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Modified teacher retirement bill passes Senate

Modified again, this time enough to garner support from the teachers.

Teachers, the state of Texas and school districts all would pay more to help support the Teacher Retirement System of Texas under a bill passed by the Texas Senate Wednesday.

Under Senate Bill 1458, the $117 billion TRS fund would get a boost from members, whose contributions would increase from 6.4 percent of their salaries to 7.7 percent over four years. Meanwhile, the state’s contribution would increase from 6.4 percent to 6.8 percent, and school districts that do not pay into Social Security would contribute 1.5 percent. Additionally, about 102,000 teachers who have retired since 1999 would receive a 3 percent cost of living adjustment under the new bill.

See here and here for the background. The main points of objection from the teachers had to do with the size of the state’s contribution, and with increasing the teachers’ contribution all at once instead of phasing it in. While this story has no details, the Texas AFT spells out the changes since the last time:

The combination of grass-roots pressure and hard negotiating by our legislative allies has led to this substantial improvement in the TRS bill. Sens. Kirk Watson (D-Austin), Wendy Davis (D-Fort Worth), and Royce West (D-Dallas) played crucial roles in winning the Senate-passed improvements. Sen. Robert Duncan (R-Lubbock) too gets credit for leaving his door open to negotiations to modify his bill.

As this legislation now moves over to the House and ultimately to a House-Senate conference committee, the same combination of grass-roots communication and tough negotiations in the capitol could bring further improvements sought by Texas AFT for retired and active school employees, such as an immediate benefit increase for all rather than just one-third of retirees, as well as prospective-only application of a new minimum retirement age for full pension benefits. (As it now stands under SB 1458, school employees who do not have five years of service credit by September 1, 2014, would be subject to the new minimum age of 62 for full, unreduced retirement benefits). So be prepared to launch another wave of messages to members of the Texas House!

To review: Under SB 1458 as amended on the Senate floor today, employee contributions would remain at 6.4 percent in fiscal 2014 (starting September 2013), while the state contribution would rise to 6.8 percent. In fiscal 2015, the employee contribution would be 6.7 percent, while the state continues to contribute 6.8 percent, plus school districts that do not contribute to Social Security would kick in another 1.5 percent. In fiscal 2016, the employee contribution would go to 7.2 percent, while the state and district contributions would hold at 6.8 percent and 1.5 percent; in fiscal 2017, the employee contribution would rise to 7.7 percent, which still would be less than the combined state/district total of 8.3 percent.

If the state were to reduce its contribution below 6.8 percent, employee and district contributions would fall by an equal percentage.

They released a statement thanking Sen. Duncan and the Democrats that worked to improve the bill and called on their members to support it. There are still issues to be settled, so don’t file this one away just yet. The Morning News has more.

On a related note, things were happening for the bill to modify the Employee Retirement System, but it didn’t get to a vote in time on Thursday, so whatever happens there will come from the Senate bill. At last report, labor had dropped its opposition to the ERS bill after some changes had been made. We’ll see what happens from here.

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