Honorable Stan Lambert, Chair, House Committee on Pensions, Investments & Financial Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB4802 by Cook (Relating to certain benefits payable by the Judicial Retirement System of Texas Plan One and the Judicial Retirement System of Texas Plan Two.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4802, As Introduced: a negative impact of ($62,407,841) 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
($61,221,950)
2027
($1,185,891)
2028
($1,185,891)
2029
($1,185,891)
2030
($1,185,891)
All Funds, Five-Year Impact:
Fiscal Year
Probable (Cost) from General Revenue Fund 1
2026
($61,221,950)
2027
($1,185,891)
2028
($1,185,891)
2029
($1,185,891)
2030
($1,185,891)
Fiscal Analysis
The bill would direct the Employees Retirement System of Texas (ERS) to increase the annuity by 7.5 percent to certain members of Judicial Retirement System of Texas Plan One (JRS 1) and Judicial Retirement System of Texas Plan Two (JRS 2). A 7.5 percent increase would be applied on September 1, 2025, and an additional 7.5 percent increase would be provided on September 1, 2026.
Methodology
According to ERS, the provisions of the bill affecting JRS 1 would result in General Revenue costs of $1.1 million in fiscal year 2026 and $1.2 million in fiscal year 2027 and subsequent years.
According to ERS, in order to avoid new liabilities the entire benefit enhancement for JRS 2 would be pre-funded and result in a one-time cost of $60,118,795 in General Revenue in fiscal year 2026 and no cost in subsequent years.
Local Government Impact
No fiscal implication to units of local government is anticipated.