Vance Ginn, Ph.D., is the director of the Center for Economic Prosperity and a senior economist at the Texas Public Policy Foundation.
The Teacher Retirement System (TRS) of Texas’ amortization payments have grown since 2003 and take up an increasing amount of teacher and state contributions.
Adopting a more realistic projection of investment returns and the estimated value of pension benefits is important to ensuring Texas will uphold promises made to teachers.
TRS has at least $35.4 billion in pension debt, and billions more if the pension plan’s assumptions are wrong.
The key factors driving growth in TRS’ unfunded liability.