in Houston, Texas
Texas teachers’ health care fund projected to run short on cash
Tuesday, Mar 13, 2012, 11:08AM CST
By Mark Lisheron
empty wallet

The $267 million state fund providing health care benefits to retired teachers is scheduled to go broke in 2015.

No need to worry, your elected officials were aware this was going to happen, they just weren’t sure when, according to a story today by the Austin American-Statesman.

This is the same Legislature that has made the choice not to fund almost $23 billion of the $110 billion Teacher Retirement System of Texas. The largest pension fund in the state with more than 834,000 members is the provider for the 223,000 school retirees who are now wondering how much of their health care they will have to give up.

Oh, don’t be alarmed about the Retirement System. Executive Director Brian Guthrie assured Texas Watchdog back in December the pension fund is A followed by a big OK.

Health care is a different matter. The Statesman story says retirees might have to accept reduced benefits, increased premiums or a little of both. State and local taxpayers and working school employees may be required to pay more into the the system.

The Legislature last revamped the health care fund in 2003. State Sen. Robert Duncan, chairman of the Senate State Affairs Committee, told the Statesman the Legislature should be prepared in 2013 to make changes that will buttress the fund for another 10 years.

***
Contact Mark Lisheron at 512-299-2318 or mark@texaswatchdog.org or on Twitter at @marktxwatchdog.

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Photo of empty wallet by flickr user NoHoDamon, used via a Creative Commons license.

Comments
Tx. Teacher
Tuesday, 03/13/2012 - 12:10PM

Now, how much of a bonus did TRS give to some of their employees for a job wll doen not all that long ago?

http://www.trta.org/viewUpdate.cfm?updateid=CD0A6A49-E8D0-2A58-8B5BAFB7D649117E

Oh sure one thing has nothing to do with the other.

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