TPEA's Efforts to Support ERS Retirees Amid Rising Inflation

“Ahh, yes, and again nothing for retirees.....”
“So, when is TPEA gonna push hard enough to make it happen? TRS is already there...”
“Retired 19 years and have NOT received anything . Many more people retired a lot more years and have NOT received anything. Awful. They do not care about us.”
“Retired State Employees need a COLA. Stop ignoring us”

These are a few comments recently received on our social media, and the message is loud and clear: State of Texas retirees are feeling the crush of inflation with no increase in their annuity payments. They’re frustrated and feeling forgotten by the legislators.

So let’s talk about it. What exactly is TPEA doing to help retirees?

The first thing we want to address is health insurance. The state currently pays 100% of a retiree’s premium for their health insurance. That means that nothing is taken out of your pension to pay for your health insurance costs. With insurance costs increasing every single year, this is not a small feat. TPEA and ERS worked hard before the session began to include extra funds to offset this cost. This year's budget has already allocated millions in additional funds to cover the rise in health insurance costs, ensuring that retirees will still have their premiums fully covered.

Now, let’s talk about pensions and the ERS trust fund.

First (because we hear it a lot), we often hear comparisons with TRS regarding their recent pension increases. Here are key facts:

• TRS has ~475,000 retirees versus ~125,000 ERS retired state employees.
• The number of participants is crucial. ERS retirees are less active than TRS retirees due to their smaller numbers, and legislators prioritize numbers.
• The TRS trust fund was set up with the promise of regular COLAs for their retirees. The ERS trust fund was not.
• Many (but not all) school districts do not pay into Social Security and do not receive payments from the SSA.

Now for some important facts about the ERS trust fund:

• Before 2021, the ERS trust fund was expected to deplete by 2056, risking reduced or eliminated pensions.
• Since 2005, ERS has worked to restore the trust fund's financial health, creating groups 2, 3, and 4 in the pension plan.
• In 2023 (88th Legislative Session), the legislature voted to pay $1.1B to the ERS trust fund over two years to make the fund actuarily sound for the first time since 2003. TPEA was instrumental in passing this legislation.
• The legislature didn't fund the recent "diet" COLA for those retired 20+ years. It was activated (from a statute) when the fund reached actuarial soundness last session. (Check out the video below as ERS' Porter Wilson provides a summary of the ERS pension plan to the Legislators.)

Good to know, but how is TPEA helping retirees now?

It’s important to understand the difference between the cost of a COLA and the cost of a 13th check. A $100 monthly COLA for all retirees costs about $1.3B, while a 13th check costs around $256M. Our goal is to provide immediate assistance to retirees at a cost that legislators won’t dismiss.

But that won’t help retirees in the long run! 

Agreed, it’s not a long-term solution, but it’s a significant step forward. TPEA aims to create strategic, long-term changes that meet retirees' needs and are acceptable to lawmakers. Funding a 13th check highlights the importance of supporting retired state workers.

Okay, so what happens next? 

This is where you, our retirees, come in. Now is the time to SPEAK UP. We’re at the Capitol, meeting with lawmakers and sharing your needs. Help us amplify the message! Here’s how to get involved:

• Call your legislators. You can find your legislators on our website and get their phone number. We even have some handy pointers for phone calls on the Advocacy Action Page.
• Email or send a physical letter to your legislators, the Governor/Lt. Governor/Speaker of the House, the Senate Finance Committee, and the House Appropriations Committee. You can do it right on our site. Our software will populate the contact information and we even have pre-written messages that you can use or edit.
• Visit in person! Join us for Retiree Day at the Capitol, or attend local events like coffees or open houses with legislators. Check with your legislator’s office for local event details. Putting a face to the issue is a great way to ensure that your lawmakers hear you.
• Join TPEA! Join now if you're not a member.  More members = more impact!
• If you are already a member, consider sharing the importance of these issues with your fellow retirees and encourage them to join as well. 

We appreciate everything that ERS retirees have done for the state of Texas, and we will continue advocating so that you are properly compensated for your service to our great State. 

Check out the 89th Legislative Session page for more resources including a powerful piece on inflation effects on ERS retirees.