Watching Texas Crumble

http://www.lubbockonline.com/stories/032505/sta_032505098.shtml


Teacher retirement $11 billion short


- Texas' pension fund for teachers is $11 billion short of what it needs to pay the benefits promised to the state's educators, according to a report released Thursday.

The $91.4 billion pension fund is the 12th-largest in the world and pays retirement benefits and health care for nearly 1.2 million retired and active teachers.

The fund had been $8 billion short, but declined sharply in the last six months.

Even at $8 billion, the fund's shortfall couldn't be made up in less than 31 years, given current funding levels and assuming an investment return averaging 8 percent a year. Under state law, that means the Legislature cannot grant any increase in benefits to retirees.
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now THIS is pulling out a tube, a lifeline

One can hope.....

That doesn't mean the whole state should be condemned.

I know your comment wasn't meant to be taken literally, but please be mindful that there are a lot of good Texans here at DU & try to qualify your answers with their feelings considered.

nt

...when you can have a nice "personal account" from Social Security?

our state employees pension fund is in good shape, but we contribute about 10.14% as employers (school districts) and the employee contributes another 8% of their own pay. The state doesn't fund directly; they pay the entity (schools, courts, prisons) and the entity makes the contribution.

Lowering to 6% and not increasing it is pretty stupid - unless you're wanting to eliminate public education altogether. Hmmmm.

the texans will migrate to other places?????

i certainly hope not. sorry texans, but you know the joke....

the only thing wrong with texas....

although I have to say it's been a pleasant surprise to see that AAR is making such headway all over the state!

AAR is being very strategic of where they go... they are going by size of market and then by criticality. They will be in the boondoogles before too long and we need Radio Warriors to take teh country back.

Granted Al is not one but he is a good moderate to get them thinking

That's how we got James Dobson and Douglas Bruce.

manage? Also how much of this plan was invested in enron?

TRS Takes a Texas-Sized Enron Hit
Fort Worth Star-Telegram, Feb. 1, 2002
Attorney General's Office Deputy Jeff Boyd has joined Texas to a $60 million class-action suit against Enron Corp. and Andersen to recover investment losses by the state's retirement funds. TRS lost $35.7 million and ERS lost $24.3 million.

"I am a contributing member of Texas Teacher Retirement, with 23 years in it now. So I was naturally concerned when Teacher Retirement (TRS) lost 36 million in Enron and (Texas) Employee Retirement System and Permanent University Fund also lost millions. What is so suspicious is that TRS bought Enron stock three times after word came out that Enron was in trouble."

http://64.233.161.104/search?q=cache:AEL3Y6kJReMJ:www.buzzflash.com/contributors/2002/01/011802_Enron_and_Pensions.html+Texas+teachers+pension+fund+lost&hl=en

Who will want to become a teacher in Texas, given the terrible benefits. But that doesn't bother Bush, because the payback is so far down the road. :(