Honorable Giovanni Capriglione, Chair, House Committee on Pensions, Investments & Financial Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB4653 by AnchÃa (relating to participation in a deferred retirement option plan by members of the retirement systems for police and fire fighters in certain municipalities.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
The bill would amend Vernon's Civil Statutes to modify the deferred retirement option plan (DROP) offered to members of the Dallas Police and Fire Pension System (DPFP). Under the provisions of the bill, the maximum number of years a member could participate in the DROP program would increase from 10 to 20 years. No significant impact to the state is anticipated from implementing the provisions of the bill.
Local Government Impact
According to the Dallas Police and Fire Pension System, extending the time a DROP account can be credited for a member from 10 to 20 years would increase the total liability of the pension system by two million dollars or 0.039 percent.