Research Report The Cost and Adequacy of Teacher Pensions in Texas
Erald Kolasi, Richard W. Johnson
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To improve the finances of the Teacher Retirement System of Texas, which serves almost 1.5 million workers and retirees, Texas Governor Greg Abbott signed legislation in spring 2019 that gradually raises plan contributions by the state, school districts, and employees. Additional contribution hikes may be necessary to close the plan’s funding gap, however, if optimistic actuarial and investment assumptions about the future fail to materialize. Revising the plan’s benefit structure, which now favors long-tenured teachers, could also improve retirement security for teachers who spend less than a full career in the pension system, especially because most Texas teachers are not covered by Social Security.
Research Areas Education Wealth and financial well-being Aging and retirement Taxes and budgets
Tags Pensions School funding Wages and nonwage compensation Teachers Retirement State and local tax issues Retirement policy
Policy Centers Income and Benefits Policy Center