Education, From The Capitol To The Classroom

Daniels Announces Indiana Teacher Retirement Fund Will Get $200M Of Budget Surplus

Gov. Mitch Daniels has divided more than $360 million from the Indiana’s budget surplus among five retirement and pension funds for state employees. Roughly $207 million went to the state’s teacher retirement fund — which is still several billion dollars short of being fully-funded.

“It’s not a pension fund. It’s a pay-as-you-go system so there’s not a funding number that applies to it. But we are nearing the date— it’s a very manageable amount, a few percent of each year’s state budget,” Daniels told Indiana Public Media statehouse reporter Brandon Smith. More from the AP:

“Gov. Daniels dismissed concerns about the teachers’ fund Thursday, but Senate budget leader Luke Kenley noted the problem will easily cost the state billions of dollars. State pension officials told lawmakers this year the teacher pension payouts could begin eating $1 billion from the state budget each year in about a decade.”

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