“Hit their retirement, rip ’em up good!”
|Guys in white=teachers
State Legislators = Bull
Can you hear the Texas State Legislators saying that? I know I can every time I read updates from colleagues that threaten the teacher retirement system. The main points as a fellow educator put them:
A bill is set to go before the Senate State Affairs Committee for a vote. Chair Robert Duncan filed a bill to be heard today that will significantly alter the system.
The bill sets the minimum retirement age at 62 (without penalty). Each year an employee would retire before age 62, a 5% penalty on benefits would take effect for each year. age 61, 5% penalty, age 60, 10% and so on.
There is a grandfather clause attached. If you are age 50, or have 20 years of service, or have a rule of 70 (combined age and service), you would be grandfathered. A large population of employees would not meet the grandfather requirements.
- Over the past 25 years, the TRS trustfund has earned a return of approximately 8.6% despite a decade of highly volatile markets. The TRS assumed return rate is 8%.
- The Majority Of TRS Members Will Do Significantly Worse Investing On Their Own In A Plan With A Defined‐Contribution Component.
- 80% of TRS members, a figure that includes 95% of public school TRS members, do not participate in Social Security
“I think it’s an outrageous proposal,” Murphy said. “It’s not as if there was a pot of gold waiting under the rainbow for teachers even under the current scheme.” Source: Austin-American Statesman
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