Honorable Rafael Anchia, Chair, House Committee on Pensions, Investments & Financial Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1071 by Hinojosa (relating to disability retirement benefits for certain peace officers under the Employees Retirement System of Texas.), Committee Report 2nd House, Substituted
COST ESTIMATE
The bill would amend the Government Code to change the occupational disability payment for a law enforcement or custodial officer whose disability makes the person unable to work solely due to the disability and is considered a total disability under federal social security law. Currently, such members receiving an occupational disability retirement annuity receive 100 percent of their average monthly compensation. The bill would change the amount to an amount computed based on the maximum salary authorized under the position classification salary schedule prescribed by the General Appropriations Act, as adjusted from time to time, applicable to the position from which the person retired. This change would apply to all applicable members, including those already receiving an annuity under the current statute, whose annuity payment would be recomputed to the increased amount beginning with the first payment date on or after the bill becomes effective.
The analysis from the Employees Retirement System (ERS) states that the bill would be expected to impact 24 members and would increase the unfunded liability of ERS by approximately $552,065. This cost is not expected to have a significant impact on ERS or the Law Enforcement and Custodial Officer Supplemental Retirement Fund.
SOURCES Email correspondence from ERS Governmental Relations, May 21, 2021.