The Texas House of Representatives passed SB 12 by a vote of 145-1 today. SB 12 increases the state contribution to the Teacher Retirement System of Texas (TRS) by 2 percent over the next five years. It also proposes to provide a 13th check to retirees up to $2,400.
The Texas Retired Teachers Association (TRTA) would like to thank Rep. Greg Bonnen (R – Friendswood) and all the other representatives who helped make this happen.
Use our Action Alert to send a thank you email to your representatives for passing SB 12.
SB 12 in its present form:
- Makes the TRS pension system actuarially sound by increasing the state contribution rate only and does not increase the contributions percentages for active employees or TRS-covered employers who do not pay Social Security.
- The state contribution would increase to 7.8 percent in 2020 and 8.05 percent in 2021 on its way to an eventual increase to an 8.8 percent contribution rate by 2025.
- Provides for a one-time supplemental payment no later than September 2020 in the amount of the member’s regular monthly annuity, not to exceed $2,400.
- Provides for an overall biennial appropriation of state funds at $1.4 billion to pay for the increased state contribution percentage and the one-time supplemental payment.
Up next for the bill is to go back to the Senate. The Senate will then decide whether to accept the changes that the House has made or to send the bill to conference committee to figure out the final numbers. Stay tuned to the Inside Line as we continue to bring you more news about SB 12 and other retiree-related bills.
Thank you for your commitment to TRTA. Many bills are in motion that can positively impact your retirement!