By Steve Miller - Texas Watchdog
Will their own retirement plan hit the chopping block?
Texas Insider Report: AUSTIN Texas State lawmakers will look at the massive pension funding deficit during this session. But will they look at their own retirement plan that allows them to begin receiving money at the age of 50?
As things stand today legislators can collect a pension at age 50 provided they no longer serve and were in office for at least 12 years. Lawmakers in 2005 passed legislation that gave them a retirement raise of $6431 a year. Benefits increase with each year served to a maximum of $34500.
The states pension system is troubled just as those of other governmental bodies Shad Rowe former head of the Texas Pension Review Board told Bloomberg last month. While the state faces a shortfall of $27 billion for the two-year budget cycle the states pension system which covers state employees as well as elected officials is around $20 billion over the same time Rowe said.
The pension problem is a long term problem one that people have pushed down the road a long way" Rowe told Bloomberg. The returns havent been there the last 10 years and its problematic whether they are going to show up."
The state pension is based on a return of 8 percent.
The pension deficit is not as dire as Rowe claims said pension board executive Chris Hanson.
There are structural issues down the road if legislators dont do something" he said. Its not a situation where the fund is insolvent."
Contact Steve Miller at 832-303-9420 or
stevemiller@texaswatchdog.org.
