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TCTA testified before representatives of the Governor's Budget Office and the Legislative Budget Board (LBB) regarding upcoming appropriations for the Teacher Retirement System pension fund and the TRS-Care retiree health insurance program.
Budget preparation rules had forced TRS to submit a budget requesting a lowered contribution rate to the pension fund and elimination of the state's contribution rate to TRS-Care. Under the Texas Constitution, the state cannot contribute less than 6% of payroll to TRS, but a mandate from state leaders required state agencies to present a budget representing 90% of the previous budget. In the case of TRS, this meant that not only would the state's contribution to TRS be lowered below the minimum, but the state would also not be able to fund TRS-Care.
TCTA objected to these proposals, noting that any lowered contributions would be unacceptable to the education community. In addition, we supported an increased state contribution to TRS that would not only bring the system back to actuarial soundness, but allow for an increase in benefits to retirees and restoration of benefits that were cut in the 2005 legislative session.
TCTA also supported additional funding to make health insurance for active employees more affordable, and supported an appropriation to fund a Sunset recommendation for local benefit counseling sessions.
The meeting was an opportunity for TRS to present and answer questions about its budget requests. Staff of the governor's office and the LBB repeatedly referred to the 90% requirement as an exercise in prioritization, so that state leaders could see where agencies felt their most important needs were, rather than an actual precursor to the appropriations that may appear in legislation this session. One staffer noted that the TRS contribution rate might actually be increased this session, and that a decrease was 'quite unlikely.'
TCTA will continue to be vigilant on this issue. There will be similar meetings with legislative leaders later this fall where we will continue to stress the need for additional funding for TRS, TRS-Care and active member health insurance.
