LEGISLATIVE BUDGET BOARD
Austin, Texas
 
ACTUARIAL IMPACT STATEMENT

89TH LEGISLATIVE REGULAR SESSION
 
May 23, 2025

TO:
Honorable Jeff Leach, Chair, House Committee on Judiciary & Civil Jurisprudence
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
SB2878 by Hughes (relating to the operation and administration of and practices and procedures related to proceedings in the judicial branch of state government, including court security, court documents and arrest warrants, document delivery, juvenile boards, and youth diversion, and to public office candidate eligibility; increasing a criminal penalty; authorizing fees.), Committee Report 2nd House, Substituted

SYNOPSIS OF PROVISIONS AND ACTUARIAL EFFECTS

Among other things, the bill would make clarifying changes to provisions related to the Texas Business Court, such as creating new judicial districts, expanding jurisdiction for county courts at law, and modifying juror qualifications and exemptions. The bill would also provide additional compensation increases from the state to any judge of a business court. 

According to the actuarial analysis for the Judicial Retirement System Plan 2 (JRS-II), if the additional compensation was not considered pensionable earnings (no contributions paid or benefits earned), then there would be no impact to JRS II. However, to the extent the additional compensation was included in pensionable earnings, there would be some impact to JRS II, but it would not be material.

SOURCES:
Actuarial Analysis by Dana Woolfrey, FSA, EA, MAAA, Thomas Bevins, ASA, MAAA, and Joe Newton, FSA, EA, MAAA, Gabriel, Roeder, Smith & Company, April 7, 2025
ERS Correspondence, April 7, 2025


Source Agencies:
338 Pension Review Board
LBB Staff:
JMc, KDw, DA, JPO, NV