Honorable Larry Taylor, Chair, Senate Committee on Education
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB1356 by Hughes (relating to the participation by members of nonprofit teacher organizations in a tutoring program for public school students and related retirement benefits for certain tutors participating in the program.), Committee Report 1st House, Substituted
COST ESTIMATE
The bill would amend the Education Code to create a program to facilitate the tutoring of public-school students by active and retired certified teachers who are members of a qualified nonprofit teacher organization. The bill would also require the Teacher Retirement System of Texas (TRS) to regularly provide each member information about the teacher tutoring program. The bill would amend Texas Government Code Section 824.602 to exclude retirees who return to work under the tutoring program from a suspension of their monthly benefit or disqualifying themselves from returning to employment without a suspension.
The actuarial analysis provided by TRS states that it is unlikely the bill would have an impact to its actuarial soundness. For the bill to impact the soundness of TRS, a large number of members would have to retire earlier than they otherwise would have to tutor for a year and then return to employment. The analysis notes that the bill defines tutoring in a manner that it would likely be small in scale and therefore it is unlikely the bill would adversely influence behavior in a way that would be widespread enough to impact TRS. The analysis was based on the information contained in the February 28, 2021 actuarial valuation.
SOURCES
Actuarial Analysis by Joseph P. Newton, FSA, Gabriel Roeder Smith & Company, April 14, 2021.