TCTA testifies on TRS budget request

TCTA provided testimony during a Sept. 9 Legislative Budget Board hearing to review the TRS Legislative Appropriations Request for the 2028-29 biennium ahead of the 2027 session of the Texas Legislature, which begins in January.

The Teacher Retirement System of Texas is requesting $8.4 billion in state general revenue/general-revenue-related funding for FY 2028-29.

TRS serves more than 2 million members and retirees and pays more than $19 billion annually in retiree benefits and health care payments.

TCTA provided written testimony to the Legislative Budget Board. During the hearing, Pamela McPeters, TCTA's director of governmental relations, highlighted TCTA's recommendations to protect and strengthen the pension plan and to offset health care costs for active and retired educators:

• Make a substantial one-time state appropriation to TRS to restore the pension fund to the 31-year statutory funding threshold, with consideration given to a larger payment that would materially shorten the funding period.
• Increase the state's ongoing statutory contribution rate, subject to actuarial analysis and a responsible phase-in, to strengthen the pension fund and provide an opportunity to pre-fund future benefit enhancements.
• Establish a permanent, actuarially conditioned mechanism for future cost-of-living adjustments, building on the gain-sharing concept considered by the Legislature in 2023.
• Provide the requested $110 million in FY 2028 for TRS-ActiveCare to help limit average premium increases to no more than 10%.
• Increase the state's $75-per-employee-per-month health insurance contribution, which has remained unchanged since 2001 despite substantial increases in medical-care costs.

The testimony echoed TCTA's comments on TRS during a House hearing in August.

TCTA will continue to advocate on TRS issues ahead of and during the 2027 session.