Letter to the editor

Dear editor,

On Friday, July 27, the TRS Board voted to lower the assumption rate on the TRS Pension plan.  The Texas Legislature will need to provide more funds in 2019 to make the pension actuarially sound. There are currently more than 280,000 retired TRS members. Last year’s investments earned 12.5 percent. But, now they assume only a 7.25 percent return. When TRS was formed, Texas decided to not participate in social security for its members. Instead, they created a defined benefit plan to take care of its members. They promised its members, teachers, administrators, and school employees to always have a secure, well-funded, and reputable fund. Now with this vote, and consequences, this is now in jeopardy. This is the first step toward changing and privatizing our defined benefit plan, as many of our legislative leadership wants to do. Their decisions will make the plan less financially stable and leave it open to legislative change. The TRS Board split in its vote yesterday between members with a pro-education background that care about public education and those business oriented members appointed by the Governor not caring how their decision affects retired and active school employees. Today, retired and active teachers were the losers. Now we wait, and are at the mercy of the legislators voting to raise their contributions to our pension.

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