Honorable Giovanni Capriglione, Chair, House Committee on Pensions, Investments & Financial Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3441 by Hunter (Relating to member contributions to the Texas Municipal Retirement System.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend the Government Code to allow municipalities participating in the Texas Municipal Retirement System (TMRS) the additional option to designate an employee contribution rate of eight percent. Under current law, municipalities are required to choose an employee contribution rate of five, six, or seven percent of employee compensation. No significant cost to the state is anticipated from implementing the provisions of the bill.
Local Government Impact
According to TMRS, since the funding requirements and cost impact are the responsibility of each participating city, the bill is not expected to have an actuarial impact on TMRS as a system, but it will have a negative actuarial impact on any city that adopts the eight percent option.