1. United States
2. Texas
3. Letter

I am writing to express my deep concerns about the potential consequences of Senate Bill 2 (SB2), specifically its impact on the Teacher Retirement System (TRS) of Texas. As highlighted in recent reports, including an analysis from the Texas legislature, SB2 poses a serious risk to the financial stability of TRS, potentially leading to an unsustainable fund. Even small changes in projected payroll growth could make the pension fund actuarially unsound, ultimately threatening the retirement security of thousands of public school employees, including teachers, bus drivers, and counselors. The proposed bill could significantly reduce the number of contributors to the TRS, which would decrease funding to the system, making it harder to ensure pensions for future retirees. This is especially concerning given that the TRS is already operating with a large unfunded liability. The actuarial analysis warns that a slight decline in the active workforce could lead to a funding gap, forcing an increase in contribution rates or potentially dismantling the fund altogether. This could create a financial crisis for current and future retirees who rely on this system for their dignity in retirement. In light of this, I urge you to carefully consider the long-term implications of SB2 on the Teacher Retirement System. Teachers and public school employees have already sacrificed much for our communities, and it is crucial that we uphold our commitment to ensuring their financial security in retirement. Thank you for your attention to this matter.