Get Better Informed, Provide Your Home Email Address
TPEA has been working to inform state employees about relevant issues and concerns through our legislative update email program since 2003. TPEA takes pride in being the most reliable source of accurate and timely information on legislative developments and other concerns for active and retired state employees.
However, because this information is sent to your state email address, TPEA is necessarily constrained in the types of information and recommendations that we can provide. TPEA is therefore encouraging all interested state employees to provide their home email addresses, or other non-state email address, so that TPEA can offer you the full range of information we have available. TPEA will not sell or otherwise permit access to these addresses to any other party.
Follow this link to submit your home email address to TPEA.
TPEA Retirement Survey Results
TPEA sent out an email to our distribution list on January 27 asking state employees to participate in an online survey on a range of issues regarding the ERS retirement plan. We are gratified by the level of participation in the survey. Over 12,600 respondents participated in the survey, and over 2,000 individual state employees submitted comments. On behalf of the Board of Directors of TPEA, we are grateful to all the employees whose participation made the survey such a success.
TPEA believes the survey results indicate clear preferences among employees about whether it is important to restore the retirement fund to actuarial soundness and which options are most preferred to achieve that end. TPEA staff has analyzed and tested the results to assure that they are statistically valid and not skewed or biased. We are confident that the results fairly represent the opinions of state employees generally. The primary findings of the survey are:
- State employees believe it is extremely important to restore the ERS retirement fund to actuarial soundness. When asked to rate the importance of restoring actuarial soundness, three quarters of respondents rated it five on a five point scale and over 90 percent rated it 4 or higher. While employees closer to retirement rated this goal higher on average, even the newest employees rated it very high. See these results: http://www.tpea.org/members/survey1.html.
- By an overwhelming margin employees are willing to increase their contribution to the retirement fund as an alternative to other retirement eligibility rule changes. Over 85 percent of respondents preferred an increase in the employee retirement contribution rate of no more than an additional half percent, as opposed to changing from a “rule of 80” retirement standard to a “rule of 85.” In addition, when rating a variety of options on a five point scale, increased employee retirement contributions were the most highly rated options by a large margin. See these results: http://www.tpea.org/members/survey2.html.
- Respondents are strongly opposed to a change to a “rule of 85” retirement eligibility standard and believe current employees should be “grandfathered” for most changes. A change to a “rule of 85” retirement standard was the lowest rated option in the entire survey. In addition, the notion that current employees should be “grandfathered” for benefit changes was the opinion most frequently expressed in the comments section of the survey.
- Return-to-work retirement is controversial, while respondents do not believe it should be prohibited they suggested other options should be considered. The return-to-work retirement issue received the second largest number of comments in the survey. Many employees expressed the opinion that returning retirees should be required to contribute to the retirement fund. TPEA had initially listed this as a possible policy option on the survey, but it was removed after TPEA was informed that retirement contributions in such a circumstance would violate federal law. The principle is that you cannot ask an employee to make a retirement contribution for which there is no benefit. A prohibition on return-to-work retirement was the lowest rated policy option, while a 90 day delay before a retired employee could return to service was the highest rated option on this issue. Another option that may be considered is the possibility of imposing a surcharge on the state agency that rehires a retiree, similar to how this issue is treated under TRS.
- State employees appreciate being asked for their opinions and are hopeful legislators will respect their preferences. A large number of survey respondents commented that they appreciated having an opportunity to express their point of view on retirement matters. TPEA will utilize these survey results to work with legislators to craft legislation to help restore the ERS retirement fund to actuarial soundness in a way that is as fair as possible to current employees.
For more detailed information on the status of the ERS retirement fund and an explanation of some of the major causes of its current problems, please follow this link: http://www.tpea.org/tpe/feb2009/ers.pdf to the feature article in TPEA’s most recent magazine. For the full results from the survey, please go to http://www.tpea.org/members/homeprofile.php.
In addition to conducting the survey, TPEA is analyzing information recently developed by ERS that estimates how specific changes in retirement eligibility rules would affect the actuarial status of the retirement fund. Based on a preliminary consideration of survey results and ERS’ actuarial projections, TPEA believes that the ERS retirement fund can be returned to the path to achieve actuarial soundness. Such an effort will likely require increased employee contributions coupled with a commitment from the legislature to contribute as least as much as employees. Additionally, reasonably significant changes in retirement eligibility rules for NEW employees (for employees who are first hired after some future date, 9-1-2009 for instance) will also likely be necessary. Consistent with employee preferences expressed in the survey, TPEA will work with key legislators to craft a proposal that will “grandfather” current state employees for almost all changes in retirement eligibility rules, while still allowing for a significant improvement in the long term actuarial health of the retirement fund.
Cheryl MacBride Endorsed for ERS Board Election
Texas Public Employees Association has endorsed Cheryl MacBride as the best qualified candidate in the 2009 race for the Board of Trustees of the Employees Retirement System. Mrs. MacBride currently serves as Deputy Commissioner for Administration for the General Land Office and the Veterans Land Board. She has over 23 years of experience with the State and has an impressive background in management and finance that makes her the best qualified candidate. Three other candidates will be competing in this election, Brian White with the Office of Injured Employee Counsel, John Wicks with TDCJ, and Yolanda Griego with HHSC. Voting begins March 16. Follow this ERS link: (http://www.ers.state.tx.us/news/fyb_state/documents/fyb_election_2009.pdf) to see more information on the candidates and the election process. TPEA encourages all state employees, retirees and other eligible voters to get informed about the candidates and to participate in the election.
State Employee and Retiree Issues Update
Health Insurance Issues—TPEA is working to maintain current health insurance benefits and health insurance premium contribution rates, with the state paying 100 percent of the health insurance premium for employees and retirees and 50 percent of the cost for dependent coverage. TPEA is supportive of the funding level for health benefits under ERS contained in the introduced versions of the budget in both SB 1 and HB1. TPEA was the only group to testify in support of funding to maintain current state health benefits during the ERS budget hearing in the Senate Finance Committee on Friday, February 6. TPEA is also working to get full coverage of smoking cessation included under the ERS health plan.
Employee Pay Raises—As explained in previous updates, TPEA has put forward a three tiered approach to increasing state employee pay (http://www.tpea.org/legislation/leg.html). However, given current economic difficulties and the financial outlook for the State, TPEA has not yet been able to secure a commitment from legislative leaders for adequate employee pay raises for the next biennium.
TPEA believes that new federal funding provided in the recently enacted federal economic stimulus package should provide sufficient financial resources to enable Texas legislators to fund reasonable raises for all state employees, to address salary disparities among the highest turnover occupational categories, and to fund an adequate level of merit pay at all state agencies. Competition for limited funds is fierce at the Capitol, so it is vital that legislators understand the importance and necessity of addressing state employee compensation issues. TPEA continues to make its case on these issues with the Texas Legislature. TPEA was the only organization to address the need for across-the- board pay raises for all state employees in testimony before the Senate Finance Committee by TPEA Executive Director Gary Anderson on Monday, February 23. TPEA also supported the pay raise package put forward by the Department of Criminal Justice for correctional and parole staff in testimony before the Finance Committee and the relevant House Appropriations subcommittee.All State Employee Celebration, April 2
The All State Employee Celebration will be held on Thursday, April 2nd from 5:00 – 7:00 p.m. at Scholz Garten, 1607 San Jacinto, in downtown Austin. All Texas state employees and retirees are invited! Bring your state ID to gain entrance to this celebration. Enjoy complimentary drinks and snacks while listening to fun live music at historic Scholz Garten. An Apple iPod will be raffled off during this event. This celebration is co-hosted by the Texas Department of Public Safety Officers Association and TPEA.
Watch TPEA’s website www.tpea.org for special event announcements and to read about TPEA’s future schedule.