HB 1880 would restrict investments in private toll road operators by the following five state pension plans: Employees Retirement System of Texas; Judicial Retirement System of Texas Plan Two; Teacher Retirement System of Texas; Texas County and District Retirement System; and, Texas Municipal Retirement System.  The bill completely restricts investments by disallowing direct or indirect investment in the private toll road operator’s equity or obligations.

Three of the plans do not believe that the bill presents an actuarial impact: Employees Retirement System of Texas (which also invests the funds for the Judicial Retirement Sytem Plan Two); Texas County and District Retirement System; and, Texas Municipal Retirement System.  Additionally, Texas Municipal Retirement System further states that such a bill creates a redundancy with their current rules which already forbids this type of investment.

Evaluating the effect of restricting certain investments is difficult to fully gauge.  However, the passage of HB1880 would not directly affect any benefit or funding of the stated pension systems and, therefore, has no traditional actuarial impact.