Texas Gov. Rick Perry signed into law a bill that will make changes to pension calculations for the $91 billion Teacher Retirement System of Texas, Austin, to reduce an $11 billion shortfall, according to a posting on the governor's website. The bill would restructure pension calculations for many teachers, change the retirement age for future instructors and keep school districts in the state from offering early retirement, according to a statement attached to the bill and posted on the state Legislature's website. The bill also "includes a variety of provisions intended to improve efficiencies in system administration of TRS and clarify the board's authority to manage and protect pension assets," the statement said. The bill would save the state an estimated $450.7 million through the two years ending Aug. 31, 2007, according to the website.
Howard Goldman, spokesman for the retirement system, said fund officials "are now reviewing" the bill.
Kathy Walt, spokeswoman for Mr. Perry, did not return a call by press time seeking comment.