{"id":3313,"date":"2011-01-28T10:30:18","date_gmt":"2011-01-28T16:30:18","guid":{"rendered":"https:\/\/trta.org\/?p=3313"},"modified":"2011-01-28T10:30:18","modified_gmt":"2011-01-28T16:30:18","slug":"trta-legislative-update-keep-trs-a-defined-benefit-plan","status":"publish","type":"post","link":"https:\/\/trta.org\/es\/trta-legislative-update-keep-trs-a-defined-benefit-plan\/","title":{"rendered":"TRTA Legislative Update: Keep TRS a Defined Benefit Plan"},"content":{"rendered":"

TRTA Week in Review<\/strong><\/span><\/p>\n

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Public Pension Funds Still Under Attack<\/strong><\/span><\/p>\n

\u201cTexas Pension funds are in better shape than anywhere else\u2026.\u201d This is a recurring sentiment that we are hearing about your TRS pension trust fund as the legislative process revs up. What is also revving up is the attitude that a defined benefit traditional pension plan (like TRS retirees currently have), as well as the health insurance program that TRS retirees need, is too much of a fiscal burden on the state and now<\/em> is the time to eliminate these programs.<\/span><\/p>\n

TRTA members need to know that there are interest groups that are promoting<\/em> the demise of the defined benefit program. On Thursday, a public pension fund briefing was conducted by Senator Robert Duncan (R-Lubbock) and Representative Vicki Truitt (R-Southlake). During that briefing, Talmadge Heflin, Director of the Texas Public Policy Foundation’s Center for Fiscal Policy, called on the Texas Legislature to adopt a proposal that moves all current and future public employees (including education employees) into a defined contribution plan. He also advocated for the termination of health insurance programs for public pension retirees and the creation of high-deductible health insurance programs.<\/span><\/p>\n

For school district employees, the Texas Public Policy Foundation recommendations are even more radical. About 95 percent of all Texas school district employees do not pay into Social Security. Mr. Heflin and the Texas Public Policy Foundation suggest that the best alternative for current and future educators is to keep them out of TRS, to keep them out of the Social Security program, and provide a floor-level of retirement benefits based in government bonds. <\/span><\/p>\n

No employee in the American workforce today is as ill equipped for retirement as what the TPPF is suggesting for our Texas public education employees. The fact is that the combination of TRS management efficiencies, low taxpayer cost, low employee cost, and high level of retirement benefit is a winning formula that has worked in Texas for over 70 years. <\/span><\/p>\n

Legislators Need to Know<\/span><\/u><\/p>\n

Texas legislators are talking about your pension trust fund and are asking the question if now is<\/em>the right time to transition the fund to a defined contribution plan. While the proponents of a defined contribution plan will try and reassure retirees that it will not impact their benefit, TRTA members know better. Moving the current and future working population away from the current defined benefit pension plan eliminates the much needed pension fund contributions that are invested to the betterment of the entire trust and all beneficiaries. It is the investment earnings that have driven cost of living increases and benefit enhancements for past and present pensioners, and eliminating contributions does nothing for the system except create a definite end date for the plan.<\/span><\/p>\n

Now is the time to shore up pension fund contributions and to do all that is required to preserve and grow this healthy retirement system.<\/span><\/p>\n

Legislators need to know the facts:<\/strong><\/span><\/p>\n