Texas House Bill HB593

Texas 2019 - 86th Regular

Caption

Relating to the computation of the standard service retirement annuity for members of the Teacher Retirement System of Texas enrolled in the Texas Public School Employees Group Insurance Program.

Impact

The bill introduces a requirement for the board of trustees of the Teacher Retirement System to conduct a study on the present and projected out-of-pocket costs incurred by retirees for health benefits under the state-provided plans. Based on the findings from this analysis, the board will be empowered to adopt rules that could lead to an increase in the percentage factor used for computing retirement annuities, thus potentially enhancing the financial wellbeing of retired educators enrolled in the insurance programs.

Summary

House Bill 593 focuses on amending the computation of the standard service retirement annuity for members of the Teacher Retirement System of Texas. The bill specifically relates to individuals enrolled in the Texas Public School Employees Group Insurance Program. The principal aim of the legislation is to provide an adjustment mechanism for the annuity calculations, addressing the out-of-pocket health benefit expenses that retired teachers may face. This adjustment is expected to provide financial relief to the affected annuitants, ensuring that their retirement benefits are more aligned with their healthcare costs.

Contention

Despite its intentions, the bill may face scrutiny regarding its funding implications and the financial sustainability of increasing the annuity calculations. Concerns may arise regarding how increases could affect the overall budget for the Teacher Retirement System, especially in the context of a growing number of retirees and escalating healthcare costs. Potential debates might focus on the balance between adequately compensating retirees and ensuring the long-term viability of the retirement system.