LEGISLATIVE BUDGET BOARD
Austin, Texas
 
ACTUARIAL IMPACT STATEMENT

87TH LEGISLATIVE REGULAR SESSION
 
May 3, 2021

TO:
Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
HB3375 by Davis (relating to certain benefits payable by the public retirement systems for police and fire fighters in certain municipalities.), Committee Report 1st House, Substituted

COST ESTIMATE

The bill would amend Vernon's Civil Statutes to allow a person who is receiving an annuity from a deferred retirement option plan (DROP) account with the Dallas Police & Fire Pension System (DPFPS) to obtain a lump-sum distribution from the account in the event of a financial hardship that was not reasonably foreseeable.  Any lump-sum distribution would result in a corresponding reduction in the total number or amount of future annuity payments.  According to DPFPS, allowing anyone with a DROP annuity to request a hardship under the current rules adopted by the DPFPS Board for hardship distributions would not have an actuarial impact on the fund.

SOURCES
Email correspondence from DPFPS governmental relations, April 21, 2021.


Source Agencies:
338 Pension Review Board
LBB Staff:
JMc, AAL, LCO, JPO