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Legislative Updates

Legislative Update No. 78, Session 79
By Tim Lee, Executive DirectorPrinter Friendly ||| Print as PDF

December 7, 2006

Below is a sample letter that TRTA members can use when writing TRS regarding the Governor Perry proposed alternative investment opportunities.

Follow these helpful hints when writing to TRS on this issue:

  • Address your letter to Mr. Jarvis Hollingsworth, Chairman, TRS Board of Trustees.  Ask in your letter that it then be distributed to all other TRS Board members.
  • Send your letters directly to the TRS Office Building in Austin, Texas.  The staff will be certain that the trustees get your letters.
  • Be polite and appreciative for what these trustees do to help.  Keep in mind, the TRS Board of Trustees position is an unpaid, highly involved, and stressful position.  These people are working to protect and enlarge the pension trust fund's assets.
  • It is possible to be polite and appreciative while also being direct and assertive.  This is a serious issue and the TRS Board of Trustees need to know that TRTA members are concerned about how they invest your pension fund assets.
  • Use your own words.  Remember, the letter below should be viewed as an idea starter.  Feel free to use as much of it as you want in your own letter, but try and make it your letter and not a copy of this or something else. The trustees do want to know what you think and most public officials will tell you that form letters do not go very far.
  • Contact TRTA with any questions you have.  If you are not sure about something you want to put in your letter, contact TRTA and we will do our best to answer any questions you may have.

--TRTA Sample Letter--

December 7, 2006

 

Mr. Jarvis Hollingsworth

Chairman

Teacher Retirement System Board of Trustees

1000 Red River Street

Austin, Texas 78701

 

Mr. Hollingsworth:

 

Thank you for your service on the Teacher Retirement System (TRS) Board of Trustees.  Your time and effort on behalf of all TRS members is greatly appreciated. 

 

Recently, I read an article about the TRS Board of Trustees being approached by representatives from Governor Rick Perry’s office to consider investing in Texas-based businesses that may qualify for grants from the State Emerging Technology fund.  This situation concerns me as a TRS member. 

 

The TRS pension fund has a $13 billion unfunded liability.  I understand that the State Legislature has been working to reduce that liability by modifying the TRS benefits structure for future retirees and by encouraging active employees to work longer.  I also know that it is because of this unfunded liability that TRS retired members have not had a pension increase in 6 years.

 

As a TRS member, I feel as though TRS should focus all its attention on reducing the current unfunded liability as quickly as possible.  A great deal of pressure has been put on the TRS Board of Trustees and the TRS Staff to ensure that the pension fund investment earnings are at least 8% a year.  I also know that neither the State Legislature nor Governor Perry have championed the idea of meeting the State’s actuarially required contribution to properly fund the retirement system, thus putting even more pressure on the TRS Board of Trustees and TRS Staff.  Now, at a time when the State Legislature could make it a priority to properly fund the System, it seems that there is more interest on behalf of Texas politicians to influence the investment practices at TRS than to meet the State’s current actuarially required funding contribution.

 

I appreciate that TRS has a process to review potential investments and that a thorough due diligence analysis is performed by TRS staff before investment decisions are made.  The recent stories on this issue, though, seem to suggest that this process may be influenced by the Governor for political expedience.  Whether these accounts are factual or not, this should never be allowed to happen.

 

I have every confidence that you and all the trustees will work tirelessly to find the best investments for the TRS pension fund, and I am very pleased that TRS efforts have yielded four years of very high investment earnings.  But I must voice my concern that the TRS Board of Trustees, TRS Staff, and TRS advisors resist any undue political interference when investing pension fund assets, and that you consider all investment opportunities equally with your decisions being based on what is best for the TRS members. 

 

It is not my intention to tell you or the Board how to make investment decisions, what investments you should make, or am I saying that you should not invest in the opportunities brought to your attention by the Governor’s office.  I am asking that you ensure all TRS members that the integrity of the investment selection process will remain intact, and that TRS Board of Trustees will isolate themselves from any undue influences that may result in decisions that would benefit the few at the expense of the TRS members.  I trust that this is the direction you will take and that your efforts on behalf of all TRS members will encourage the TRS Trustees and TRS Staff to recognize and hold sacred their fiduciary obligation to the TRS pension fund. 

 

Thank you for your time and I look forward to working with you more in the future.

 

Sincerely,

 

 

 

CC: All TRS Trustees

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