Honorable Giovanni Capriglione, Chair, House Committee on Pensions, Investments & Financial Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1509 by Huffman (relating to the service retirement eligibility and benefits of certain members of the Employees Retirement System of Texas.), Committee Report 2nd House, Substituted
COST ESTIMATE
This bill would amend Section 814.103 of the Texas Government Code to make changes to the salary level used to determine elected class members of the Employees Retirement System of Texas (ERS) benefits, with the exception of district and criminal district attorneys. Currently the benefit formula for all elected class members is years of service credit in their class, times 2.3 percent of the state base salary paid to a district judge, excluding longevity pay. The benefits of non-district and criminal district attorney elected class members would now be based on a flat salary level of $140,000.
The bill would also repeal Section 814.109 of the Texas Government Code that allows members of ERS who are eligible to retire, have accrued enough service credit to receive the maximum permitted annuity, and are at least 60 years old to retire and receive a retirement annuity without separating from service. It would only apply to members who retire on or after the bill's effective date, and any members who retired before the bill took effect would continue to be governed by Section 814.109 of the Texas Government Code as it existed at the time.
According to ERS, the provisions in the bill would not have a material impact on the retirement system.
SOURCES
Email correspondence from ERS 3/20/2023.
Actuarial Review by David Fee, ASA, EA, Staff Actuary, Pension Review Board, 4/24/2023.