Keeping Promises to Retired Teachers

Since 2021, Senate Republicans made it a priority to pay off the money owed to the state's only pay-as-you-go pension plan, the Pre-1996 Teachers' Retirement Fund.

Before those efforts began, in 2018, the expected payoff date was in 2037, but thanks to Senate Republicans aggressively contributing $4.3 billion in extra payments, the state will now be able to pay off the Fund's liability in fiscal year 2028 with an estimated $160 million appropriation. Paying off this unfunded liability provides the General Assembly financial freedom and fiscal flexibility as the 2027 budget session approaches.

This is a huge achievement many states can't attain. What Indiana was able to do is significantly better than our neighboring states – Kentucky cut teacher pensions by millions of dollars, and Illinois has the seventh-worst funded teacher pension in the U.S.

By paying off the pension fund early, teachers around the state can be assured their pension is funded. Our teachers work tirelessly to shape the minds of Hoosier students, and they deserve a steady income for the hard work they put in.

In addition to the regular $1 billion in annual payments, Senate Republicans spearheaded the following contributions to the pension fund:

• The 2021 budget appropriated $600 million to the Pre-96 TRF.
• In 2022, Indiana's reserve amounts triggered the sending of $545 million to the Fund.
• A law passed during the 2022 session prompted $2.5 billion to be sent to the Fund to pay down the pension liability in fiscal year 2023.
• The 2023 budget appropriated $700 million to the Fund.

As we approach the 2027 budget session, Senate Republicans will continue their commitment to ensure Hoosier tax dollars are invested wisely and our budget is fair and balanced.