In response to your request for an Actuarial Impact Statement on HB 1061 (relating to the expiration of certain investment authority of the Teacher Retirement System of Texas) the Pension Review Board (PRB) has determined the following:

HB 1061 would amend  subsection 825.301(a-1) and (a-2) of the Texas Government Code related to the Teacher Retirement System of Texas (TRS) buying and selling of futures contracts, options, swap contracts, and other investments.  The provision of this bill is to be effective immediately if receiving required votes or if not, September 1, 2011.

The proposed legislation would remove the language setting expiration dates for certain investment and reinvestment of assets of the system invested under the aforementioned subsections and the ability of the board of trustees of the system to enter into contracts under the subsections. The proposed bill would provide the TRS with certain investment authority in order to manage the trust fund beyond September 1, 2012.

The proposed bill, if enacted, will not have a significant actuarial effect on the retirement funds administered by the TRS because it does not propose to change the funding or obligations of the public retirement system.