SB 12 increases UT, Texas employee contributions to Teacher Retirement System program
Senate Bill 12 has increased employer, employee and state future contributions to the Teacher Retirement System of Texas.
SB 12, which adds a onetime supplemental payment to members of the Teacher Retirement System, was signed in June and went into effect on Sept. 1. As a result, the amount the University pays the system will increase by $4.62 million per year until fiscal year 2021.
The Teacher Retirement System of Texas is a retirement program where employees pay a certain amount each year based on service credit and salary, and each UT employee is automatically added to the program upon employment, Barbie Pearson, chief benefit officer for the TRS, said in an email. If eligible UT employees choose to switch to UT’s separate retirement program, the Optional Retirement Program, they do not have to contribute to the system.
According to the bill, eligible TRS members who retired on or before Dec. 31, 2018 will receive a one time supplemental payment of either $2,000 or the amount of their monthly annuity payment -— whichever is less.
Read more: http://www.dailytexanonline.com/2019/09/12/sb-12-increases-ut-texas-employee-contributions-to-teacher-retirement-system-program