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Legislative Updates

Legislative Update No. 25, Session 80
By Tim Lee, Executive DirectorPrinter Friendly ||| Print as PDF

March 14, 2007

TRS Releases New Numbers; Senate Finance Discusses TRS; Senator Eltife Takes a Stand

 

I apologize for the abbreviated message, but a full report will come later.  Below are some highlights of today’s activities in the Senate Finance Committee.

 

  • Teacher Retirement System of Texas (TRS) releases the results of its February 28, 2007 valuation. 

  • TRS reports that a State contribution of 6.6 percent is needed to make the fund actuarially sound. 

  • A contribution rate of 6.7 percent would greatly enhance the fund’s ability to pay out to retirees a 13th month check by January 2008.

  • The Senate Finance workgroup on TRS recommended a State contribution of 6.4 percent.

  • This amount is 0.3 percent less than the House Appropriations recommendation, and would not be enough to make the system actuarially sound this coming biennium.

  • The Senate Finance Committee voted to accept the recommendation, but leave it pending for future discussion.

  • Senator Kevin Eltife pushed to have the committee recommend a 6.6 State contribution rate.

  • Emphatically urging the committee to put more money into the pension trust fund to make it actuarially sound this coming biennium, Senator Eltife even pursued parliamentary action to force the issue.

  • Senator Eltife agreed to withdraw his motion, but did so with the understanding that discussion on TRS funding was NOT over with the adoption of the workgroup’s recommendation.

  • Senator Duncan pushed for a long-term fix for TRS so that the system stays actuarially sound and that it is able to provide benefit increases for retirees now and in the future.

  • Senator Lucio commented that there were going to be more discussions on other pieces of legislation that address TRS funding and benefit increases.

 

TRTA will post a link to the archived video of this debate in the near future.  TRTA members are encouraged to contact Senator Eltife and thank him for his strong support and conviction on getting the pension fund solvent and providing TRS retirees with a benefit increase.  Members should also contact Senator Robert Duncan and thank him for his continued work to make the fund strong now and over the long-term so that retirees can expect benefit increases in future years.

 

More to come later this week.

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