LEGISLATIVE BUDGET BOARD
Austin, Texas
 
ACTUARIAL IMPACT STATEMENT

88TH LEGISLATIVE REGULAR SESSION
 
April 12, 2023

TO:
Honorable Brad Buckley, Chair, House Committee on Public Education
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
HB11 by Dutton (relating to the rights, and certification of public school educators, including financial and other assistance provided to public schools by the Texas Education Agency related to public school educators, methods of reading instruction in public schools, certain allotments providing for compensation for certain public school teachers under the Foundation School Program, and rules adopted by the State Board for Educator Certification.), Committee Report 1st House, Substituted


COST ESTIMATE
The bill would make several changes to multiple sections of the Texas Education Code. Among the changes, the bill would also create a grant program that would award funds to reimburse a school district or open enrollment charter school that hires a teacher who retired prior to September 1, 2022, for the increased contributions that would be paid to the Teacher Retirement System of Texas (TRS). The legislature would be able to further modify the date range other than September 1, 2022, before which a teacher must have retired for grant eligibility and could also limit grants to certain teachers, including those holding certain certifications, teaching certain grades or subjects, teaching in certain geographical areas, or providing instruction to specific types of students.
 
The bill would be effective September 1, 2023.
 
The actuarial analysis provided by TRS states the grant program provides resources for the employers to pay the current surcharge, so the provision should not have an impact on TRS since it is only changing the source of funding rather than the amount.
 

SOURCES
Actuarial Analysis by Joseph P. Newton, FSA, EA, MAAA, and Dana Woolfrey, FSA, EA, MAAA, Gabriel, Roeder, Smith & Company, April 7, 2023.



Source Agencies:
338 Pension Review Board
LBB Staff:
JMc, KSk, ASA, MMo