Honorable Bill Callegari, Chair, House Committee on Pensions
Ursula Parks, Director, Legislative Budget Board
SB1812 by Duncan (Relating to the determination of state contributions for participation by certain junior college employees in the state employees group benefits program, the Teacher Retirement System of Texas, and the Optional Retirement Program.), As Engrossed
SB 1812, as engrossed, would amend Chapter 825 and 830 of the Government Code relating to the estimation of the state's contribution to the Teacher Retirement System of Texas (TRS) and the Optional Retirement System (ORP). The bill would require the TRS board of trustees to include 50 percent of the costs associated with certain employees of public junior colleges when certifying to the comptroller of public accounts the amount necessary to pay the state's contributions to the TRS and the ORP.
According to the TRS, these changes would have no cost or actuarial impact, because SB 1812 as engrossed, does not adjust the plan's benefit structure, funding, or obligations.
The bill also requires that, in determining the amount for certification for each public junior college, the number of eligible employees may not be adjusted in a proportion greater than the change in student enrollment at each college.
The bill would also amend the Insurance Code to add Section 1551.3111, which would require the Employees Retirement System Board of Trustees to include 50 percent of the cost associated with instructional or administrative employees of public junior colleges when certifying to the comptroller of public accounts the amount necessary to pay the state's contributions for the group benefits program.
The proposed bill, if enacted, will not have an actuarial effect on retirement funds administered by TRS because it does not propose to change the benefit structure, funding or obligations of any public retirement system.
338 Pension Review Board