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No significant fiscal implication to the State is anticipated.
No fiscal implication to units of local government is anticipated.
The bill would amend Chapter 824 of the Government Code by authorizing certain members of the Teacher Retirement System of Texas (TRS) to opt out of the Deferred Retirement Option Plan (DROP). The opt-out decision would apply to a member:
As related by the analysis available on TLO, the background and purpose of this legislation is:
"Nearly two decades ago, the legislature created the deferred retirement option plan for members of the Teacher Retirement System of Texas. Interested parties note that the members opting in to the plan were required to sign an irrevocable agreement. However, as the parties further note, the legislature later created temporary revocation periods. These parties note that there are still over 100 active members who participate in the plan but are still working. H.B. 1937 seeks to provide those members with another opportunity to revoke their participation in the program."
The second chamber sponsor is Senator Fraser.
Providing an opt-out provision to TRS members would empower them to make their own decisions regarding their pension plans. We support HB 1937 because it promotes individual liberty.