HBA-MPM H.B. 2122 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2122
By: Tillery
Pensions & Investments
3/25/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, the monthly retirement annuity for a member receiving
benefits from the Texas Statewide Emergency Services Personnel Retirement
Fund (fund) is six times the average monthly contribution made by the
governing body, increased by seven percent for each year of qualified
service in excess of 15 years.  At a December 2000 meeting of the board of
trustees (board) of the fund, board members considered increasing benefits
administered to retirees.  An actuarial report prepared by the Legislative
Budget Board indicated that an increase in benefits would allow the fund to
remain actuarially sound, and the board voted unanimously to increase the
multiplier from six to seven and to increase the compounder from seven to
7.5 percent, effective for members who terminate service on or after
September 1, 2001.  House Bill 2122 increases benefits for retirees as
recommended by the board and makes technical and administrative changes to
the Texas Statewide Emergency Services Retirement Act. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 2122 amends the Texas Statewide Emergency Services Retirement
Act to increase the amount of a monthly retirement annuity from six to
seven times the governing body's average monthly contribution over the
member's term of qualified service.  The bill also increases the percentage
from seven to 7.5 percent of a member's monthly pension compounded annually
to which a member is entitled for each year of additional qualified service
in excess of 15 years. 

The bill specifies that six members, rather than all nine members of the
state board of trustees, must be active members of the fund, and that five
members of the local board of trustees representing emergency services
personnel are active. 

EFFECTIVE DATE

September 1, 2001.