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TCTA testified for increased state contributions and retiree benefits to the Teacher Retirement System (TRS) before the Senate State Affairs Committee on October 18. In our testimony, we also noted that a top priority for the 2007 session would be to undo some of the benefit reductions passed by the Legislature in the 2005 session. The Committee met to review the Teacher Retirement System and discuss possible recommendations for the upcoming legislative session.
State Affairs Committee Chair Robert Duncan (R-Lubbock) expressed strong support for a retiree benefit increase, and discussed the merits of a 13th check (a one-time benefit increase) versus an automatic cost-of-living adjustment. Duncan also supports increasing contributions to TRS to improve the fiscal health of the fund, and mentioned the possibility of requiring school districts to contribute to TRS.
The TRS Executive Director, Ronnie Jung, commented that despite being technically underfunded, the TRS fund is actuarially sound. With continued stock market gains, the system could be back on track in a few years, but a higher state contribution rate would speed the process.
Two TCTA members testified before the committee regarding individual situations that would need to be addressed through legislative action. A Midland teacher who had retired in 2004, planning to sit out for one year and return as a shortage-area teacher, was adversely affected by the return-to-work surcharges imposed on districts beginning in 2005; and a Temple teacher who had opted for the Optional Retirement Program (ORP) during his previous higher education employment is now unable to transfer that service credit to TRS. Both teachers presented compelling, well-received testimony, and TCTA will be assisting them in their efforts during the legislative session.
Posted: Oct. 18, 2006
