ERS Chief to Lege: Keep Our Commitment to Retirees

Employees Retirement System Executive Director Porter Wilson has told lawmakers that the state must continue “keeping our commitments” to retirees.

The message in the spring ERS newsletter builds on his testimony this winter at Capitol hearings and his presentation at the AFSCME Texas Retirees’ virtual biennial conference — and also reflects AFSCME’s priorities for the legislative session.

ERS is asking for a $949 million state contribution above the proposed base budget to begin to make the pension fund actuarily sound, as well as a long-term strategy.

Many retirees have asked ED Wilson about the possibility of receiving cost-of-living increases or a “13th check” similar to what retired teachers received last year. 

“My answer never gets easier,” he writes. “We understand the financial issues some of our retirees face. Unfortunately, state law prohibits increases given the current state of the ERS Retirement Trust Fund.”

That’s why it’s so important for lawmakers to understand that ERS only has enough to pay about 70 percent of its current and future obligations and, without new investments, will run out of money in the coming decades.

Lawmakers must keep the promise the state made to current and retired employees who have contributed to ERS. If they don’t, Texas will face challenges recruiting and keeping its talented public employees. And the financial burden will ultimately be borne by future generations of taxpayers.

“ERS staff are taking appropriate steps to try to return the Fund to financial health as soon as possible,” Wilson writes. “We work closely with state lawmakers—even between legislative sessions—to keep them updated about the Fund’s status and present them with options. In the end, these lawmakers make the decisions about contributions to the Fund and the benefits it pays.”