TO: | Honorable Tom Craddick, Speaker of the House, House of Representatives |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB3731 by Guillen (Relating to the administration of retirement systems for paid, partly paid, or volunteer firefighters. ), As Passed 2nd House |
HB 3731 As Passed 2nd House, applies to paid, part paid, and volunteer fire departments that operate under the Texas Local Firefighter’s Act (TLFFRA). The bill removes the provision that requires the board of trustees of a retirement plan to issue a certificate of service to a terminated member. The bill stipulates that to be an elected member to the board of trustees a person must be a participating member of the retirement system. Additionally, the bill would change the statute such that the minimum employer contributions under TLFFRA would be the smaller of the employee contributions or twelve percent. Current law sets the minmum employer contribution at either the employee contributions or nine percent, whichever is smaller. Based on this provision, any TLFFRA fund with employee contributions less than twelve percent would see an increase in the minimum employer contributions to the fund. Any resulting increased contributions would have a positive actuarial effect on the affected funds.
Source Agencies: | 338 Pension Review Board
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LBB Staff: | JOB, WM
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