LEGISLATIVE BUDGET BOARD
Austin, Texas
 
ACTUARIAL IMPACT STATEMENT
 
80TH LEGISLATIVE REGULAR SESSION
 
March 28, 2007

TO:
Honorable Vicki Truitt, Chair, House Committee on Pensions & Investments
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB2870 by Truitt (Relating to member contributions to certain retirement, disability, and death benefit systems provided by certain cities and towns.), As Introduced

HB 2870 would authorize a city or town with a population of 500,000 or more that provides a retirement, disability, and death benefit system under this section to require each member of the system to contribute an amount that may exceed 10 percent of the annual compensation paid to the member by the city or town as determined by the city or town. If the member contribution were increased with no change to benefits, the funding status of the retirement fund would improve. To the extent the city or town contributions increases its matching contribution, the funding status would further improve. No plan details were provided as to current benefits or funding needs, nor were explicit proposals for increases in contributions provided. Hence the sole actuarial impact of the bill would be an improvement in any affected plan's funding status, with likely reductions in amortization periods.



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