TO: | Honorable Jim Murphy, Chair, House Committee on Pensions, Investments & Financial Services |
FROM: | John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board |
IN RE: | HB9 by Bonnen, Greg (relating to the contributions to and benefits under the Teacher Retirement System of Texas.), Committee Report 1st House, Substituted |
Projected as of August 31, 2019 |
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Teacher Retirement System of Texas (TRS) | Current | Proposed | Difference |
Unfunded Actuarial Accrued Liability (millions) | $48,918 | $48,918 | $0 |
Amortization Period (years) | 99 | 30 | -69 |
Actuarial Soundness | Unsound | Sound | N/A |
Contribution Rates |
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Fiscal Year | Base | Supplemental* | Member | Total** |
2019 | 6.80% | 1.50% | 7.70% | 15.46% |
2020 | 7.80% | 1.50% | 7.70% | 16.46% |
2021 | 8.05% | 1.50% | 7.70% | 16.71% |
2022 | 8.30% | 1.50% | 7.70% | 16.96% |
2023 | 8.55% | 1.50% | 7.70% | 17.21% |
2024 | 8.80% | 1.50% | 7.70% | 17.46% |
*Paid by districts that do not participate in Social Security. Equal to approximately 0.91 percent of total payroll. | ||||
**Equal to the Base Rate (split between State and Employers) plus the member rate, plus 0.91 percent for Supplemental Rate, plus 0.05 percent additional contributions made on behalf of members who have returned to work. |
Source Agencies: | 338 Pension Review Board
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LBB Staff: | WP, NV, ASa, AM
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