LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION

April 22, 2025

TO:	Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB3161 by Villalobos (Relating to member contributions to the Texas Municipal Retirement System.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend the Government Code as it relates to member contributions to the Texas Municipal Retirement System.  No significant impact to the state is anticipated from implementing the provisions of the bill.

Local Government Impact

According to the Texas Municipal Retirement System (TMRS), the bill would provide cities participating in TMRS with an 8 percent employee contribution rate option in addition to the current options of 5 percent, 6 percent, and 7 percent.  The impact on TMRS as a system to implement the provisions of the bill would not be significant.

According to TMRS, there would be a significant cost and negative actuarial impact to a participating city that chose to adopt the new 8 percent rate.

Source Agencies:

338 Pension Review Board

LBB Staff:

JMc, FV, JPO