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 only affect future elected-class members who take the oath of office on or after the effective date of the bill. HB 408 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 bill would have no effect on the ERS actuarial accrued liability (AAL), unfunded actuarial accrued liability (UAAL), normal cost rate, or any other actuarial valuation result as of August 31, 2014. However, the actuarial analysis notes that the bill would be expected to lower the overall liability of ERS in the future. The actuarial review states that because the bill restricts benefits, it may eventually result in a small cost savings but would not have a material actuarial impact on ERS.