Tag Archives: 13th Check

New School Year, New Laws: Retirement Benefits

In last week’s “New School Year, New Laws” blog post, we discussed changes to the ethical and professional responsibilities of Texas public school educators. These included big changes to reporting requirements for non-certified employees and the creation of a “do-not-hire” registry. This week, we will shift gears to talk about educator pensions and retirement benefits, which also saw major changes as a result of the 2019 legislative session.

Senate Bill (SB) 12 by Sen. Joan Huffman (R-Houston): Increasing funds for TRS

SB 12 was the most important bill for improving the Teacher Retirement System (TRS) that was passed during the 86th legislative session. ATPE supported SB 12 because it infused enough additional funding into the TRS pension fund in order to make it “actuarially sound.” This also made possible the issuance of a 13th check of up to $2,000 to retirees last month. SB 12’s changes also make it more likely that the TRS will be able to offer a cost of living adjustment (COLA) in the next two to four years, which could provide a much-needed permanent increase in benefits to current and future retirees.

Actuarial soundness was achieved by gradually increasing the state, educator, and school district contributions to the fund over the next six years. Through these increased contributions, SB 12 lowered the time frame needed to pay off the unfunded liability of the TRS pension fund to reach an acceptable standard under state law. For those not familiar with pension lingo, unfunded liability refers to the amount by which the cost of future benefits that a fund is obligated to pay exceed the cash on hand in the fund, similar to carrying credit card debt. While SB 12 made great strides in supporting educators who rely on TRS, Texas remains 50th in the nation when it comes to the state’s contribution rate for educator retirement benefits. Moving forward, ATPE will continue to press the legislature to improve the retirement benefits that educators so greatly deserve.

House Bill (HB) 2820 by Rep. Dan Flynn (R-Van): Deregulating 403(b) investment options

Under previous law, TRS kept a list of approved investment vendors that could offer educators 403(b) investment products. These 403(b) investment plans are similar to 401(k) plans in that they offer a tax-advantaged way to save for retirement, but 403(b) plans are designed for public employees and tax-exempt organizations, like churches and charities. HB 2820 deregulates 403(b) investment offerings by eliminating the TRS list of approved vendors, as well as the requirement that vendors abide by TRS’s caps on fees. These caps limited the amount that a vendor could charge for each transaction. Under this new law, educators who choose to invest in a 403(b) will have to more closely monitor the administrative fees they are being charged. Additionally, without the fee cap, vendors might offer investment products that are very expensive now.


Join us next week on our “New School Year, New Laws” blog series here on Teach the Vote as we will discuss legislative changes impacting charter school laws.

For more information on new laws impacting educators, be sure to read the new report from the ATPE Member Legal Services staff, “Know the Law: An Educator’s Guide to Changes Enacted by the 86th Texas Legislature.”

Highlights of the September TRS Board Meeting

The Teacher Retirement System (TRS) Board of Trustees convened in Austin this week for their regular quarterly meeting. Among items discussed by the board were space planning for the agency, creating regional TRS-ActiveCare offerings, and delivery of the 13th check to retirees.

TRS has recently been in the news with regard to new lease space in downtown Austin. Approximately 10 years ago, TRS ran out of space to house all of its employees at the 11th and Red River location. As a result, the agency moved its investment staff to leased space a few blocks away. Since that time both the TRS benefits/customer service staff and the investment team have continued to grow. Both the Red River location and the leased space are at maximum capacity now. In order to accommodate the size and needs of the investment staff, TRS has taken three floors in a new building, in which TRS is a part owner, further into downtown Austin. The board must determine whether to substantially renovate or move out of TRS’s Red River office in order to accommodate non-investment staff (primarily those working in customer service). Because all TRS costs, including staffing and space, are paid for out of the pension trust fund, these moves naturally bring up questions about whether the agency’s additional staff and office space requirements will bring in more value for TRS members than it costs to accommodate. There is no definitive way to answer this question, but ATPE and other groups representing active and retired TRS members will continue to monitor and report on the value of TRS spending.

Another program in which TRS is trying to find ways to improve its value proposition is TRS-ActiveCare. The agency staff and board members have begun looking into the development of regional ActiveCare options that school districts could choose to offer their employees. The move was prompted by actions taken by El Paso ISD over several years to try to exit the TRS-ActiveCare program. When the district could not find a way to do so under existing state laws, El Paso found a novel way to migrate most of its staff out of the state’s program and onto a new local plan, which was deemed to be cheaper than the statewide plan due to regional differences in healthcare costs. In response to El Paso’s decision and with the expectation that other districts may pursue a similar course of action, TRS is now looking into the possibility of regional options for school district employees. This project is in its preliminary stages and is something ATPE will follow closely as it evolves.

Finally, the TRS board also received an update this week on the 13th check provided to retirees as a result of Senate Bill 12 that was passed by the legislature earlier this year. The additional payment equates to the lesser of the amount of a retiree’s standard monthly annuity check or $2,000. TRS annuitants who receive their TRS payments through direct deposit received the 13th payment on September 10. The remainder of TRS retirees should have received a check in the mail by September 15. ATPE encourages any retirees who did not receive a check and believe that they should have received one to contact TRS directly.

Click here to watch a video of this week’s TRS meetings or review the board materials.

Teach the Vote’s Week in Review: Sept. 6, 2019

Here’s your weekly wrap-up of education news from ATPE Governmental Relations:


In the wake of the tragic shootings in El Paso and Odessa, Gov. Greg Abbott has issued executive orders addressing public safety. While most of the orders focus on improving agency-level responses like developing standardized intake questions and guidelines on when to submit Suspicious Activity Reports, executive orders number five and six deal directly with schools. The orders are as follows:

  • Order No. 5 The Department of Public Safety shall work with the Texas Education Agency and the Texas Higher Education Coordinating Board on ways to better inform schools, students, staff, and families about the importance of Suspicious Activity Reports and how to initiate that process.
  • Order No. 6 The Department of Public Safety shall work with local law enforcement, mental-health professionals, school districts, and others to create multidisciplinary threat assessment teams for each of its regions, and when appropriate shall coordinate with federal partners.

Learn more about the executive orders in this blog post by ATPE Lobbyist Andrea Chevalier.


Earlier this week U.S. Rep. Bill Flores (R-TX 17) announced that he would not be seeking re-election in 2020. This season has seen the announcement of a number of departures from Capitol Hill as well as many campaign launches. The special elections to fill the seats vacated by Rep. John Zerwas (R-Richmond), Rep. Jessica Farrar (D-Houston), and Rep. Eric Johnson (D-Dallas) have been set to coincide with voting on the constitutional amendments on Nov. 5th. The deadline to register to vote in the Nov. 5th election is Oct. 7. For more on the races in the upcoming election check out this blog post by ATPE Lobbyist Mark Wiggins. 


Curriculum and instruction is the subject of this week’s installment of ATPE’s blog series, “New School Year, New Laws.” This blog post examines bills such as House Bill 4310 by Rep. Harold Dutton (D-Houston) which stipulates that sufficient time be given for students to learn the scope and sequence of TEKS (Texas Essential Knowledge and Skills); and parts of House Bill 3 that provide funding for gifted and talented programs. For the full list of laws visit this blog post by ATPE Lobbyist Andrea Chevalier. 


The latest edition of the Texas Education Agency’s weekly video series, “HB 3 in 30,” covers special education and dyslexia. You can find a link to this week’s video and all previous videos here.


The Teacher Retirement System (TRS) has announced a time frame for retirees to receive their 13th ThinkstockPhotos-465016790_moneycheck. According to the TRS.Texas.gov website, retirees will receive their 13th check on or around Sept. 15, 2019. A list of frequently asked questions about the check can be found here. More of Teach the Vote’s coverage of Senate Bill 12 (the bill responsible for the 13th check) can be found in this blog post by ATPE Senior Lobbyist Monty Exter..


 

Teach the Vote’s Week in Review: April 5, 2019

It was another groundbreaking week in the Texas legislature, and here’s a look at the headlines from ATPE Governmental Relations:


On Wednesday, the Texas House of Representatives passed landmark school finance reform legislation. By a vote of 148-1, Chairman Dan Huberty’s (R-Kingwood) House Bill 3 passed the lower chamber, clearing the way for its consideration next by the Texas Senate.

The ATPE-supported school finance bill as finally passed by the House allocates billions in new money for public schools, reduces recapture, and provides homeowners with property tax relief. The House added bipartisan compromise language to HB 3 during Wednesday’s floor debate to ensure that all full-time public school district employees in non-administrator roles will also receive pay raises.

Read more about the bill and Wednesday’s major vote in this blog post from ATPE Governmental Relations Director Jennifer Mitchell. Stay tuned to Teach the Vote for updates as attention turns to the Senate to find out how the upper chamber will respond to the school finance bill.


The Senate Education Committee and House Public Education Committee both held multiple meetings this week to hear a variety of education bills.

The Senate Education Committee’s meeting on Tuesday, April 2, 2019, largely focused on hearing bills pertaining to dual credit. The agenda for Thursday, April 4, included a host of bills relating to virtual schools, including some bills that ATPE opposes. Other pending bills previously heard by the committee were also voted out with favorable recommendations for the full Senate. Read more about the Senate committee’s activities this week in blog posts here and here from ATPE Lobbyist Mark Wiggins who covered the hearings.

On the other side of the Capitol, the House Public Education Committee’s Tuesday hearing covered topics ranging from pre-K to technology and educator preparation. The agenda for the committee’s Thursday hearing also featured a wide variety of issues, including one bill that ATPE opposes to require school districts to let home-schooled students participate in UIL activities. ATPE Lobbyist Andrea Chevalier covered the House Public Education Committee hearings, and you can read her reports on the two meetings from this week in blog posts here and here.


ATPE is urging educators to oppose two Senate bills that would endanger free speech rights and limit the ability to teach students about content that relates to “a political philosophy” or “a matter of public interest.” The bills are Senate Bill 1569 by Sen. Pat Fallon (R-Prosper) and Senate Bill 904 by Sen. Bryan Hughes (R-Mineola), and both of them got a favorable nod from the Senate State Affairs committee this week.

SB 1569 and SB 905 would expand current laws that restrict the use of public resources for “political advertising.” The bills are unnecessary, since state law already prohibits using school resources for electioneering which is enforced by the Attorney General, and these two bills will have harmful unintended consequences.

SB 1569 would broaden the definition of political advertising, impose harsh restrictions on political speech by public school employees, and make it nearly impossible to teach students about elections or civic responsibility or anything deemed to fall under the vague category of “a matter of public interest.” SB 904 also tries to limit political speech by restricting access to government communication systems like a school district’s Wi-Fi network. It also calls for fining any third party that sends political advertising to a government email address. SB 904 will unreasonably penalize innocent third parties and have a chilling effect on free speech and political involvement by educators, even making it hard to teach students about anything related to politics.

Both SB 1569 and SB 904 appear to be reactions to the surge in educator participation in elections last year, and both bills are likely to spark constitutional challenges if passed. Based on their obvious targeting of the education community, both bills are reminiscent of unsuccessful efforts last legislative session to dissuade educators from joining professional associations that advocate for public education. With yesterday’s committee vote, these two bills have the potential to reach the full Senate for a floor debate very soon. ATPE is urging educators to contact their senators and ask them to reject SB 1569 and SB 904. Read more about the bills in this blog post. ATPE members can click here to visit Advocacy Central and send a quick message to their senator.


As we have been reporting here on Teach the Vote, the legislature is considering ATPE-supported bills to increase contributions into the TRS pension fund. This week the House Committee on Pensions, Investments and Financial Services considered one of the bills, Senate Bill (SB) 12 by Sen. Joan Huffman (R-Houston), which the full Senate has already passed unanimously.

SB 12 is being sponsored on the Senate side by Rep. Greg Bonnen (R- League City), who chairs the Article III (education) subcommittee in House Appropriations and is the author of another bill to increase funding for TRS via House Bill (HB) 9. (That bill, which ATPE also supports, was already heard by the House Pensions committee last week.) ATPE Senior Lobbyist Monty Exter reports that during this week’s hearing on SB 12, Chairman Bonnen offered a committee substitute version of Senate Bill 12 that would replace its language with the language from his HB 9. After a brief hearing on the bill, the committee took the somewhat unusual step of immediately voting the committee substitute version of SB 12 favorably out of committee and recommending that it go to the full House for further consideration. The bill, which appears to be on an expedited track, will next go to the House Calendars Committee which has the authority to set the bill on a House calendar for a scheduled for debate. Once the bill has been approved by the full House, which it is expected to easily do, it will return to the Senate where Sen. Huffman will likely send SB 12 to a conference committee to work out differences between the House and Senate language.

While both versions of the bill would increase the overall contribution rate into the TRS pension system and provide current retirees with a 13th check, the House language does so by focusing the entire increase on the state’s contribution rate without raising the rates of educators or school districts. Additionally, the House version provides for a substantially larger 13th check, up to $2400 per retiree vs $500 dollars per retiree in the Senate version of the bill.


 

TRS bills move forward in both chambers

ATPE State President Byron Hildebrand testified in the House Pensions Committee, March 26, 2019.

The 86th Legislature has been considering bills to increase contributions to the Teacher Retirement System (TRS), which ATPE supports. Preserving the solvency and defined-benefit structure of the Teacher Retirement System (TRS) pension program for educators is an ATPE legislative priority this session.

On the Senate side, one high-profile measure on the move pertaining to this priority is Senate Bill (SB) 12 by Sen. Joan Huffman (R – Houston). After the bill received approval last week from the Senate Committee on State Affairs, which Sen. Huffman chairs, the full Senate passed SB 12 unanimously out of the upper chamber on Monday, March 25, sending it on its way to the House.

Meanwhile, a House committee today heard its own version of how to increase financial support for TRS, as well as for the state’s current retired educators. House Bill (HB) 9 by Greg Bonnen (R – Friendswood) was heard this morning by the House Committee on Pensions, Investments & Financial Services. The bill was left pending in committee today but is expected to receive a favorable committee vote in the near future.

Byron Hildebrand

ATPE State President Byron Hildebrand delivered our association’s testimony strongly supporting HB 9 in committee today. Hildebrand, who is also a retired educator, thanked legislators for taking a positive step forward with legislation aimed at making the TRS pension found sound, and he encouraged lawmakers to continue to take steps to do great things for active and retired teachers. Click here to watch today’s committee hearing, where HB 9 was the first bill considered. (Hildebrand’s testimony begins at approximately the 43-minute mark in the archived broadcast.)

While SB 12 and HB 9 both increase contributions to TRS and provide a 13th check to current retirees, the bills differ on the amount of the increased contribution, who would pay for it, and the size of the 13th payment. At 2.5%, the overall increase in TRS contributions under SB 12 would be a half percent more than the 2% increase called for by HB 9. However, HB 9 puts the responsibility for paying for the entire contribution increase on the state by raising the state’s rate from 6.8% up to to 8.8%. SB 12 only raises the state’s contribution rate from 6.8% to 8.25%, while also raising the active member rate from 7.7% to 8.25%, and raising the school district contribution rate from 1.5% up to 2%. HB 9 also begins and finishes raising the contribution rate a year sooner than SB 12 would. In terms of 13th payments, SB 12 offers all retirees a $500 bonus, while HB 9 would provide current retirees a 13th check in the same amount as their regular monthly annuity up to $2,400.

Stay tuned to Teach the Vote for updates on these two ATPE-supported bills as they continue to move through the legislative process.