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Legislative Updates

Legislative Update No. 15, Session 81
By Tim Lee, Executive DirectorPrinter Friendly ||| Print as PDF

March 18, 2009

Busy Day at Texas Capitol

TRTA Issues Moving Forward

It’s been a busy day in the Texas Legislature. There is some good news today as Texas House Speaker Joe Straus met with TRTA legislative team members and the House Pensions, Investments and Financial Services Committee passed a resolution supporting public education retirees and active employees. Senate budget leaders also met and discussed TRS budget issues this afternoon, but the news from that meeting was not as positive as TRTA hoped.

TRTA Meets with Texas House Speaker

Texas House Speaker Joe Straus warmly received TRTA legislative team members Bill Barnes, Barry Telford, and Tim Lee in his conference room today. This offered TRTA leaders the opportunity to convey the interests’ of public education retirees directly to the leader of the Texas House of Representatives. Speaker Straus listened intently to TRTA recommendations to improve funding to the TRS pension trust fund, to provide retirees with a permanent pension increase, and to protect the long-term health of the TRS-Care health program. Speaker Straus was genuinely interested in TRTA’s legislative agenda and in working to find ways to help public education retirees. TRTA was pleased to spend time reconnecting with the Speaker. Many TRTA members will remember that Speaker Straus served on the House Pensions and Investments Committee in 2005. His background on TRS and pension issues in general is a great asset to all of us as TRTA continues to build a strong working relationship with his office.

House PIFS Committee Update

House Pensions Investments and Financial Services Committee passed HCR 61 sponsored by Representative Abel Herrero today. This is a House Resolution that urges the United States Congress to repeal the Government Pension Offset and the Windfall Elimination Provision. As many TRTA members know, these two provisions unfairly impact thousands of public education retirees in Texas. The GPO and the WEP not only hurt Texas retirees, but also impact public education retirees and other government employees all over the country. TRTA strongly supports HCR 61 and is very grateful for Representative Herrero and his resolution. The more state elected officials talk about this issue, the more it helps TRTA and other organizations work to repeal these two unjust Social Security provisions in Congress. TRTA will keep you posted as this resolution moves forward.

Senate Finance Committee Reviews TRS Budget

The Senate Finance Committee met to discuss budget items pertaining to the TRS pension fund and its operational appropriation. Though several suggestions were made by the Senate that are designed to provide additional legislative oversight on how the pension fund manages its administrative costs, there was no mention of increasing the State contribution to the TRS pension trust fund.

TRS released the February 28, 2009 valuation that stated the pension fund value is now$70.6 billion. The fund value as of August 31, 2008 was $104.9 billion. That’s a decrease of more than $34 billion. The TRS actuary concluded that the system is not actuarially sound, that any benefit adjustment for retirees needed to be fully funded by the Legislature because the fund could not bear the cost, and that a “stair step increase in the contribution rates towards a long term solution..." seems prudent this legislative session. The Texas Senate Finance Committee recommendation on TRS, though, does not yet provide for this incremental stair step approach. Perhaps this is an approach that will be deliberated more thoroughly as the session progresses.

What about the Texas House and its budget recommendations?

The Texas House Appropriations Committee may have an alternative suggestion to the one that is being recommended by the Senate Finance Committee. TRTA is following the actions of the Texas House Appropriations Subcommittee on Education very closely and is encouraging all legislative members to increase funding to TRS. The retirement system was scheduled to be reviewed in the House Education Subcommittee today, but that action was postponed to tomorrow or Friday. TRTA is pushing for an increased funding level for the pension trust fund and will update you on the House recommendations as they are available.

Conclusion

Thank you for your interest in TRTA legislative activities. TRTA is working hard to help pass legislation that will protect your pension fund and provide you an increase in your pension benefits. Your support and continued participation in these efforts is greatly appreciated.

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