LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

April 2, 2007

TO:	Honorable Vicki Truitt, Chair, House Committee on Pensions & Investments
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB3322 by Truitt (Relating to a plan-to-plan transfer of certain assets from the TexaSaver 457 plan administered by the Employees Retirement System of Texas to a 457 plan created by an institution of higher education.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would authorize the transfer of all 457 plan deferred amounts and investment income from the Employees Retirement Sytem (ERS) of Texas plan to the plan administrator of a 457 plan created by an institution of higher education. The bill would provide that once transferred, the ERS board of trustees is relieved of all its fiduciary and plan administration duties, liability, and any other related duties.

It is anticipated that any administrative costs associated with implementing the provisions of the bill could be absorbed by effected entities within their existing program resources.

The bill would take effect immediately upon enactment, assuming that it received the requisite

two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect

September 1, 2007.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

327 Employees Retirement System, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration

LBB Staff:

JOB, KJG, MS, JW