The
definition of “equity” from the Cambridge Dictionary: equal treatment; fairness
As you read through the chart below, which
outlines the stark differences between the two retirement systems in the State of Texas—TRS of Texas and ERS of Texas—you will undoubtedly see, quickly, there
is no equity. The extreme nature of this inequity is a result of the 2017 Legislative Session. Now, during the 2019 Legislative Session, there is talk that the 86th Texas Legislature is trying not to make our benefits worse. That is not good enough! We are calling for our legislators to MAKE IT RIGHT, to ROLLBACK OUR HEALTHCARE TO PRE-2018 BENEFITS (at the very least), to RESTORE OUR AFFORDABLE HEALTHCARE! Where is the EQUITY between TRS and ERS?
ERS
of Texas: Employees Retirement System of
Texas is the pension and healthcare system for all other state employees, some
higher-education personnel, and for retired Texas legislators.
NOTE: All items in bold black above and below are
links. Click on them for more
information.
TRS
– Retirees under 65
AETNA for TRS-Care |
ERS – Retirees
under 65
HealthSelect
for ERS Healthcare
|
TRS
– Medicare-eligible (65+)
HUMANA
Medicare Advantage for TRS-Care
|
ERS – Medicare-eligible
(65+)
HealthSelect
Medicare Advantage for ERS Healthcare
|
|
Monthly
premium – member only
|
$200
|
$0
|
$135
|
$0
|
Monthly
premium – with spouse/
family
|
$689
retiree and spouse
|
$358
retiree and spouse
$239.70
retiree and children
|
$529
retiree and spouse
$468
retiree and child(ren)
$1029
retiree and family
|
$140.92
retiree and spouse
$140.92
retiree and children
$281.84
retiree and family
|
Healthcare
deductible
|
Retiree
Only:
$1500 – in network
$3000
– out of network
Retiree must pay all of the costs from providers up to the deductible amount
$3000
– in network
$6000
– out of network
The
overall family deductible must be met before the plan begins to pay.
|
Retiree
Only:
$0 – in network
$500
– out of network
Retiree
with Family:
$0
– in network
$1,500
– out of network
(SOURCE)
|
Deductible: $500
Co-Pays
Only After Meeting Deductible:
Primary
Care Physician Visit: $5*
Outpatient
Hospital Stay: $250*
Specialist
Visit: $10*
Total
Inpatient Hospital Stay: $500*
Co-Pays
Before Meeting Deductible
Urgent
Care: $35
Emergency
Room: $65
Preventive
care benefits are covered at 100%.
|
Deductible:
$0
$0
for doctor’s office visits, specialty physician’s office visits, diagnostic
lab services, allergy injections, routine eye exam, etc.
|
Prescription
deductible
|
$50
per person
(SOURCE)
|
No
deductible
Copays based on whether the prescription is generic, preferred brand, or non-preferred brand
No
coverage gap or donut hole.
|
$50
deductible
|
|
Dental
coverage
|
Not
covered
|
State
of Texas Dental Discount Plan
Retiree: $2.25 per month
Retiree
and spouse: $4.50
Retiree
and children: $5.40
Retiree
and family: $7.65
(Two other plans available for ERS retirees under 65) |
Same
as ERS Retirees under 65, with this exception: One other plan available besides State of
Texas Dental Discount Plan
|
|
Vision
coverage
|
Not
covered
|
State
of Texas Vision
Retiree: $6.02 per month Retiree and spouse: $12.04 Retiree and children: $12.94 Retiree and family: $18.96 (SOURCE) |
Same
as ERS Retirees under 65
|
|
Retirement
Eligibility
|
1. At least 10 years of service credit in TRS.
(May include up to five years of military service.)
AND 2. Must meet Rule of 80 (sum of age and years of service credit in TRS equals or exceeds 80
-OR-
30
or more years of service credit in TRS (including purchased service).
|
To
be eligible to retire:
ERS
member’s service credit must be established (not withdrawn) with ERS at the
time of retirement, and the member must be at least age 60 with a minimum of
five years of service credit.
Member
may retire under the Rule of 80 if years and months of service credit (at
least five years) and years and months of age equal or exceed 80.
LEGISLATORS:
At age 50 with 12 years of service or at age 60 with eight years of service. |
1. At least 10 years of service credit in TRS.
(May include up to five years of military service.)
AND
2.
Must meet Rule of 80 (sum of age and years of service credit in TRS equals or
exceeds 80
-OR-
30
or more years of service credit in TRS (including purchased service).
|
Same
as ERS retirees under 65
|
Contribution
rate
|
|
State: 9.5%
ERS Member: 9.5% |
State: 6.8%
TRS
Member: 7.7%
|
State: 9.5%
ERS
Member: 9.5%
|
How
monthly pension is calculated.
|
TRS
uses the following formula to calculate a normal-age monthly standard
annuity:
1.
Average of Highest Five* Annual Salaries (based on creditable compensation) =
Average Salary
2.
Total Years of Service Credit x 2.3% (multiplier) = Total %
3.
Total % x Average Salary = Annual Annuity
|
Gross
monthly standard annuity is calculated by multiplying years and months of
service by 2.3% per year (2.8% for 20 years or more of CPO service) and then
multiplying the product of this by your average salary. The calculation of
average salary includes base pay, longevity pay, Benefit Replacement Pay
(BRP) and hazardous duty pay, if applicable.
If
hired on or after September 1, 2009, ERS uses the average of the member’s highest
48 months of salary. If hired on or after September 1, 2013, ERS uses the
average of highest 60 months of salary.
(SOURCE)
How
monthly pension is calculated for state legislators:
Your
monthly standard annuity is calculated by
multiplying
the percentage value of your months and
years
of retirement credit times the current state salary
of
a district judge. Instead of using the state salary of
a
district judge, your benefits may be based on your
average
salary (highest 36 months) as a state employee
(certain
eligibility factors are required). The monthly
standard
annuity for a member retiring from the elected
class
may not exceed 100% of the state salary of a
district
judge. The percentage value for service credit in
the
elected class is 2.3% per year. To determine your
service
percentage, see the table on page 4.
Monthly
retirement annuities that are calculated based
on
the state salary of a district judge are
automatically
adjusted each time judicial salaries
change.
While
members
of the elected class have the option to retire
under
the service retirement benefit formulas available
to
members of the employee class, the benefit
calculations
are different, and annuity increases after
retirement
are dependent upon legislative approval.
(SOURCE)
Current salary of a district judge in
Texas? $140,000 and it is being
proposed during this legislative session that they receive a $21,000 raise.
(SOURCE)
Who decides the salary of the district
judges? THE TEXAS LEGISLATORS!
|
Same
as TRS retirees under 65
|
Same
as ERS retirees under 65
|
Cost-of-Living
Increase
(COLA)
|
The
last time TRS retirees received a cost-of-living increase was in 2013. It was
a 3% COLA, capped at $100 per month, and it only went to TRS retirees who
retired before September 1, 2004. Any TRS member who retired after that date,
14 years ago, has NEVER received a COLA.
|
ERS
retirees have not received a COLA since 2001.
Retirees who retired after 2001 have NEVER received a COLA.
|
Same
as TRS retirees under 65
|
Same
as ERS retirees under 65
|
Full-time
work allowed after retirement
|
If
you retired before January 1, 2011,
as a TRS retiree, you may work, as follows, beginning at least one full month
after retirement, without losing any annuity payments:
•
any position;
•
any employer; and
•
any amount of time.
If you retired after January 1, 2011, After the required one full, calendar-month break in service following your retirement date, you can work, as follows, without losing any annuity payments:
•
as a SUBSTITUTE, without any limit on the number of days (provided you do not
perform any
other
type of work for a TRS-covered employer);
•
as much as ONE-HALF TIME, each month;
•
in a COMBINATION OF SUBSTITUTE AND WORK UNDER THE ONE-HALF TIME OR LESS
EXCEPTION,
provided the total number of days worked (or days that you used paid leave)
in
the combined positions each calendar month does not exceed one-half the
number of
workdays
in that calendar month;
•
in FULL-TIME EMPLOYMENT (greater than one-half time) after a 12 full,
consecutive calendar-month break in service after the effective date of your
retirement.
(SOURCE) |
If
you retired from a state agency on or after May 31,
2009,
a state agency cannot hire you until at least 90
days
after the retirement date.
(SOURCE)
|
Same
as TRS retirees under 65.
|
Same
as ERS retirees under 65.
|
TRS
members and all who support us, what do you think after reading this? I think it’s TIME TO MARCH! PLEASE JOIN ME!
Note: Click here for more
information on MARCH TO THE CAPITOL!
Chris Ardis retired in May of 2013 following a 29-year
teaching career. She now helps companies with business communications and
social media and works as a sales coordinator for Tony Roma's and Macaroni
Grill. Chris can be reached at cardis1022@aol.com.
(Photo by Linda Blackwell, McAllen)
