Texas Gov. Greg Abbott has directed the Teacher Retirement System of Texas (TRS) to explore reductions in Medicare-related premiums for retired public school educators, marking the latest move in a series of state efforts aimed at strengthening retirement benefits for teachers.
In a letter dated April 30 to the TRS board of trustees, Abbott emphasized that the system’s strong financial position within the TRS-Care fund provides room to consider lowering costs for retirees without undermining long-term stability. The governor pointed to what he described as a consistently healthy fund balance, arguing it creates an opportunity to increase affordability for participants in the Medicare Advantage program administered through TRS.
Abbott framed the directive as part of a broader state strategy over recent years to improve retirement security for educators. He referenced past legislative and constitutional actions, including a 2023 amendment that delivered approximately $5 billion in supplemental payments and cost-of-living adjustments for retired teachers. That measure, advanced through the 88th Legislature, was approved by voters and included one-time pension enhancements often referred to as “13th check” payments.
The governor also highlighted earlier state appropriations in 2019 and 2021 that supported TRS funding, describing them as evidence of sustained investment in teacher retirement systems. According to his office, these actions have contributed to improved financial conditions within TRS programs, enabling both benefit enhancements and cost reductions over time.
In addition to legislative support, Abbott credited the TRS system’s management decisions for generating savings that have been passed along to retirees in recent years. Beginning in 2025, the system implemented premium reductions for eligible participants and introduced a limited enrollment opportunity for retired teachers in its Medicare Advantage plan. State officials estimate those changes have resulted in annual savings ranging from several hundred dollars to nearly five thousand dollars per participant, depending on coverage.
Abbott’s latest directive calls for TRS leadership to build on those savings and pursue additional premium reductions where feasible. He characterized the effort as a way to return financial benefits directly to retired educators who spent their careers in Texas classrooms.
The Texas Retired Teachers Association Texas Retired Teachers Association responded positively to the announcement, expressing appreciation for both state leadership and TRS administrators. The group noted ongoing legislative attention to retiree benefits and praised continued efforts to prioritize the health care needs of former educators.
Meanwhile, TRS leadership indicated support for working with state officials on potential changes. In a separate letter responding to the governor, TRS Board Chairman Robert Walls Jr. said the system is prepared to evaluate options that maximize savings for participants in the TRS-Care Medicare Advantage program. He attributed recent financial improvements to several factors, including federal Medicare policy changes and renegotiated agreements with insurers covering prescription drug and Medicare Advantage services.
Walls also noted that current premium structures for certain TRS-Care participants have remained stable in recent years, while still providing what the system describes as comprehensive coverage at below-market rates.
The Teacher Retirement System of Texas Teacher Retirement System of Texas board of trustees is expected to formally review the governor’s recommendations during its July meeting. Any approved changes would likely be structured for implementation beginning January 1, 2027, allowing time for administrative adjustments and program planning.
