Dear Editor,
On Friday, July 27th, the TRS Board voted to lower the assumption rate on the TRS Pension plan. The Texas Legislature will need to provide more funds in 2019 to make the pension actuarially sound. There are currently more than 280,000 retired TRS members. Last year’s investments earned 12.5%. But, now they assume only a 7.25% return.
When TRS was formed, Texas decided to not participate in social security for its members. Instead, they created a defined benefit plan to take care of its members. They promised its members, teachers, administrators, and school employees to always have a secure, well funded, and reputable fund. Now with this vote, and consequences, this is now in jeopardy.
This is the first step toward changing and privatizing our defined benefit plan, as many of our legislative leadership wants to do. Their decisions will make the plan less financially stable and leave it open to legislative change.
The TRS Board split in its vote yesterday between members with a pro-education background that care about public education and those business oriented members appointed by the Governor not caring how their decision affects retired and active school employees.
Today, retired and active teachers were the losers. Now we wait, and are at the mercy of the legislators voting to raise their contributions to our pension. Teachers contribute 7.7% of every paycheck to their retirement every month of their career. The average teacher annuity payment is $2,060 a month. Many school employees and long retired teachers do not receive that much. Many TRS members have no other income than their annuity. The state contributes 4% and the school districts contribute 2.8% to employees’ retirement each month. School employees only want the State legislature to uphold the promise they made to them to have a livable retirement when they retire. TRS Care, retired teachers’ health insurance, will also have a shortfall due to the state not funding it fully as there is no automatic mechanism to fund it as there is for other state employees insurance. (ERS) Is very important to have a synonyms teaching program on public education.
If you are a voter and know anyone in education or related areas covered by TRS, please research the candidates and be an informed voter. If control of the Texas Senate and the Texas House is lost to the far right candidates, you can kiss the TRS Pension Plan and Public Education as we know it, goodbye.
In November, vote for Pro-Public Education candidates! Not Red Not Blue but PURPLE for Public Education.
Sincerely,
Alicia Smith
Member of Texas Retired Teachers Freestone County Retired Teachers
