The Teacher Retirement System of Texas (TRS) has seen its fair share of criticism as it introduced a plan to lease space in a new upscale office tower in downtown Austin, even after the organization reversed course.

Legislators held a hearing to learn more about the TRS lease that would cost at least $326,000 a month, or $3.9 million annually, in the Indeed Tower, which is currently under construction. Many lawmakers, from State Rep. Jim Murphy (R-Houston) to Lt. Gov., Dan Patrick, questioned why the pension system needed lavish offices in the most expensive area of Austin.

In a Feb. 25 hearing at the Capitol to discuss TRS’ lease, Sen. John Whitmire (D-Houston) called it a sign of “arrogance and a lack of oversight.” 

The lease at the tower was “a good sound financial decision that made sense for the trust fund when it was signed,” said TRS Executive Director Brian Guthrie during the hearing.  But TRS decided on another option, expanding the space at the current location, 816 Congress Avenue.

Even though they’ve decided not to move part of the organization to the luxury high rise, the organization will still be responsible for a 10-year lease on 100,000 square feet in the building. However, TRS officials say they’ve been told that they should still be in good shape if they can sublease the space, according to a Feb. 21 article in the Austin-American Statesman.

The newspaper quoted TRS Vice Chairwoman Nannette Sissney as saying that space was not available at the current location when the lease at Indeed Tower was signed in February 2019. The next step is to negotiate an extension of its lease in the current location.