Today, the House version of Senate Bill 12, passed through second reading in the Texas House of Representatives. The House version of SB 12 will make the TRS pension fund actuarially sound and will provide a 13th check to retirees up to $2,400 dollars.
SB 12 raises the state base funding by 2 percent over the next five years. The bill will go to final vote tomorrow.
SB 12 in its present form:
- 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.
- The state contribution would increase 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 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 Texas Retired Teachers Association (TRTA) would like to thank Rep. Greg Bonnen (R – Friendswood) and all the other legislators who’ve worked on this bill. Stay tuned to the Inside Line as we continue to provide updates to this and other retiree-related bills.
Thank you for your commitment to TRTA. Many bills are in motion that can positively impact your retirement! It’s a very important time to stay tuned to the Inside Line, as there will be multiple updates from now until the end of session in May.
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