LEGISLATIVE BUDGET BOARD
Austin, Texas
 
ACTUARIAL IMPACT STATEMENT
 
80TH LEGISLATIVE REGULAR SESSION
 
May 1, 2007

TO:
Honorable Vicki Truitt, Chair, House Committee on Pensions & Investments
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
SB1626 by Watson (Relating to participation in the proportionate retirement program by certain public employees.), As Engrossed

 

SB 1626 would amend Government Code 803.101 regarding the proportional retirement system.  The bill would enable the city of Austin to place the Austin Police Retirement Fund and the Austin Fire Fighters Relief and Retirement Fund in the state proportional retirement system.  The city of Austin may only make this election if an actuary reviews the cost to the plans caused by such an election and funds the increased liabilities on an actuarially sound basis.

 

The city of Austin has not yet calculated the actuarial impact that adding these two plans to the proportionate retirement program would cause the plans. Adding them could also have some impact on other retirement systems, but is not estimated to have a significant actuarial impact on the other systems.

 

Sources:

 

Actuarial Analysis by Steven R. Rusher, Actuary, Towers Perrin, April 23, 2007

Actuarial Analysis by Robert M. May, Actuary, Rudd & Wisdom, April 16, 2007

 

 



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