Honorable Dan Patrick, Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB408 by Turner, Chris (Relating to the retirement benefits for certain elected state officials.), Conference Committee Report
The bill would amend Government Code to prohibit a member serving in the elected class, excluding district attorneys and criminal district attorneys, from being able to retire and receive an annuity based on service credit transferred to the employee class from the elected class until the member no longer holds an elected-class position. The bill would still allow a contributing elected-class member to receive an annuity based solely on service credit earned in the employee class.
The bill would affect certain current and future elected-class members, other than a current elected-class member who is receiving a service retirement annuity based on service transferred to the employee class on the effective date of the bill. The bill would take effect immediately if it receives the required votes; otherwise, it would take effect on September 1, 2015.
According to the actuarial analysis prepared by the Employees Retirement System of Texas (ERS), the bill would impact a very small group. The actuarial analysis notes that the bill would be expected to lower the overall liability of ERS in the future as fewer members would be eligible to utilize this provision. The actuarial review states that because the bill restricts benefits, it could eventually result in a small cost savings but would not have a material actuarial impact on ERS.