Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB2741 by Raymond (Relating to eligibility for a service retirement annuity of members of the elected class of the Employees Retirement System of Texas.), As Introduced
COST ESTIMATE
The bill would change the eligibility of elected class members of the Employees Retirement System (ERS) by allowing members who have at least two years of military service to count that service as two years of service credit for normal retirement eligibility, providing their discharge was not dishonorable.
The ERS analysis stated the bill would not have a significant impact on the retirement system since only a small number of people are eligible, and even a smaller number would use it. However, the bill would technically increase the ability to earn an annuity and therefore would be a benefit increase with a small cost to the system. The analysis further notes, since ERS currently has an infinite amortization period, the bill could possibly conflict with Government Code 811.006, which requires ERS to be actuarially sound both before and after any benefit increases are made.
SOURCES Email correspondence from ERS Governmental Relations, April 24, 2021.