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Inside Stories April 2, 2008
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Retired teachers' '13th' check hurts pay

In January, the Teacher Retirement System of Texas disbursed a one-time annuity payment, or "13th" check, to Texas' 250,000 eligible retired public school employees. For many retirees, the extra payment was their first benefit increase since 2001'.

This month, however, the United States' Social Security Administration (SSA) sent letters, informing some retirees' their Social Security payments will be reduced in accordance with the Government Pension Offset (GPO) provision of the Internal Revenue Code.

This federal action contradicts the purpose of the "13th" check. The TRS one-time payment was not a permanent increase and does not affect retirees' long-term pension benefits.

"I am truly disappointed by the recent news, and implore the SSA to reconsider including the "13th" check in the GPO formula," State Senator Glenn Hegar said. "The Texas Legislature worked hard to authorize this well deserved check for our dedicated retired school employees, and I am troubled by the SSA's decision. Although the SSA's decision is a federal issue, I am committed to working with my congressional counterparts to reexamine the GPO formula, so that this does not happen again.

"Our retired educators have proudly served our State and certainly deserve their '13th' check in full and without any reductions in their Social Security benefits," he added.


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