TO:	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

COST ESTIMATE

The bill would amend Section 855.401(a) of the Texas Government Code to allow Texas Municipal Retirement System (TMRS) participating cities to elect an additional contribution rate option for their members. Currently cities can choose between five, six, or seven percent of employee compensation. This bill would add an additional option of eight percent. 
 
 
According to TMRS, because the funding requirements and cost impact are the responsibility of each participating city, the bill would not have an actuarial impact on TMRS as a system. It would, however, have a negative actuarial impact on any city that adopts the eight percent option. The actual impact on a city would depend on its current plan benefit design.
 
 
SOURCES
Actuarial Analysis by Joseph P. Newton, MAAA, FSA, EA, and Janie Shaw, MAAA, ASA, EA, Gabriel, Roeder, Smith & Company, April 17, 2023.