirement System Plan Two would remain actuarially sound; however, the ERS consulting actuary cannot offer an actuarial opinion regarding the soundness of Judicial Retirement System Plan One because the plan is funded on a pay-as-you-go basis.
The bill changes are for annuity payments made to members retiring on or after September 1, 2007. Annuities that became payable prior to September 1, 2007 continue to be paid under current law.
Source Agencies: | 327 Employees Retirement System
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LBB Staff: | JOB, KJG, MS, JW
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