Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB2065 by Huffman (Relating to the Texas Emergency Services Retirement System.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB2065, As Introduced: an impact of $0 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
$0
2027
$0
2028
$0
2029
$0
2030
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from Volunteer Fire Dept Assistance 5064
Probable Revenue Gain/(Loss) from Appropriated Fund 0976 - Texas Emergency Services Retirement Trust Fund
2026
($2,005,832)
$2,005,832
2027
($2,005,832)
$2,005,832
2028
($2,005,832)
$2,005,832
2029
($2,005,832)
$2,005,832
2030
($2,005,832)
$2,005,832
Fiscal Analysis
The bill would amend the Government Code as it relates to the Texas Emergency Services Retirement System (TESRS). The bill would delete the provision in statute limiting the state's contribution to the pension system to one-third of the total of all contributions by
governing bodies in a particular year. The bill would make the annual state contribution to the pension system an actuarially determined contribution necessary to amortize the pension system 's legacy liability by not later than
the fiscal year ending August 31, 2055.
Methodology
According to the actuarial analysis, the annual actuarially determined contribution required by the provisions of the bill that is necessary for the biennium beginning September 1, 2025 is $3,298,595. The current annual state contribution to the pension system is $1,292,763, resulting in a difference of $2,005,832 in additional annual state contributions required by the provisions of the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 326 Texas Emergency Services Retirement System, 338 Pension Review Board