TSEU-ROC members are making our voice heard!
For a pension increase: In 2022-2023 TSEU will lead the way in a statewide push for a pension increase
As retirees, we used to believe our service to the state would end with a secure pension. However, legislative efforts to undermine our pensions have not stopped. It takes organized action by active employees and retirees to stand up to the attacks, protect what we have, and to win new improvements. Pensions for retirees in the Employees Retirement System of Texas have been frozen since 2001. Meanwhile, the cost of living has increased by almost 40%. Texas does NOT provide automatic cost of living adjustments (COLAs), for retired state employees. With the average pension at $21,288 /yr, ERS retirees are struggling to make ends meet.
Retirees in the larger Teachers Retirement System received 13th checks in 2006, 2019 and 2021. The one-time checks were paid out of the state General Revenue, not the TRS fund itself. The average pension for TRS retirees is $25,740/yr. Both ERS and TRS retirees need a pension increase ASAP.
The primary issue: the need for additional state funding
The ERS and TRS needs to be fully funded and “actuarially sound” before paying out a permanent pension increase. The State must fully fund the ERS request for funds to make the pension fund actuarially sound and allocate additional funds to allow ERS retirees to receive a well-deserved and long overdue 13th check. The 2019 legislature added additional funding to TRS by gradually increasing contributions (State 8.25% plus a separate 2% employer portion, Employees 8.25%). The legislature then allocated an additional $589 million to fund a bonus 13th check but not a pension increase. The Texas Legislature added new funding to the ERS pension fund in 2021, but not enough to allow a pension increase. TSEU ROC members, along with the thousands of active state employee members, will fight for funding for pension increase during the legislative session in 2023!
A secure pension and a 13th check are both needed!
We need legislators to fund our pension systems so they meet the threshold to provide a long overdue permanent increase. In the meantime, there is no reason that a $2500 bonus cannot be given to present retirees using funds coming from General Revenue. TSEU ROC activists have already begun working to win support for this at the Capitol, without letting up on the pressure for a real, permanent pension increase for ERS retirees.
For Quality, Affordable Health Care: In 2022-2023, TSEU will fight any and all attempts to cut funding or water down our health care plans
TSEU has a 40-year history of fighting for policies and funding to make sure that retired state employees have quality, affordable health care for ourselves and our families. As health care costs increase, there will be increasing pressure in the Legislature to pass costs to employees and retirees and/or to water down our plans. TSEU will continue the fight for adequate funding and to defeat efforts to water down our health plan.
Small increases in out-of-pocket expenses or deductibles have a bigger impact on retirees’ budgets because of our reduced income.
For a secure ERS system: In 2022-2023, TSEU will lead the way in defending the programs and resources of the ERS
State legislators in nearly every session since the mid-1990s have floated plans to convert our pension plan to a 401(k) model that reduces pensions and forces retirees to depend on the whims of the stock markets for our futures. Legislators have proposed converting our health plan to defined contribution plans or health savings accounts that would limit our coverage. Legislators even proposed diverting some of our pension funds into the Emerging Technology Fund that would be used to make risky investments.
TSEU members and our allies have successfully fought to defeat these proposals. But we know that the attacks will continue and we must be prepared!
For front-line worker, retiree voices on the ERS Board: In 2023, TSEU will run a campaign to elect a new TSEU active employee or retired member to the ERS Board of Trustees.
The ERS Board of Trustees controls our pension and health plans: having a frontline voice on the Board makes a difference. Until 1989, the elected members of the ERS Board were always high-ranking state agency officials.
That changed when TSEU member Janice Zitelman was elected to the Board in 1989. Since then a TSEU member has always been on the Board. TSEU members on the ERS Board have been the first and only front line state employees, and the first and only Black and Latino board members. Our members on the ERS Board have been a consistent, strong voice for front-line state employees and retirees who struggle to make ends meet.
In 2021 TSEU won an important victory when new legislation allowed retirees to be elected to the ERS Board. Previously, retirees could not run for board positions, and sitting board members had to resign their positions if they retired during their terms.
In 2023, TSEU will run a campaign to elect a new TSEU active employee or retired member to the ERS Board of Trustees. Winning ERS Board elections takes a lot of work, but TSEU members are willing to do what’s needed to keep a voice on the Board.