Honorable Jim Murphy, Chair, House Committee on Pensions, Investments & Financial Services
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB183 by Stephenson (Relating to a pension revenue enhancement plan for the Teacher Retirement System of Texas.), As Introduced
The fiscal implications of the bill cannot be determined at this time, as the number of participants and net impact per participant are unknown.
The bill would amend the Government Code to establish the pension revenue enhancement plan, in which the plan's board of trustees would purchase life insurance policies on behalf of certain members of the Teacher Retirement System who chose to participate. To pay the premium of a life insurance policy, the bill would allow the trustee or plan manager to obtain a loan that would be repaid from the proceeds of the life insurance policy. The trustee would be allowed to use pension revenue enhancement plan trust funds to make contributions to the retirement system.
The number of members who would participate in the program and the net cost or cost savings per participant are unknown. Therefore, the fiscal implications cannot be determined at this time.
Local Government Impact
No fiscal implication to units of local government is anticipated.