Texas Legislature Deals Public-Ed Retirees Yet Another Blow

            As a child, I remember having life-size, inflatable punching bags. They looked like cartoon characters, and sand filled the bottom so they would bounce right back after being knocked down. Since 2017, the Texas Legislature has used retired public-school employees as their bounce-back punching bags.

            I retired from teaching in 2013.  For the first four years, I had good, affordable insurance. But in 2017, without warning, the Texas Legislature raised the deductible for all Teacher Retirement System (TRS) retirees under the age of 65 from $400 to $1500. (Remember that TRS is a misnomer as it actually covers ALL public-ed retirees, including bus drivers, custodians, maintenance staff, police officers, teachers, administrators, librarians, classroom aides, counselors, cafeteria staff….)

Prior to 2017, we also had a co-pay for doctors’ visits and prescriptions. Not only did they nearly quadruple our deductible, but they also robbed us of a co-pay.  Now we have to pay the entire $1500 out of pocket before our insurance pays a penny--except for preventive procedures, such as mammograms--and a list of standard generic drugs. (If a retiree has his/her spouse on the plan, that couple must meet the $3000 deductible—rather than $1500 per person—before insurance kicks in.)

            You may remember that Texas has two pension systems—TRS and ERS. ERS is the Employees Retirement System, which handles pensions and health care for all other state employees. While our deductible went from $400 to $1500 in 2017, the health-care deductible for ERS retirees went from $0 to $0. ZERO. Oh, and their monthly premium went from $0 to $0.  ZERO.  Ours is $200 per month. Did I mention that retired Texas legislators are covered under ERS health care and receive a pension from ERS?

COLA

            Since I retired in 2013, I have not received a single cost-of-living adjustment (aka COLA). According to Consumer Price Index inflation calculator, “ The dollar had an average inflation rate of 2.02% per year between 2013 and today, producing a cumulative price increase of 19.68%.”  My monthly pension has had a 0 percent increase since 2013.  ZERO.

            You may be shocked to learn that the last time the Texas Legislature provided TRS retirees with a COLA was in 2013, BUT…and it’s a BIG but…it was a 3 percent increase, capped at $100 per month, and it was only for public-school employees who retired prior to September 1, 2004.  Yes, 2004.  So for the past 18 YEARS, public-school employees have received ZERO COLAs.  ZERO.

13^th Check

            Despite another Legislative Session spent pushing for a COLA, in 2021, once again, our cries fell on deaf ears. In the end, during a Special Session, our legislators chose to ignore the fact that we have gone all these years without a COLA and instead approved a “13^th check,” capped at $2400.  

It works like this:  If a TRS retiree earns less than $2400 per month in his/her annuity payment, the 13th check would be equal to his/her monthly payment. Those earning over $2400 per month would ger $2400. These checks were sent to us mid-January.

            While I think most of us would rather get something, than nothing, it was another punch to TRS bounce-back retirees. My check arrived, minus $346.37. I immediately thought of my retired colleagues who earn far less:

 

Source:  TRS publication A Great Value for All Texans, February 2021

 

            Please look at this carefully.  The highest percentage—30.6%--of TRS retirees earn a monthly benefit (annuity payment) of $1 - $1000, and those who retired since September 1, 2004, have NEVER had a COLA!

Latest Blow 

            Just as TRS retirees across the state were reeling from the large deductions taken from our 13^th check, we received another blow from TRS via the U.S.P.S. Every January, TRS sends us a letter to show us the difference in our net monthly annuity from the previous year to the current year.  Normally—and I am NOT kidding—it will show an increase of $1.00 or so.  When I received mine, it showed I would be receiving $140.71 LESS in 2022 than I did in 2021.  How do Texas legislators expect us to continue while earning LESS?

            Have you seen the gas prices recently? Grocery prices? ALL prices?  I immediately contacted TRS via DM on Twitter and received a quick response: “…generally, a one-time supplemental payment is treated as taxable income to an eligible annuitant. Your withholding rate will return to normal on your February payment. In February, TRS will send out a new letter with a comparative summary of the January and February annuity payments. This will show the changes in the IRS withholding for your February and future annuity payments in 2022. If you see a higher withholding amount for your January annuity payment, it is likely because receiving the supplemental payment in addition to your annuity payment increased your rate of withholding for the month of January. Lastly please note, the IRS released new annual tax withholding tables at the end of December that were applied to the January payments, so you may also notice those nominal adjustments to your withholding amount.”

             My head was reeling as I read this response.

1.     1.  WHY wasn’t this possibility discussed when the Texas Legislature was once again denying us a COLA and attempting a final-hour, heroic act with a 13^th check?

2.      2,  WHY would TRS send these letters out in January, upsetting everyone at a time when there is enough stress related to inflation, our UNaffordable health care, and COVID instead of providing us with January AND February–December payment information?

And….

WHY do public-ed retirees continue to be their bounce-back punching bags?   

Chris Ardis retired in May of 2013 following a 29-year teaching career. She now works as a freelance writer and editor and is committed to education, educators, and students. Chris can be reached at cardis1022@aol.com. (Photo by Linda Blackwell, McAllen.)