Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB886 by Vasut (Relating to a one-time supplemental payment of benefits under the Employees Retirement System of Texas.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB886, As Introduced: a negative impact of ($180,000,000) through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($180,000,000)
2027
$0
2028
$0
2029
$0
2030
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable (Cost) from General Revenue Fund 1
2026
($180,000,000)
2027
$0
2028
$0
2029
$0
2030
$0
Fiscal Analysis
The bill would require the Employees Retirement System of Texas (ERS) to make a one-time supplemental payment to certain annuitants in January 2026. ERS is required to make the payment only if the board of trustees of ERS finds that the legislature appropriated money to the retirement system in an amount sufficient to provide the payment without increasing the unfunded actuarial liabilities of the retirement system.
Methodology
The amount of the supplemental payment is the lesser of $2,000 or the gross amount of the regular annuity payment to which the eligible annuitant is otherwise entitled for the month of December 2025. According to ERS, the estimated number of annuitants eligible for the supplemental payment under the provisions of the bill is 125,000, and the total amount of the supplemental payment necessary for all eligible annuitants is $180,000,000.
Local Government Impact
No fiscal implication to units of local government is anticipated.