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25 Mar 2019
0

Senate State Affairs Passes Resolution Urging Congress to Repeal GPO, WEP

by in GPO, info, TRTA, Uncategorized, Update, WEP

Today, March 25, 2019, the Senate State Affairs Committee passed a resolution urging Congress to repeal the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) of the Social Security Act.

The resolution SCR 5, written by Senator Joan Huffman, states that “although these provisions were intended to curtail the payment of windfall benefits to highly paid government employees, in practice they have had and continue to have devastating consequences for low-income employees who worked for many years as public servants.”

As members of the Texas Retired Teachers Association (TRTA) may know, the GPO and WEP are federal provisions that drastically reduce and sometimes even eliminate the earned Social Security benefits for millions of public employee retirees and most retired Texas public school employees. 96% of school employees in Texas do not pay in to the program.

Though the Texas Legislature cannot pass legislation to modify or repeal these provisions, they have passed this resolution urging Congress to address the unfair GPO and WEP as they are “punitive and discriminatory” and “target hundreds of thousands of teachers, police officers, firefighters, and other public servants.”

The resolution also states that the “vast majority of Texas school employees participate in the state’s teacher retirement system and therefore are not required to and do not participate in the Social Security system” and that “many Texas teachers and other public school employees nonetheless have earned Social Security benefits on their own behalf through other employment.”

Senator Joan Huffman said that the effect of GPO and WEP on Texans is “more acute” and that “these provisions cause veteran teachers to retire prematurely and discourage qualified individuals from entering the teaching profession at precisely the time that Texas and the nation face a severe shortage of highly qualified educators.”

She also stated that GPO and WEP “cause tens of thousands of government retirees to experience a diminished quality of life or be forced to return to work to make up for the effects of these provisions.”

Huffman continued “we are limited in what we can do but we can ask the President and Congress to please take a look at this” and expressed that it’s important for Texas to take the initiative in urging Congress to address these provisions.

TRTA Executive Director Tim Lee testified in favor of SCR 5, saying “we have supported for many years the repeal of the GPO and WEP.” Although the Legislature may be limited in what can be done to address these issues, Tim said “passing this will help influence what we do on the hill to get these issues resolved.”

Tim also said that fourteen state teacher retirement systems across the nation are affected by these provisions, but that “every state in the nation has some public workers affected by the GPO and the WEP.”

TRTA continues to work with stakeholders from across the nation and with congressmen in Washington, D.C. to address these issues. Many TRTA members are aware that Congressman Kevin Brady (R – the Woodlands, Texas) dedicated his time as Chairman of the House Ways and Means Committee to address modification of the WEP. Brady is no longer Chairman of this committee; however, his co-sponsor for past WEP bills, Congressman Richie Neal (D – Massachusetts), is now the Chairman and continues to keep focus on this vital issue.

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.

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25 Mar 2019
0

TRTA Convention and Day at the Capitol Next Week!

by in info, Pensions, TRS, TRTA, Update

The Texas Retired Teachers Association (TRTA) is finalizing details for its 66th Annual Convention to be held in Austin April 1—2, 2019. Nearly 1000 retirees are registered for the event already, which is taking place at the Hilton Austin on 500 E. 4th Street. Convention attendees and many other retirees and pre-retirees are also gearing up for a busy day of grassroots advocacy at the Texas Capitol on April 3!

This year’s convention theme, “Connecting the Dots to TRTA’s Success,” is the perfect sentiment that matches TRTA’s drive to succeed during this challenging legislative session in the Texas capital city! Early registration for the convention is now closed. Late (on-site) registration will begin on Monday, April 1 at 10:00 a.m. You may view the convention’s schedule of events by clicking here. A list of training sessions and times is also available online here.

Legislation is always a key focus of our annual conventions, and this year our members are excited to learn more about legislation filed this session to make the TRS pension fund actuarially sound and provide retirees with some financial relief.

During the Legislative Luncheon being held on April 2, members will hear from TRTA Executive Director Tim Lee, Representative Mary Gonzalez, Representative Greg Bonnen, TRS Executive Director Brian Guthrie, and other legislators about what potential solutions are on the table and how it will affect retirees.

Members will also be able to attend a special legislative pep rally that occurs after the House of Delegates on April 2. Legislative Coordinator Tonna Duke and the Austin legislative team will provide updates on the 86th Legislative Session, including what is happening with bills such as HB 9 and SB 12 and the state’s budget bills. Ms. Duke will share techniques and materials to help members advocate during TRTA Day at the Capitol on April 3.

Day at the Capitol, which is open to all convention attendees as well as any member or friend who wishes to join us, will occur on Wednesday, April 3! TRTA is expecting nearly 2000 attendees for this day of grassroots lobbying. Attendees will receive a bag and materials, including a special #RaisetheBase bracelet to wear while supplies last.

Please be sure to share our press release about convention and Day at the Capitol with your fellow retirees and local media outlets.

Please also pay close attention to the weather forecast. Recent forecasts have indicated there could be rain and heavy thunderstorms in the Austin area the week of April 1. Be sure to pack an umbrella!

For any questions about your registration or delegate certification, please contact our Membership Department at 1.800.880.1650 or email us at membership@trta.org. We look forward to seeing you in Austin soon!


The March is On to #RAISETHEBASE for the Pension Fund and TRS-Care!

March is the most crucial month for legislative action on issues that impact you and your fellow public education retirees. TRTA is moving full steam ahead and we need your help! March is the month that will make all the difference in our legislative agenda!

The Legislature is moving at a rapid pace, finalizing budget discussions, hearing bills in committee, having heated floor session debates, and we need them to be THINKING ABOUT YOU while they are doing the work of Texas!

TRTA Needs Your Help!

1.            Call Your Legislators
Use our toll-free hotline 1.888.674.3788. Let’s make 25,000 phone calls in March! Make regular, once-weekly phone calls to your elected officials asking them to “Raise the Base Funding for the Pension Fund and TRS-Care!”

2.            Email Your Legislators
Email your elected officials! TRTA members have sent thousands of emails so far this session. Let’s send 50,000 emails this month!

3.            RSVP to TRTA Day at the Capitol
Make a plan to join us at Day at the Capitol on Wednesday, April 3!


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.

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18 Mar 2019
0

House Appropriations Discusses Budget Bills: HB 1 and SB 500

by in Committee, info, Pensions, TRS, TRS-Care, Update

 

  • Today is day 70 of the 140-day legislative session!
  • At the halfway mark of session, the House Appropriations Committee considered budget bills
  • TRTA Executive Director Tim Lee testified in favor of HB 1 and the committee substitute for SB 500, which includes additional dollars for the TRS pension fund
  • HB 1 and SB 500 passed out of committee, laying the groundwork for making the TRS pension fund actuarially sound
  • Send your legislators an email asking them to continue their work to help retired educators this session!

Today, March 18, House Bill 1, the major budget bill in the House, and Senate Bill 500, which includes supplemental appropriation dollars for the state budget, were heard by the House Appropriations Committee. These are two of the most important bills the Legislature is constitutionally mandated to pass.

TRTA Executive Director Tim Lee testified in support of HB 1, stating appreciation for the focus put on the TRS pension fund and TRS-Care program.

Mentioning House Bill 9, the House’s plan to help the pension fund reach actuarial soundness, Lee said it’s important that the budget include “a funding plan that will ensure long-term solvency of the trust fund and provide some financial relief for retirees.”

Lee also said that although contributions established during the previous legislative session are maintained in the current budget bill, “health care could be improved in the overall budget discussion.”

TRS-Care faces a shortfall this session of approximately $230 million. “If we don’t raise the base contribution for TRS-Care, long-term that program will continue to destabilize,” said Lee, adding that TRTA supports ongoing budget discussions to bolster the plan. “Retirees’ pocketbooks are immediately affected by the cost of healthcare.”

When asked how the state could improve the program and lower costs for retirees, Lee stated that “TRTA recommends increasing the contribution to 2.25% of payroll.” Currently, that contribution is 1.25% of payroll.

Last week, the Texas State Senate passed SB 500, authored by Senator Jane Nelson, which includes supplemental funding for the Teacher Retirement System of Texas (TRS) pension fund. As you may have read in last week’s Inside Line article (found here), the funding for Senate Bill 12 is included in SB 500. SB 12 was voted favorably out of the Senate State Affairs committee on March 14 and is similar to HB 9 in the House.

SB 500 includes money from the Economic Stabilization Fund (ESF), also known as the Rainy Day Fund, to help bring the TRS pension fund to actuarial soundness. By state law, the Texas Legislature cannot approve a cost-of-living increase for retirees unless the system can pay off its liabilities within 31 years or less—our state’s definition of actuarial soundness.

Today, the House Appropriations Committee proposed budget substitutes to SB 500. Per Appropriations Committee Chairman John Zerwas, the committee substitute for SB 500 includes $1.34 billion in the budget for TRS with $658.2 million of that designated for a supplemental payment to TRS retirees. These items reflect the plan for actuarial soundness and financial relief for retirees as proposed in HB 9 and are contingent upon its passage.

TRS Executive Director Brian Guthrie was called as a resource witness and discussed the change made to the fund’s rate of return assumption last summer, which brought the pension fund’s funding period to 87 years. However, based on returns from 2018, the February 28, 2019 valuation of the fund indicated the period is now 99 years. Because of this, it is vital that a plan be put into place to help the fund reach actuarial soundness.

Tim Lee testified in favor of the committee substitute for SB 500, stating that the “most important component this session is putting in place a funding plan for the long-term solvency of the pension fund.”

Lee also added “we support any help the retirees can receive financially,” stressing that both a cost-of-living (COLA) increase and supplemental payment are welcome, though retirees prefer a true COLA. “Ensuring the solvency of the fund puts that possibility on the table.”

The House Appropriations Committee adopted the committee substitute to SB 500 unanimously. The bill will now move to the House floor to be voted upon by the entire body.

The March is On to #RAISETHEBASE for the Pension Fund and TRS-Care!

March is the most crucial month for legislative action on issues that impact you and your fellow public education retirees. TRTA is moving full steam ahead and we need your help! March is the month that will make all the difference in our legislative agenda!

The Legislature is moving at a rapid pace, finalizing budget discussions, hearing bills in committee, having heated floor session debates, and we need them to be THINKING ABOUT YOU while they are doing the work of Texas!

TRTA Needs Your Help!

1.            Call Your Legislators
Use our toll-free hotline 1.888.674.3788. Let’s make 25,000 phone calls in March! Make regular, once-weekly phone calls to your elected officials asking them to “Raise the Base Funding for the Pension Fund and TRS-Care!”

2.            Email Your Legislators
Email your elected officials! TRTA members have sent thousands of emails so far this session. Let’s send 50,000 emails this month!
Send your email today by clicking here!

3.            RSVP to TRTA Day at the Capitol
Make a plan to join us at Day at the Capitol on Wednesday, April 3! RSVP via Facebook here!

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.

Read More
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