LEGISLATIVE BUDGET BOARD
Austin, Texas
 
ACTUARIAL IMPACT STATEMENT
 
81ST LEGISLATIVE REGULAR SESSION
 
March 31, 2009

TO:
Honorable Vicki Truitt, Chair, House Committee on Pensions, Investments & Financial Services
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB3480 by Truitt (Relating to annuities and investments for certain public employees.), As Introduced

 

HB 3480 would add provisions to the requirements for companies offering contracts under the 403(b) tax sheltered annuity program overseen by TRS.

 

According to the analysis provided by TRS, the provisions of the bill would not affect the timing or payment of benefits for annuitants but only the administration of the Systemís voluntary 403(b) annuity program, so the changes in the bill would have no material impact to the actuarial liabilities of TRS. However, there could be additional administrative and technology expenses associated with implementing the proposed changes.

 

The bill, if enacted, will not have a significant actuarial effect because it does not propose to change the funding or obligations of any public retirement system.

 

The analysis and calculations are based on the member data of TRS as of August 31, 2008, the actuarial value of assets updated as of February 28, 2009, and the actuarial assumptions and methods in use as of August 31, 2008 for valuing the actuarial condition of TRS.  Finally, this analysis is based on all other provisions of TRS in effect as of August 31, 2008.

 

 

SOURCES:

 

Actuarial Analysis by W. Michael Carter, FSA, Lewis Ward, Joseph P. Newton, FSA, Gabriel Roeder Smith & Company, Consultants and Actuaries, March 31, 2009.

 

Actuarial Review by Martin McCaulay, Deputy Executive Director/Actuary, Pension Review Board, March 31, 2009



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