Tag Archives: 87th Legislature

A bill to eliminate TRS healthcare plans: Crazy genius or just plain crazy?

On Tuesday, November 10, Representative Ken King (R – Hemphill) pre-filed House Bill (HB) 430, a bill that aims to eliminate the healthcare plans currently administered by the Teacher Retirement System (TRS) for active and retired educators in Texas. Three days later, King released a letter addressed to “all school personnel both active and retired” that seeks to explain his vision related to HB 430.

Rep. Ken King

“As a legislator I cannot in good faith continue to put a cash band aid on a broken system,” writes King in his letter. The representative describes the TRS healthcare programs as losing members who are opting for better coverage, which results in a smaller risk pool. King contends that this fairly small change in the size of the TRS risk pool results in higher premiums for the remaining participants. However, past information provided by TRS  suggests that such fluctuations in the very large TRS risk pool are unlikely to have a dramatic impact on cost.

In his letter to the education community, Rep. King lays out the following four goals, or “broad strokes” as he puts it, that make up his plan to address active and retired teachers’ health insurance needs in the future as TRS-Care and TRS-ActiveCare are phased out:

  1. The Legislature would provide a cost-of-living adjustment (COLA) that is “large enough” to allow retired educators who are age 65 or older to afford Medicare Part A and Part B.
  2. The Legislature would “create a runway for our 55-65 year-old participants to get to Medicare age.”
  3. The Legislature would allow active teachers to join the Employee Retirement System (ERS), which King says would increase the risk pool and lower premiums “dramatically.”
  4. The resulting lowered premiums would be considered “a teacher pay raise that is truly sustainable,” according to King.

Also in his letter, Rep. King asks stakeholders to “understand that HB 430 cannot, on its own, accomplish the plan above.” Taking a closer look at HB 430 as filed, that is certainly true. In fact, as it presently stands, HB 430 addresses none of the author’s stated goals.

First, HB 430 would close TRS-Care and TRS-ActiveCare to new participants. The bill would move Care participants off the plan as they reach age 65, which would result in most retirees being off the plan within five to seven years. Next, HB 430 would close Care and ActiveCare to any remaining participants after 10 years, and it would disperse the excess funds. In short, HB 430 would shut down both the active and retiree healthcare plans that currently exist through TRS, and at least for now, that is all the bill would do. In other words, the bill repeals, but does not replace anything.

What about Rep King’s four goals? He writes in his letter that he intends to file additional legislation that would work in concert with HB 430 to achieve those goals and his vision for reforming educator healthcare. As of our writing this post, these additional bills have not yet been filed.

As the 2021 legislative session approaches, ATPE will be monitoring and engaging in discussions about this bill and any other related legislation that is filed. We will be watching, in particular, to see if such legislation attempts to address the following challenges related to healthcare for Texas educators:

  • First, the Legislature needs to create a mechanism for providing automatic and ongoing COLAs as opposed to merely a one-time increase in retirees’ benefits.
  • A comprehensive plan must recognize that the need to provide healthcare for retirees who have not yet reached age 65 will persist indefinitely into the future — not merely over the course of the next decade.
  • Any plan to allow active educators to access the ERS health insurance plan would need to provide many more details, for example on its cost and viability.
  • Perhaps most importantly, an overhaul of the state’s system for providing healthcare to educators must include a plan for sustainable, long-term, formula-based funding. The funding plan should be written into statute, at a minimum, and preferably would trigger a constitutional amendment. Simply funding such a program through a budget rider would make it too susceptible to cuts from session to session.

Until his follow-up legislation is filed, the jury will remain out on whether Rep. King’s proposal to reform the state’s system of providing health insurance for over one million active and retired educators is crazy genius or just plain crazy. Stay tuned to Teach the Vote for additional information on this and other bills that may be considered in the upcoming legislative session.

From The Texas Tribune: A presentation on public education in rural Texas

This week The Texas Tribune is hosting a free, online symposium on “The Future of Rural Texas.” A panel presentation on Tuesday centered on the challenges facing public education in rural Texas and featured State Representative Gary Vandeaver (R – New Boston), SBOE Member Georgina Perez (D – Ysleta), and Miami ISD Superintendent Donna Hale. The discussion was moderated by Texas Tribune public education reporter Aliyya Swaby and included such topics as digital learning, school safety, the possibility of budget cuts, and what do about STAAR tests this year.

Click the link below to watch Tuesday’s panel presentation on public education, or visit the Tribune’s website for more information on the entire “The Future of Rural Texas” symposium. Here’s more about the presentation from The Texas Tribune:


Rural school districts face different challenges than their urban and suburban counterparts as they struggle to keep staff members, educate students virtually on spotty internet and ensure staff and teachers are safe in their buildings — all while dealing with financial struggles.

Donna Hale, superintendent of Miami Independent School District, Georgina C. Pérez, member of the Texas State Board of Education, and state Rep. Gary VanDeaver, R-New Boston, spoke with the Texas Tribune’s public education reporter, Aliyya Swaby, about how state leaders can do more to bolster public schools in rural regions, including continuing to fund them during an economic crisis.

They emphasized lack of broadband access as one of the main barriers to online learning. Perez, who served as a teacher and administrator for more than 10 years, said another challenge rural schools are facing is retaining great teachers.

The state budget is likely to be at the center of the upcoming legislative session, VanDeaver said. While he believes there will be budget cuts to education, “how we do that and do the least damage possible to our school districts, students and teachers is going to be the priority,” he said.


“Watch: Conversations on the future of rural Texas” was first published at https://www.texastribune.org/2020/10/21/future-rural-texas-event/ by The Texas Tribune. The Texas Tribune is proud to celebrate 10 years of exceptional journalism for an exceptional state.

TRS board holds its fall meeting

Teacher Retirement System (TRS) of Texas Executive Director, Brian Guthrie, presented his comments to the TRS Board of Trustees virtually today, the final day of the board’s fall meeting.

Since the last board meeting, representatives form Texas’ largest public trust fund have participated in the National Council on Teacher Retirement (NCTR) annual trustee workshop and the National Association of State Retirement Administrators (NASRA) annual conference. Both events were held virtually. Later this fall TRS will attend the NCTR annual meeting.

Conferences are not the only thing at TRS that has transitioned to a virtual format. To ensure the safety of its staff, retirees, and active members nearing retirement (the last two cohorts both falling into higher risk age brackets), TRS has been closed to the public and its employees have been working on a largely remote basis. Guthrie anticipates more employees and contractors physically returning to work in October and the agency opening to the public in January 2021. Guthrie reported that TRS members have been largely complimentary or at least understanding of the service they were receiving in the virtual environment. Additionally, TRS has implemented policies, such as virtual huddles, to counter the sense of disconnection that extended exposure to a remote environment can cause.

After briefing the board on these more internal issues, Guthrie turned to updates on the agency’s recent and upcoming interactions with the legislature.

TRS staff has been submitting a number of interim documents in response to legislative committee requests for information, which has been the primary method used by committees to collect public and agency comments in lieu of holding public interim hearings this year. So far TRS has presented comments to the House Pensions, Investments, and Financial Services Committee, the House Appropriations Committee, and the House Insurance Committee, and TRS will be submitting comments soon to the Select Committee on Statewide Health Care Costs. TRS is going through the sunset review process currently, and the agency will also likely participate in a Sunset Advisory Commission hearing in October. The postponed sunset hearing had originally been scheduled for April of this year.

In addition to requests for information, TRS is preparing to submit its biannual legislative appropriations request (LAR) to the Governor’s office on September 25. In working with key legislative and gubernatorial staff, the agency was instructed to include in its base budget request the planned increase in state contribution rates passed as a part of Senate Bill 12 from 2019. This is very good news as it signals the legislature’s intent to fund the $544 million increase in state contributions into the retiree trust fund.

The LAR also covers the TRS administrative budget. At 7.8%, the increase to the agency’s administrative budget is the smallest requested increase in the past decade. Unlike most other state functions that pay for administrative budgets out of either agency fees or state general revenue (tax dollars), TRS administrative costs are covered by the pension trust fund and make up less than 0.2% of the total pension trust fund balance. TRS will seek one exceptional item, a funding request outside of the base budget. That item is to seek blanket authority to cover costs associated with implementing sunset recommendations and bills related to those recommendations next year. One of the sunset commission recommendations relates to improved customer service, and if approved, this rider could allow TRS to hire more staff to handle increased call volume and decrease its on-hold times.

Video of the full TRS meeting and related board materials can be found here. The final TRS board meeting of 2020 is scheduled for December 9-11, 2020.