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Indiana officials expect saving $1B a year as teacher pension plan hits funded status
State officials say a $160 million payment in 2027 could bring the fund to 100% and end the $1 billion annual contribution.
- Indiana state pension officials announced Thursday that the fund covering teachers hired before 1996 could reach full funding status as early as the 2028 fiscal year.
- Since 2018, legislative budget writers have directed $4.3 billion in extra payments to the fund to resolve persistent unfunded liabilities, including $2.5 billion from COVID-19 pandemic relief reserves in 2022.
- Indiana Public Retirement System Executive Director Steve Russo told a legislative committee that a $160 million state payment in 2027 is projected to reach 100% funding status.
- House Speaker Todd Huston said the state expects to avoid future $1 billion annual payments, while Senate Appropriations Committee Chair Ryan Mishler called it 'financial freedom and fiscal flexibility' for the state.
- Russo cautioned that poor investment returns could necessitate more direct state money for the plan covering about 52,000 retired and 4,000 active teachers, emphasizing 100% funding is not a permanent endpoint.
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Coverage Details
Total News Sources11
Leaning Left4Leaning Right2Center3Last UpdatedBias Distribution45% Left
Bias Distribution
- 45% of the sources lean Left
45% Left
L 45%
C 33%
R 22%
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