Last year, an overwhelming majority of Texas voters chose to give retired educators in the state the first cost-of-living adjustment (COLA) to their pensions in decades. This investment has put more money directly into the pockets of retired educators, allowing them to invest their money as they see fit and stimulate the Texas economy while they’re at it.
In 2024, the record remains clear: supporting Texas educators helps the economy grow. The Texas Retirement System (TRS) has released its 2024 Value Report to showcase the “positive impact TRS retirees, active members and their benefits have on the Texas economy.” The biennial report found that:
- TRS annuitants received $13.45 billion in pension benefits in 2024, with 93% spent at Texas businesses.
- TRS health care funds paid $4.9 billion in medical claims, further boosting spending in Texas.
- TRS had a total impact of $46.8 billion in pension and health care payments benefiting Texas businesses.
- In 2023, TRS retirees contributed 5.2 million hours of volunteer service to Texas communities, a $133 million value.
As of January 2024, TRS implemented COLAs for over 400,000 eligible annuitants. This adjustment significantly increased the monthly annuity payroll by $30 million, directly contributing to the economic vitality of the state. By providing additional financial resources to retired educators, these COLAs not only enhance the quality of life for annuitants but also drive consumer spending across local businesses and industries, amplifying their positive impact on Texas’s economy.
Supporting educators is about honoring their contributions to education, but it also invests in the economic health and resilience of Texas. TRS annuities fuel local businesses, generate tax revenue, and uplift communities, creating widespread benefits for the state. By continuing to provide robust support and advocacy for automatic cost-of-living adjustments, we can help ensure that Texas educators can thrive in retirement and, by extension, so can the state of Texas.