Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB2434 by Plesa (Relating to the purchase of service credit by certain members of the Employees Retirement System of Texas.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend the Government Code to allow certain members of the Employees Retirement System (ERS) to purchase service credit for each month of any 90-day waiting period in which the member performed service, regardless of whether the member made a retirement contribution during the 90-day waiting period.
According to ERS, since the purchase price of the service credit charged to the member would be calculated to cover the cost of the benefits, there is no impact to the pension plans administered by ERS.
Local Government Impact
No fiscal implication to units of local government is anticipated.