LEGISLATIVE BUDGET BOARD
Austin, Texas
 
ACTUARIAL IMPACT STATEMENT
 
83RD LEGISLATIVE REGULAR SESSION
 
May 9, 2013

TO:
Honorable Robert Duncan, Chair, Senate Committee on State Affairs
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
SB220 by Birdwell (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.), As Introduced

SB 220 would abolish the office of the Fire Fighters Pension Commissioner, 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.
 
The bill would eliminate certain services currently provided by the Fire Fighters Pension Commissioner to local pension funds organized under the Texas Local Fire Fighters Retirement Act (TLFFRA). To the extent the pension funds had to increase administrative costs to provide the same services for themselves, there could be some actuarial impact to affected funds. However, no significant actuarial impact is anticipated for these funds.


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