State Senator Paul Bettencourt (SD 7 Houston) has filed 2 bills attacking state employee pensions!
SB 1750 and SB 1751 by Senator Bettencourt aim to convert both the Employees Retirement System (ERS) and the Teacher Retirement System (TRS) pension funds into 401K-styled, defined contribution plans. Unlike our current pension system that guarantees lifetime benefits for retirees, defined contribution plans only provide retirees with a limited retirement account that is based on the ups and downs of the stock market.
Senator Bettencourt promotes the need to switch to defined contribution plans based on the FALSE idea that our current pension systems are financially unsustainable. The truth is that the ERS and TRS funds are financially sound and are among the best managed pension systems in the nation. The real motive behind Sen. Bettencourt’s anti-pension bills is to allow wealthy financial interests to profit off public pensions at the expense of retirement security for public employees and retirees.
Our ERS and TRS pensions provide a great benefit for state employees, retirees, and the taxpayers of Texas. Switching to a 401(k) styled system would put the retirement security of all state workers and retirees at risk. TSEU members are committed to pushing back against these attacks and have defeated similar attacks on our pensions in the past.