Tag Archives: PRB

Teach the Vote’s Week in Review: June 22, 2018

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


A full meeting of the Texas Pension Review Board (PRB) was held on Monday, and the body voted to adopt voluntary guidelines designed to work as best practices for how retirement plans are funded. While the Teacher Retirement System (TRS) meets many of the PRB’s voluntary standards, it fails to meet standards in two critical areas that can be crippling to TRS members. Read more about the guidelines in this post by ATPE Lobbyist Monty Exter.

 


Earlier this month the State Board of Education voted unanimously to adopt curriculum standards for  a high school elective course entitled “Ethnic Studies: Mexican American Studies”. This comes after months of back and forth between members of the board and stakeholders over content and curriculum standards for the course as well as what it should be named. In this commentary, SBOE Chair Donna Bahorich (R-Houston) reflects on how working together made this course a reality and how that gives her hope, both for the state of Texas and the nation.

 


School may be out, but the fight for Texas public schools is ongoing. ATPE Lobbyist Mark Wiggins breaks down the ways you can engage with the legislature and advocate for your profession during the summer in this blog post.

Texas Pension Review Board adopts principles of retirement plan design

A subcommittee of the Texas Pension Review Board (PRB) has been working over the last several months on a set of non-binding guidelines meant to impart what the board feels are best practices with respect to retirement plan design for use by the retirement plans that are required to report to the board.

Despite some concern expressed by smaller funds over how the board’s non-mandatory recommendation on vesting periods might be made into a legal mandate by the Texas Legislature, the full PRB unanimously adopted the proposed principles, which can be found here, at its most recent meeting.

The Texas Teachers Retirement System (TRS) pension fund is one of the many funds, and certainly the largest fund, required to report to the PRB. While the design of the TRS pension fund by and large already meets the voluntary standards enumerated in the PRB’s principles document, the two areas where it does not are notable. First, the principles document calls for “contributions to retirement plans [to] be consistent with the PRB Pension Funding Guidelines.” Those guidelines call for plans to be funded at a level that would allow the plans’ unfunded liability to be amortized over less than 30 years. Second, the PRB principles say that a plan’s “retirement benefits should be protected against the erosion of the benefit’s value due to inflation.” Essentially that means plans should include built in COLAs (Cost of Living Adjustments). In both instances, that the TRS pension plan does not comply with these best practices is a function of the Legislature choosing not to fund the plan adequately.

Perhaps the Legislature and the Governor should take a note from the PRB, a body the legislature created whose chairman the Governor appoints, and fund TRS adequately to comply with the PRB’s newly adopted principles.