Benefits Committee Meeting - September 2021 - TRS
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September 2021
Benefits
Committee Meeting
Teacher Retirement System of Texas
1000 Red River Street
Austin, Texas
78701-2698
TEACHER RETIREMENT SYSTEM OF TEXAS MEETING
BOARD OF TRUSTEES
AND
BENEFITS COMMITTEE
(Committee Chair and Members: Mr. Ball, Chair;
Mr. Moss, Mr. Nance and Ms. Sissney, Mr. Walls, Jr.)
All or part of the September 16, 2021, meeting of the TRS Benefits Committee and Board
of Trustees may be held by telephone or video conference call as authorized under Sections
551.130 and 551.127 of the Texas Government Code. The Board intends to have a quorum
and the presiding officer of the meeting physically present at the following location, which
will be open to the public during the open portions of the meeting: 1000 Red River, Austin,
Texas 78701 in the TRS East Building, 5th Floor, Boardroom.
The open portions of the September 16, 2021, meeting are being broadcast over the
Internet. Access to the Internet broadcast and agenda materials of the meeting is provided
at www.trs.texas.gov. A recording of the meeting will be available at www.trs.texas.gov.
AGENDA
September 16, 2021 – 9:00 a.m.
1. Call roll of Committee members.
2. Consider the approval of the proposed minutes of the July 2021 committee meeting
– Committee Chair.
3. Receive an update and consider the following regarding TRS pension benefits
program:
A. Consider the adoption of a resolution directing staff to prepare for and issue
the supplemental payment consistent with the provisions of Senate Bill 7 as
passed by the 87th Texas Legislature in the Second Called Session;
B. Consider recommending to the Board acceptance of the Medical Board
Meeting minutes of May 2021 meeting – Barbie Pearson;
C. Consider recommending to the Board approval of Benefit Payments for
June 2021 – August 2021 – Barbie Pearson; and
D. Benefit Services Operations update and discuss Inactive Account Policy –
Barbie Pearson.
4. Receive an update and consider the following regarding TRS health insurance
benefits program:
NOTE: The Board of Trustees (Board) of the Teacher Retirement System of Texas will not consider or act
upon any item before the Benefits Committee (Committee) at this meeting of the Committee. This meeting
is not a regular meeting of the Board. However, because the full Committee constitutes a quorum of the
Board, the meeting of the Committee is also being posted as a meeting of the Board out of an abundance of
caution.
A. Receive an update on the administration and performance by TRS-Care
and TRS-ActiveCare – Katrina Daniel.
B. Consider recommending to the Board appointments of members to fill
upcoming vacancies on the Retirees Advisory Committee (RAC),
including RAC Vice Chair – Katrina Daniel.
2
TAB 3
Benefit Services Update Barbie Pearson September 16, 2021
Pension Benefit Update Fiscal 2021
Fiscal 2021 Objectives Measured
Business Activity Objectives Target Q1 Q2 Q3 Q4 FY21
Refunds validated within five business days of receiving final deposit and all
Refunds 95% 97.98% 95.96% 98.66% 96.40% 97.25%
paperwork
Benefit Estimates Benefit estimates mailed within 31 days of request 90% 21.80% 8.18% 9.46% 12.57% 13.00%
Retirements Retirees receiving first annuity payment on time 98% 88.35% 99.51% 99.53% 89.23% 94.16%
Death Claims
Claims acknowledged within 14 days of receipt of death notification 90% 67.30% 20.20% 1.30% 30.80% 25.90%
(acknowledged)
Death Claims (payments) Claims payments issued within 31 days of receipt of all required paperwork 95% 23.00% 19.60% 10.87% 15.30% 17.19%
Telephone Calls Calls answered within three minutes 80% 15.97% 25.10% 60.25% 76.42% 44.20%
Office Visits Number of office visits available annually (target increase FY2019) 20,000 2,361 2,720 4,135 4,784 14,000
In-person: 127 93 1,056 1,276 2,552
Live-video: 822 1,158 1,268 662 3,910
Office Visits Conducted
Telephone: 713 503 601 367 2,184
Walk-ins: 0 0 0 142 142
Regular payroll reports completed by the end of each quarter (cumulative for
Reporting Employer 90% 95.18% 98.18% 99.48% 99.21% 99.21%
fiscal year)
3
Membership Trends
PROCESSING ACTIVITY
97,631
94,412
91,213
Fiscal 2019
50,583
Fiscal 2020
Fiscal 2021
41,269
39,428
23,820
23,155
20,844
19,770
18,925
18,470
CLAI MS PAI D RE FUNDS PAI D RE TI RE ME NT E S TI MATE S PAY RO LL ADDS
4
Benefit Counseling Service
Benefit Counseling Yearly Contact Volume
800,000 100%
90%
700,000 656,489 667,608
621,641
603,663 80%
80,838 101,701
600,000
92,847 70%
197,205
Service Level
Call Volume
500,000
60%
54.58%
400,000 45.75% 50%
44.20%
40%
300,000 575,651 565,907
510,816
30%
200,000 424,436
20%
15.10%
100,000
10%
0 0%
Fiscal 2018 Fiscal 2019 Fiscal 2020 Fiscal 2021
Answered Abandoned Service Level 5
Benefit Counseling Service Level
100% 2019 2020 2021 92.32%
91.61%
88.79%
90%
80%
70%
60%
50%
40%
30% 23.34%
20%
12.07%
10.08%
10%
0%
Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
2019 27.04% 48.31% 49.75% 80.34% 59.00% 73.11% 83.14% 78.04% 92.32% 45.99% 31.29% 23.34%
2020 25.39% 27.05% 51.75% 66.87% 23.68% 68.10% 88.28% 91.61% 81.76% 49.84% 23.25% 12.07%
2021 10.08% 11.90% 27.95% 53.89% 15.02% 10.26% 42.44% 65.78% 76.72% 88.79% 75.20% 66.23%
6Benefit Accounting – Employer Reporting
7Benefit Accounting – Employer Reporting
Employer Support Reports Complete by End of Q4
305,000 15,000
295,000 14,000
285,000 13,000
275,000 12,000
265,000 11,000
255,000 10,000
245,000 9,000
235,000 8,000
FY2018 FY2019 FY2020 FY2021 FY2018 FY2019 FY2020 FY2021
Employer Calls Pending 351 196 113 116
20,321 12,099 12,693 11,104
Employer eMails Complete 14,184 14,378 14,566 14,737
280,583 273,848 267,408 263,481
Employer eMails Employer Calls Complete Pending
8Benefit Accounting – Annuity Payroll
Annuity Payroll Payment Type
$12,000,000,000 6,000,000
5,291,269
5,122,952 5,429,318
$11,000,000,000
5,000,000
97%
$594,114,640
$10,000,000,000
4,000,000
$9,000,000,000
3,000,000
$8,000,000,000 $11,038,022,948
$10,628,479,175
$10,183,111,266
2,000,000
$7,000,000,000
$6,000,000,000
1,000,000 3%
409,332
$5,000,000,000 -
Fiscal 2019 Fiscal 2020 Fiscal 2021
Annuity Payroll 13 Check # of Annuity Payments # of 13th Payments EFT State Warrant
9Annual Statements
FY 2021 Annual Statement Updates
• Distribute to Active and Inactive members
• Project retirement benefits
• Current years
• Future years
• Estimate first eligible retirement date
• Display “Projected Lifetime Annuity Value” amount
10Benefit Policy Update
Counseling & Inactive Account
11Benefit Counseling Policy
Statewide Member Demographics
• Understand demographics
• Identify need by region
Types of Service
• In-person appointments
• Group presentations
• Group retirements sessions
12Members Eligible to Retire & Distance from Headquarters
El Paso,
Distance from Austin Members Eligible to Retire
652
ESCs 14, 15, 18
West Texas
ESC 19 El Paso
Panhandle,
473 ESCs 16, 17 Panhandle
ESCs 1, 2 South Texas
West South
Texas, Texas,
263 ESCs 12, 13, 20 Central Texas
250
DFW, ESCs 7, 8, 9, 10, 11 DFW
273
Houston ESCs 3, 4, 5, 6 Houston Area
Area,
Miles 179 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
Now 1 - 2 years 3 - 5 years
13Benefit Counseling Policy
Outcome Planned Counseling Events
Region Benefit Field Office Group
Added four new locations to Presentation Visits Retirement
conduct field office visits Available Sessions
Central Texas 4 N/A 1
Changed frequency and duration
DFW 7 326
for some existing field office visit
El Paso 1 56
locations Houston Area 5 146
5,365 seats available at Panhandle 2 112
presentations South Texas 2 34
2,400 are projected to be virtual West Texas 3 124
2,965 are projected to be in person Statewide Virtual 7 N/A 1
31 798 2
14Proposed Inactive Account Policy
Key Provisions
• Provide notification to members and heirs
Based on Sunset recommendation, HB 1585
requires the Board of Trustees to adopt a • Provide information about rollover eligibility
policy requiring TRS to make all reasonable • Send notifications via certified mail, return
efforts to locate and notify a member or, if receipt
appropriate, the member’s heirs of their • Conduct internet searches to locate
entitlement to a return of accumulated individuals
contributions. • Develop a matrix to determine degree of
additional outreach
1516
TAB 4
Health and Insurance
Benefits Presentation
Katrina Daniel
September 2021
1SB 1444 Implementation Updates
• SB 1444 signed by the Governor on June 7 th, 2021
• Prohibits alternative coverage on September 1, 2022
• Allows districts to enter and leave TRS-ActiveCare
• TRS developing regional rates to promote local-
based competition
Governor Signed
SB 1444
June July August Sept Oct Nov Dec
Dec
2SB 1444 Implementation Updates
New claim data reporting available to districts since August 16 th
• There are no charges or fees to districts requesting data
• Employers participating within last 36 months are eligible
• Districts can request data twice per state fiscal year
• Detailed report option requires HIPAA compliance certification
Governor Signed New process to release
SB 1444 claims to districts for getting
3rd party bids
June July August Sept Oct Nov Dec
3SB 1444 Implementation Updates
TRS staff started meeting • Four initial stakeholder input sessions with 200 attendees
with school districts in completed through September 8th
August and will continue • Upcoming presentations to associations and conferences
those efforts through the fall • Individual, targeted calls to CFOs
Governor Signed New process to release TRS Meetings with
SB 1444 claims to districts for getting Districts to Get Input on
3rd party bids 2022-23
June July August Sept Oct Nov Dec
4SB 1444 Implementation Updates
Dec
• TRS staff currently developing regional rating methods
• Regional rating will take effect September 1, 2022
• TRS will meet with districts in November/December to
provide a preview of regions and rating adjustments
• Currently plan to use Educational Service Center (ESC)
regions for regional rating
Governor Signed New process to release TRS Meetings with Preview of Regional
SB 1444 claims to districts for getting Districts to Get Input on Rates
3rd party bids 2022-23
June July August Sept Oct Nov Dec
5SB 1444 Implementation Updates
• TRS will survey all eligible districts starting late September 2021
• Four options for employers in reporting entities portal:
• Join
• Stay
• Continue non-participation
• Leave
• Staff will email & call districts leaving or providing incomplete/no information
• Districts will provide decision for September 1, 2022, by December 31 st,2021
Governor Signed New process to release TRS Meetings with Preview of Regional Notification
SB 1444 claims to districts for getting Districts to Get Input on Rates Deadline
3rd party bids 2022-23
June July August Sept Oct Nov Dec
6Guidance for Employers
7TRS-ActiveCare Remains Competitive in Texas
• TRS collected health plan info from 39
districts outside of TRS-ActiveCare
• Goal was to learn how TRS plans
compare to market
• 141 plans included in data set are
available to 82% of employees in non-
participating districts
• 2021 or 2021-22 plan year
8Districts Outside of TRS-ActiveCare typically contribute more
The average district contribution TRS-ActiveCare is below the
minimum contribution for nearly all non-participating school districts
Minimum
Contribution
Average District Contribution
Per Statute
in TRS-ActiveCare
Each grey dot represents the minimum
contribution made by a non-participating school
district for employee-only coverage
9Two Plans With Similar Total Costs Look May Have Different Costs to Employees
$198
$150
An employee may ask
“why is this non-TRS
school district getting a $225
better deal and they
can offer a $0 $404
premium?” Monthly
$192 Employee
$0 Premium
Non-Par Plan TRS-ActiveCare-Primary
10Two Plans With Similar Total Costs Look May Have Different Costs to Employees
Total Premium
$198 Total Premium
$150
$404 $417
District
The big difference is $225
Contribution
how much the district
contributes $404
Monthly
$192 Employee
Premium
Non-Par Plan TRS-ActiveCare-Primary
11Two Plans With Similar Total Costs Look May Have Different Costs to Employees
Total Cost Estimated
$602 Total Cost
average amount
$567
paid by member
for deductible,
$198 Member Cost
$150 coinsurance, and
Sharing copays.
District
TRS-ActiveCare-Primary $225
Contribution
is the lower cost option in
this example $404
Monthly
$192 Employee
Premium
Non-Par Plan TRS-ActiveCare-Primary
12Two Plans With Similar Total Costs Look May Have Different Costs to Employees
Member Cost Sharing +
Employee Premium Member Cost Sharing +
$198 Employee Premium
$163
$198 Member Cost
$150 $150
Sharing
A similar contribution in $225 District
TRS-ActiveCare would Contribution
$404 $404
leave member with a
monthly premium of $13
and lower out-of-pocket $192
expenses Monthly Employee Premium
$13
Non-Par Plan TRS-ActiveCare-Primary TRS-ActiveCare-Primary
(Min Distr. Contribution) ($404 Distr Contribution)
13TRS Offers Plans that are very competitive in the Texas Market
Total Cost = Employee Premium + District Contribution +
Employee Cost Sharing Across Tiers
$1,600
$1,400 TRS-ActiveCare Primary +,
Total Monthly Cost Per Employee
$845
$1,200 TRS-ActiveCare
TRS-ActiveCare HD, $807
$1,000 Primary, $732
$800
$600
$400
$200
$0
Each Bar Represents One Plan at a Non-Participating School Districts in Texas
14TRS Offers Plans that are very competitive in the Texas Market
TRS-ActiveCare Primary has a below average total cost
even among the lowest cost plans within each district
15TRS-Care One-Time Reenrollment Opportunity
• HB 2022 provides a one-time reenrollment opportunity for
• Former TRS-Care retirees eligible for Medicare, and
• Voluntarily terminated TRS-Care enrollment Jan. 1, 2017 - Dec. 31, 2019
• Returning retirees must re-enroll by Dec. 31, 2023
• Coverage starts on or after Jan. 1, 2022
16TRS-Care One Time Reenrollment Process
Retiree receives communication
Direct mail Attends webinar Visits TRS website Email from TRS
Retiree calls TRS to request application
TRS mails application to retiree to complete
Retiree returns application to TRS
Retiree is enrolled as early as Jan. 1, 2022 or the first of the following month after
TRS receives their application
TRS will begin accepting applications as early as September 2021 and will accept
throughout the year until Dec. 31, 2023
17TRS-Care One-Time Reenrollment Opportunity – Outreach Campaign
Presented Digital Enrollments
rules to communications & effective as early
board annual info session as Jan. 1, 2022
June July Aug Sept Oct Nov Dec Jan
Updated TRS Informed eligible UHC mails plan
website with retirees via mail materials
HB 2022
information
18TRS-Care & TRS-ActiveCare Customer Service Update
TRS-Care & TRS-ActiveCare Calls
Received by Carriers Service Level HIB & ACT
Received by ACT & HIB Received by Carriers 120.00%
140,000 100.00%
120,000
80.00%
100,000
80,000 60.00%
60,000 40.00%
Sept
40,000
20.00%
20,000
0 0.00%
May-21
Sep-20
Mar-21
Dec-20
Nov-20
Feb-21
Oct-20
Jan-21
Apr-21
Jun-21
Jul-21
Service Level for Carriers is 90% within 1 Minute 19Retiree Advisory Committee
Appointment of New Members and Vice Chair
• Terms for four positions expire in Jan. 2022
• Active School Administrator position, currently RAC Vice Chair
• Active teacher position
• Two retired teacher positions
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