As the Texas Retired Teachers Association (TRTA) reported last week, the Teacher Retirement System of Texas (TRS) Board of Trustees will be meeting in Edinburg on Wednesday, February 14 through Friday, February 16.
How to Watch the Meeting Online!
We urge all members of TRTA in the area to attend in person (UT Rio Grande Valley, Ballroom Building, 1201 W. University Drive, Edinburg, TX 78539). The meeting is also available online, as important decisions regarding the pension fund are being discussed. It is especially important that members watch on Wednesday, February 14. Click for the TRS Board meeting agenda and board meeting book.
Links TRS Board of Trustees Webcasts (Please Note, the Link Will Not Be Live Until the Meeting Begins)
Why Is This Meeting So Important?
The TRS Board of Trustees is considering a proposal to lower the fund’s investment return assumption from the current 8 percent rate to a lower rate. The justification for this change stems from the experience study of the fund over the past five years, and projections about the economy and investment returns over the next five years. This study, which considers how assumptions compare to actual fund performance, is mandated by law.
The majority of state pension systems across the nation that have performed experience studies have lowered their assumptions. If TRS lowers the rate of return assumption, a significant increase in the pension fund’s unfunded liabilities will occur. The Texas Legislature will then be asked to increase their contribution rate to help the fund return to a funding period of 31 years or less to meet the statutory definition of actuarial soundness. TRTA will report on the effects of this decision following the meeting.
TRTA’s state officers and Executive Director, Tim Lee, will be present at the meeting and will address the board regarding the implications and possible policy and funding issues associated with this change. Several members of TRTA are also expected to attend and provide public testimony. TRTA will keep its members updated on any changes that are approved by the TRS Board of Trustees.
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