Texas Teachers Pension: Solvency Alert

If you are one of the 1.9 Million teachers who depend on the Teacher Retirement System of Texas (TRS), your retirement security is mathematically at risk. The fund operates with a funding ratio of only 75.8%—well below the 80% threshold considered healthy.

What This Means for Your Retirement

A funding ratio of 75.8% means that for every $1.00 the fund owes you in retirement, it currently holds only $0.76 in assets. The remaining gap must come from:

• Future investment returns (increasingly unlikely at 7%+ return assumptions)
• Increased taxpayer contributions (politically difficult in Texas)
• Benefit cuts to retirees (the most mathematically likely outcome)

The Texas Inflation Factor

Even if your nominal pension remains intact, Texas's local inflation rate of 4.1% is eroding purchasing power faster than standard COLA adjustments. A fixed $2,100/month payment today buys significantly less by 2043.

Wealth Protection Strategy for Texas Teachers

Smart teachers in Texas are not waiting for political solutions. They are:

1. Maximizing 457(b) or 403(b) contributions to build a personal safety net outside the pension system
2. Opening a Self-Directed IRA with physical precious metals (per IRS Code 408(m)(3)) for counterparty-free diversification
3. Requesting pension buy-out analysis if offered by Teacher Retirement System of Texas (TRS)
4. Consulting a fee-only fiduciary advisor (not a commission-based salesperson)