Pension Fund's Fortunes Head South

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More news of troubled teacher pension funds. Texas's teacher pension shortfall grew by more than 50% last year. While the Texas Teacher's Retirement System has enough money to cover current retirees, the amount of money they will need to generate to keep the system solvent grew by $1.9 billion to $5.2 billion in 2003, representing a 58% increase. The trouble with the Texas pension seems to be more money going out than going on due to membership growth, benefit increases, and investment losses. Additionally, in 1995, the Legislature reduced its contribution to the constitutional minimum and the chickens have come home to roost.