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The following chart and information reflect changes made during the 83rd Legislative Session
ERS related bills: CSHB 1882 and CSSB 1459 In the latter part of the session, CSHB 1882(CSSB 1459) and CSHB 1884(CSSB 1458) were passed out of the Senate State Affairs and House Pension committees; which were initially designed to significantly cut active employees’ earned retirement benefits for both ERS and TRS members.
TSEU members went all-out and flooded the capitol with phone calls and lobbying blitzes to fight the worst elements of HB 1882. HB 1882 failed on the house floor opening the door for more improvements in the Senate version of the bill (CSSB 1459). TSEU and other employee groups mounted a coordinated campaign to change several portions of the bill and push the state to put more money into the fund. Because of the pressure campaign mounted by union members across the state, TSEU was able to stop all the pension benefit cuts from being applied to current state employees and the state has brought up its contribution rate to its highest level since 1985. And although benefit design changes were made to future state employees, the overall compromise puts our pension fund on the path to actuarial soundness. TSEU is committed to restoring certain benefit changes for future employees.
Elements of ERS CSSB 1459
All current employees hired before August 31st, 2013 will be grandfathered from design changes in the pension plan
The state will increase its contribution to 7.5% in 2014 and 2015 (highest contribution level by the state since 1985).
Active state employee contributions will be increased over a 4-year period to 7.5% (employee contributions will increase in 2014 to 6.6%, 2015 to 6.9%, 2016 to 7.2%, 2017 to 7.5%)
ERS will be required to model TJJD Juvenile Justice Correctional Officers’ induction into the LECO Supplemental Retirement Fund.
Employees with 5 years in the system, as of 2014, will be grandfathered from the health care contribution tiering.
Benefit plan changes for those hired after August 31, 2013 * Increase final average salary to 60 months * Eliminate unused leave (sick & annual) for retirement eligibility * Disallow annual leave for which employee has been compensated from also being used in benefit calculation * Increase the minimum retirement age to 62 with the rule of 80; a 5% annuity reduction each year below age 62 when they retire * Tiered retiree health care premium contribution from the state . .10 years of service – 50% contribution / 15 years of service – 75% contribution / 20 years of service- 100% contribution
TRS related bill: CSSB 1458 TSEU, along with our teachers’ union allies, supported changes that exempted most current employees from the pension changes and provide a COLA to almost all current TRS retirees.
Elements of TRS CSSB 1458:
TRS members with at least 5 years of service will be excluded from the benefits changes
TRS members who retired on or before August 31, 2004 will receive a 3% annuity increase capped at $100 dollars a month.
Active state employee contributions will be increased over a 4-year period to 7.7% (employee contributions will increase in 2014 to 6.4%, 2015 to 6.7%, 2016 to 7.2%, 2017 to 7.7%)
The state will increase its contribution to 6.8% in 2014 and 2015
Benefit Plan Change * TRS members who are not grandfathered will see an increase in the minimum retirement age to 62 with the rule of 80; a 2% annuity reduction each year below age 62 when they retire.
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Get to know our state employee pension plan
EMPLOYEES RETIREMENT SYSTEM – Controls the pensions of all state agency employees and controls the health plans for all agency employees and all higher education employees (except UT and A&M).
TEACHER RETIREMENT SYSTEM – Controls the pensions for all higher education employees (except UT and A&M)
Click image to download pdf of this 6-page informational brochure. It contains what you need to know about our State Employee pensions including:
* Explanations of our plan (ERS and TRS are defined benefit plans)
* Defined Benefit vs Defined Contribution
* Several graphs and charts detailing the situation
* A snapshot of the ERS and TRS pension plans