Every Texan deserves access to the same investment opportunities that have worked for our Public Servants
By Joacim Hernandez
AUSTIN, Texas (Texas Insider Report) — Growing up in South Texas, I’ve seen firsthand how hard people here work to provide for their families. We show up early, stay late – and do what it takes to build something better for the next generation. But when it comes to planning for retirement, a lot of us are still stuck with limited options that make it harder to grow our savings.
Right now, there’s a big gap between how public employees and private-sector workers can invest for the future.Teachers, firefighters, and State Employees have access to modern retirement plans that include private market investments – things like private equity and real estate – while most of us in small businesses are left out.
That’s not fair – and it’s not smart economics either.
Here in Texas, public retirement systems like the Teacher Retirement System (TRS) and the Texas County & District Retirement System (TCDRS) have been using these types of investments for years – and it’s paying off. TRS, for example, manages over $200 billion in assets and keeps about 16% in private equity funds that consistently outperform the stock market over the long term.
Those higher returns translate into more secure retirements for public employees – and it’s time private-sector workers get the same shot.
Here in Texas, public retirement systems like the Teacher Retirement System (TRS) and the Texas County & District Retirement System (TCDRS) have been using these types of investments for years – and it’s paying off. TRS, for example, manages over $200 billion in assets and keeps about 16% in private equity funds that consistently outperform the stock market over the long term.
Those higher returns translate into more secure retirements for public employees – and it’s time private-sector workers get the same shot.
That’s why I strongly support the President’s executive order directing the Department of Labor to open the door for 401(k) modernization. This change would let small businesses offer employees more diversified, higher-return investment options, just like the big public funds have.
It’s estimated this could benefit around 90 million Americans, boosting the economy by tens of billions and helping families build real wealth over time.
Imagine what that means for the Rio Grande Valley – for working families, entrepreneurs, and small business owners. More growth. More security. More opportunity.
Of course, some folks are trying to scare employers away from progress by filing unnecessary class-action lawsuits, turning 401(k) modernization into a legal minefield. That kind of behavior hurts workers most – especially in Texas, where small businesses already face high legal costs. If we want more companies to offer modern, diversified retirement plans, we’ve got to give them clear legal protections and a safe harbor from abusive litigation.
The Department of Labor is on the right track with its plan to issue new rules protecting employers who simply want to give their employees better options. That’s how we build confidence, not fear – and make sure everyone can benefit from a stronger, fairer retirement system.
Every Texan deserves access to the same investment opportunities that have worked for our public servants. It’s time to modernize 401(k)s, expand choice, and give every worker – from the Valley to Dallas and everywhere in between – the chance to invest in their future with confidence.
Joacim Hernandez is a solopreneur in McAllen, Texas, and is a member of the Rio Grande Valley Hispanic Chamber of Commerce.
