LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

March 21, 2007

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 benefits payable by the Judicial Retirement System of Texas Plan Two.), As Introduced

No fiscal implication to the State is anticipated.

The bill would amend Section 839.102(f) by changing the formula relating to benefits payable by the Judicial Retirement System Plan Two. The bill would amend the accrual rate for the extra years of contributing service from 2 percent to 3 percent for members reaching the Rule of 70 with 12 years on an appellate court. The maximum benefit would remain at 80 percent of the state salary. 

Based on the analysis by the Employees Retirement System, the Judicial Retirement System Plan Two would remain actuarially sound.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

327 Employees Retirement System

LBB Staff:

JOB, KJG, JW