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Legislative Updates

Legislative Update No. 8, Session 79
By Tim Lee, Executive DirectorPrinter Friendly ||| Print as PDF

March 6, 2005

“This legislative session…is crucial for public school retirees.”
—Austin American-Statesman, March 1, 2005

March 6, 2005
TRTA Issues

The Texas Retired Teachers Association (TRTA) is working on improved funding for the retired educator health insurance program TRS-Care and to increase funding for the TRS pension fund. Discussions presently focused on this legislative sessions budget negotiations are not intent on increasing funding to either of these crucial line items; however, there are still several months of talks that will occur before the session comes to an end.

As part of an ongoing communications and education campaign, the TRTA is now activating its grassroots members to contact their legislators asking for their support on TRS-Care and pension trust fund contributions. These communications activities are being coordinated by the TRTA local units. The goal is to contact as many state legislators as possible from now through April 13, 2005, the day that TRTA members will participate in a statewide “lobby day” at the Texas capitol complex.

TRTA members are emphasizing the importance of adequately funding both of these programs. On the TRS-Care issue, a projected revenue shortfall of $230 million would result in a 28 percent premium increase for retired educators participating in the plan. This increase comes just one session after the 78th legislature completely overhauled the plan by reducing benefits and increasing premiums as much as 39 percent.

The pension trust fund is another critical issue. Though the system is financially sound, the state is shortchanging the pension system by paying the minimum contribution as required by the Texas State Constitution. Over the last several legislative sessions, the state has increased the ability of active teachers to retire early and with higher pay.

TRTA does not oppose these retirement changes. When the changes were passed, though, the TRS pension trust fund was over-funded due to strong market gains and a national economic boom. This gave the state enough latitude to reduce its contributions to the TRS pension trust fund. Since the national economic downturn, the TRS fund has slowly been regaining its market losses, but the state has failed to increase funding to the system to offset the cost of the benefit increases that were passed during the market boom.

What TRTA Members Need to Do

Over the next several weeks, the legislature will continue its discussions on appropriations funding for both the TRS-Care and the TRS pension trust fund. Retired educators should contact their legislative representatives (both house and senate members) and educate them on why it is important to adequately fund TRS-Care and the pension trust fund. TRTA is asking that legislators respond by doing the following:

1. Restore funding for TRS-Care so that no premium increase is needed this biennium. In addition, the legislature should work with TRTA to help improve the TRS-Care benefits structure and reduce overall costs to participants.

2. Increase funding for the TRS pension trust fund to an amount that will reduce or completely eliminate the TRS unfunded liability within a 30-year timeframe. This would necessitate a state funding increase from 6 percent of the aggregate active teacher payroll to 8.5 percent.

3. Work with TRTA and other stakeholders to strengthen the financial position of the TRS pension trust fund.
At this time, most all of the needed action could occur in either the Senate or House Finance Committees as these are appropriations issues affecting funding for TRS. The two bills affected in the overall appropriations process is Senate Bill 1 and House Bill 1. When talking to legislators, it is more important to identify yourself as a retired educator, a member of TRTA, and that you are calling about the appropriations for the TRS-Care program and the TRS pension trust fund. No other specific bill information is needed at this time.

TRTA is, though, tracking many other bills that may affect how legislators respond to funding health care or the pension system. A list of them is found below. Please check this site often as TRTA members may need to take action on any one of these specific bills over the next few months.

Please contact TRTA if you have any additional questions.
 

TRTA 79th Legislature Bill Tracking:

Bill Number	Sponsor	Party-District	Synopsis
HB 1 SB 1	Pitts Ogden	R-10 R-5	Relating to appropriations of state government for the 2006-2007 biennium.
HCR 63 SCR 5	Noriega Gallegos	D-145 D-6	Urging Congress to repeal the Government Pension Offset provision and the Windfall Elimination Provision of the Social Security Act.
HB 346	Escobar	D-43	Relating to the amounts to be appropriated for the state contribution to the teacher retirement program for fiscal years 2006 and 2007.
SB 482	Shapiro	R-8	Relating to the retirement benefits payable to retirees of the Teacher Retirement System who are employed as teacher mentors.
HB 566	Brown, Fred	R-14	Relating to eligibility for group benefits coverage for certain government employees and retirees.
HB 583	Zedler	R-96	Relating to the creation and operation of a statewide risk pool to provide health benefits coverage to active employees of school districts.
HB 633	Kuempel	R-44	Relating to participation and credit in, contributions to, and the benefits and administration of the County and District Retirement System.
HB 844 SB 329	Gonzales Hinojosa	D-41 D-20	Relating to retirement benefits of certain teachers.
HB 916	Woolley	R-136	Relating to creating the Governor's Health Care Coordinating Council.
HB 1064	Delisi	R-55	Relating to creating the Governor's Health Care Coordinating Council.
HB 1198	Guillen	D-31	Relating to public education, public school finance, a state property tax and related matters.
HB 1416	Martinez	D-39	Relating to health insurance benefits provided to certain public school retirees and their dependants.
HB 1463	Flores	D-36	Relating to the payment of monthly benefits to certain retirees of the Teacher Retirement System who return to work.
HB 1579	Kolkhorst	R-13	Relating to eligibility for benefits of and reports concerning certain retired members of the Teacher Retirement System.

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