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Legislative Updates

Legislative Update No. 57, Session 81
By Tim Lee, Executive DirectorPrinter Friendly ||| Print as PDF

June 22, 2009

Governor Vetoes HB 2656, Ignores Education Retirees' Pleas

Governor Rick Perry has vetoed a vital part of the Texas Retired Teachers Association (TRTA) legislative platform: increasing the number of education retirees on the TRS Board of Trustees. Governor Perry's veto statement says it is "...imprudent to dilute the board's financial expertise with House Bill No. 2656." You can read Governor Perry's full statement by clicking here.

TRTA is appalled that the Governor would choose to veto a bill so important to education retirees, especially when he told education retirees he would support such an action when he was campaigning for reelection in 2006. During the 2006 election, TRTA asked all the gubernatorial candidates if they would support the addition of a second retiree to the TRS Board. His response was that he was "open to the idea of changing the makeup of the board so it would include greater employee representation." He further stated his belief that "it is important that the individuals who stand to benefit from the wise management of the fund be well-represented." TRTA published this quote in the October 2006 issue of The VOICE, which reached more than 70,000 Texans prior to the election.

TRTA worked with many legislators on this issue. You can be proud of all the elected officials who drafted legislation pertaining to this issue and supported it with their vote. As you may recall, HB 2656 was authored by Representative Doug Miller (R-New Braunfels), and at no time in the entire legislative process did this important bill EVER receive a dissenting vote. It was sent to the Governor amended in a way that still provided for an election/appointment process -- a move that should have made the Governor more likely to sign the bill into law -- and provided the addition of a second retiree to the TRS Board.

Governor Perry has stated that taking away a position presently held by a person with "financial expertise" will dilute the Board's ability to make decisions pertaining to the fund's investments. TRTA, on the other hand, has made a case that adding a member of the fund who is unburdened by potential conflicts of interest with ties to the financial sector would make for a more balanced TRS Board of Trustees. Does the Governor believe that public education professionals lack the financial intelligence to ask the right questions and make common-sense decisions?

The idea that removing one trustee with "financial expertise" would weaken the fund's ability to manage its assets is difficult to believe. TRS has a world-class investment staff, as well as numerous independent advisors, lawyers, research assistants, government relations personnel, accountants, auditors and more.

TRTA vehemently disagrees with Governor Perry's veto on HB 2656. It is regrettable that the Governor did not do the right thing and embrace this opportunity to enhance education retirees' voice on their own pension trust fund Board of Trustees.

TRTA members should not be too disheartened, though. This association will NOT give up. This issue will come back next session and we'll be asking every gubernatorial candidate on the record in the upcoming election if they will support retirees on this important issue. Governor Perry has already told TRTA one thing and done another. Time will only tell how his position on this issue may change again in the coming months. Bearing this in mind, TRTA will publish each candidate's responses to our new set of tough, direct and to-the-point questions so you can make an informed decision at the ballot box.

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