As the first called special session of the 85th Legislature continues, members of the Texas Retired Teachers Association (TRTA) are hearing intense discussions about bills that may impact their retirement benefits.

House Appropriations Meets Tuesday, July 25

Tomorrow, Tuesday, July 25, the House Appropriations Committee will meet to discuss several bills impacting retirement benefits for Teacher Retirement System of Texas (TRS) retirees. The meeting will begin at approximately 10:00 a.m. after the full House has adjourned or recessed in Room E1.030 of the Texas Capitol. A live webcast of the meeting will be made available from this webpage once the meeting begins. TRTA Executive Director Tim Lee will testify.

TRTA encourages members living in the area who are able to come to Austin tomorrow to attend!

The following bills are scheduled to be heard during tomorrow’s meeting:

Expanded Review of Senate Finance Committee Meeting, SB 19

As our members know, the Senate Finance Committee met this past Saturday, July 22to discuss Senate Bill 19. The bill was filed for the first called special session of the 85th Legislature by Senator Jane Nelson (R – Flower Mound) and co-authored by Senator Joan Huffman (R – Houston).

SB 19 lays out the Texas Senate’s plan for providing additional revenue to the TRS-Care retiree health insurance program. The Senate’s plan to address TRS-Care funding includes as much as $212 million in additional funding. To read the full text of SB 19, please click here. You can view archived footage of the meeting by clicking here. Discussion of SB 19 begins at about 35 minutes into the meeting.

During the meeting, Senator Huffman shared a history of TRS-Care funding problems, stating that “the structural funding of TRS-Care is flawed. Because funding is based on percentages of active employee payroll rather than actual healthcare costs, we continue to face shortfalls every biennium.”

The Legislature chose to freeze premiums and deductibles for retirees from 2005 until the recent 85^th Legislative Session, which further compounded the program’s funding problems. In 2015, the Legislature paid $768 million to cover the TRS-Care shortfall; however, the shortfall ballooned to over $1 billion by 85^th Legislative Session. Senator Huffman stated that “even after major reforms, we still could have problems next session,” as the TRS-Care shortfall is projected to be between $300 to $500 million by 2019.

“I can say with assurance that no one in the Legislature wanted to leave the retired teachers without health insurance,” said Huffman, after explaining that House Bill 3976, which made significant structural changes to TRS-Care, passed unanimously in both bodies at the end of the 85^th Regular Session to avoid a complete shutdown of the program.

Huffman also said that she, Chairman Nelson, and Lieutenant Governor Dan Patrick have made a commitment to continue the added benefits being provided by SB 19. “Our intention moving forward is that this will be your benefits… we intend to make it a priority.”

Senator Kirk Watson (D – Austin) asked if the additional funding provided by SB 19 is intended to be permanent. Huffman replied that it is the intent to keep the funding in base budget. Watson stated “if what we want to do is make it a commitment, the way to make it a commitment would be to raise the state’s statutory contribution rate,” and asked “have you identified what you would recommend we use as a source of funding beyond this?”

Huffman said that it has been discussed. “As you know it’s difficult to commit to a future Legislature how we are going to do things . . . but I think publicly stating that the commitment is here for the retired teachers is significant and meaningful. I’m confident that it means we will continue to do what we need to do for the retired teachers.”

Huffman reiterated that part of the issue is TRS-Care’s flawed funding mechanism, and expressed hope that TRS-Care would be part of discussion on public school finance next session, though this is not how the Legislature has traditionally addressed funding for TRS-Care.

Chairman Nelson replied by saying “we need to take advantage of the opportunity we have of this being placed on the call and we need to look at how can we use this to get us up to next session…it’s all about us and where the Legislature is going to place our priorities next session, and I’m telling you right here right now my priority is going to be on our teachers next time.” She continued “I can promise you is it will be a top priority and I actually heard our Lieutenant Governor say this is going to be a priority.”

Senator John Whitmire (D – Houston) echoed some of Senator Watson’s remarks by urging committee members to “keep working…with some very real, concrete solutions” and to “work with the House better than we are.”

TRS Executive Director Brian Guthrie and Chief Health Care Officer Katrina Daniel served as resource witnesses for the committee, and addressed inquiries about future shortfalls. The TRS-Care shortfall is expected to be between $500 and $700 million by 2020-2021, $2 billion by 2022-2023, and between $3 and $3.5 billion by 2024-2025.

TRTA Executive Director Tim Lee testified during the meeting, thanking Lieutenant Governor Dan Patrick for focusing on TRS-Care, as well as Senator Huffman for her tireless work on the program and Chairman Nelson for her work to find the money to pay for the proposed changes in SB 19.

“I want to thank all of you for what I think is the most human discussion I’ve ever heard on the TRS-Care issue.” Tim continued by saying that “we are in a moment in time where we have a chance to do something, and I am heartened to hear that we will come back with another focus on this in the future session.”

“My members are scared and they’re afraid and they’re concerned–they don’t know how they’re going to pay for their medicine,” said Lee. “These are important issues. Whatever goes on between the House and the Senate this special session, I implore you please do not let this session end with nothing happening…something has to happen.” Lee said that the Texas House is discussing possible use of the Rainy Day Fund to help with TRS-Care, saying that retirees are grateful their program survived but many “do not know how they are going to pay the cost of the care.”

Huffman thanked Tim for his work, saying he and TRTA have been instrumental in bringing the concerns of the retired teachers to the Senate. She also agreed that the Senate needs to work with the House on this issue.

Finalizing his remarks, Lee said “we are struggling against something that none of us control, and that is the price of healthcare,” adding that “while I cannot say one approach is better than the other, I will say that the Governor, Lieutenant Governor, members of this committee, members of the Legislature—I appreciate the focus on this issue and so do my members.”

Senator Lois Kolkhorst (R – Brenham) discussed cost drivers for the program, stating that “we (the Legislature) are not going to be able to afford the trajectory we are on, not just as a state, but as a nation.”

Senator Watson responded by saying “we have an obligation to meet the needs of these people that we’ve made commitments to that are our retired teachers in the context of whatever is the cost of medical care. I don’t want anybody to listen to us complain about the cost of medical care…as though that is an excuse for us not properly funding these programs.” The true burden, he said, is on the retirees.

TRTA appreciates the many comments and concerns expressed by members of the Senate Finance Committee, and will work with both the Senate and the House to ensure that financial relief for retirees is passed during the special session.

TRTA Advocacy Tip for Members

Let’s take this opportunity we have during special session to be as effective as possible! TRTA encourages members to like their legislators’ Facebook pages and communicate with them often during special session. A lot of positive work is being done to help retired teachers right now, and it is vital that we keep the lines of communications open with our Senators and Representatives.

Please ask your legislators to work with their colleagues to add as much additional funding to TRS-Care as possible! Not on Facebook? Use our toll-free Legislator Hotline to call your legislators today: 1.888.674.3788!

Senate Bill 19 Proposed Changes

Senate Bill 19 Proposed Deductible Changes

Non-Medicare Retiree/Family Deductibles
From $3000/$6000 to $1500/$3000

Medicare Retirees
Medicare Retiree from $146 to $121
Medicare Retiree & Spouse from $590 to $565
Medicare Retiree & Child(ren) from $504 to $479
Medicare Retiree & Family from $1106 to $1081

Retirees with Adult Disabled Children
Non-Medicare Retiree & Child(ren) from $433 to $233
Non-Medicare Retiree & Family from $1074 to $874
Medicare Retiree & Child(ren) from $504 to $304
Medicare Retiree & Family from $1106 to $906

Senate Bill 19 Proposed MOOP Changes

Non-Medicare Retiree/Family with Adult Disabled Children Maximum Out-of-Pocket
From $6650/$13,300 to $3000/$6000

TRS-Care Premiums
Current 2017 Premiums
Vs. HB 3976 (Passed during Regular Session)
Vs. SB 19 (Proposed, not yet passed)

Prescription Coverage

No changes were made to the proposed prescription drug plan designs from HB 3976.

Thank You

Thank you for your membership to TRTA! TRTA has more than 82,000 members, but there are more than 350,000 TRS retirees. That means hundreds of thousands of TRS retirees are not involved in the largest retiree organization advocating for their TRS benefits.

To improve funding for TRS-Care, we need as many retirees as possible to join TRTA and stand with us!

It is vital that you join TRTA today! If you already are a member, please ask your fellow retirees to join. Many retirees are still unaware of the impending TRS-Care changes! Let’s all work together to improve retirement benefits for current and future retirees.

Be sure to connect with us via Facebook, Twitter and YouTube.

Today, Saturday, July 22, the Senate Finance Committee met to discuss Senate Bill 19. The bill was filed for the first called special session of the 85th Legislature by Senator Jane Nelson (R – Flower Mound) and co-authored by Senator Joan Huffman (R – Houston).

SB 19 relates to bonuses and salaries for public school classroom teachers and state assistance for the Texas Public School Employees Group Insurance Program, including TRS-Care. To read the full text of the bill, please click here.

SB 19 lays out the Texas Senate’s plan for providing additional revenue to the TRS-Care retiree health insurance program. The Senate’s plan to address TRS-Care funding includes as much as $212 million in additional funding that will be used to lower deductibles for pre-65 TRS retirees from $3,000 to $1,500 for individuals and from $6000 to $3000 for families.

The plan will also help reduce premiums for retirees age 65 and older by $25. Medicare retiree only premium would go from $146 to $121. Retiree plus spouse premiums would go from $590 to $565. Retiree plus child(ren) premiums would go from $504 to $479. Retiree plus family premiums would go from $1106 to $1081.

Please note, TRTA continues to work with major carriers to find Medicare supplement solutions at the lowest cost possible. As the largest retired teacher organization in the nation, we partner with more than 30 other associations around the country representing retired school employees and other public servants. TRTA will use its influence to develop and offer an alternative Medicare supplement for its members and their dependents. As soon as more information becomes available about these options, TRTA will share them.

SB 19 would also provide assistance to retirees who have adult incapacitated children with disabilities, reducing premiums by $200 per month. Non-Medicare retiree plus child premiums would go from $433 to $233, Non-Medicare retiree plus family would go from $1074 to $874, Medicare retiree plus child would go from $504 to $304, and Medicare retiree plus family would go from $1106 to $906. SB 19 would also reduce the maximum out-of-pocket (MOOP) for retirees with adult disabled children from $6650/$13,300 to $3000/$6000.

Once a Non-Medicare retiree reaches the annual deductible in the 2018 standard plan, the plan will pay 80% of eligible in-network medical and prescription expenses, and once they reach the MOOP the plan pays %100 of eligible in-network medical and prescription expenses.

Preventive services such as annual physicals, cancer screenings, immunizations and flu shots are available at no cost to retirees. HB 3976, passed during the regular 85^thLegislative Session, also covers preventative maintenance generic drugs at no cost to Non-Medicare retirees in the HD plan.

In a video shared by Lieutenant Governor Dan Patrick yesterday, he stated that this Senate plan will make the additional funding from SB 19 permanent in the next legislative session. If this additional funding becomes part of the ongoing budget strategy for TRS-Care, it will have a very positive long-term impact for this vital program.

Senator Kirk Watson (D – Austin) and other Senators serving on the committee pointed out during today’s hearing that funding for TRS-Care must be tied to a funding source in order for the changes laid out in SB 19 to become permanent. In other words, the state contribution rate will need to be increased if this funding is to be added to the base budget for TRS-Care during the next regular legislative session. Right now, we have a commitment from the Senate to make this permanent funding a priority. TRTA believes Chairman Jane Nelson is intent on doing that.
More Details to Come Soon

Tim Lee, Executive Director of the Texas Retired Teachers Association (TRTA), testified during today’s hearing, expressing the need for retirees living on average fixed annuities of $2000 or less per month to have access to quality, affordable healthcare. Many valuable remarks were made by state Senators today that TRTA will share in a more extended update next week.

As our members may know, multiple bills have been filed this special session to address TRS-Care funding and other benefit adjustments for Texas public education retirees. You can view a list of those bills by clicking here. As our members also know, it is vital that agreement between both bodies of the Legislature be found in order for this additional help to be received.

Texas House members have also proposed several options for providing additional funding for TRS-Care. TRTA urges the Legislature to work collectively to ensure that the TRS-Care retiree health insurance program receives additional funding and retirees receive some financial relief.

Today’s hearing was the first step of many more to come during this fast-paced and productive special session. Please stay tuned daily to TRTA for any urgent updates about issues impacting your retirement benefits during the special session.

Thank You

Thank you for your membership to TRTA! TRTA has more than 82,000 members, but there are more than 350,000 TRS retirees. That means hundreds of thousands of TRS retirees are not involved in the largest retiree organization advocating for their TRS benefits.

To improve funding for TRS-Care, we need as many retirees as possible to join TRTA and stand with us!

It is vital that you join TRTA today! If you already are a member, please ask your fellow retirees to join. Many retirees are still unaware of the impending TRS-Care changes! Let’s all work together to improve retirement benefits for current and future retirees.

Be sure to connect with us via Facebook, Twitter and YouTube.

Members of the Texas Retired Teachers Association (TRTA) know that it has been a busy week! The first called special session of the 85th Legislature began on Tuesday, July 18, and by the early morning hours of July 20, Governor Greg Abbott announced that TRS-Care funding had been added to the special session call.

Because the special session lasts for just thirty days, items on Governor Abbott’s list will be addressed quickly. Committee meetings will be held even on weekends as our state legislators work to pass legislation on approximately twenty different issues.

Senate Finance: Saturday, July 22 at 1:00 p.m.

This weekend, the Senate Finance Committee will meet to discuss Senate Bill 19 by Senator Jane Nelson (R – Flower Mound). SB 19 relates to bonuses and salaries for public school classroom teachers and state assistance for the Texas Public School Employees Group Insurance Program, including TRS-Care. To read the full text of the bill, please click here.

TRTA Executive Director Tim Lee will be testifying on SB 19 this Saturday when the Senate Finance Committee meets at 1:00 p.m. in room E1.036 of the Texas Capitol. At that time, a link will be made available to view the meeting live online from this webpage. (Please note the video live feed of the meeting will not be available until a few minutes before the meeting begins).

House Appropriations: Tuesday, July 25 at 10:00 a.m.

TRTA also expects bills to be heard at next Tuesday’s meeting of the House Appropriations Committee. Appropriations will meet on July 25 at approximately 10:00 a.m. after the full House has adjourned or recessed. The committee will meet in room E1.030 of the Texas Capitol.

A live webcast of the meeting will be made available from this webpage once the meeting begins. Tim Lee expects to testify on this day. TRTA will provide more news about what bills have been added to the meeting agenda as soon as the information is made available.

More to Come!

Members, it is vital to stay tuned throughout special session as bills move through the legislative process at a breakneck pace! TRTA will be calling on its members to make phone calls and send emails as bills addressing TRS-Care and cost-of-living increases are placed on committee agendas.

TRTA knows that retired educators are frustrated and scared after the changes made to the TRS-Care program during Regular Session. While saving the program was essential, it does not take away the sting of the financial burdens that will hit retiree pocketbooks in January 2018.

Many legislators have filed bills to help retirees during the Special Session. While retirees are grateful that their concerns have been heard, they also know that nothing can be accomplished if the Senate and the House cannot come to an agreement on HOW to help retirees.

Right now, funding avenues for TRS-Care between the House and the Senate differ significantly. We must continue to contact our legislators throughout Special Session and ensure that not only are bills filed, they are also passed!

Here are a few bills to watch as special session continues:

Thank You

Thank you for your membership to TRTA! TRTA has more than 82,000 members, but there are more than 350,000 TRS retirees. That means hundreds of thousands of TRS retirees are not involved in the largest retiree organization advocating for their TRS benefits.

To improve funding for TRS-Care, we need as many retirees as possible to join TRTA and stand with us!

It is vital that you join TRTA today! If you already are a member, please ask your fellow retirees to join. Many retirees are still unaware of the impending TRS-Care changes! Let’s all work together to improve retirement benefits for current and future retirees.

Be sure to connect with us via Facebook, Twitter and YouTube.