Legislation increasing state contributions to the $145.4 billion Texas Teacher Retirement System, Austin, passed the Texas House of Representatives and Senate on Sunday.
The House voted 145-1 and Senate, 31-0, to approve the final version of legislation previously passed by the Legislature in April.
The amended Senate Bill 12, originally filed by Sen. Joan Huffman, would gradually increase contributions from teachers, employers and the state to the pension trust fund. The state's contribution will increase to 8.25% from 6.8% of the statewide teacher salary cost over the next five years. The original April bill called for statewide contributions to increase to 8.8%.
The bill also authorizes a one-time supplemental payment of up to $2,000 to plan participants who retired prior to 2019. The original April bill has a payment of up to $2,400 for participants who retired prior to 2017.
Also under the revised bill, member contributions would increase to 8% from 7.7% as of Sept. 1, 2021, and then 8.25% as of Sept. 1, 2023. Employer contributions, which include public schools or regional education centers, will rise by 10 basis points per year until reaching 2% as of Sept. 1, 2024, from the current 1.5%.
The retirement system's funding ratio was 76.9% as of Aug. 31, 2018, according to its most recent comprehensive financial annual report.
The bill has been sent to Gov. Greg Abbott for his signature. A spokesman for Mr. Abbott could not immediately provide any comment on whether he plans to sign the bill.
Austin Arceneaux, Ms. Huffman's spokesman, could not be immediately reached to provide comment.