LEGISLATIVE BUDGET BOARD
Austin, Texas
 
ACTUARIAL IMPACT STATEMENT

87TH LEGISLATIVE REGULAR SESSION
 
April 7, 2021

TO:
Honorable Larry Taylor, Chair, Senate Committee on Education
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
SB1356 by Hughes (Relating to a program to facilitate public school tutoring by certain teachers.), As Introduced

COST ESTIMATE

The bill would amend the Education Code to create a program to facilitate the tutoring of public-school students by active and retired certified teachers who are members of a qualified nonprofit teacher organization. The bill would also amend the Government Code to require the Teacher Retirement System of Texas (TRS) to provide each member information about the teacher tutoring program every quarter. Those tutors serving under the tutoring program would not be employed in a Texas public educational institution. The bill would amend Texas Government Code section 824.602 to exclude retirees who return to work under the tutoring program from a suspension of their monthly benefit or disqualifying themselves from returning to employment without a suspension.

The actuarial analysis provided by TRS states that it is unlikely the bill would have an impact to its actuarial soundness. For the bill to impact the soundness of TRS, a large number of members would have to retire earlier than they otherwise would have to tutor for a year and then return to employment. The analysis notes that the bill does not define tutoring, so it is open for interpretation. However, it is unlikely the bill would adversely influence behavior in a way that would be widespread enough to impact TRS. The analysis was based on the information contained in the August 31, 2020 actuarial valuation.

SOURCES

Actuarial Analysis by Joseph P. Newton, FSA, Gabriel Roeder Smith & Company, March 26, 2021.


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