retirees rebuffed, again - trta letter

8/8/2019 Retirees Rebuffed, Again - TRTA Letter

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TRTA Legislative Update No. 63

Legislative Session 81By Tim Lee, Executive Director.

10/10/2009Retirees Rebuffed, Again: Governor Perry Picks New TRS BoardChairman

Almost nine months ago, Governor Rick Perry tasked Mr. Linus Wright to serve as

Chairman of the Teacher Retirement System (TRS) Board of Trustees. At that time, the pension fund was reeling from huge market losses due to the world economic crisis, theTexas Legislature was asking pointed questions about TRS Board decisions (includingleasing office space, investment decisions, the choice of fiduciary counsel, etc.), andthere was a general sense of uncertainty about the pension funds organizationaldirection.

In a smart move, Governor Perry looked to Mr. Linus Wright to step in as Chairman of the TRS Board and help see the fund through those difficult circumstances. Whatqualified Mr. Wright to lead the pension fund during such a strained time was the factthat he came on board as a seasoned, stable and trustworthy public servant with acareer spent in public education. As many of you know, Mr. Wright is the publiceducation retiree representative (the one and only public education retireerepresentative) on the TRS Board.

Now, though, Governor Perry has evidently felt it appropriate to transition TRSleadership yet again. After a short stint as chairman, Mr. Wright is reportedly beingremoved from his role and Mr. David Kelly (a relatively new TRS Board member) issaid to be the new chairman.

To his credit, Mr. Kelly has shown himself to be a strong supporter of public educationretirees and has always made positive comment about TRTA and its role as anadvocacy organization for TRS retirees. TRTA members should NOTmisunderstand this criticism of Governor Perrys decision as a knock against Mr.Kelly. His actions thus far as a TRS Trustee have been very positive and muchappreciated. TRTA expects that his role as TRS Chairman should be equallysupportive of retired and active TRS members.


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TRTA is not being critical of the TRS Board of Trustee, either. These dedicatedvolunteers are working hard to protect your pension fund and improve its financialcondition. The issue that TRTA is raising has more to do with how Governor Perry seems to begoing out of his way to diminish retiree involvement on the TRS Board.

As many of you remember, Governor Perry vetoed a bill earlier this year that wouldhave added another TRS retiree on the Board of Trustees. This veto was in jarringcontrast to the Governors 2006 campaign promise to TRTA members that he wouldsupport such legislation.

Now, the Governor has decided new leadership is needed for the TRS Board of Trustees. TRTAs question is Why? Does Mr. Wrights term end this month? No. Did Mr. Wright say or do something that

created an undue hardship for the pension fund? No. Did Mr. Wright say that he nolonger wanted to serve as TRS Board of Trustees Chairman? No! So, why is Governor Perry interested in changing leadership for the pension trustfund? The pension fund has been operating in a very proficient manner, most evident in theoverall value of the pension trust fund. In February 2009, the funds value was around$70 bilion. Now, the fund value is around $88 billion. TRTA is not suggesting that Mr. Wright single-handedly brought the fund to this point,

but his leadership decidedly empowered the TRS staff to do what was needed to helpthe pension system recover, and he kept the TRS Board focused on the bigger picturethroughout the process. Mr. Wright has worked dutifully to protect the TRS pension trust fund. He servedfaithfully in the best interests of all TRS members (both retirees and actives). Now,however, the Governor sees fit to dismiss his work without explanation. Publiceducation retirees deserve to know more about the reasons behind this decision.

Why is it that a greater voice through an additional annuitant, or a position of leadership as the TRS retirees Board Chairmanship are realities that this Governor chooses to deny to public education retirees? TRTA is concerned about the Governor Perrys actions in relation to the TRS Board.The bottom line is this: public education employees and retirees deserve to know thatthe people leading their pension fund are 100 percent committed to the preservation of the traditional defined benefit retirement plan TRS currently provides. Serving theinterests of TRS members takes priority over the desire of any elected official,


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business relationship, or other such distraction that may cause those in power to takeadvantage of the trust fund for any personal or special interest gain.

TRTA and our 70,000-plus members are watching all of this very closely.

Other TRS News Last year, the TRS Board initiated a program called the Fall Report Card tour. This

program will return to various locations around the state and will provide anopportunity for TRS retirees to meet and interact with the pension trust funds leadersand staff. So far, the dates and locations are the only ones announced, but TRTA willcontinue to report the dates and locations of other meetings as they are announced. Friday, November 6, 2009

10:00 am to NoonSan Angelo ISD Board Room1621 Universary Ave.San Angelo, TX

Friday, November 6, 2009

2.30 pm to 4:30 pmRegion 14 ESC, Taylor Room1850 Highway 351Abilene, TX

Friday, November 13, 2009

10:00 to NoonW. G. Thomas (Birdville) Coliseum6108 Broadway Ave.Halton City, TX

Topics: to be discussed:Trust Fund Status

Investment PolicyPortfolio ReviewEconomic IndicatorsResponse to Current Environment2009 TRS-Related LegislationHealth Benefit ProgramsLong-Term CareCommunication InitiativesBoard of Trustees


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Questions and Answers

Thank you for your continued support and membership in the Texas Retired TeachersAssociation!

retirees rebuffed, again - trta letter

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