CSHB 3168 proposes several changes to Governement Code, including an involuntary furlough program for state agency employees. The proprosal would not affect retirement contributions or benefits for state employees, and would therefore generally have no actuarial impact on the Employees Retirement System. Involuntary furloughs could cause employees to retire, but the number of such retirements is estimated to be de minimis, and so there would be no significant actuarial impact on ERS.

The bill also has several provisions applying to higher education employees, including a furlough program, and a permissive salary reduction provision. These could reduce salaries and contributions to the Teacher Retirement System. If the salary reduction was temporary, the effect would be to reduce contributions to TRS, while generally not reducing final average salaries which determine retirement annuities. This would have a negative actuarial impact on TRS, but it is not estimated to be significant. If salary reductions were permanent, there would be some actuarial gains for TRS. If institutions made significant salary reductions, that could prompt people to retire, which would cause an adverse actuarial impact on TRS. A significant actuarial impact on TRS is not anticipated, but is possible from the salary reduction provision of the bill.