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TexasTowelie

(111,315 posts)
4. The situation could actually be worse.
Tue Dec 23, 2014, 01:28 AM
Dec 2014

Back in the 1980s when the Texas Public Employees Association was negotiating with the legislative leaders for pay raises they made a concession for a smaller raise, but in return they had language inserted into the law so that state employees would receive a minimum interest rate of 5% on their share of the pensions. If they had not worked to get that legislation passed, then the state could have contributed even less to the pension system. Nobody expected interest rates to drop as low as they have been over the last ten years so it has been a plus for state employees; however, it does increase the unfunded liabilities faced by ERS. There has been talk of having new employees enter into a 401k type program, but I do not believe that has been adopted into law.

FWIW, I do not believe that the teachers retirement system has a similar deal and they are much more seriously underfunded than ERS.

Naw, can't be true, never would Perry and friends do anything wrong. Thinkingabout Dec 2014 #1
TT it so sad... malokvale77 Dec 2014 #2
The situation could actually be worse. TexasTowelie Dec 2014 #4
Like I said... malokvale77 Dec 2014 #6
well lookie here Skittles Dec 2014 #3
See my comment in post #4. TexasTowelie Dec 2014 #5
Perry used the pension system to reward contributors Gothmog Dec 2014 #7
Latest Discussions»Region Forums»Texas»Texas employee retirement...»Reply #4