Those who dedicate their lives to teaching and caring for our children while they’re at school deserve the dignity of a comfortable retirement, but the sad truth is many retired public school employees in Texas have struggled to pay their bills for years.
Failed by state lawmakers, retired Texas teachers and former school workers haven’t received a permanent cost-of-living adjustment in their state pension fund since 2004, while most other states adjust teacher retirement pay on at least a semi-regular basis. Fifty-two percent of retired school workers in the Texas system receive $2,000 per month or less, and 30 percent receive $1,000 or less. That doesn’t even cover rent in Austin. Making a difficult situation worse, more than 90 percent of retired school workers don’t get Social Security benefits because most Texas districts don’t allow teachers to contribute to the federal program. Add soaring inflation and it’s easy to understand why so many retired Texas educators say they struggle to cover groceries, medicine and other essentials.
Teachers make immense societal contributions
After years of inaction attributed to their uncertainty about state revenues, lawmakers in both parties finally appear ready to do something, thanks to a record $33 billion budget surplus and strong support from leaders in the House and Senate. Legislators will need to haggle over the details, but they should vote to boost retired educator pension payments as generously as possible. Fair compensation for teachers both on the job and in retirement is a fundamental societal responsibility, helping to ensure a robust educational workforce to prepare future generations to do the jobs vital to our collective well-being.
Underpaid and overwhelmed Texas school workers are leaving the profession in record numbers, citing excessive workloads, job burnout, low pay (Texas ranks 28th in the nation for teacher salaries), and lack of respect from the public and elected officials. An estimated 43,000 Texas teachers quit between 2021-2022 and 70% of teachers surveyed by their union last year said they seriously considered leaving their jobs. Shoring up retirement pay will help teacher recruitment and retention by sending a long overdue message that Texas values their contributions to society.
House, Senate proposals to boost teacher retirement pay
Leading House and Senate proposals to raise public school employee retirement pay have merit. Sen. Joan Huffman, R-Houston, has introduced a bill with broad bipartisan support that would provide a one-time payment of $7,500 for retirees 75 and older, a 2% cost-of-living adjustment for educators who have been retired two to 9 years, and a 4% adjustment for those retired at least 10 years. A similar bill introduced by Rep. Greg Bonnen, R- Friendswood, and listed among House Speaker Dade Phelan’s top priorities, proposes a $5,000 cash payment for retirees 70 and over, a one-time cost-of-living adjustment based on years of service and a one to two percent annual adjustment depending on investment performance beginning in 2028. Bonnen’s bill would require Texas voters to approve his plan in November before it could be enacted.
At a cost of about $4.7 billion, Huffman’s proposal would not require additional contributions from current educators. Bonnen’s bill would cost roughly $3.5 billion and require a .75% increase in contributions from those currently employed. Either would offer significant improvement for teachers and school workers who haven’t had a cost-of-living adjustment for nearly two decades, save for bonus payments the legislature approved for retired public school employees in 2019 and 2021.
According to the Teacher Retirement System of Texas, one in 20 Texans, or nearly 476,000 people, receive a pension payment from the system. This includes teachers, school bus drivers, nurses, counselors, cafeteria workers, office personnel, janitors and others. The Texas Retired Teachers Association now estimates that former school employees who retired in 2007 or before would need their current annuities increased by 34% on average to make up for lost purchasing power due to inflation. Those who retired between 2008 and 2016 would need a 22% increase, and those who retired between 2017 and 2021 would need a 14% increase. These shortfalls would likely take several legislative sessions to rectify, but lawmakers must do as much as possible now.
A state as wealthy as Texas with the rare luxury of a record $33 billion budget surplus can afford to give educators the financial help they need to pay their bills in retirement. It’s the right thing to do for them and all of us who count on the profound contributions that teachers and others in the public education system make for the good of our children and our state.
Austin American-Statesman
