TRS records positive trends despite pandemic's effects

The Teacher Retirement System (TRS) of Texas is meeting its expected trajectory, which was called “kind of amazing” considering the pandemic’s effects on the economy.

The TRS Board of Trustees heard increased contributions approved by the legislature in 2019 were partly responsible for the fund’s improvement, the Texas Classroom Teachers Association (TCTA) reported.

Positive trends include the time to pay off obligations dropped to 27 years. Benefit increases are allowed if the cost wouldn’t take the fund above a 31-year funding period. Though it is actuarially sound, the fund’s condition is not good enough for retiree benefit increases.

More deaths were recorded than expected, which was attributed to COVID-19. Fewer retirees were noted through August, though estimates this fall have risen significantly. The retiree numbers from September through November rose more than 30% above last year’s figure for the same period.

COVID-19 cost benefits were extended for three plans offered through TRS: ActiveCare, TRS-Care Medicare Advantage and TRS-Care Standard (for retirees not eligible for Medicare), TCTA reported.

Retirees have no copays for diagnostic testing and no cost sharing for telemedicine and COVID-related treatment as benefits under the Medicare Advantage plan.

No member cost sharing will continue for telemedicine under ActiveCare and TRS-Care Standard, plus COVID-related testing or COVID-related inpatient treatment.

Uncertainty in the officer market postponed any action TRS staff and board on long-term office planning, which might be to build or buy new office space outside of Downtown Austin. The cost of updating and restructuring the current build would be the most expensive option, staff said, TCTA reported.

The investment division’s planned move to the Indeed Tower will be abandoned to instead move with the rest of the agency when its new offices are chosen, keeping all staff under the same roof.

Individuals who want to join the TRS Board as an active member can be nominated, with nominations and petitions due by Monday, Jan. 25. Current employees of a charter school, regional service center or school district are eligible. Nominations can be made online.