Teacher Retirement System Of Texas
The Teacher Retirement System of Texas is a public pension plan of the State of Texas and one of the largest public pension funds in the United States.
Established in 1937, TRS pays retirement pensions, disability benefits, health care benefits, and death benefits to retired teachers and their survivors. TRS also serves employees of public colleges and universities
Members pay regular contributions to TRS equivalent to 7.7% of their salary. The state pays matching contributions of 6.8%. The average member retires at age 60 and receives a monthly annuity of $2,118.
As of August 31, 2020, the pension system had 445,274 members receiving retirement benefits, 914,752 active contributing members, and 142,682 inactive members, for a total membership of about 1.7 million.
TRS invests about 41% of its assets in public equities , 15% in private equity, 14% in government bonds, 13% in real estate, 8% in risk parity accounts, and 5% in hedge funds, according to a snapshot of its portfolio on August 31, 2020. TRS managed $164.6 billion in assets on that date.
Final Results From Last Sunset Report
Sunset Review
Employment After Retirement Reductions
- Specify that TRS members who retire after January 1, 2021 and exceed employment after retirement limitations are subject to a three-strikes system for any violations of the limitations. Require TRS to send a warning the first time a retiree violates employment after retirement limitations. For a subsequent violation, the retiree is subject to a dollar-for-dollar reduction. For any future violations, retirees lose their entire monthly annuity.
Contracting
- Direct TRS to fully centralize contracting functions and clarify roles and responsibilities between central contracts department staff and division staff managing contracts, and report its progress on implementing this recommendation to the Sunset Commission by February 1, 2021.
- Direct TRS to enhance its contract monitoring process and report its progress on this recommendation to the Sunset Commission by February 1, 2021.
- Direct TRS to include standard remedies in contracts and consistently apply enforcement tools. Direct TRS to provide an update on the implementation of this recommendation to the Sunset Commission by February 1, 2021.
- Direct TRS to require staff who procure or manage contracts to complete the comptrollers contract training and report to the Sunset Commission on its implementation of this recommendation by February 1, 2021.
Investments
Governance
Five Things All Texas Teachers Should Know About Their Retirement Benefits
There are five things all Texas teachers should know about their retirement benefits:
Each of these points deserves its own section, so Ill break them down one by one.
1. The TRS system is back-loaded, and it leaves the majority of its teachers without adequate retirement benefits.
Annual Pension = 2.3 percent * Years of Service * Final Average Salary
Annual Pension = 2.3 percent * 15 years * $60,000
Annual Pension = $20,700
2. The TRS plan is one of the stingiest in the country.
3. TRS benefits are getting worse.
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Resources To Help You Get Started
Priority number one for TRTA members is to ensure you are registered to vote! The deadline to register is January 31, 2022.
- Still have questions about registration and voting? !
- You may also view the Primary Election schedule in the chart at the bottom of this article.
Next, we encourage our members to begin researching the candidates running for political office in your district and at the statewide level.
- Click here to PREVIEW YOUR BALLOT and determine who is running for State Senator and/or Representative in your district!
We are also asking our members to review the TRTA 2022 Legislative Priorities document. This resource will come in handy as you begin reaching out to candidates offices to determine where they stand on the issues that matter most to Teacher Retirement System of Texas retirees.
Health Care For Retirees
TRS-Care is the group retiree health benefits program administered by TRS. TRS retirees who are not eligible for ERS, UT, or Texas A& M system health benefit coverage may be eligible for TRS-Care. More than 233,000 retirees and their dependents participate in this plan. Aetna administers the medical benefits Express Scriptsadministers the pharmacy benefits.
TRS-Care is currently funded on a pay-as-you-go basis and is subject to change based on available funding. At the inception of the plan in fiscal year 1986, funding was projected to last ten years through fiscal year 1995. The original funding was sufficient to maintain the solvency of the fund through fiscal year 2000. Since that time, the appropriations and contributions have been established to be sufficient to provide benefits for the biennium. The Texas Legislature determines the funding of benefits and has no continuing obligation to provide benefits beyond each fiscal year.
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How Much Money Is Teacher Retirement System Of Texas Making On Instagram
Many people ask about the amount of money Teacher Retirement System of Texas makes from Instagram. Normally the ad cost for an Instagram ad post is based on the number of followers on the account.
- YOU HAVE 5,000 FOLLOWERS
- $25 per post at a $5/CPM
- $35 per post at $7/CPM
- $50 per post at $10/CPM
- YOU HAVE 10,000 FOLLOWERS:
- $50 per post at a $5/CPM
- $70 per post at $7/CPM
- $100 per post at $10/CPM
- YOU HAVE 20,000 FOLLOWERS:
- $100 per post at a $5/CPM
- $140 per post at $7/CPM
- $200 per post at $10/CPM
Disclamer: the number about Teacher Retirement System of Texas’s Instagram salary income and Teacher Retirement System of Texas’s Instagram net worth are just estimation based on publicly available information about Instagram’s monetization programs, it is by no means accurate.
How Much Money Is Teacher Retirement System Of Texas Making On Facebook
Many people ask this question about the money Teacher Retirement System of Texas makes from Facebook. It’s actually a myth about how to make money on Facebook…
Disclamer: the amount of Teacher Retirement System of Texas’s Facebook salary income and Teacher Retirement System of Texas’s Facebook net worth are just estimation based on publicly available information about Facebook’s monetization programs, it is by no means accurate.
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Portfolio Holdings For Teacher Retirement System Of Texas
Companies in the Teacher Retirement System Of Texas portfolio as of the September 2021 quarterly 13F filing
Teacher Retirement System Of Texas has 2042 total positions. Only the first 250 positions are shown.
- Sign up to view all of the Teacher Retirement System Of Texas Sept. 30, 2021 positions
95.67
Texas Teacher Retirement System
As a public school employee in Texas, you must participate in the Teachers Retirement System, a defined benefit pension plan.
You contribute 7.7% of your salary. Your contribution is tax deferred, which means it is subtracted from your gross income before it is reported to the IRS. So your taxable income, and the federal income tax you owe, is less than it would be if you didn’t participate.
The State of Texas contributes 6.8% of your salary each year to the retirement system.
If you’ve been part of TRS long enough, you qualify for a fixed annuity payout for life when you retire. This means you’ll get the same amount every month for as long as you live, which is a big help when you’re budgeting for retirement expenses. In addition, TRS can make a bonus payment if the pension fund is “actuarially sound.” These additional payments are rare, however.
For Texas teachers, there are potentially four primary sources of retirement income:
- A pension from the Teacher Retirement System
- Income from ax-sheltered retirement accounts such as a 403 or IRA account, such as a 403 or individual retirement account
- Income from taxable investment accounts
- Income from a post-retirement job, either full-time or part-time
If you’re concerned that you’ve gotten off to a late start in building your retirement assets, you might want to consider ways to catch up by making extra contributions as you near retirement.
For Teachers
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Teacher Retirement System Of Texas Buys 27147 Shares Of Carmax Inc
Teacher Retirement System of Texas boosted its holdings in shares of CarMax, Inc. by 129.1% in the third quarter, according to its most recent filing with the Securities and Exchange Commission . The institutional investor owned 48,169 shares of the companys stock after purchasing an additional 27,147 shares during the period. Teacher Retirement System of Texas holdings in CarMax were worth $6,164,000 as of its most recent SEC filing.
KMX has been the subject of several research reports. Guggenheim cut CarMax from a buy rating to a neutral rating in a research note on Friday, October 1st. Royal Bank of Canada lifted their target price on CarMax from $156.00 to $157.00 and gave the company an outperform rating in a research note on Thursday, December 23rd. Wedbush lifted their target price on CarMax from $135.00 to $160.00 and gave the company a neutral rating in a research note on Tuesday, November 16th. Zacks Investment Research cut CarMax from a buy rating to a hold rating and set a $147.00 target price for the company. in a research note on Monday, September 20th. Finally, Wolfe Research raised CarMax to a buy rating and set a $160.00 target price for the company in a research note on Friday, October 1st. Four analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of Buy and an average target price of $160.45.
Teacher Retirement System Of Texas Officials Cite Move’s Savings
Despite the cost of up to $300 million for a new headquarters at Mueller, retirement system officials say the move will save the agency about $15 million over 20 years. They have based the estimate on a potential sale price of $80 million to $100 million for the Red River headquarters, plus savings on millions of dollars in improvements and maintenance at the aging facility and the financial benefit of no longer having to lease extra office space nearby.
The second building in Mueller that the retirement systems has committed to buy will be about 250,000 square feet. The agency said it still is negotiating with Shorenstein over details of the transaction.
The retirement system is able to provide financial information about its Mueller plans because it is buying the buildings directly and not using them for investment purposes.
The state law preventing it from revealing details of its Indeed Tower transactions applies to its third-party investment partnerships. The retirement system is prohibited from directly investing in real estate, although it can do so indirectly through partnerships.
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Article 1: General Provisions
Article 16 contains miscellaneous provisions, including limits on interest rates, civil penalties for murder, and the punishment for bribery.
Section 28 prohibits of wages, except for spousal maintenance and payments .
Section 37 provides for the constitutional protection of the .
Section 50 provides for protection of a homestead against forced sale to pay debts, except for foreclosure on debts related to the homestead . This section also places specific restrictions on home equity loans and lines of credit , the section:
- limits the amount of a home equity loan, when combined with all other loans against a home, to no more than 80 percent of the home’s fair market value at the time of the loan,
- requires that the advance on a home equity line of credit be at least $4,000 ,
- requires a 14-day waiting period before any loan or line of credit is effective , and
- places restrictions on where closing can take place.
Although Texas is a , such protections are governed by law the state does not have a constitutional provision related to right-to-work.
Article : Bill Of Rights
Article 1 is the Texas Constitution’s . The article originally contained 29 sections five sections have since been added. Some of the article’s provisions concern specific fundamental limitations on the power of the state. The provisions of the Texas Constitution apply only against the government of Texas. However, a number of the provisions of the U.S. Constitution are held to apply to the states as well, under the of the to the U.S. Constitution.
Differences with the US Bill of Rights
While the bill of rights contains many similar rights as the , it is considerably lengthier and more detailed and includes some provisions unique to Texas.
Section 12 recognizes the writ of as a right and prohibits its suspension under any circumstance whatsoever. This differs slightly from the U.S. Constitution, which allows its suspension “in Cases of Rebellion or Invasion the public security shall require it”.
Section 21 prohibits corruption of blood and forfeiture of estates , extending beyond the federal limitation which applies only in cases of Treason and even permits forfeiture during the life of the attained .
Section 34 guarantees the right to hunt, fish and harvest wildlife, subject to wildlife conservation laws. However, the section explicitly states that it does not affect “any provision of law relating to trespass, property rights or eminent domain”.
Section 32, added in 2005, denies state of , a practice which was invalidated by the ruling in .
Other rights
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Article 1: Mode Of Amending The Constitution Of This State
Notwithstanding the large number of amendments that the Texas Constitution has had since its inception, the only method of amending the Constitution prescribed by Article 17 is via the Legislature, subject to voter approval. The Constitution does not provide for amendment by , , or any other means. A 1974 constitutional convention required the voters to amend the Constitution to add a separate section to this Article the section was later repealed in 1999.
The section also prescribes specific details for notifying the public of elections to approve amendments. It requires that the legislature publish a notice in that briefly summarizes each amendment and shows how each amendment will be described on the ballot. It also requires that the full text of each amendment be posted at each county courthouse at least 50 days before the election date.
Once an amendment passes it is compiled into the existing framework , unlike the United States Constitution.
Health Care For Public Education Employees
On September 1, 2002, TRS introduced TRS-ActiveCare, a new statewide health coverage program for public education employees established by the 77th Texas Legislature. Today, participation in that program has grown to over 445,969 employees and dependents. Of the 1,246 districts/entities eligible to participate in TRS-ActiveCare, over 88.9 percent, or 1,108 now do so.
Along with the four PPO plan options administered by Blue Cross Blue Shield of Texas, a part of Health Care Service Corporation, and Medco, there are three health maintenance organization options offered under TRS-ActiveCare for the 2011-2012 plan year: FirstCare Health Plans, Scott & White Health Plan, and Valley Baptist Health Plans. These HMO options will provide additional plan choices to the employees of participating entities in areas served by these HMOs. These employees will be able to select TRS-ActiveCare coverage under one of the PPO plans or through the authorized HMO serving their part of the state.
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Your Pension And Social Security
Paying into a pension and Social Security would be a 15% hit to your monthly paycheck. To make sure that doesnt happen, most teachers that pay into the TRS Pension do not pay into Social Security. This is what is considered a non-covered pension in the eyes of the Social Security Administration. That means, when it comes time to collect Social Security, you will not be eligible. This has a negative effect by limiting Social Security claiming strategies and making it difficult to claim benefits based on a spouses record.
There are some districts that do pay both into the TRS Pension and Social Security. This will take more money out of your paycheck now but will give you a very large benefit once you reach retirement.
The more common scenario is that youve worked a job that paid into Social Security and then you worked as a teacher that doesnt pay into Social Security.
If your school pays into Social Security or youve worked a job that paid into Social Security for at least thirty years, you will receive a full Social Security benefit and will not have to worry about any reductions.
If you do not have thirty years of paying into Social Security, your Social Security benefits will be reduced in one of two ways.
If you have over 30 years of substantial covered employment earnings to go along with your pension, you will be exempt from WEP completely. This will allow you to receive your full Social Security benefit and pension.
