July 27, 2018      5:04 PM

TRS vote today adds another $1.7B to teacher pension liability

Teachers groups say “The burden is now on the Texas legislature to step up and provide the necessary funding …and give educators peace of mind that they will not face cuts in their pensions”

The board of the Texas Retirement System has reduced its assumed rate of return on its investments, adding another $1.7 billion liability to its pension fund.

The vote, an outcome of the pension fund’s most recent five-year experience study, lowers the rate of investment returns from 8 percent to a more realistic 7.25 percent, which mirrors recent economic outlooks. The decision, which has been discussed for a number of months, was no surprise to either teacher groups or the Texas Retired Teachers Association.

By Kimberly Reeves

Copyright July 27, 2018, Harvey Kronberg, www.quorumreport.com, All rights are reserved