TO: | 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: | SB1337 by Huffman (relating to credit in, benefits from, and administration of the Texas Municipal Retirement System.), Committee Report 2nd House, Substituted |
The bill would make several updates to the Texas Municipal Retirement System (TMRS) governing statute relating to credit in, benefits from, and administration of TMRS.
The actuarial analysis (AA) provided by the TMRS actuary, Gabriel Roeder Smith & Company, focuses on three main changes that could potentially impact the actuarial results of the System:
Amortization periods - The bill would clarify that the maximum amortization period for a city's actuarial accrued liability is 30 years in all cases, while adding language to clarify the Board's authority concerning setting the actual funding policy. According to the AA, the Board's current funding policy is already stronger than the maximums described in the proposed bill and thus this is not anticipated to have any actuarial impact.
The bill would take effect January 1, 2020.
SOURCES:
Source Agencies: | 338 Pension Review Board
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LBB Staff: | WP, KFB
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