The conference committee report for SB 12, the TRS funding bill, was filed on Saturday and should be voted on in the House and Senate sometime Sunday. (UPDATE: SB 12, along with SB 500, which provided funding for the bill, was approved by both chambers on Sunday.)

The bill will phase in increased contributions to the TRS pension fund by the state, active members and school districts, but will delay the active member increase for two years.

The Senate version of SB 12 had similarly increased contributions from all three sources, without the delay, and had included a supplemental "13th check" for retirees capped at $500. The House version, which TCTA supported, proposed increasing only the state's contribution with a 13th check capped at $2,400.

The compromise bill to be voted on Sunday contains the following:

  • A gradual increase in active member contributions from the current 7.7% of salary to 8.25% by 2025, with the first increase to 8% in 2021-22.
  • An increase in the state's contribution from 6.8% of payroll to 8.25% by 2025.
  • An increase in school district contributions from 1.5% of payroll to 2% by 2025.
  • A new requirement that districts that pay into Social Security must also pay the district contribution; they previously had been exempt.
  • A one-time supplemental check for retirees (those who had retired as of Dec. 31, 2018) capped at $2,000. The payment must be made by September 2020, but could be made sooner.

The increases in contributions will make the retirement fund actuarially sound immediately, increasing the likelihood that the system could afford a permanent increase in retiree benefits in the near future.

Funding for the additional state expenditures required in SB 12 - both the increased contributions and the supplemental check - is reliant on passage of the conference committee report for SB 500, which will also be considered in the House and Senate on Sunday.