HBA-SEB H.B. 1057 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1057
By: Berman
Pensions and Investments
2/26/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, the retirement pay for a legislator or other person in the
elected class of membership within the Employees Retirement System of Texas
(retirement system) is two percent of the state salary of a district judge.
Since the legislature controls the salary of a district judge, the public
may perceive an increase in the judge's salary as a move to raise the
retirement annuity of the elected class.  H.B. 1057 separates the annuity
of the elected class of membership of the retirement system from the salary
of a district judge and provides that the annuity formula is 2.25 percent
of $101,700, multiplied by the number of years the member of the elected
class has served.  

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 814.103(a), Government Code, to alter the
formula for computing the standard service retirement annuity for service
credited in the elected class of membership in the Employees Retirement
System of Texas (retirement system).  Changes the multiplier of the number
of years of service credit from two percent of a district judge's state
salary to 2.25 percent of $101,700, not to exceed 100 percent of a district
judge's state salary. 

SECTION 2.  Provides that the legislature intends to freeze annuities for
annuitants of the elected class of the retirement system at the rate being
paid at the time the legislation is enacted.   

SECTION 3.  Emergency clause.
  Effective date: upon passage.