The Inside Line
By Tim Lee
No Signature on SB 1846…
But Governor’s Office Suggests Positive Outcome
The bill that authorizes the Teacher Retirement System of Texas (TRS) Board of Trustees to provide retirees a 13th check benefit increase has not yet been signed into law. According to
Texas
law, the Governor has 20 days to sign, veto, or allow the bill to become law.
TRTA’s communications with the Governor’s office has been very positive with no veto threat ever being discussed.
Time is running out, though, for the Governor to actually sign this bill as opposed to allowing it to become law without his signature.
Many TRTA members have asked if now is the time to launch a grassroots effort to put pressure on Governor Perry to sign the bill, but since the legislation does not seem to be threatened by a gubernatorial veto, TRTA has not acted on a special call-in campaign. TRTA members are not being discouraged from contacting the Governor’s office, but at this time, it seems more likely that this bill is still in a good position for favorable action by Governor Perry or his allowing it to simply become law.
If the Governor takes no action by Sunday, June 17, 2007 the bill will automatically become law.
If you want to register your comments with Governor Perry’s office about the signing on SB 1846, please call the Governor’s Citizen’s Assistance Hotline at (800) 843-5789.
TRS Board Meeting this Week
The TRS Board of Trustees will be meeting in
Austin
this Thursday and Friday (June 14
th and 15
th).
Their agenda will include a time for public comment and TRTA will speak to the Board on the passage of SB 1846 and the responsibilities the Trustees have in working to get a 13
th check sent to retired public education employees.
A controversial issue will likely be the Board’s responsibility to increase the active member TRS contribution if needed to make the system actuarially sound enough to provide a benefit increase to TRS annuitants.
The Legislature did not increase the active member contribution, but did authorize the TRS Board of Trustees to increase that contribution from 6.4% to as high as 6.58% if necessary.
Though TRTA would have rather seen the Legislature fully fund the 13th check benefit increase with an ample funding level, the legislation was designed to take a "wait and see" approach on the fund’s financial condition pending the August 31, 2007 actuarial valuation. Many legislators believe that a 6.58% State contribution combined with the System’s strong earnings so far this year will be enough to make the fund sound and provide the 13th check with no increase in active member contribution. If so, TRTA certainly supports that position, but if a contribution increase is needed TRTA expects the TRS Board of Trustees to act quickly and increase that contribution level to provide retirees the much needed 13th check.
TRTA will report on other happenings with the TRS Board of Trustees when their meetings are over.
If you have any additional questions, please contact Tim Lee at 1.800.880.1650 or by email to tim@trta.org.
Thanks for all you do to support TRTA.
