Texas Retirees Stung By Gov. Perry’s Veto
July 5, 2009
Gov. Rick Perry may get a failing grade from the state's retired educators after vetoing a bill that would have made possible one of the Texas Retired Teachers Association's priorities -- adding another retiree to the Teacher Retirement System Board of Trustees.
It may be a move that will haunt him at election time.
After all, the Teacher Retirement System (TRS) of Texas has 1.2 million participants. It's one of the largest retirement systems in the nation. One out of every 20 Texans is a member of TRS, according to the group.
Perry said in a veto statement that House Bill 2656 "decreases the number of Teacher Retirement System (TRS) board members with financial expertise, an inappropriate adjustment in these uncertain economic times ... The significance and ramifications of the board's decisions on the futures of those who steward our children's education make it imprudent to dilute the board's financial expertise with (this bill)."
While saying he is worried about diluting the financial expertise is an admirable sentiment, it seems more like a convenient excuse that plays on economic fears.
There's no denying the need for financial expertise on the board.
There's also no denying that many retired educators include former superintendents and other former school leaders who had to develop and work with multi-million dollar budgets, navigate the complicated state school finance maze and communicate with the public about issues that impact their pocket books and even more important, their children. Retired educators often have financial expertise in their own right.
And even if they don't -- who better to have a voice, or two, in making decisions about the pension than someone who will be directly affected?
State Sen. Kevin Eltife, R-Tyler, who supported the bill, said, "There would be no better watchdog for the retirement fund than a retiree."
Tim Lee, TRTA's executive director, said in a legislative update to members, "The idea that removing one trustee with 'financial expertise' would weaken the fund's ability to manage its assets is difficult to believe. TRS has a world-class investment staff, as well as numerous independent advisers, lawyers, research assistants, government relations personnel, accountants, auditors and more."
Lee also noted that the Legislature passed the bill without a dissenting vote.
He said he's heard from some retirees who interpret the governor's veto statement to mean retirees are "just not smart enough" to have another position on the board.
At a time when the public is so worried about its financial future, why not give retirees the chance to have more of a voice on the board and a feeling of ownership in decisions being made?
TRTA is vowing to bring up the issue in the upcoming election and ask gubernatorial candidates their stance.
With his veto, Perry may have ensured that some retired educators will use their ballots to express just how smart they are.
