INDIANAPOLIS (WOWO) — Indiana’s Pre-1996 Teachers’ Retirement Fund is expected to be fully funded by 2028, about a decade earlier than previously projected.
State Rep. Chris Judy, R-Fort Wayne, said Thursday that additional payments beyond the state’s annual appropriations are expected to allow the fund to reach full funding in 2028 rather than 2038.
The fund provides pension payments for teachers hired before July 1, 1995. It was established as a pay-as-you-go system, meaning benefits are paid as they come due.
The fund currently supports nearly 52,000 retired teachers and is expected to eventually cover about 3,900 additional teachers who are currently active.
Judy said reaching full funding sooner would reduce the long-term cost to taxpayers, including more than $1 billion in annual defined-benefit costs.
“This is a testament to Indiana’s fiscal responsibility and our commitment to education,” Judy said. “We’ve prioritized the funding of the pre-1996 teacher pension over the last several years, and I’m glad Hoosier educators can feel more secure in their retirements.”
The General Assembly has allocated nearly $14 billion to the Pre-1996 fund over the past decade, including more than $4 billion in additional contributions.
Indiana also continues to have one of the lowest debt burdens among states. According to S&P Global Ratings, the state has the fourth-lowest net tax-supported debt per capita in the country.
