Legislature's increase of state contribution rate creates first increase in six years

Published: 10-22-07

AUSTIN – The Teachers Retirement System of Texas has finally reached actuarial soundness, allowing for the much-needed 13th check to be delivered to retired Texas teachers.  The 13th check is possible because this past Session, the legislature increased the state's contribution rate from 6.0% to 6.58%. 

Further, the 13th check is authorized because TRS investments earned $14 billion - 14% - in 2007.  Those two factors helped get the TRS fund actuarially sound and reduce the funding period to 27.4 years, below the 31 year funding period required by statute to increase benefits.

"I worked hard on the bill that authorized the 13th check, and fully support policy that increases benefits for retired teachers in Texas," remarked Flynn. "Thanks to Chairman Truitt and past Chairman Eiland, Texas can show great appreciation to the people who dedicate their lives to education and children. Their leadership is to be commended."

This marks the first increase in benefits for retired teachers in six years - and the increase will be paid as a supplemental payment in January.