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Today, March 14, the Senate State Affairs Committee met to discuss various bills, including Senate Bill 12 filed by Committee Chair Joan Huffman (R \u2013 Houston).<\/p>\n
As the Texas Retired Teachers Association (TRTA) has reported before, if passed, SB 12<\/a> would make the pension fund actuarially sound and provide retirees with a one-time supplemental payment. Per a press release written by Huffman\u2019s office, \u201cby addressing TRS\u2019s solvency problem with a conservative plan, the Legislature can secure the retirement for teachers!\u201d<\/p>\n The press release continues \u201cthe proposed bill would increase state, district, and active employees\u2019 pension contributions over a six-year period.\u201d The bill would also provide a payment to ALL retired school employees, \u201cputting more money in retirees\u2019 hands immediately.\u201d<\/p>\n TRTA knows Senator Huffman has been working with Representative Greg Bonnen (R \u2013 League City) in the Texas House to introduce legislation that would shore up the Teacher Retirement System of Texas (TRS) pension fund and provide some kind of benefit increase to retirees. Bonnen\u2019s bill, HB 9<\/a>, also proposes to make the TRS pension fund actuarially sound and provide a supplemental payment to retired educators.<\/p>\n As many TRTA members know, legislation can be fluid during a legislative session, undergoing multiple versions before a final bill is passed. At the moment, the bills differ on a few elements, including the amount of the proposed payment. However, both bills are working toward the vital and necessary step to make the pension fund sound enough to provide a much-needed benefit increase for retirees.<\/p>\n While laying out SB 12, Senator Huffman stated that the current amortization period of the pension fund is 87 years. \u201cWithout a long-term, cost-efficient proposal like this, retirees may never receive a COLA,\u201d said Huffman.<\/p>\n As our members may know, by state law, the Legislature cannot approve a cost-of-living increase for retirees unless the system can pay off its liabilities within 31 years or less.<\/p>\n Huffman\u2019s bill proposes changes that would occur over several years, eventually increasing the state contribution from the current 6.8 percent to 8.25 percent by fiscal year 2024. Huffman stated that this would incur an ongoing cost, but it would be \u201cshared among all contributors.\u201d The bill also proposes that the school district contribution rise from 1.5 percent to 2 percent by 2025 and the active employee contribution from 7.7 percent to 8.25 percent by 2024. At present, the bill\u2019s proposed supplemental payment for retirees would be capped at $500.<\/p>\n The bill, if passed, would take the funding period for the pension from 87 years down to 29 years by 2020. \u201cWithout this plan,\u201d said Huffman, \u201cthe funding period will jump to 99 years by 2020.\u201d<\/p>\n Huffman stated that acting now, despite a significant financial commitment, is a far more cost-efficient way to address the pension system\u2019s long-term sustainability. She further stated that the benefits received by retirees are \u201cnot lavish benefits but are critical to thousands of Texans and their families.\u201d<\/p>\n Huffman also pointed out that HB 9 is similar to SB 12, and that it is \u201cthe intent of both chambers to pass a long-term cost-efficient plan.\u201d Senator Huffman said she is working with Dr. Bonnen in the Texas House \u201cto bring more financial stability to one of largest pension funds in the world and to provide additional money for retired teachers.\u201d<\/p>\n TRTA Executive Director Tim Lee testified in support of the bill, showing appreciation for taking a long-term view of the retirement system and stating that although the supplemental payment is appreciated, he hopes the Senate and House \u201cwill continue to work to see if we can increase the amount.\u201d<\/p>\n Senator Eddie Lucio asked about how the changes to TRS-Care last session affected retirees, and Lee replied that \u201cmore costs have shifted onto retirees for healthcare.\u201d<\/p>\n Senator Brian Birdwell asked if passing a cost-of-living raise as opposed to a supplemental payment would affect the soundness of the system and Lee responded that the payment \u201chas a one-time cost but doesn\u2019t incur any new ongoing liability for the system.\u201d<\/p>\n \u201cThe most important thing that needs to occur this session is a stable funding plan for the long-term health of the system,\u201d said Lee. SB 12 was voted favorably out of committee. The funding for the bill is included in SB 500<\/a>, which passed favorably out of the Senate on Wednesday, March 13 and has now been referred to the House. Funds would come from the Economic Stabilization Fund (ESF), also known as the Rainy Day Fund.<\/p>\n A representative of the Texas Public Policy Foundation (TPPF) testified against SB 12, promoting the idea that the TRS pension fund should be changed from a defined benefit (DB) plan to a defined contribution (DC) or 401k-style plan. TRTA does not support eliminating the DB plan for current or future educators, as TRS is the sole form of retirement security for 96 percent of Texas educators. March is the most crucial month for legislative action on issues that impact you and your fellow public education retirees. TRTA is moving full steam ahead and we need your help!<\/p>\n The Legislature is moving at a rapid pace, finalizing budget discussions, hearing bills in committee, having heated floor session debates, and we need them to be THINKING ABOUT YOU while they are doing the work of Texas!<\/p>\n The march is on to #RAISETHEBASE funding for the pension fund and TRS-Care! TRTA needs your help! March is the month that will make all the difference in our legislative agenda<\/a>! LET\u2019S SET OUR GOALS HIGH AND GO FOR THEM! THE MARCH IS ON!<\/p>\n 1. Call Your Legislators<\/strong> 2. Email Your Legislators<\/strong> Send your email today by clicking here!<\/strong> Gracias por su membres\u00eda en TRTA. Estamos luchando ardientemente por sus beneficios todos los d\u00edas en el Capitolio. Si a\u00fan no es miembro de TRTA, por favor \u00fanete aqu\u00ed<\/a>.<\/p>\n Aseg\u00farate de Danos like en facebook<\/a>, S\u00edganos en Twitter<\/a> y suscr\u00edbete a nuestro canal de youtube<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" SB 12 receives hearing in Senate State Affairs Senator Huffman is working closely with the House to provide a long-term funding plan for the retirement system Without a stable funding plan for TRS, the pension plan\u2019s unfunded liability will continue to increase, making a true cost-of-living increase impossible Executive Director Tim Lee testified in […]<\/p>\n","protected":false},"author":3,"featured_media":42161,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22,12,15,14],"tags":[],"class_list":["post-42159","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-info","category-pensions","category-trs","category-update"],"acf":[],"yoast_head":"\n
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\nWithout a stable funding plan for TRS, the pension plan\u2019s unfunded liability will continue to increase, making a true cost-of-living increase impossible<\/strong>.<\/p>\n
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\n<\/strong><\/p>\nThe March is On to Help Retired Educators this Session!<\/strong><\/h1>\n
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\n<\/strong><\/p>\nThe Most Important Things You Can Be Doing Right Now<\/strong><\/h1>\n
\nUse our toll-free hotline 1.888.674.3788. Let\u2019s make 25,000 phone calls in March! Make regular, once-weekly phone calls to your elected officials asking them to \u201cRaise the Base Funding for the Pension Fund and TRS-Care!\u201d<\/p>\n
\nEmail your elected officials! TRTA members have sent thousands of emails so far this session. Let\u2019s send 50,000 emails this month!<\/p>\n
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\n3. RSVP to TRTA Day at the Capitol<\/strong>
\nMake a plan to join us at Day at the Capitol on Wednesday, April 3! RSVP via Facebook here<\/a>!<\/p>\nGracias<\/strong><\/h1>\n