Members of the Texas Retired Teacher Association (TRTA) have been awaiting progress on the Teacher Retirement System of Texas (TRS) actuarial soundness bill, Senate Bill 12.
The bill, created by Senator Joan Huffman (R – Houston), originally passed the Senate unanimously in March. Language from House Bill 9 by Representative Greg Bonnen (R – League City) was added to the bill in April and passed the House with a vote of 145 to 1.
Because there are differences in the original version of the bill versus what was passed in the House, a conference committee must be appointed to finalize the bill’s details.
SB 12 in its present form before being reviewed by the conference committee:
- 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.
- Increases the state contribution 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 1, 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.
The following Senators have been appointed to the SB 12 conference committee: Senator Joan Huffman – Chair; Senator Lois Kolkhorst, Senator Jane Nelson, Senator Larry Taylor, and Senator Royce West.
The following Representatives have been appointed to the SB 12 conference committee: Representative Greg Bonnen, Chair; Representative Barbara Gervin-Hawkins, Representative Jim Murphy, Representative Armando Walle, and Representative John Zerwas.
TRTA will continue to keep members informed as SB 12 and other bills are updated and finalized. The legislative session ends on May 27.
Thank you for your commitment to TRTA. Many bills are in motion that can positively impact your retirement!