{"id":74246,"date":"2026-08-18T16:45:16","date_gmt":"2026-08-18T21:45:16","guid":{"rendered":"https:\/\/trta.org\/?p=74246"},"modified":"2026-08-18T16:49:43","modified_gmt":"2026-08-18T21:49:43","slug":"trs-funding-takes-center-stage-at-house-pensions-hearing","status":"publish","type":"post","link":"https:\/\/trta.org\/es\/trs-funding-takes-center-stage-at-house-pensions-hearing\/","title":{"rendered":"TRS Funding Takes Center Stage at House Pensions Hearing"},"content":{"rendered":"

In preparation for the 90th Texas Legislative Session, which begins next January, the House Committee on Pensions, Investments and Financial Services (PIFS) met today to hear from the Teacher Retirement System of Texas (TRS) regarding its interim charges.<\/p>\n

The committee is charged with reporting to the next Legislature on TRS actuarial soundness, current contribution levels, defined benefit plan assumptions, projected liabilities, and the long-term financial stability of the system. Members are also expected to evaluate employer contribution options and the impact of potential benefit enhancements.<\/p>\n

Tim Lee, the Executive Director of the Texas Retired Teachers Association (TRTA), will be live on Facebook<\/a> y YouTube<\/a>\u00a0on Friday, Aug. 21, at 2 p.m. Central. Lee will be joined by members of TRTA\u2019s legislative team to discuss the results of this committee hearing.<\/p>\n

TRS Status: Not Currently Actuarially Sound<\/h4>\n

Brian Guthrie, the TRS Executive Director, told the committee that the TRS pension fund is currently not actuarially sound under state law, which defines soundness as the ability to pay off fund liabilities in less than 31 years. Before August 2026, the fund had been considered sound with a 28-year funding period. That period increased to 35 years following implementation of salary increases passed during the 2025 Legislature.<\/p>\n

Investment Returns May Help, but More Work Remains<\/h4>\n

TRS expects its next valuation at the end of August 2026 to show some improvement in the funding period, supported by an expected investment return of more than 13% this year in addition to last year\u2019s return of more than 9%. However, TRS does not expect the system to return to actuarial soundness before the next legislative session.<\/p>\n

TRTA\u2019s Position<\/h4>\n

TRTA submitted written testimony addressing the issues included in the interim charge. The testimony and related legislative priorities document outline the funding shortfall tied to salary increases, the contribution levels needed to address that shortfall, and the continued impact of inflation on retirees.<\/p>\n

TRTA is advocating for benefit enhancements in the next session to help retirees combat inflation while also restoring the TRS system to actuarial soundness. Read TRTA\u2019s legislative priorities here: TRTA Legislative Priorities<\/a>.<\/p>\n

Key Takeaways for Retired Educators<\/h4>\n