FOR IMMEDIATE RELEASE: October 31, 2024
Teacher Retirement System of Texas Releases New Value Report with a Texas-Sized Impact
AUSTIN – The benefits administered by the Teacher Retirement System of Texas (TRS) continue to provide significant economic value to the state through issued annuities and health care program payments according to the pension system’s latest biennial publication entitled 2024 TRS Value Report: A Texas-Sized Impact.
The newly issued report showcases the impact of annuitant and member spending across Texas local businesses, households, and health services. “This external analysis shows not only the value TRS benefits provide to our members and retirees, but a measurable influence on Texas’ economic well-being,” said TRS Executive Director Brian Guthrie.
Among the highly visual takeaways for fiscal year 2024 displayed in this year’s report:
- $46.8 billion – total economic impact of TRS pension and health care payments
- $13.45 billion – total value of annuity payments in 2024 to TRS retirees (more than $1 billion paid a month to retirees and annuitants)
- $4.9 billion – total value of medical claims paid in 2024 ($15 million in medical and pharmacy claims a day)
Additional funding and revenue sources
Today, one in 19 Texans is a member or retiree of the TRS pension trust fund. As a result of legislative action and funding, in the past year, eligible retirees received a one-time stipend payment. This year, eligible annuitants also received a cost-of-living adjustment that the legislature and Texas voters approved. The report also shows the economic benefits of additional funding from the TRS Active-Care health care program.
It is notable that while state, member and employer contributions are an important source of annual revenue for TRS’ pension fund, investment returns make up 62% of revenue. The 2024 Value Report shows how those investments are allocated along with annual returns.
The Teacher Retirement System of Texas (TRS) is one of the largest retirement systems in the nation. The system's core mission is to make a positive difference in the lives of Texas educators by prudently investing and managing trust assets and delivering member benefits. As of August 31, 2024, TRS pension fund had a market value of $209.5 billion.