Honorable Dan Flynn, Chair, House Committee on Pensions
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB3310 by Paul (Relating to the funding policies, actuarial valuations, and reporting requirements of certain public retirement systems.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
The bill would amend the Government Code to require disclosure and reporting requirement changes for certain public retirement systems. The bill would require certain public retirement systems to notify and collaborate with the associated governmental entity to formulate and adopt a funding soundness restoration plan. The bill would require a public retirement system and the associated governmental entity to submit a copy of the plan and provide updates to the Pension Review Board. The bill provides requirements of a funding soundness restoration plan. The bill would require the Pension Review Board to post on its Internet website the most recent data from public retirement systems' funding soundness restoration plan.
The Employees Retirement System, Teachers Retirement System, Texas Emergency Services Retirement System, and Pension Review Board indicate that any additional work resulting from the passage of the bill could be reasonably absorbed within current resources.
Local Government Impact
There would be administrative costs associated with conducting, formulating, and implementing a plan to obtain actuarial soundness for applicable public retirement systems.
According to the Pension Review Board, the bill would have a positive actuarial effect on public retirement systems that adopt and adhere to a funding soundness restoration plan that is actuarially sound.