Texas Senate Bill SB217

Texas 2017 - 85th Regular

• Filed: 11/14/16

Caption

Relating to a supplemental payment for retirees of the Teacher Retirement System of Texas and the unfunded actuarial liabilities allowed under that system.

Impact

The bill directly impacts state laws concerning retirement benefits for educators, specifically targeting those eligible under multiple retirement sections of the Government Code. By establishing criteria for the supplemental payments and adjusting the amortization period for unfunded liabilities, SB217 provides a structured approach to ensuring retirees receive additional financial support without jeopardizing the TRS's long-term stability. This measure is significant for many Texas educators who rely on these payments for their post-retirement income.

Summary

Senate Bill 217 proposes a one-time supplemental payment for retirees of the Teacher Retirement System of Texas (TRS). This bill aims to address the unfunded actuarial liabilities within the TRS system and specifically allows for extra financial assistance to eligible annuitants under various retirement payment schemes. The supplemental payment is determined to be either the gross amount of the regular annuity payment for August 2017 or a maximum of $2,400. This payment coincides with the regular annuity disbursements to ensure retirees receive this benefit timely.

Contention

While the proposed supplemental payment serves a beneficial purpose for retirees, there may be concerns regarding its sustainability and the impact on the TRS's overall financial health. Discussions among legislators may include debates on whether such a payment could set a precedent for future fiscal policies or adjustments within the retirement system, as well as considerations about the state's budget and resources dedicated to retirees. Ultimately, the financial foundation and management of the TRS remain a focal point of contention as stakeholders weigh the merits of the bill against potential long-term liabilities.