The Texas Teacher Retirement System (TRS) is the Texas State public pension plan. Established in 1937, TRS provides retirement and related benefits to those employed by public schools, colleges and universities supported by the State of Texas and managing a $ 147.4 billion trust fund established to finance member benefits. More than 1.5 million public education and high education and retired employees participate in the system. TRS is Texas's largest public pension system in both the sixth largest membership and asset and public pension fund in the US. The agent is headquartered at 1000 Red River Street in the capital city of Austin.
The Supervisory Board regulates the pension system. The Council consists of nine guardians appointed for a period of six years. The three guardians are the direct appointment of the Governor. Two guardians are appointed by the governor from a list prepared by the State Education Council. Two guardians are appointed by the governor of the three active candidates for the public school district who have been nominated for each position by the employees of the public school district. One guardian is appointed by the governor of three retired candidates nominated by retired TRS members. Beginning with the 2017 election, the former superintendent of higher education on board became an "open" chair. Retired TRS, members of the general school district and members of the higher education institution are entitled to run for this guardianship position. The top three recipient names will then be handed over to the governor for appointment.
TRS Executive Director is Brian Guthrie. The budget requested for biennium 2018-19 is $ 4.8 billion USD.
Video Teacher Retirement System of Texas
History
The effort to establish the Texas Teaching Retirement System is a 20-year process that began in 1916, with leadership provided by the Texas State Teachers Association (TSTA). TSTA was the only major organization for the teachers of Texas in that era. The struggle culminated in the last three steps: (1) Paragraph 1935 The legislature on a joint resolution proposing proposed constitutional amendments at voting for voters in November 1936; (2) voter approval of a constitutional amendment authorizing the Legislature to pass a law regulating the system; and (3) the enactment of legislation in 1937 from "enabling legislation" that placed constitutional amendments into action. Governor James V. Allred signed the bill into law on June 9, 1937 and the Texas Teacher Retirement System entered into force from 1 July 1937. The system was established and operates under Section 67, Article XVI of the Texas Constitution.
TRS serves public and active higher education and retired employees from the state through its four core competencies. The plan addresses the various benefits, including service and disability pension benefits, death and victim benefits, health benefit programs, and long-term care insurance. He also manages pension trust funds for the benefit of his members. The trust fund is currently the largest public pension fund in the state and the sixth largest in the country, based on asset size. The funds are created through contributions from the State of Texas (about 20% in FY 2017), TRS members (about 19% in FY 2017) and investment returns (approximately 60% in FY 2017.)
Benefit program
- TRS maintains a defined benefit pension plan which is an eligible pension guarantee under Section 401 (a) of the Internal Revenue Code. The pension trust fund provides disabled services and pensions, as well as death and safety benefits, to eligible Texas public education workers and their beneficiaries.
- Retirement benefits are financed by members and state contributions, employer contributions in some circumstances, and through investment income from pension trust funds.
- TRS manages TRS-ActiveCare, a statewide health benefit program for eligible public education employees of participating entities. This is financed by premium payments of plan participants and investment income.
- In addition, TRS manages a separate trust that provides coverage of health benefits for TRS retirees and eligible dependents. The program is funded by contributions from state, active public school employees, reporting entities, premium payments from plan participants, and investment income.
- TRS also maintains an optional long term care insurance program for eligible retirees and general school employees. Certain family members also qualify. This plan is available enrollee-pay-all.
Health care for public education officials
On September 1, 2002, TRS introduced TRS-ActiveCare, a new statewide health coverage program for public education employees founded by the 77th Texas Legislature. Currently, participation in the program has grown to more than 445,969 employees and dependents. Of the 1,246 districts/institutions eligible to participate in TRS-ActiveCare, more than 88.9 percent, or 1,108 now do so.
Together with the four PPO plan options administered by Blue Cross Blue Shield of Texas, part of the Health Care Service Corporation, and Medco, there are three health maintenance organizations (HMO) options offered under TRS-ActiveCare for 2011-2012 plans: FirstCare Health Plans, Scott & amp; White Health Plan, and Baptist Valley Health Plan. This HMO option will provide an option of additional plans to employees of participating entities in the area served by this HMO. These employees will be able to select TRS-ActiveCare coverage under either a PPO plan or through an official HMO that serves their part of the country.
Health care Health care for retirees
TRS-Care is a group retirement health benefit program managed by TRS. Retired TRS who is not eligible for the coverage of the health benefits of the ERS, UT, or Texas A & amp; M may be eligible for TRS-Care. More than 233,000 pensioners and dependents participated in this plan. Aetna manages medical benefits; The Express script manages pharmaceutical benefits.
TRS-Care is currently funded on a pay-as-you-go basis and is subject to change based on available funds. At the start of the fiscal year plan of 1986, funding was projected for the last ten years until fiscal year 1995. Initial funding was sufficient to maintain fund solvency until fiscal year 2000. Since then, allocations and donations have been established to be sufficient to provide benefits for the biennial. The Texas Legislature determines funding benefits and has no ongoing obligation to benefit beyond each fiscal year.
Long-term care insurance
TRS first introduced the Group Long Term Care Insurance Program for Public School Employees in 2000, as a result of the laws currently codified in Chapter 1576, Texas Insurance Code, and TRS Rules. The long-term insurers group is always chosen by the TRS Trustee after a competitive bidding process. The current insurance company is Genworth Life Insurance Co. (Genworth), part of Genworth Financial.
Eligible people between the ages of 18 and 80 include active Texas public school employees who are contributing to TRS members and retired TRS; their spouses, parents and in-laws, and eligible grandparents can apply. A qualified person must be a resident of US law. All applicants are subject to the underwriting requirements of Genworth.
Maps Teacher Retirement System of Texas
Cost of living adjustment
Unlike Social Security, which offers Life Cost Allowances from 1975 to 2009 and again from 2013 to 2015, TRS has not been able to provide COLA to its annuitants since 2001.
In May 2013, during the regular session of the 83rd Texas Legislature, the provisions of the Senate Bill 1458 resulted in a healthy actuarial retirement fund. That health and other provisions of the law allow legislators to direct TRS to provide increased benefits - a 3% COLA (limited to $ 100) to members who retired before August 31, 2004. A total of 195,000 retirees receive COLA starting with an annuity debt for September 2013 (paid effective next month.) The language in the bill also states that if the state contribution rate is reduced in the future, the active contribution rate of employees and ISDs will be reduced by an equivalent percentage.
In January 2008, the TRS issued a one-time "13" check for approximately 245,000 eligible retirees. Typically, retired TRS receives up to 12 pension payments in a year. Annuities eligible who retire on or before December 31, 2006 receive an additional amount equal to their normal monthly pension payments (up to a maximum of $ 2,400). The TRS Supervisory Board approved one-time, additional checks in November 2007. TRS issues payments without an increase to the current active member's contribution level. This is the first time that extra annuity payments have been issued by the System. That was possible thanks to the ratification of Senate Bill 1846, sponsored by Senator Robert L. Duncan of Lubbock and Representative Vicki Truitt of Southlake. The bill, authorized by the Texas Legislature to the 80th, requires the TRS Supervisory Board to approve additional annuity payments based on the results of the actuarial valuation of 2007, but only if the funding period generated for the amortization of liabilities will be under 31 years after the payment of additional benefits. The Texas Legislature of the 80th increased the state contribution rate for the Texas Teacher Retirement System from 6.0% to 6.58% of employee salaries. This, coupled with an investment return of 14.4% in 2007, resulted in an actuarial valuation that allows pension funds to pay additional payments and still has funding periods under 31 years. More than $ 372 million is paid to qualified retirees through this additional inspection.
References
External links
- The Teacher Retirement System in Texas
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