Updated May 2026 · DOL Form 5500
State of Texas Pension Plans
Government
State of Texas sponsors two distinct defined-benefit plans covering 2,057,000 active and retired participants, placing the sponsor among the larger U.S. private pension liability holders. The combined plans are underfunded at 76.9% average funding ratio — meaningfully below the 80% threshold actuaries treat as healthy. Worst single-plan grade is B.
State of Texas's pension obligations span 2 plans serving 2,057,000 participants, with $224.5B in assets backing $291.9B in projected liabilities. Average funding sits at 77% — within typical corporate-pension range but not without ongoing funding obligations.
The plans on file for State of Texas include both active accrual plans (still adding benefits for current employees) and frozen plans (paying out earned benefits without new accruals). The worst grade among the plans is B — a useful flag for which specific plan to examine most closely. State of Texas operates in the Government sector. Industry context matters for pension analysis: cyclical industries with volatile cash flow face harder funding patterns than steady-margin sectors, and the underlying ERISA and PBGC obligations are uniform across sectors regardless.
What the Numbers Mean for State of Texas
State of Texas's combined pension footprint reports $224.5B in plan assets against $291.9B in accrued benefit obligations, producing an aggregate funding ratio of 76.9%. The unfunded gap of $67.4B is the dollar amount that would have to be contributed today, on top of expected investment returns at the assumed discount rate, to bring every plan to 100% funded.
State of Texas's weakest plan earns a B — the sponsor's pension footprint is solidly funded, with at most minor gaps or flat trend lines on individual plans. The worst-grade signal is more useful than the average for a multi-plan sponsor — a healthy aggregate average can mask a single critically underfunded legacy plan inherited through acquisition. Participants in a specific plan should look at that plan's individual page rather than the company-level average.
State of Texas is required under ERISA to file Form 5500 annually for each plan, with Schedule SB disclosing the actuarial valuation, funding target, and minimum required contribution. Schedule SB filings are publicly available through DOL EBSA. The Pension Benefit Guaranty Corporation separately publishes the federal guarantee that backstops these single-employer defined-benefit plans up to the statutory annual maximum.
Plans Sponsored by State of Texas
| Plan Name | Type | Participants | Funding Ratio | Grade |
|---|---|---|---|---|
| Teacher Retirement System of Texas (TRS) | public | 1,730,000 | 78.1% | B |
| Employees Retirement System of Texas (ERS) | public | 327,000 | 70.1% | B |
How This Grade Is Calculated
Each plan's Pension Health Score combines three signals: funding ratio (50% of the composite), 3-year funding trend (30%), and PBGC risk level (20%). All three come directly from DOL Form 5500 filings and PBGC publications. The company-level "worst grade" surfaces the weakest plan in the sponsor's pension footprint — a useful signal for participants because legacy plans inherited through M&A often differ materially from the sponsor's active plans. Read the full methodology.
Frequently Asked Questions
How well-funded are State of Texas's pension plans?
State of Texas's 2 pension plans are on average 76.9% funded. Underfunded status means the plans hold meaningfully below the 80% threshold actuaries treat as healthy. Total assets stand at $224.5B against $291.9B in accrued liabilities, leaving an unfunded gap of $67.4B.
Is State of Texas's pension protected by PBGC?
Corporate single-employer defined-benefit plans like the ones State of Texas sponsors are insured by the Pension Benefit Guaranty Corporation up to a statutory annual maximum that varies by retirement age. PBGC publishes the current guarantee tables at pbgc.gov. Multiemployer plans, if applicable, fall under a separate PBGC insurance program with a much lower per-participant guarantee. The protection is real but capped — high earners with benefits above the PBGC maximum can lose the portion above the cap if a plan terminates underfunded.
What does the B grade mean for State of Texas?
State of Texas's weakest plan earns a B — the sponsor's pension footprint is solidly funded, with at most minor gaps or flat trend lines on individual plans.
How many of State of Texas's plans are underfunded?
Of 2 plans sponsored by State of Texas, 0 are fully funded (100%+) and 2 fall below the 80% actuarial benchmark. Participants in any underfunded plan should request the most recent Annual Funding Notice, which is mailed annually under ERISA Section 101(f) and discloses the plan's adjusted funding target attainment percentage.
Where does this data come from and how current is it?
Every figure on this page comes directly from the Department of Labor's EBSA Form 5500 datasets, which compile every ERISA filing submitted by U.S. corporate pension sponsors. The most recent filings reflected here are from May 2026. Form 5500 typically lags plan year-end by 9–12 months. State of Texas is classified in Government.
State of Texas sponsors two distinct defined-benefit plans covering 2,057,000 active and retired participants, placing the sponsor among the larger U.S. private pension liability holders. The combined plans are underfunded at 76.9% average funding ratio — meaningfully below the 80% threshold actuaries treat as healthy. Worst single-plan grade is B.