March 1, 2021: New TRS Publication Shows the Value of Pension and Health Care Benefits

FOR IMMEDIATE RELEASE: March 1, 2021

New Teacher Retirement System of Texas (TRS) Publication Shows the Value of Pension and Health Care Benefits

Austin – A new publication from the Teacher Retirement System of Texas (TRS) illustrates the positive impacts that TRS’ annuity payments have on the lives of members and the Texas economy. In addition, the brochure details the benefits that TRS’ health insurance plans bring to the state.

Today, TRS released one of its most widely read brochures: A Great Value for All Texans, also commonly called The Value Brochure. The 2021 document can be found in the publications section of www.trs.texas.gov.

Some key findings from The Value Brochure include:

• In 2020, TRS retirees received a total of $11.6 billion in monthly checks – 94% of which were spent at Texas businesses by those living within the state. Those annuity payments provide TRS members with stable income to expend.
• Meanwhile, the billions of dollars paid into medical and prescription services by TRS health care programs supports Texas' growing economy. Together, the economic impact of these programs totaled $40.4 billion in 2020.
• The TRS health programs serve more than 700,000 Texans. TRS is the second largest buyer of health care in the state behind Medicaid.
• The size of TRS health care plans helps keep long-term volatility down. Since 2013, Texas employers with similar funding models for health insurance had a 24% increase in health care costs while TRS only saw a 7% increase.
• The current TRS defined retirement benefit retirement plan provides benefits to members at a lower cost than alternative plans.
• Since the inception of the TRS Pension Trust Fund, more than three-fifths of the fund revenue has come from investments.
• One out of every 20 Texans is a member of TRS.

“The Value Brochure shows how our more than 1.6 million members are positively impacted by TRS pension benefits and health insurance plans,” said TRS Executive Director Brian Guthrie. “Also, Texas as a whole experiences economic benefits from the billions in spending generated by TRS programs, which touches communities across the state.”

This edition of The Value Brochure updates findings and figures that were reported in the 2019 publication and includes in depth information on TRS’ health insurance plans. TRS updates the brochure every two years.