Highlights of the September TRS Board Meeting
Retirement | TRS | Social Security
Date Posted: 9/20/2019 | Author: Monty Exter
The Teacher Retirement System (TRS) Board of Trustees convened in Austin this week for their regular quarterly meeting. Among items discussed by the board were space planning for the agency, creating regional TRS-ActiveCare offerings, and delivery of the 13th check to retirees.
TRS has recently been in the news with regard to new lease space in downtown Austin. Approximately 10 years ago, TRS ran out of space to house all of its employees at the 11th and Red River location. As a result, the agency moved its investment staff to leased space a few blocks away. Since that time both the TRS benefits/customer service staff and the investment team have continued to grow. Both the Red River location and the leased space are at maximum capacity now. In order to accommodate the size and needs of the investment staff, TRS has taken three floors in a new building, in which TRS is a part owner, further into downtown Austin. The board must determine whether to substantially renovate or move out of TRS's Red River office in order to accommodate non-investment staff (primarily those working in customer service). Because all TRS costs, including staffing and space, are paid for out of the pension trust fund, these moves naturally bring up questions about whether the agency's additional staff and office space requirements will bring in more value for TRS members than it costs to accommodate. There is no definitive way to answer this question, but ATPE and other groups representing active and retired TRS members will continue to monitor and report on the value of TRS spending.
Another program in which TRS is trying to find ways to improve its value proposition is TRS-ActiveCare. The agency staff and board members have begun looking into the development of regional ActiveCare options that school districts could choose to offer their employees. The move was prompted by actions taken by El Paso ISD over several years to try to exit the TRS-ActiveCare program. When the district could not find a way to do so under existing state laws, El Paso found a novel way to migrate most of its staff out of the state's program and onto a new local plan, which was deemed to be cheaper than the statewide plan due to regional differences in healthcare costs. In response to El Paso's decision and with the expectation that other districts may pursue a similar course of action, TRS is now looking into the possibility of regional options for school district employees. This project is in its preliminary stages and is something ATPE will follow closely as it evolves.
Finally, the TRS board also received an update this week on the 13th check provided to retirees as a result of Senate Bill 12 that was passed by the legislature earlier this year. The additional payment equates to the lesser of the amount of a retiree's standard monthly annuity check or $2,000. TRS annuitants who receive their TRS payments through direct deposit received the 13th payment on September 10. The remainder of TRS retirees should have received a check in the mail by September 15. ATPE encourages any retirees who did not receive a check and believe that they should have received one to contact TRS directly.
Click here to watch a video of this week's TRS meetings or review the board materials.
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