Breaking News: As Bill Deadline Passes, TRS Retirees Are Major Priority for 88th Legislature

The Texas Retired Teachers Association (TRTA) is pleased to announce two priority bills have been filed in the Texas Legislature that would help Teacher Retirement System of Texas (TRS) retirees struggling to make ends meet after years of not receiving a cost-of-living adjustment (COLA).

Our team of legislative experts is doing a complete analysis on these major TRS bills, and our full report will be available next week via an Inside Line and will be featured on the TRTA live show with Executive Director Tim Lee on Thursday, March 16 at 4:00 p.m. Central. Please stay tuned to the Inside Line in the event of time or date changes.

Below is a quick update on these bills and their major tenets.

Texas Senate Proposal: SB 10

Lieutenant Governor Dan Patrick announced early in session that TRS retirees are a priority in the Texas Senate. Working with Senator Joan Huffman (R – Houston), Chair of the Senate Finance Committee, Senate Bill 10 (SB 10) was identified as the bill that brings forward a plan to help TRS retirees.

This priority bill number was being held for a Senate proposal that had been in development for a number of weeks. On Friday, March 10 that plan was officially filed and introduced. Though Chair Huffman is carrying the bill, in an extraordinary move, every member of the Texas Senate signed on to SB 10 as a primary author.

The major components of the SB 10 plan as introduced would:

• Provide a 4 percent COLA for TRS retirees who retired before September 1, 2013;
• Provide a 2 percent COLA for TRS retirees who retired between September 1, 2013 and December 31, 2021;
• Provide a one-time check of $7,500 for all eligible TRS retirees aged 75 and over;
• The state will provide full funding for the $7,500 supplemental checks, as well as full funding for the cost of the COLA benefit enhancements;
• The plan would protect the actuarial condition of the TRS pension fund.

Texas House Proposal: HB 600

Speaker Dade Phelan (R – Beaumont) announced that the Texas House is making TRS retirees a priority this session. In a statement on Twitter, Speaker Phelan said the House was working to “provide a cost-of-living adjustment for retired educators in the state.” Working with Representative Greg Bonnen (R – Friendswood), Chair of the House Appropriations Committee, House Bill 600 (HB 600) was identified as the bill that brings forward the House plan to help TRS retirees. This priority bill number was announced when the bill was filed on Wednesday, March 8.

Chair Bonnen is the primary author of HB 600, and the bill has now been referred to the House Committee on Pensions, Investments and Financial Services (PIFS). Chair Bonnen has also authored and filed HJR 2, which proposes a constitutional amendment authorizing the Legislature to provide one-time or ongoing benefit enhancements to eligible TRS annuitants, including a one-time transfer of state funds for that purpose.

The major components of the HB 600 plan would:

• Provide a 6 percent COLA for TRS retirees who retired on or before December 31, 2003;
• Provide a 4 percent COLA for TRS retirees who retired between January 1, 2004 and December 31, 2013;
• Provide a 2 percent COLA for TRS retirees who retired between January 1, 2014 and December 31, 2020;
• Provide a one-time check of $5,000 for all eligible TRS retirees aged 70 and up;
• Create a gains-sharing system for possible future COLAs that would begin in 2028 with a 2 percent cap;
• Implement a methodology for paying down pension fund liabilities by 2054, thus ensuring the pension fund’s solvency;
• Implement increased contributions for the state and active school employees;
• Would require the passage of a constitutional amendment for the plan’s full implementation.

TRTA’s Quick Take:

Texas Legislative leaders are introducing some bold plans to help TRS retirees this session.

TRTA is extremely grateful to Lieutenant Governor Dan Patrick, Senator Joan Huffman, and the entire Texas Senate for their proposal and for making TRS retirees a priority in the Senate. We are communicating with Senate leaders and are pleased to report to our TRTA members the high level of enthusiasm and support we hear from these Senators.

TRTA is extremely grateful to Texas Speaker Dade Phelan, Representative Greg Bonnen, and the entire Texas House for their proposal and for making TRS retirees a priority in the House. We are meeting with House leaders and we want to convey to our members that the Texas House is equally enthusiastic about helping TRS retirees.

TRTA members, these proposals represent major steps forward on our efforts to help all TRS retirees. Legislators are discussing billions of dollars being invested in TRS and billions more potentially directed at helping retired school employees.

As we mentioned in this update, we are still doing our complete analysis for these two bills. These are not the only bills that have been filed supporting TRS retirees. Many of our friends in the Texas Legislature have also filed bills aimed at helping our dedicated TRS retirees. TRTA will report on those bills and their authors in the coming days.

To all our friends in the Texas Legislature, TRTA says “Thank You!” for your hard work and dedication to Texas retired education employees.

To our TRTA members, we are so encouraged by these bills and the discussions we are having with legislative leaders and bill authors. Thank you TRTA members for your support and all you are doing to help!

If you are not a TRTA member, we NEED you! This session is far from over. All TRTA members and all TRS retirees need to be engaged in these activities now! Our presence and activities at the Capitol are supported by our dedicated, dues-paying members. We cannot do any of these activities without this support.

PLEASE join us now and help us as we work to move these various proposals forward and end on the best possible plan for TRS retirees.

This is a developing story. Stay tuned for more information.

Thank You

Thank you for your membership to TRTA. We are fighting ardently for your benefits every day at the Capitol. If you are not yet a TRTA member, please join here.

Be sure to like us on Facebook, follow us on Twitter and subscribe to our YouTube channel.

Tim Lee, the Texas Retired Teachers Association’s (TRTA) Executive Director, will be live on Facebook and YouTube tomorrow, March 9, at 4 p.m. Central.

Lee will discuss the latest legislative happenings as it’s been a busy week at the Texas Capitol! Be sure to tune in!

Senate Finance Meets, Discusses Supplemental State Budget

The Texas State Senate Finance Committee met on Wednesday, March 8 to discuss Senate Bill 30, the supplemental budget bill. Included in the preliminary version of this bill are supplemental appropriations (beyond what is in Senate Bill 1) for the Teacher Retirement System of Texas (TRS).

Section 4.07 of the bill includes funds for a potential benefit enhancement for TRS retirees, which would be “contingent on the enactment of legislation by the 88th Legislature . . . and contingent on compliance with the requirements regarding the amortization period of the unfunded actuarial liabilities of the Teacher Retirement System under Section 821.006, Government Code” in the amount of “$1,000,000,000 is appropriated from the general revenue fund.”

Committee Chair Senator Joan Huffman (R – Houston) shared highlights from the bill, saying that $1 billion has been set aside for a benefit enhancement for TRS retirees, adding that “this is a starting point” and “a sign of good faith” that the Senate will work on this issue this legislative session. She also stated she is working on a bill “to craft exactly what that looks like,” adding that she is working with Representative Greg Bonnen (R – Friendswood) in the Texas House on writing this legislation.

Members of TRTA may recall that benefit enhancements could include a cost-of-living adjustment (COLA) or a supplemental payment (often referred to as a thirteenth check). While the legislation that would provide this enhancement has not yet been finalized, our members should know the bill filing deadline is Friday, March 10 and we expect to see bill language very soon.

TRTA Executive Director Tim Lee provided public testimony on the bill.

“We appreciate as an organization the work this body is doing to try and find ways to help retirees,” Lee said. “We know that that work is ongoing…We see this (bill) as another piece of the puzzle.”

TRTA believes that both the Senate and the House are taking TRS retirees’ concerns into serious consideration this session. As TRTA has remarked before during public testimony, the loss of buying power TRS retirees are experiencing is a very complex problem formed over many years of inflation and a lack of permanent increases in pension benefits. It may take several sessions to provide retirees with the financial help they need.

“Hopefully, we will have a very productive session helping retirees this year,” Lee said.

TRS Releases February 28 Actuarial Valuation

TRS released the results of its February 28 actuarial valuation of the pension fund today. This update finds the funding period as of February 28 to be 28 years. This is within the parameters of actuarial soundness established by the state, a threshold that determines if benefit enhancements can be passed for TRS retirees.

Per TRS, the Unfunded Actuarial Accrued Liability (UAAL) is projected to increase from $51.7 billion as of August 31, 2022, to $54.4 billion as of August 31, 2023 and the funded ratio of TRS is projected to decrease from 79.0% to 78.7%.

Thank You

Thank you for your membership to TRTA. We are fighting ardently for your benefits every day at the Capitol. If you are not yet a TRTA member, please join here.

Be sure to like us on Facebook, follow us on Twitter and subscribe to our YouTube channel.

March is a crucial month for legislative action on issues that impact you and your fellow public education retirees. The Texas Retired Teachers Association (TRTA) is moving full steam ahead, and we need your help!

THE MARCH IS ON!

The Texas Legislature is moving at a rapid pace, having budget discussions, deciding how to spend a more than $32 billion budget surplus, and hearing bills in committee. We need our legislators to be THINKING ABOUT YOU while they are doing the work of Texas this session!

The Senate Finance Committee meets on Wednesday, March 8 at approximately 1:00 p.m. (or 15 minutes after the full Senate has adjourned for the day) to begin its review of the state supplemental budget. Members can view the meeting online from this website once the meeting has begun.

Here are all the major issues TRTA is watching right now:

1. TRS Retirees Need a COLA!

Members of the TRTA Capitol Team are meeting with legislators every day, having pointed discussions with key leaders about how best to help TRS retirees. Inflation is at its highest level in more than 40 years. The last cost-of-living adjustment (COLA) passed for TRS retirees occurred in 2013, and only applied to those who retired prior to September 1, 2004. If you retired after that time, you have NEVER received a COLA! Now is the time for a meaningful, substantial COLA for TRS retirees. If you’re a TRS retiree struggling to make ends meet and trying to make plans for your financial future, then this conversation is about you!

2. TRTA Day at the Capitol on April 12!

TRTA is marching on the Texas Capitol grounds on Wednesday, April 12, with thousands of retirees ready to rally for a COLA! If you want to attend this day of grassroots advocacy and make your voice heard and get your legislators thinking about you, then make a plan to join us on April 12! RSVP here. Don’t miss this great opportunity to band together with your fellow retirees. If you want to talk to your legislators about how important it is that TRS retirees receive much-needed financial help this session, this then conversation is about you!

3. It’s Time to Renew Your TRTA Membership!

The TRTA membership renewal campaign started on March 1 and continues through June 30. We need as many members as possible to join our collective voice and help us win a COLA for TRS retirees. If you have not yet renewed your dues for the 2023-24 membership year, and you want fellow retirees to join in this vital cause with us, then this conversation is about you!

TRTA is preparing state-wide membership renewal emails, and we encourage our members to renew with their local chapters.

TRTA needs your help! March is the month that will make all the difference in our legislative agenda. LET’S SET OUR GOALS HIGH AND GO FOR THEM!

TRTA is sounding the alarm: TRS retirees need help and now is the time for the Legislature to help them! 

Now is the time to take action. We need EVERY TRTA member involved in the initiative to get TRS retirees a COLA.

THE MARCH IS ON!

Be sure to join us for Day at the Capitol! There is a pep rally on April 11 featuring guest Ray Perryman, and on April 12, TRTA will have its rally on the grounds of the Texas Capitol!

TRTA Mobile App Discontinued

The TRTA mobile app will be discontinued as of March 15, 2023. TRTA wants to thank its members for embracing this technology during the ups and downs of the COVID pandemic. While the mobile app was a valuable resource during this time, the TRTA Board of Directors is now focused on upgrading other electronic services that we know our members will utilize with greater frequency and will have wider-reaching benefits. We look forward to sharing exciting news with all of you very soon about these features. Thank you again for joining us on this journey to provide the best and most convenient resources for our members.

Thank You

Thank you for your membership to TRTA. We are fighting ardently for your benefits every day at the Capitol. If you are not yet a TRTA member, please join here.

Be sure to like us on Facebook, follow us on Twitter and subscribe to our YouTube channel.