TRS Board gets update on pension fund

This week, the TRS Board of Trustees held its final quarterly meeting of the year, which included updates on the health of the pension fund.

Dr. Ray Perryman presented a report on the impact that TRS and its programs have on the Texas economy. In 2024, the total economic benefit (including multiplier effects) of the TRS annuity and health care programs across the state is estimated to be $46.8 billion. In addition to the substantial economic and fiscal benefits to communities across Texas, Perryman noted that TRS annuity and health care programs are highly important to the financial stability of active and retired public education employees and their households.

Gabriel, Roeder, Smith & Company (GRS), an actuarial firm, provided a "health check-up" of the TRS pension fund. 

They found that employer contributions toward retirement for teachers in Texas are among the lowest when compared to other state pension funds nationally. The state contributes 8.25% while ISDs and other public education employers contribute 2%. Only the District of Columbia has a lower employer contribution rate, and most states that don't participate in Social Security contribute 15% or more.

The annual market returns on investments are volatile but have met or exceeded the 7% benchmark over the past decade, averaging a 7.1% return. 

GRS said the return in 2024 is substantially higher, at 12.7%. 

The pension fund is actuarially sound by having a funding period of less than 31 years set by statute. Based on current assumptions, the TRS Pension Fund would reach 100% funded status in 2052, which is the same projected time horizon as the 2023 valuation.

Both the significant economic impact of the pension and health programs and the good health of the pension fund will be helpful as TCTA continues to work with legislators to advocate for additional investment in health care for active teachers and increased pensions for retired educators during the upcoming 2025 legislative session.

Enroll in TRS-Care dental, vision plans by Dec. 17

Retirees eligible for TRS-Care have until Dec. 17 to sign up for new dental and vision plans that will begin in January. More than 80,000 retirees have already signed up for the new coverage, according to TRS.

TRS announced expanded phone hours for TRS-Care Dental and TRS-Care Vision enrollment. Call TRS Health at 1-888-237-6762 between 7 a.m. and 6 p.m. Monday-Friday or between 9 a.m. and 1 p.m. Saturday to enroll.

Learn more about the dental and vision coverage and enroll online here.