FOR IMMEDIATE RELEASE
STATEHOUSE (Sept. 24, 2026) — Indiana is on track to fully fund the Pre-1996 Teachers' Retirement Fund nearly a decade ahead of schedule, marking a major victory for retired teachers, taxpayers and years of responsible budgeting, said State Sen. Chris Garten (R-Charlestown).
In 2018, the fund was not expected to be fully funded until 2037. Senate Republicans made eliminating that liability a priority and aggressively accelerated payments, directing approximately $4.3 billion in additional funding toward the plan. Indiana is now positioned to eliminate the remaining liability in fiscal year 2028 with an estimated final appropriation of $160 million.
“We made a commitment, made a plan and got the job done — nearly a decade ahead of schedule,” Garten said. “That's what Hoosiers should expect from their state government. We kept our promise to Indiana's retired teachers while protecting taxpayers and strengthening our state's financial future.”
For Garten, the accomplishment is also personal.
“My mom is a retired public school teacher, so I've seen firsthand the dedication teachers bring to the classroom and the impact they have on generations of Hoosiers,” Garten said. “Our teachers work hard, serve their communities and keep their commitment to our kids. They kept their end of the bargain, and Indiana is keeping ours.”
In addition to approximately $1 billion in regular annual payments, Senate Republicans have driven $4.3 billion in additional contributions to accelerate the payoff, including $600 million in the 2021 state budget, $545 million triggered by state reserve levels in 2022, $2.5 billion directed to the fund for fiscal year 2023 and another $700 million in the 2023 state budget.
Paying off the liability early will also give lawmakers greater flexibility as they write Indiana's next two-year state budget.
“This didn't happen by accident,” Garten said. “It happened because we made tough decisions, lived within our means and refused to kick the can down the road. Now we're eliminating a decades-old liability, honoring our commitment to retired teachers and freeing up future resources for Indiana's priorities. That's a win for teachers, taxpayers and the future of our state.”
The Pre-1996 Teachers' Retirement Fund is Indiana's pay-as-you-go pension plan for public school teachers hired prior to 1996 and is administered by the Indiana Public Retirement System.
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State Sen. Chris Garten (R-Charlestown) represents Senate District 45, which includes Clark County and a portion of Floyd County.
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Contact: Molly Swigart, Communications Director
molly.swigart@iga.in.gov
317-232-9521
