Teacher Pension Fund Plummets in Financial Crisis

By: Associated Press
By: Associated Press

AUSTIN -- The Teacher Retirement System of Texas has seen about a $25 billion market value drop since Sept. 1 in the nation's widening financial meltdown.

But system officials say the 275,000 retired teachers and beneficiaries covered by the fund shouldn't fear a change in current benefits.

However, the financial crisis does darken the prospects of retirees getting an additional check next year. The Legislature sometimes authorizes a 13th check whenever the system has investment gains.

Last year, retirees in the system received an extra one-time check for $2,400.

The system ended its 2008 fiscal year on Aug. 31 with a market value of $104.9 billion. System officials expect the fund likely to end October with a value between $80-85 billion once audited returns are complete.

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