LONG AWAITED 13TH CHECK BECOMES REALITY FOR RETIRED EDUCATORS

For Immediate Release
Thursday, October 18, 2007

October 18, 2007 (AUSTIN, TX) – Retired educators will be receiving a much needed and long awaited benefit increase according to State Representative Vicki Truitt (Keller). Truitt, who chairs the Texas House Committee on Pensions & Investments, learned today that the Texas Teacher Retirement System (TRS) will be able to issue a 13th check, a one-time increase in the annuity paid to retired teachers. This is the first benefit increase for retired teacher annuities since 2001. State officials and retired educators had been eagerly awaiting TRS actuaries to complete their annual valuation study, the results of which were released today. The actuaries noted that, as a result of the retirement fund's investment gains and increased funding approved by the 80th Legislature, TRS will be able to distribute the 13th check after being voted upon by the TRS Board of Trustees. That formal action is expected to take place at the next board meeting on November 9, and the retired educators may anticipate receiving their additional benefit in January, 2008.

"I'm so pleased for our retired teachers who have had to wait too long for financial relief. The $650 million new dollars appropriated to the fund by the Texas Legislature to TRS last session was key in making the 13th check a reality," said Truitt. Rep. Truitt carried SB 1846 which increased the state’s fund contribution for active teachers from 6.0 percent to 6.58 percent and authorized the 13th check.

The Texas Constitution prohibits the Teacher Retirement System from providing a benefit increase to its annuitants unless the fund is actuarially sound. The TRS fund has over $100 billion in assets, but has been actuarially unsound since the drop in the stock market after the 9/11 attack in 2001.

"Thanks to the hard work of many concerned legislators, including Senator Duncan (Lubbock) the author of SB 1846, as well as the work of Representatives Ruth McClendon (Dan Antonio) and Lois Kolkhorst (Brenham) both on the Appropriations Committee, we were able to make this happen. It was a privilege to work with them and all Texas legislators to improve the strength of the TRS fund for the good of our current and future retired teachers," said Truitt.

Rep. Vicki Truitt is a fifth term legislator from Tarrant County representing Grapevine, Colleyville, Southlake, Keller, Westlake, and parts of Trophy Club and far north Fort Worth. She is Chairman of the House Committee on Pensions and Investments and a member of the House Committee on Public Health.

Contact: Dan Sutherland, Legislative Director for Rep. Vicki Truitt
(512) 463-0690 or dan.sutherland@house.state.tx.us