83(R) HB 3148 - House Committee Report version

TO:	Honorable Bill Callegari, Chair, House Committee on Pensions

FROM:	Ursula Parks, Director, Legislative Budget Board

IN RE:	HB3148 by Anchia (Relating to the abolition of the office of the fire fighters' pension commissioner and the transfer and disposition of its functions relating to the Texas Emergency Services Retirement System and the Texas local firefighters retirement systems. ), Committee Report 1st House, Substituted

CSHB 3148 would abolish the office of the Fire Fighters Pension Commissioner (FFPC); however, the Texas Emergency Services Retirement System (TESRS) would continue to function as a state agency with the power to hire an executive director. The provisions of the bill would cause TESRS to incur an annualized $20,000 per year in administrative costs from additional actuarial fees from the requirements for audits of the actuarial valuation and frequency of actuarial experience studies. This cost is not estimated to result in a significant actuarial impact to the fund. Additionally, the Committee Substitute would allow a retiree of the pension system to serve as a trustee on the current six-member TESRS board.

The bill would transfer certain services currently provided by the FFPC to local pension systems organized under the Texas Local Fire Fighters Retirement Act (TLFFRA). CSHB 3148 would require the PRB to provide technical assistance, information and training to local pension systems organized under the TLFFRA; and based on the availability of resources, the PRB may be required to designate one staff person to provide these services. The PRB is also required to customize the training to meet the specific needs of board members of these local pension systems. No significant actuarial impact is anticipated for the affected TLFFRA pension funds.

LEGISLATIVE BUDGET BOARD
Austin, Texas

ACTUARIAL IMPACT STATEMENT

83RD LEGISLATIVE REGULAR SESSION


April 25, 2013