LEGISLATIVE BUDGET BOARD
Austin, Texas
 
ACTUARIAL IMPACT STATEMENT
 
80TH LEGISLATIVE REGULAR SESSION
 
March 16, 2007

TO:
Honorable Vicki Truitt, Chair, House Committee on Pensions & Investments
 
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. ), Committee Report 1st House, Substituted


CSHB 155 would amend current law for the correction of errors in the distribution of benefits by Texas public retirement systems by establishing a procedure whereby a public retirement system would notify a person whose payments are incorrect. The notification would include the amount of correction in the payment, how the correction was calculated, the reason for the correction, instructions on how to file a written complaint and a payment schedule for overpayments should no future payments be due to the person. The bill would also require the public retirement system to either adjust future payments or institute recovery of the amounts due within 90 days of the original notification.   The bill would restrict the time frame during which a retirement system can collect on an overpayment and if a retirement system does not act within this time frame, it could have some potential costs to the system; however, there would generally be no significant long-term actuarial impact.



Source Agencies:
338 Pension Review Board
LBB Staff:
JOB, WM