Blog

08 Apr
0

Health Care Funds Projected to Run Dry

TRS Projects Health Care Fund Out of Money by FY 2014

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 “worst case” 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.

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.

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.

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.

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.

Budget discussions are still ongoing in the Texas Senate. TRTA is hopeful that the Senate’s 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.

TRTA Legislative Initiatives

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.

Specifically, the legislation filed in the House and Senate that may provide a supplemental payment in the coming biennium includes:

  • HB 1699 by Representative Jose Menendez: provides that TRS pay a one-time supplemental payment directly out of the pension fund;
  • HB 2150 by Representative Craig Eiland: provides that TRS pay a one-time supplemental payment directly out of the pension fund;
  • HB 2341 by Representative Allen Ritter: provides for additional opportunities for the TRS Board to determine the fund’s actuarial condition and its ability to provide retirees with a supplemental payment;
  • HB 3542 by Representative Larry Gonzales: provides that retirees receive a supplemental payment from investment proceeds that exceed an 8 percent investment target; and
  • SB 1333 by Senator Robert Deuell: provides that retirees receive a supplemental payment from investment proceeds that exceed an 8 percent investment target.

TRTA is meeting with members of the House PIFS Committee and the Senate State Affairs Committee asking that these bills receive a timely hearing. We appreciate these legislative members for thinking of new and innovative ways to try to help TRS retirees during difficult economic times.

Still Time to Get Things Done

Time to get things done this session is disappearing quickly. TRTA members have done an outstanding job of making legislators aware of our issues. Some legislators have even commented that TRTA members are doing too good of a job communicating with their legislative offices. TRTA is undeterred, as we know there are thousands of interest groups contacting legislators about their issues.

TRTA must, and will, make our voices heard. The good news is that public education retirees are active, articulate, focused voters! Our participation in the legislative process is making a difference for hundreds of thousands of TRS retirees.

Thank you for your hard work on behalf of TRTA. Your dedication does not go unnoticed and we are grateful for your willingness to engage your elected officials. We will keep you informed about the progression of TRTA’s legislative agenda and all budget news as it is updated.

Read More
02 Apr
0

TRTA Special Alert Update

TRTA Members Take Action

 

Coleman Amendment Shifted in Budget due to Lack of Funds

 

An amendment offered by Representative Garnet Coleman to restore full funding to the TRS-Care health insurance program was moved at the author’s request to Article 11 of the Texas budget. Article 11 is often referred to as the “wish-list” and it includes projects that the Legislature would like to fund, but may not have designated how to fund. As you already know, the Coleman amendment would increase funding for the TRS-Care fund; however, its funding mechanism resides in another bill (HB 2001) and that bill may or may not pass this session. No other new budget dollars were allocated to fund the TRS-Care program during tonight’s budget debate, and the Coleman amendment was moved to the wish-list article for possible future action.

 

TRTA members need to know that this was not a defeat, but merely another step in a very long process. The Texas Senate is still working on finding additional revenue sources to help fund the TRS-Care program, as is the TRTA trying to find additional budget resources for this continuing debate. We must all continue to work together so that health care funding for TRS retirees is a priority this session.

Hundreds of phone calls and thousands of emails poured into the Texas House of Representatives yesterday and today. TRTA members are sending a strong message and we will not give up on any issue this session. TRTA is making your TRS-Care health insurance program and the TRS pension trust fund a priority in this legislative session. Your help has been vital and has made a profound impact during this debate. THANK YOU for all you are doing to support our legislative efforts. We will continue to update you next week as these issues move forward.

Read More
01 Apr
0

Support TRS-Care Amendment

HB1 Amendments Being Considered Today

Email and Call Your Legislators and Ask Them to Support the Coleman Amendment Now!

(Take Action Now: Click here to send an email to your legislator asking for their support on this amendment)

As you read this, the Texas House of Representatives is debating HB1, the bill that determines the state budget. Today is our opportunity to reach out to our representatives and ask them to restore funding to the TRS-Care health insurance program!

Representative Garnet Coleman (D-147) will speak later today on his amendment (found on page 208 of the CSHB 1 amendment packet). This may be our only opportunity in the Texas House to restore funding to TRS-Care and prevent retiree premiums from increasing 30 to 80 percent this biennium!
Representative Coleman’s amendment would restore the state contribution to TRS-Care from .5 percent to the full 1 percent. We want our legislators to vote in favor of this important amendment and in favor of public education retirees!
Click here to send an email to your legislator asking for their support on this amendment.

TRTA also encourages you to call your legislators using the toll-free Contact Your Legislator Hotline (1.888.674.3788). This line is staffed by state personnel Monday through Friday from 8:00 a.m. to 5:00 p.m.

Remember, TRTA members need to ask their Texas House member to vote in favor of the Garnet Coleman Amendment found on page 208 of the CSHB 1 amendment packet.

Thank you for responding to this urgent action alert and bringing attention to this vital amendment!

Read More