{"id":3277,"date":"2011-04-08T16:29:28","date_gmt":"2011-04-08T21:29:28","guid":{"rendered":"https:\/\/trta.org\/?p=3277"},"modified":"2011-04-08T16:29:28","modified_gmt":"2011-04-08T21:29:28","slug":"health-care-funds-projected-to-run-dry","status":"publish","type":"post","link":"https:\/\/trta.org\/es\/health-care-funds-projected-to-run-dry\/","title":{"rendered":"Health Care Funds Projected to Run Dry"},"content":{"rendered":"

TRS Projects Health Care Fund Out of Money by FY 2014<\/strong><\/span><\/p>\n

This week in the House Pensions, Investments, and Financial Services (PIFS) Committee hearing, Mr. Brian Guthrie (TRS Executive Director Designate) reported on how bad things may get for the TRS-Care health insurance fund if legislators do not restore funding to the program. One \u201cworst case\u201d scenario projected that the TRS-Care fund may be operating with a budget deficit as high as $585 million by the end of FY 2014.<\/span><\/p>\n

These projections were based on proposed House and Senate budget reductions, and the expected increase of 7500 TRS retirements in the coming biennium. This would drain the TRS-Care fund of its $700 million surplus and result in a funding deficit of $265 to $585 million by FY 2014. With a funding shortfall that high, TRS is likely to consider reducing benefits, raising retiree premiums or both just to sustain TRS-Care through the coming biennium.<\/span><\/p>\n

It is likely that the number of new retirements may be much higher due to legislative cuts to public education. Early in the session, the House PIFS Committee heard testimony that the number of retirements could be as high as 15,000. <\/span><\/p>\n

The issue for all TRS retirees is that cutting TRS-Care funding at a time when the program must cover thousands of new individuals is a bad decision; one that will cost plan participants through increased premiums or fees. <\/span><\/p>\n

TRTA is working every day with legislative officials on this issue. Many of these legislators are responsive to our suggestion to restore TRS funding, but little action has been taken to make this a budget priority. As many of you know, the last attempt in the House to restore TRS-Care funding was during the floor debate on HB 1 (the House budget bill). An amendment by Representative Garnet Coleman was deferred to a different section of the budget proposal and its fate is uncertain.<\/span><\/p>\n

Budget discussions are still ongoing in the Texas Senate. TRTA is hopeful that the Senate\u2019s effort to look for additional revenue sources may help restore funding to TRS-Care. State Senator Robert Duncan is chairing a special committee that is working to find revenue sources for the coming biennium. TRTA is involved in these discussions and we are working every possible lead to protect TRS-Care premiums.<\/span><\/p>\n

TRTA Legislative Initiatives<\/strong><\/u><\/span><\/p>\n

A number of bills have been introduced to provide retirees with a supplemental payment this session. We are hopeful that the House PIFS Committee and the Senate State Affairs Committee will provide a hearing for these bills soon. <\/span><\/p>\n

Specifically, the legislation filed in the House and Senate that may provide a supplemental payment in the coming biennium includes:<\/span><\/p>\n