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LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION

March 22, 2025

TO:	Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	SB1738 by Huffman (relating to the Judicial Retirement System Plan Two, including resuming service in the retirement system and contributions to the retirement system.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would amend the Government Code to require a member of Judicial Retirement System Plan 2 (JRS 2) who retires and then resumes service after the effective date of the legislation to resume making membership contributions of 9.5 percent of the person's state compensation.  

If the retiree completes at least 24 months of resumed service, the retirement system would recompute the retiree's annuity based on the additional service credit and the highest salary earned. If the retiree completes less than 24 months of resumed service, the retirement system would resume the suspended annuity payments and refund the contributions made during the person's period of resumed service.

The bill would also increase the membership contribution from 6.0 percent to 9.5 percent for certain members who have accrued 20 years or more of service or who have attained the rule of 70 under certain sections of the Government Code.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 327 Employees Retirement System

LBB Staff:

JMc, KK, LCO, JPO, NV