Continuously serving Kosciusko County since 1854
State Rep. Craig Snow (R-Winona Lake) applauded the announcement at a recent Interim Study Committee on Pension Management Oversight meeting that Indiana's Pre-1996 Teachers' Retirement Fund is expected to be fully funded a decade earlier than projected.
The Pre-96 fund supports pension payments for Hoosier teachers hired before July 1, 1995. It was designed to be a "pay-as-you-go" model where benefits are paid out as they come due. The fund supports nearly 52,000 retired teachers and will support approximately 3,900 additional currently active teachers, according to a provided news release.
Snow said additional payments on top of the annual appropriations will make the fund fully vested by 2028 instead of '38, saving future taxpayers the need to cover over $1 billion annually in defined benefit costs.
"Indiana's strong fiscal responsibility is creating lasting benefits for Indiana teachers and taxpayers," said Snow, who serves as vice chair the House Ways and Means Committee. "By fully funding the Pre-96 teacher retirement fund ahead of schedule, Indiana has shown a commitment to Hoosier educators and saved schools and taxpayers billions of dollars."
The General Assembly has earmarked nearly $14 billion to the Pre-96 fund in the last decade. More than $4 billion of that was additional contributions.
Indiana continues to maintain one of the lowest debt burdens among all states, the release states. According to S&P Global Ratings, Indiana has the fourth-lowest net tax-supported debt per capita in the country.
